Dynamatic Technologies reported a consolidated net profit of ₹207.9 million for the quarter ended June 30, 2026, marking a 93% year-on-year increase from ₹107.7 million in Q1FY26. The surge was primarily driven by robust demand in the Aerospace segment and significant margin expansion in Hydraulics, aided by favorable foreign exchange movements that contributed ₹392.58 million to revenue. Consolidated revenue grew 14.5% to ₹4,248.1 million, while EBITDA margin expanded by 280 basis points to 12.97%. The Board of Directors, meeting on August 7, 2026, declared an interim dividend of ₹3 per equity share.

The results were reviewed by Statutory Auditors Deloitte Haskins & Sells LLP under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Management highlighted that the Aerospace segment's growth was supported by execution across commercial programs and ramp-up at Dynamatic Manufacturing Limited. Meanwhile, the transfer of hydraulic business from Swindon to Bangalore is progressing well, enhancing long-term sustainability.

Financial Performance

Consolidated earnings per share (EPS) stood at ₹30.62, significantly higher than ₹15.86 in the corresponding quarter of FY26. Standalone net profit declined 35.6% to ₹98.8 million due to higher finance costs and lower other income, contrasting with the consolidated surge. Interest coverage improved to 2.4x from 1.4x in Q1FY26, reflecting stronger operating profits against stable interest expenses of ₹149.2 million.

Segment Analysis

The Aerospace segment contributed ₹2,022.5 million to revenue, up 17.0% year-on-year, with EBITDA margin expanding to 23.8%. The Hydraulics segment saw revenue rise 9.4% to ₹1,160.4 million, with EBITDA margin jumping to 12.5% from 3.4% due to product mix optimization and UK restructuring benefits. The Metallurgy segment recorded revenue of ₹1,063.1 million, up 15.7%, with EBITDA margin improving to 3.7%.

What the Numbers Show

A critical driver of the reported growth was favorable foreign exchange fluctuations. On a constant currency basis, revenue growth would have been 3.9%, compared to the reported 14.5%. The Euro, GBP, and USD all strengthened against the INR, adding ₹392.58 million to revenue and ₹51.37 million to EBITDA. Despite this tailwind, operational improvements were evident, particularly in Hydraulics where margins nearly quadrupled. Net debt remained elevated at ₹4,731.4 million, but the net debt-to-LTM EBITDA ratio improved to 2.4x from 2.5x in March 2026, indicating better leverage management as earnings grow.

Promoters of Dynamatic Technologies Ltd have confirmed that they have not created any new encumbrance on their shares during the financial year, other than those previously disclosed. The declarations were submitted to the Bombay Stock Exchange and National Stock Exchange on April 6, 2026, in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The confirmations were provided by individual promoters Udayant Malhoutra and Barota Malhoutra, as well as several promoter group entities. The disclosures were addressed to the stock exchanges and the company's audit committee to ensure transparency regarding shareholding pledges or charges.

The following table details the entities that submitted the declarations:

All signatories confirmed that no direct or indirect encumbrance has been made on their shareholdings during the financial year beyond the details already disclosed. This regulatory filing provides shareholders with updated information on the status of the promoters' shareholding.