Brokerages cut target price on this mid-cap IT stock after Q4FY25 miss. Is it in your portfolio?

Cyient Share Price: Shares of Cyient, one of India’s leading IT companies, plunged 9.5% in intraday trade on Friday, April 25, falling to ₹1,125 apiece. With today’s decline, the stock has lost nearly 7% of its value this month and is now trading 52% below its all-time high of ₹2,458, recorded in December 2023.

Why did Cyient share price cracks 9% today?

The sharp fall in Cyient’s stock followed multiple brokerage firms trimming their target prices after the company’s March quarter results (Q4FY25) fell short of analyst expectations. Additionally, the management refrained from issuing guidance for fiscal year 2026, citing prolonged macroeconomic headwinds.

The Design, Engineering, and Technology (DET) segment—accounting for over 77% of Cyient's total revenue—reported Q4FY25 revenue of USD 170 million, marking a 1.9% QoQ decline in constant currency (CC) terms, missing Motilal Oswal’s forecast of flat growth.

Connectivity revenue fell 4% QoQ in CC terms, while the transportation and new growth areas segments declined by 1.1% and 5.9% QoQ CC, respectively. The EBIT margin for the DET business contracted by 50 basis points QoQ and 300 basis points YoY to 13%, below brokerage estimates of 13.5%.

Service order intake also remained subdued at USD 181 million, down 19% YoY. DET’s profit after tax (PAT) rose 31% QoQ to ₹1,631 million but was down 6% YoY, marginally ahead of the ₹1,579 million estimate. For FY25, DET's revenue, EBIT, and PAT declined by 1.6%, 17.5%, and 12% YoY in INR terms, respectively.

Macro headwinds impacted performance in Mar’25. Management expects this uncertainty to persist in the near term.

Analysts cut target price on Cyient stock

Following the company’s December quarter performance, domestic brokerage firm Motilal Oswal maintained its 'Sell' rating on the stock with a target price of ₹1,120 apiece. The brokerage had lowered its rating on the stock in January after the company delivered a weak set of numbers for the quarter ended December.

"We maintain our sell rating on the stock as we believe a weak 4Q and a seasonally weak 1H could lead to lower revenue growth for FY26E, and margins could be impacted in a similar vein," said the brokerage.

It has cut its earnings estimates by 5% for FY26E/FY27E, largely due to a recalibration in margin expectations and industry-wide uncertainties in key growth areas such as sustainability and aerospace.

Global brokerage firm Morgan Stanley trimmed its target price on the stock to ₹1,050 while maintaining its 'underweight' rating. The firm cited limited growth visibility in the fourth quarter of FY25 as a key concern.

It highlighted the absence of growth guidance, which limits clarity for FY26, along with lowered margin aspirations and delayed recovery timelines. Additionally, the brokerage noted that the upcoming review of the company’s dividend policy will be a key factor to watch. Despite these concerns, it acknowledged that the stock currently trades at relatively attractive valuations.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.