Brokerage views on Cyient remain cautious after the company posted a muted performance in Q1FY26, with both Nuvama and Motilal Oswal expressing concern over near-term growth and margin outlook.
Nuvama has maintained a ‘Hold’ rating with a target price of ₹1,200, flagging a soft start to FY26 due to weak growth and margin pressures. The brokerage noted that while Q1 focused on stabilisation, it expects gradual improvement in the coming quarters. However, it cut EPS estimates for FY26 and FY27 by 4.4% and 0.9%, respectively, due to lower-than-expected growth and margins.
In contrast, Motilal Oswal remains more cautious, maintaining a ‘Sell’ rating with a lower target price of ₹1,120. The firm pointed out that although revenue was in line during Q1, margins missed estimates and a weak first half is likely to weigh on full-year performance. MOSL also trimmed its FY26/FY27 estimates by 4–5%, citing limited near-term triggers despite the addition of 14 new clients.
While Nuvama awaits signs of recovery in subsequent quarters, Motilal Oswal sees further downside risk in the stock due to sustained margin pressures and a subdued demand environment.
Disclaimer: The views and investment recommendations expressed above are those of the respective brokerages and do not reflect the opinion of this publication. Investors should consult their financial advisor before taking any investment decision.
