Accumulate Cyient DLM: Prabhudas Lilladher Sets Rs 418 Target Amid Margin Growth

• Prabhudas Lilladher recommends 'Accumulate' for Cyient DLM with a target price of Rs 418.
• Cyient DLM's Q3FY26 margins expanded by approximately 390bps, driven by a reduced share of the lower-margin Defense segment.
• The company added two new clients in Q3FY26, one in Medical (battery management systems) and one in Industrial (high-precision electrical motor controls).
• The Build-to-Specification (B2S) segment is projected to contribute 6-7% to topline in FY26, growing to double-digits from FY27, aiding margin expansion.
• Cyient DLM anticipates diversified revenue growth across Aerospace, Industrial, Defense, and Automobile segments over the next 2-3 years.

Why It Matters: Prabhudas Lilladher advises accumulating Cyient DLM, forecasting strong growth and margin expansion with a Rs 418 target.