Cyient, KPIT, Tata Tech: Analysts cut FY25 earnings of E&RD cos; here's why

In the face of weak client spends, prolonged sales cycles, and murky order book conversions, the near-term ER&D outlook charts uncertain waters, say analysts

The Indian engineering research and development (ER&D) players, such as Tata Technologies, Tata Elxsi, and Cyient among others, had a subdued January-March quarter of 2023-24. The outlook for 2024-25 (FY25) also remains unexciting amid weak discretionary spending, prompting analysts to revise their growth expectations for the ongoing financial year (FY25).

“We have cut FY25 earnings across companies by 2-9 per cent. The near term is not very encouraging with a moderate growth outlook due to weak spends by clients, elongated sales cycles, and limited visibility on the conversion of the order book,” Kawaljeet Saluja, Vamshi Krishna, and Sathishkumar S of