Shares in Cyient surged after unveiling an ambitious growth blueprint at its Investor Day, revealing a significantly expanded market and higher profit targets. While some brokerages are optimistic, others remain cautious about execution, as the company prepares for a major shift in its business model and future revenue streams.
Cyient shares climbed after the engineering and technology services company used its Investor Day in Mumbai to lay out a more ambitious path for growth, margins and deal wins. The stock rose sharply on Wednesday, extending a two-day rally to about 15%, after investors reacted to a bigger addressable market and a plan to improve profitability over the medium term.
The company said it now sees a total addressable market of roughly $288 billion to $384 billion, far above its earlier estimate of about $10 billion. That shift reflects a broader push to move beyond conventional engineering and research services and to take on more of the engineering lifecycle, with management aiming to sell outcomes rather than just capacity, according to the materials presented at the event and reported by brokerages.
Cyient has framed FY27 as a transition year, with a stronger growth phase expected from FY28. Management is targeting double-digit order intake growth in FY28 and FY29, helped by larger contracts, while also aiming for EBIT margins of at least 15% by FY28 and around 16% by FY31. Reuters-style reporting from brokerages noted that the company’s digital, engineering and technology business has already shown some margin progress, with EBIT margin rising to 13.2% in the latest quarter from 12.2% in FY26.
Brokerages were divided on whether the strategy is enough to justify the share-price surge. JPMorgan kept an Overweight rating and a target price of Rs 1,050, saying Cyient’s shift towards more predictable and profitable growth was encouraging. Morgan Stanley, by contrast, retained an Underweight view and a target of Rs 820, arguing that the benefits may take time to show through and that investors still need to see proof of execution.
Other brokerages were also split. Motilal Oswal kept a Sell rating with a Rs 740 target, citing a back-ended recovery and caution around the semiconductor opportunity. Nuvama raised its target to Rs 1,050, while Choice Institutional and Antique Stock Broking maintained Buy calls with targets of Rs 1,200 and Rs 1,125 respectively, according to reports. Cyient Semiconductors has become an important part of the growth story, with the unit targeting almost four times revenue growth by FY31, a gross margin of about 40% and an EBIT margin above 20%.
The company also said its large-deal pipeline has reached a record level, with nine qualified deals worth around $300 million in total contract value. That backdrop has helped fuel optimism, but analysts said the key question is whether Cyient can convert its larger opportunity set into sustained order growth and higher margins.
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