IT stock jumps after launching new semiconductor subsidiary to boost its presence in global chip industry

The shares of the engineering and technology solutions provider gained up to 1 percent after the company launched its subsidiary to enter into the semiconductor space.

Price Movement

With a market capitalization of Rs 12,621.79 crore, the shares of Cyient Ltd were trading at Rs 1,136.70 per share, decreasing around 1.48 percent as compared to the previous closing price of Rs 1,153.80 apiece.

Reason For Rise

According to the company filing, Cyient Ltd launched a semiconductor subsidiary, Cyient Semiconductors. This strategic move strengthens the company’s commitment to innovation and excellence across the global semiconductor landscape.

Moreover, Cyient delivers end-to-end ASIC turnkey solutions and semiconductor design services across industrial, data center, automotive, and medical sectors. Through strategic organic and inorganic growth, Cyient Semiconductors has built high-performance teams across India, the U.S., Germany, Belgium, the Netherlands, and Taiwan, strengthening its global semiconductor capabilities.

Bulk Deal

Recently, HDFC MF acquired an additional 6.23 lakh equity shares in the company at an average price of Rs 1,099 per share, amounting to Rs 68.56 crore. Earlier, HDFC held 22,33,112 equity shares, which is equivalent to 2.01 percent of the company.

However, NWBP, as the depository participant (DP) of First State Indian Subcontinent Fund A Sub Fund of FS INVTS ICVS, sold ~6.79 lakh shares at an average price of Rs 1,099.72 per share, valued at Rs 74.74 crore.

Also read: 4 Monopoly stocks trading at a discount of up to 62% to add to your watchlist

Financial Performance

The company reported a zoom of 6 percent YoY in revenue from operations from Rs 1,821 crore in Q3FY24 to Rs 1,926 crore in Q3FY25. Their Net profits also slipped by 16 percent YoY from Rs 153 Crore to Rs 128 crore over the same period.

Business Performance

Cyient Ltd. reported its highest-ever order intake in Q3 FY25, securing 13 large deals and showcasing strong operational performance. With an all-time high order pipeline, management anticipates a solid Q4 FY25, calling it a “decent growth quarter,” and expects strong results for FY26.

Market Dynamics

The management observed improved client spending across key verticals, boosting confidence in FY26 revenue growth. Strategically positioned to harness technological advancements and evolving market needs, the company remains focused on aligning solutions with customer demands, ensuring sustained growth and competitive advantage.

Margin Guidance

Cyient is implementing Phase II of its structured cost optimization program, targeting a 100–150 basis points improvement in EBIT margins by FY26. The company also aims to boost its offshoring percentage to further enhance margins and drive overall operational efficiency.

Company Overview

Cyient Limited is an India-based global engineering and technology solutions company. The Company is engaged in providing global technology services and solutions, specializing in geospatial, engineering design, information technology solutions, and data analytics.

Written by Abhishek Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post IT stock jumps after launching new semiconductor subsidiary to boost its presence in global chip industry appeared first on Trade Brains.