Motilal Oswal Financial Services has reiterated a ‘Sell’ rating on Cyient, with a target price of ₹1,120, citing concerns over margin pressures and a subdued outlook for FY26.
While the company’s Q1 revenue came in line with estimates, profitability remained under pressure as margins missed expectations. Despite onboarding 14 new client logos during the quarter, MOSL believes the business momentum remains tepid.
The brokerage expects the first half of FY26 to remain weak, thereby impacting revenue and margin trajectory for the full year. Consequently, earnings estimates for FY26 and FY27 have been cut by 4–5%.
MOSL remains cautious given the lack of near-term triggers and sustained margin headwinds despite steady client additions.
Disclaimer: The views and investment recommendations expressed above are those of Motilal Oswal Financial Services and do not represent the views of this publication. Investors are advised to consult their financial advisor before making any investment decisions.
