Cyient approves Rs 720 crore share buyback as Q4 profit falls sharply. Check premium

Cyient approved a share buyback worth Rs 720 crore, alongside reporting a weak March quarter performance where profit came in well below street expectations. The engineering and technology services company said it will buy back up to 64 lakh shares at a price of Rs 1,125 per share. This is a 20% premium over the last traded price.

The buyback marks the company’s first capital return via this route since 2019 and comes even as it skipped dividend distribution for the year and indicated plans to explore fund-raising to support future growth.

For the fourth quarter, Cyient reported a consolidated net profit of Rs 54.8 crore, sharply lower than previous year’s Rs 170 crore. The miss was largely due to a one-time exceptional charge of Rs 71.2 crore linked to a proposed acquisition that did not go through.

Revenue performance, however, remained strong. Total revenue for the quarter stood at Rs 1,954 crore, beating estimates of Rs 1,757 crore, indicating underlying business resilience despite the profit pressure.

Total expenses rose 5.4% year-on-year to Rs 1,786 crore, reflecting higher operating costs and the impact of ongoing investments in capabilities and growth initiatives.

Commenting on the results, Krishna Bodanapu, Executive VC and MD, said, “In FY26, Cyient Group sustained its growth momentum, with sequential QoQ growth, delivering results in line with expectations across key segments. Our strong cash flow and cash position gives us the confidence to invest in the business as well as return value to shareholders.”

Shares of Cyient had already declined about 2.8% ahead of the results.