Good evening and thank you for taking my question. My first question was on the three segments, starting with strategic units you have seen, I think, a decline for the last two quarters do you think that we are now at the bottom for this segment, or do you think that there is still some further impact because of some of the delays in discretionary spends that you noted in your remarks?

To answer your question, as I mentioned, there are essentially three markets included over there and we definitely see strong potential and the numbers are also reflecting that in terms of growth in two of them. For one of them, which is energy, as I highlighted, we might have one or two quarters, I would not say of softness, but for growth to rebound we probably will need one or two more quarters. So our overall attempt should be to narrow the gap, if not make it flat for this particular quarter. That is what we are working towards.

Sure. Understood. Just on your transportation and mobility, obviously growth has been strong for you there, again is there a particular project or ramp up that is driving this or that is more of a function of the broader aerospace sector where you are seeing growth going forward?

No, it is not driven by one project. In fact, as you know transportation & mobility constitutes of aerospace, rail and automotive. We have growth in all three of those segments quarter-over-quarter as well as double digit growth year -over-year in each of those three segments so it is pretty holistic growth that we are driving across these three markets.

Sure, understood. Lastly, on semiconductors, I know, Krishna, you highlighted a fairly strong demand environment for the entire segment . Any sense in terms of how do you see breakeven coming through for the semiconductor business, especially on a PAT level, given that we have already taken some debt for the Kinetic acquisition, and also your expectations in terms of growth for the rest of the year?

Growth will continue to be very strong, we see a strong pipeline, both for the signed organic business and the acquired entity, which is Kinetic Technologies. So from a growth perspective, we are not overtly worried in that sense. I think there is a very, very good growth opportunity. Now, in terms of breakeven, it looks like breakeven will happen only in FY28 and if you look at a gross level it has a very healthy gross margin. Our semiconductor business has a higher gross margin than the services business, which is expected, but as I said, there is two parts to the custom product or ASSP business. One is, of course, what we acquired, but the second is the design and development of certain high voltage products. Now, that still will consume cash for the next four, five quarters at least. That is why I say break even in FY28 , but also you have this amortization, because of the acquisition of Kinetic and that is why there is about $3 million a quarter there that we have to cover up. That is why net-net growth is good, breakeven in 2028.

Got it. Thank you for taking my questions.

Thanks for the opportunity. My only question is on the energy vertical or within the strategic unit. If I think about two years back or so, we were going exceptionally well here in this vertical , b ut let us say three, four, five quarters, the momentum has faded away whereas if I look at one of your peers, a larger peer, they are continuously winning good deal wins here , s o if you could elaborate on rational e with respect to the loss or market share loss here, why is that?

I think to answer your questions, two parts, the numbers that you are referring to, which were strong a couple of years back w ere built on one single, very large project and I think we have in our commentary over the last four, five quarters talked about the ramp downs we were facing in that project, which is now completely over. The project is completed. What now we have been working on is, and I understand the comparison you are making, and that is why in my commentary I also said that steps we have taken and the changes we have done, we feel very confident in next two, three quarters we will be showing comparable numbers to the market and those are to do with two, three different things. One, as I mentioned, the change in the go -to-market team, which had to be done in some pockets to align with what the market needs are. Second, to prioritize on which offerings that we take to the market, given the current market conditions and third, to broaden the service portfolio that we have been taking to that market, instead of just depending largely on plant engineering we have broadened our service portfolio, in fact it is already reflected in one of our large deal wins in Q1, where we won, and I think it is highlighted in the key deals as well, with one of the large energy OEMs, we won a multi -year large deal for digitalization of their service parts catalog . T hese are the kind of projects , which expands our service portfolio to these customers that we already have as our logos and those are the three steps we are taking to make sure that that turnaround gets done towards the results that we are seeking.

Understood. Thank you.

Thank you. A quick reminder to our participants. If you wish to ask a question, you may click on the raise hand icon. Our next question is from Dipesh Mehta of Emkay Global. Please go ahead.

Thanks for the opportunity. Two questions. First on the revenue growth side, considering, if I understand correctly, you are indicating energy most of the weakness is behind , growth will take some time , so considering the negative headwind is largely behind and other two segment you expect growth to continue should we expect positive growth to return starting Q2 and as year progresses momentum to accelerate in FY 27 from revenue growth perspective that is question one? Second question is on the EBIT margin what you indicated you are deferring some of the timeline of 15 %, can you provide more detail around it when

one should expect your margin trajectory to be 15 % and above 15 % kind of trajectory ? Thank you.

Sure, I will take the first question and I will ask Shrini to comment on the second one. On the commentary that you made is largely correct I think the growth numbers that we are trying to pursue will obviously build up slowly over the quarters, but that is definitely the visibility and the perspective we have at this point in time. Shrini, on the margin question on EBIT.

Yes, I think like Suk amal explained on the call, I think our EBIT trajectory and growth has two elements to it working in tandem. One are the cost levers and the optimization levers, which are largely in our control and the second is on the absorption that we would expect from growth. Now, on the first part, which is in our control , those are on track. I think we are working on a number of levers like the rate increases from customers, the productivity and automation-related savings, taking the G&A optimizations, etc. , but on the second part, since growth has been muted, I think we will see the absorption coming in a little late. We have also taken a conscious call not to stop any of the investments that we are making, which is required for the rebound and for the growth momentum to come back. So we will see a path towards 15%. It will take us a couple of quarters into the next year by which time we hope to get there.

Understand and any thought around the wage hike during this period when you say let us say my understanding is you are indicating somewhere in H1 end we should be reaching 15% and how to look wage hike in this period?

No, I said we will reach 15% in H1 next year not this year.

Yes FY28 I said

Yes, so, the wage hike is a different conversation . That is driven by the market forces. We will take a call looking at all the scenarios in the beginning of H2 on the wage hike itself.

Thank you.

Thank you, Mr. Mehta. Our next question is from Shradha Ag arwal from Asian Market Securities. Please go ahead.

Just on the revenue question again. So I think earlier we had broadly indicated that revenue growth in 2027 will be in the mid to high single digit range with whatever commentary you have around strategic unit what is the outlook on revenue that we want to give now and

with TAO Digital Solutions acquisition getting consolidated, say, from Q 3 or probably one month of Q2, how should we look at revenue including TAO?

I will answer the first part and then I will hand it over to Sukamal. See, on the revenue, first of all, there was no guidance from us, right? We said we were aiming towards a mid-single digit growth. Now, of course, that will be challenged or given just the way the mathematics works, if you have not started the year with a growth, I think the ask rate for the rest of the year does become very hard. Of course, we are very hopeful of growth returning in a meaningful way in H2 of this year. We are still working through the numbers. We do not have the details to give a specific commentary on where that will land us. TA O will definitely add. Sukamal, you want to add.

Yes, sure. So TA O, as you might be aware, we are still in the closing process and it is anticipated to be sometime in the late Q2 timeframe and I think we had indicated regarding the revenue it brings and once we close we will be able to be in a better position , but it definitely will be closer to about $40-50 million range if you are able to close with the timelines that we are sharing right now.

Right. I understand the order book number for this quarter has been quite strong so what has driven that , it is mostly led by the new business, but what about renewa ls in the existing order book, has that seen a decline because of some client -specific issues or what has been the reason?

I think two, three broad factors. Number one, a lot of project -based work, which came to end and some of them w as already planned, so it is not a surprise or most of it was already planned, not a surprise. Second, as I mentioned, some of our segments and discretionary projects to restart, there has been a delay and some of these we count as renewals because these are more regular projects that our customer hands over to the same team , so there are some delays in that, and those were the two primary reasons why existing business renewal was a little depressed. But having said that it has nothing to do with any structural issues or market issues it has more to do with some of the timing and both from a project perspective as well as customer willingness to commit to new projects.

Got it. Thank you.

Thank you. Our next question is from Sandeep Shah of Equirus Securities. Please go ahead.

Thanks for the opportunity and congrats on a good execution, especially on margins in the DET. Just first question, there is a consistent growth in the transportation and mobility. So, just Sukamal wanted to understand, is this a restructuring of the portfolio where dependence

on project base d versus annual sticky kind of revenue, which is helping us or is it more to do with the higher demand?

I think it is a combination of both. I think there is no question that the market has some tailwinds, but let us also understand that a large part of what we are achieving today in terms of our results came through discovery of where those opportunities lie . What I talked about in terms of lifecycle engineering had a lot to do with making sure that we can expand our footprint beyond just the ER&D dollars or R&D dollars of our customers . So it is a combination of both and I think as I have been highlighting in our previous calls as well, what is happening in this industry is a volume growth, as in volume of number of assets and that is what drives some of these revenue streams and that is what we went ahead, identified very early on and it is translating into the numbers that we are seeing.

Within your sustainability or strategic unit, which also includes energy , utility and sustainability. One of the participants asked this question, the peers are showing a very high double-digit mid-teen kind of a growth I believe the Citec asset when we acquired it was Europe centric and we wanted to cross sell to the other set of accounts , so do you believe that exercise has started or will like to start because generally Europe has a seasonal weakness in the Q 2 because of the holiday season . So with a widespread portfolio across market on these kind of verticals or industry will help us to negate the volatility in the growth rates , s o how should we see the growth path and the cross -selling upselling to different markets through Citec?

So just to clarify first, strategic units is a composition of energy, mining and minerals, and healthcare and coming back to your question on energy, yes, the cross -selling into North America especially has started. We probably will not have meaningful results for this Q2, but the idea is to make sure that we build up the momentum so we can do some geography mitigation for next Q2 that is definitely an aim that we are working on and some of the other things that we are working through has to do with multiple other dimensions of expanding the business, including taking the same capability to other segments. We also have a very unique capability in nuclear engineering, and obviously there is a lot of tailwinds in that market as well, both in North America, as well as some of the recent announcements which have happened in Europe and we are working on making sure that we can tap into that. We are in, I would say, mid -stages of conversation with some of these new customers, so we anticipate to start seeing wins in nuclear energy in about a quarter to two quarters in a significant way. So it is a combination of geographic dispersion, taking capabilities which are in energy into some of the other market segments where plant engineering capabilities are definitely required as well as making sure that we take full advantage of our capabilities on nuclear engineering.

Just some clarification about TA O Digital Solutions, so, Shrini just wanted to understand whether the progress in the first half of CY26 , which o ne can assume still the EBITDA margin of closure to 20% and maybe EBITDA margin of high teens, s o the assumptions have changed because of macro headwind impacting many players in the industry?

Sandeep, I think it is not prudent to talk about their numbers before the closing. As a part of the closing process, we are awaiting their updated financials that is one of the deliverables and I think on closing we will be able to confirm what the numbers are and what the sustainable number.

Fair enough and just Shrini with the TAO and 20 million debt in the semiconductor, our overall debt if I am not wrong may go to 250 million odd , so what average cost of debt we should model for the upcoming debt financing for the M&A?

The debt in Kinetic is a Singapore -based debt, which is at quite a low interest rate. It is roughly 1.25% plus the spread, right? So, including spread, it will be less than 3%. The debt for TAO will be a US dollar -based debt so it will again be a SOFR plus some spread . It is also fairly low compared to our cost of capital. So these are all substantially lower than the debt that you would raise in India.

Thanks and all the best.

Thank you. Our next question is from Bhavik Mehta from JP Morgan. Please go ahead.

Thank you. So just one question, just going back to the growth side of things. How are the client conversations progressing over the last three to four months given the geopolitics uncertainty still remains, supply side issue I think still remains . In this backdrop do you think the growth that we saw in transportation and telecom can sustain or it is difficult to call out given the volatile environment?

Since you called out transportation, the way we see right now on existing programs and programs which have already been budgeted for, we are not seeing any impact yet , b ut theoretically, if the disruption continues longer, definitely there is a threat to the number of flying hours, which has already had some impact and if this continues for a longer period of time it can definitely create some disruption. So far, we have only seen this in very select discretionary projects and value -add projects. We have not seen it in the business as usual. That is how we see it today, and we have seen it over the last two, three months , b ut obviously, if flying hours continue to be affected, revenue gets affected in the industry, and that obviously will translate to some compression. So that is what I would say. A lot depends on how long this war goes on.

Thank you and similarly, on the telecom side, any comments?

On telecom side, as you know, a large part of our business is focused on fiber build -out and there is significant capex spend, which have been announced by almost all of our customers, significant customers. So in terms of what is ahead for us in building out the infrastructure that they have committed as part of several government initiatives and again, just to clarify, not funded by government, funded by these organizations as private corporations that visibility remains strong. There are some seasonalities that this business is affected by, especially around their fiscal year and how they start off spending their funds for these new products , b ut other than that seasonality aspect, I think we see very clear visibility. As you know, with the Celfinet acquisition, which happened a couple of years back, we also started diversifying into more holistic offering in the connectivity market and a large part of the funnel growth and some of the deals that I talked about is actually coming from the diversification efforts we are driving. So, once that starts translating results, I think it will also help us cover for some of these seasonality aspects that I mentioned a little while back.

Got it. Thank you.

Thank you. We will take a last question from Raj as Joshi from ChrysCapital. Please go ahead.

Good evening and thank you for the opportunity. I had a question regarding our current group structure. So, as things stand, DLM is a partly owned subsidiary for us and is there a plan for a clean demerger given how things have shaped up over the past few quarters now because that would help with regards to significant value unlock for shareholders in the main Cyient entity?

Right now, we are still not considering that because there is quite a dependence between DLM and Cyient. I think DLM still benefits quite a bit from Cyient’s engineering capability and vice versa. If you look at even a lot of the engineering deals we win are because of the manufacturing capability that we have because that brings in a huge differentiator compared to anybody else in the market. So we believe that the intent of establishing its own capital structure was to provide an avenue towards value unlock. So obviously that value has been established and that value is available to the Cyient shareholders, of course indirectly, and will continue with this structure at least for the foreseeable future.

Thank you for the detailed answer.

Thanks for taking my question. I am going back to the growth and the delayed decision - making again. So, the delayed decision -making and ramp -ups that you have seen, is that still persisting or have the deals which had been delayed have they started ramping up which could actually result in a better outcome in Q 2 than you initially expected? How are you looking at that aspect?

Let me clarify first. I think it is an industry-specific answer. The point that we had shared in Q4 and what I mentioned earlier in my commentary was specifically about connectivity that is number one. The other point that I made in today ’s commentary was related to the disruptions caused by the West Asia War , which has generally put customers on a more conservative note when it comes to discretionary projects and that is across many segments. So I just want to clarify the difference between the two. First was the delay in starting projects which were already awarded to us and the second is more driven by a macro issue.

Is that largely behind so the connectivity deal has it started ramping up now in Q 2 and the delays in decision making, that is still persisting, I believe?

When it comes to connectivity, yes. Most of the ramp up that had to be done is done with and I quite did not get your second part of the question or comment.

The overall uncertainty around decision making in the energy vertical, that is still persisting, I believe.

That is correct and not just in energy, as I mentioned, even in aerospace, flying hours is becoming a concern that has stopped some new kind of projects that we had gotten go ahead verbally. So there is a degree of macro overhang that we should be keeping in mind, but nothing which affects our existing business.

Thank you so much. All the best.

Thank you.

Thank you. That was the last question for today. I now hand over the floor back to the management team. Over to you Sir!

Thank you very much and ladies and gentlemen, thank you very much for your time. Obviously, Q1 was a good quarter from all aspects of the group. Of course, we do still have a little bit of work to do on DET growth, but as Suk amal articulated, I think we have had some issues over the last couple of quarters, many of which are under control now , so we are back at looking at the future and we continue to be very optimistic across DET, or in DET, but across the rest of the companies also. So thank you for your support and like I

said August 25, 2026 is our Investor Day. We will talk about strategy in much more detail. So, I look forward to meeting a lot of you over there. Thank you.

Thank you members of the management. On behalf of Cyient Limited, we conclude today’s call. Thank you for joining us and you may now click on the leave icon to exit the meeting. Have a good day. Goodbye. This is a transcription and may contain transcription errors. The transcript has been edited for clarity. The Company takes no responsibility of such errors, although an effort has been made to ensure high level of accuracy.