Dynamatic Technologies (505242) Q2 25/26 earnings summary

Executive summary

• Revenue grew 8.6% year-over-year in Q2FY2026 and 7.9% in H1FY2026, driven by strong Aerospace performance.

• Standalone and consolidated unaudited financial results for the quarter and half-year ended 30 September 2025 were approved, with statutory auditors issuing an unmodified review conclusion.

• Board approved the incorporation of Dynauton Limited, a wholly owned subsidiary focused on UAV and critical subsystems manufacturing.

• EBITDA increased 12.7% year-over-year in Q2FY2026, with margin improvement to 11.8%.

• PAT excluding exceptional items declined 15.3% in Q2FY2026 and 10.5% in H1FY2026.

Financial highlights

• Q2FY2026 consolidated revenue: ₹39,238 lakhs (up from ₹36,142 lakhs in Q2FY25); PAT: ₹331 lakhs (down from ₹1,203 lakhs in Q2FY25).

• Q2FY2026 standalone revenue: ₹18,255 lakhs (up from ₹16,688 lakhs in Q2FY25); PAT: ₹1,475 lakhs (down from ₹2,099 lakhs in Q2FY25).

• Q2FY2026 EBITDA: Rs. 462.4 mn (up 12.7% y-o-y); margin 11.8%.

• Exceptional item of ₹688 lakhs recognized due to UK subsidiary restructuring.

• H1FY2026 PAT (excl. exceptionals): Rs. 209.6 mn vs. Rs. 234.2 mn in H1FY2025.

Outlook and guidance

• Aerospace expected to sustain growth with ramp-up of ongoing programs and India's integration into global supply chains.

• Strategic restructuring in the UK hydraulic division aims to address supply chain challenges and improve operational sustainability, with some production shifting to India.

• Hydraulics outlook positive in India due to infrastructure and government initiatives; European recovery expected to be gradual.

• Metallurgy recovery depends on easing inflation and government investments; focus on high-margin products and aerospace castings.