• Tao Digital acquisition: Cyient is acquiring Tao Digital for an enterprise value of $218 million, funding it largely through debt with approximately $130 million paid upfront and the balance via two-year earn-outs. The acquired entity operates at around a 20% EBITDA margin and is expected to be substantially EPS accretive from CY28.
• Growth and margins: The company is pursuing mid-single-digit revenue growth for the year with Tao contributing in the second half, while maintaining an organic aspiration to reach 15% EBIT margins by Q4 FY27.
• Project ramp-up status: The three customer programs delayed in Q4 have restarted in Q1, though ramp-up speed is trailing initial expectations alongside broader softness in the energy segment.
• Addressable market expansion: The deal supports Cyient's transition from ER&D outsourcing to lifecycle data engineering across manufacturing, supply chain, and aftermarket services, targeting an addressable market estimated at roughly 20 times the $80 billion to $100 billion ER&D space.