Hyderabad-based engineering and technology solutions provider Cyient Ltd on Thursday announced that its board has approved a share buyback plan worth Rs 720 crore. The company intends to repurchase 64 lakh shares through the tender offer route at a price of Rs 1,125 per share.
Management Commentary on Buyback
Krishna Bodanapu, executive vice chairman and managing director of Cyient, stated that the board's approval reflects its view that the company's intrinsic value was not fully reflected in the current market price. He emphasized that strong cash generation has provided Cyient with the flexibility to invest in growth while simultaneously returning value to shareholders.
"While we are making a buyback, we are confident that we will have strong cash flow to invest in future growth. I am confident that with the leadership team, a scalable and resilient operating model, and a value-driven culture, we remain focused on driving profitable growth and long-term value creation," Bodanapu added.
Fundraising Plans
Additionally, the board has given in-principle approval for the company to explore a market fundraise through a mix of debt and equity to support future growth initiatives.
Financial Performance
Despite the buyback announcement, Cyient reported a steep 65% decline in consolidated net profit for the quarter ended March 31, 2026, falling to Rs 65.5 crore from Rs 186 crore in the corresponding quarter of the previous fiscal year. This came despite a marginal increase in consolidated total income for the fourth quarter, which rose to Rs 1,954 crore from Rs 1,950 crore in the same period last year.
For the full financial year 2025-26, the company posted a 29% drop in net profit at Rs 463 crore, compared to Rs 648 crore in 2024-25. Consolidated total income for FY26 also decreased slightly to Rs 7,445 crore from Rs 7,457 crore in the previous year.
