Dynamatic Technologies Limited
4,714words
10turns
0analyst exchanges
0executives
Key numbers — 40 extracted
Rs. 7,633.1
7.9%
Rs. 7,077.0
Rs. 3,514.4
23.7%
Rs. 2,841.4
Rs. 2,324.1
6.9%
Rs. 2,496.9
Rs. 1,794.1
3.3%
Rs. 1,737.6
Guidance — 3 items
METALLURGY
opening
“Mn Revenue EBITDA Margin (%) EBIT Margin (%) Performance Overview Q2 y-o-y Growth (%) Q1 FY26 q-o-q Growth (%) Half Year y-o-y Growth (%) FY26 FY25 FY26 FY25 1,785.2 1,482.9 479.2 26.8% 366.5 20.5% 365.2 24.6% 264.5 17.8% 20.4% 31.2% 38.6% 1,729.2 3.2% 3,514.4 2,841.4 400.0 23.1% 291.3 16.8% 19.8% 25.8% 879.2 25.0% 657.8 18.7% 730.5 25.7% 531.3 18.7% 23.7% 20.4% 23.8% The aerospace segment reported a growth of 20.4% y-o-y in Q2FY2026 driven by sustained execution across key programs”
Strategy
opening
“Mn Revenue EBITDA Margin (%) EBIT Margin (%) Performance Overview Q2 y-o-y Growth (%) Q1 FY26 q-o-q Growth (%) Half Year y-o-y Growth (%) FY26 FY25 FY26 FY25 875.3 (15.3) (1.7)% (49.8) (5.7)% 825.0 12.1 1.5% (21.1) (2.6)% 6.1% nm nm 918.8 (4.7)% 1,794.1 1,737.6 3.3% 17.1 1.9% (15.3) (1.7)% nm nm 1.8 0.1% (65.1) 48.3 2.8% (19.2) (96.3)% nm (3.6)% (1.1)% The Metallurgy segment posted a year-over-year growth of 6.1% in Q2FY2026.”
Strategy
opening
“We aim to prioritize high-margin products, rationalize low-margin offerings, and develop aerospace castings and forgings to drive growth in the near future © 2025 Proprietary Information of Dynamatic Technologies Limited D Y N A M A T I C T E C H N O L O G I E S L I M I T E D QUARTERLY FINANCIAL TRENDS Revenue (Rs.”
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Risks & concerns — 4 flagged
The Metallurgy business continued to face headwinds in Europe, affected by the prolonged slowdown in the German automotive sector, elevated energy costs, and geopolitical uncertainties.
— METALLURGY
Mn) 48.63 (0.81) 51.21 7.92 43.99 15.31 Total Impact 143.83 22.41 Erla EURO 17.04 (0.28) DL UK DTL GBP/ USD EURO/GBP/USD 10.94 1.69 43.99 15.31 Total Impact 71.97 16.71 • On a constant currency basis, Q2FY2026 revenue, if adjusted for a foreign exchange impact of Rs.
— METALLURGY
3,780.0 mn (representing an increase of 4.6% compared to an increase of 8.6% before adjustment) • On a constant currency basis, Q2FY2026 EBITDA, if adjusted for a foreign exchange impact of Rs.
— METALLURGY
However, the business remains under pressure due to continued weakness in the German automotive sector, high inflation, and subdued private consumption, compounded by geopolitical uncertainties.
— Strategy
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Opening remarks
HYDRAULICS
During the quarter, the Hydraulics segment recorded higher revenues driven by increased volumes in both the UK and India. Indian operations delivered steady growth supported by a strong order book and robust OEM demand, while UK operations rebounded with improved OEM requirements. In September 2025, the UK management initiated a restructuring program to align operations with prevailing market conditions and streamline the product portfolio. As part of this plan, certain roles were identified as potentially redundant, leading to a planned workforce reduction. While these measures temporarily impact profitability, they are expected to enhance operational agility and strengthen supply chain integration between Bangalore and Swindon over the long term.
METALLURGY
The Metallurgy business continued to face headwinds in Europe, affected by the prolonged slowdown in the German automotive sector, elevated energy costs, and geopolitical uncertainties. . © 2025 Proprietary Information of Dynamatic Technologies Limited D Y N A M A T I C T E C H N O L O G I E S L I M I T E D PERFORMANCE HIGHLIGHTS Foreign Exchange Fluctuation Q2FY2026 vs. Q1FY2026 Q2FY2026 vs. Q2FY2025 Exchange Rate Q2FY2026 Q2FY2025 Q1FY2026 Impact Impact % Impact Impact % EURO vs. INR GBP vs. INR USD vs. INR 98.54 114.72 86.32 92.95 109.10 83.77 96.58 113.52 85.32 1.96 1.20 1.00 2.0% 1.1% 1.2% 5.59 5.62 2.55 6.0% 5.1% 3.1% Impact due to change in average exchange rates (Y-o-Y) Q2FY2026 vs. Q2FY2025 Q2FY2026 vs. Q1FY2026 Particulars Currency Erla DL UK DTL EURO GBP/ USD EURO/GBP/USD Revenue (Rs. Mn) EBITDA (Rs. Mn) 48.63 (0.81) 51.21 7.92 43.99 15.31 Total Impact 143.83 22.41 Erla EURO 17.04 (0.28) DL UK DTL GBP/ USD EURO/GBP/USD 10.94 1.69 43.99 15.31 Total Impact 71.97 16.71 • On a c
Outlook
The segment is well positioned to sustain its growth trajectory, supported by the ramp-up of ongoing programs and India’s increasing integration into global aerospace manufacturing. Expanding opportunities in regional connectivity, defence modernization, and sustainable aviation continue to create a favorable demand environment.
Strategy
Our focus remains on industrializing secured programs, strengthening manufacturing engineering capabilities, and developing new airframe assemblies and detail parts to unlock revenue potential and enhance long-term margins. © 2025 Proprietary Information of Dynamatic Technologies Limited D Y N A M A T I C T E C H N O L O G I E S L I M I T E D HYDRAULICS SEGMENT Financial Overview Rs. Mn Revenue EBITDA Margin (%) EBIT Margin (%) Performance Overview Q2 y-o-y Growth (%) FY26 FY25 Q1 FY26 q-o-q Growth (%) Half Year y-o-y Growth (%) FY26 FY25 1,262.9 1,305.8 (3.3)% 1,061.2 19.0% 2,324.1 2,496.9 (6.9)% 72.2 5.7% 39.4 3.1% 125.8 (42.6)% 9.6% 93.0 7.1% (57.6)% 35.9 3.4% 3.6 0.3% 101.1% 994.4% 108.1 4.7% 43.0 1.9% 218.5 (50.5)% 8.8% 155.3 (72.3)% 6.2% In Q2FY2026 while the Indian business achieved robust growth of 13.8%, the UK operations were impacted by weaker customer demand resulting in the Hydraulics segment reporting a year-over-year decline of 3.3%.
Outlook
The Indian Hydraulics market outlook remains positive, supported by infrastructure investments, farm mechanization, GST rate reductions, and government initiatives such as PM Gati Shakti and the Smart Cities Mission. Although European market conditions continue to be challenging, improving domestic demand and localization efforts are expected to drive a gradual recovery in margins.
Strategy
Our focus is on rationalizing product lines between Bangalore and Swindon to enhance cost efficiency and streamline operations. We will continue to strengthen aftermarket penetration, implement value engineering, and optimize processes to improve margins and support sustainable growth in the coming quarters. © 2025 Proprietary Information of Dynamatic Technologies Limited D Y N A M A T I C T E C H N O L O G I E S L I M I T E D METALLURGY SEGMENT Financial Overview Rs. Mn Revenue EBITDA Margin (%) EBIT Margin (%) Performance Overview Q2 y-o-y Growth (%) Q1 FY26 q-o-q Growth (%) Half Year y-o-y Growth (%) FY26 FY25 FY26 FY25 875.3 (15.3) (1.7)% (49.8) (5.7)% 825.0 12.1 1.5% (21.1) (2.6)% 6.1% nm nm 918.8 (4.7)% 1,794.1 1,737.6 3.3% 17.1 1.9% (15.3) (1.7)% nm nm 1.8 0.1% (65.1) 48.3 2.8% (19.2) (96.3)% nm (3.6)% (1.1)% The Metallurgy segment posted a year-over-year growth of 6.1% in Q2FY2026. However, the business remains under pressure due to continued weakness in the German automotive s
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