Cyient Q2 profit drops 40% YoY amid wage hikes, seasonal headwinds – News Air Insight

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India’ Cyient on Thursday reported a nearly 40% fall in profit, as a higher wage bill in a seasonally tough quarter weighed on the engineering research and development firm.

Consolidated net profit came in at 1.28 billion rupees ($14 million), down from 1.79 billion rupees last year.

Revenue remained largely flat, down 1% to 18.31 billion rupees, from 18.49 billion rupees a year ago.

Cyient had changed the way it reports its segment-wise revenue from the last quarter onwards, after it carved out its semiconductor business into a separate subsidiary unit.

KEY CONTEXT


While U.S. policy shifts – including President Donald Trump’s proposed H-1B visa changes – have rattled India’s IT services sector, Cyient has stayed relatively insulated, thanks to its limited overseas workforce and focus on project delivery from India. The company, which counts Honeywell and Bharat Electronics among its clients, had deployed just six workers on H-1B visas in FY25, and does not anticipate material impact on its financials for FY26, the company said in September. Still, supply chain bottlenecks have weighed on its engineering R&D operations, particularly in its transport, mobility, and semiconductor businesses.

President and chief financial officer Prabhakar Atla highlighted headwinds from wage hikes as well as ongoing macroeconomic uncertainties, as some reasons for the company’s performance this quarter.

Peer Tata Elxsi reported a drop in profit for the fourth straight quarter last week, as its key transportation business declined.



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