Cyient Faces Profit Dip Amid New Labour Codes Impact

Cyient reported a 24.9% decline in net profit due to a one-time provision from new Labour Codes, affecting December quarter FY26 results. Revenue from operations dipped 4%, with the HVAC segment showing resilience. Despite challenges, the company aims for a strong fiscal year ending.

In a noteworthy turn of events, engineering services company Cyient reported a significant 24.9% decline in its net profit for the December quarter of FY26. This drop, attributed to a one-time provision linked to the implementation of new Labour Codes, brings the earnings down to Rs 91.8 crore.

The company's revenue from operations also saw a reduction, falling by 4% to Rs 1,848.5 crore compared to the previous fiscal's Q3 results. Notably, on a quarterly analysis, profits fell by 28% while the revenue saw a slight increase of 3.7%.

Notably, amid a challenging macroeconomic climate, Cyient's DET segment demonstrated growth resilience. The company continues to focus on cost optimization and is optimistic about exiting the fiscal year on a strong note, bolstered by steady revenue growth and EBIT expansion.

(With inputs from agencies.)