Dynamatic Technologies (505242) Q2 26/27 earnings summary

Executive summary

• H1FY27 revenue rose 15.0% YoY to Rs. 8,775.4 mn; EBITDA increased 31.8% to Rs. 1,107.4 mn, with margin up 161 bps to 12.6%.

• Q2FY27 revenue grew 15.4% YoY to Rs. 4,527.3 mn; consolidated PAT was Rs. 224.6 mn versus Rs. 33.1 mn a year earlier.

• All three segments grew YoY in Q2 and H1; Aerospace remained the largest segment and Hydraulics posted record quarterly revenue.

Financial highlights

• H1FY27 EBIT rose 53.7% to Rs. 713.1 mn; EBIT margin improved 205 bps to 8.1%. Normalized PBT rose 52.2% to Rs. 515.3 mn and normalized PAT rose 106.3% to Rs. 432.5 mn.

• Q2 normalized PBT was Rs. 251.4 mn, up 35.7% YoY; normalized PAT rose 120.4% to Rs. 224.6 mn. Prior-year normalized PAT and PBT exclude a Rs. 68.8 mn exceptional item.

• H1 gross margin was 49.3% versus 50.3%; EBITDA margin improved to 12.6% from 11.0% and PAT margin to 4.9% from 1.8%.

• Standalone H1 revenue rose to Rs. 4,179.7 mn from Rs. 3,601.5 mn, while PAT declined to Rs. 167.0 mn from Rs. 301.0 mn.

• H1 operating cash flow was Rs. 304.6 mn versus Rs. 519.3 mn; inventory-related working-capital outflows were Rs. 873.6 mn.

Segment performance

• Aerospace Q2 revenue rose 18.1% YoY to Rs. 2,107.7 mn; EBITDA was Rs. 455.7 mn at 21.6% margin, down from 26.8% on project mix. H1 revenue grew 17.5% to Rs. 4,130.2 mn.

• Hydraulics Q2 revenue reached a record Rs. 1,404.0 mn, up 11.2% YoY and 21.0% QoQ; EBITDA was Rs. 161.2 mn at 11.5% margin. H1 EBITDA rose 182.9% to Rs. 305.8 mn.

• Metallurgy Q2 revenue rose 15.8% YoY to Rs. 1,013.6 mn but fell 4.7% QoQ; EBITDA was Rs. 34.9 mn and EBIT was a Rs. 49.8 mn loss.

• H1 segment revenue: Aerospace Rs. 4,130.2 mn (+17.5%), Hydraulics Rs. 2,564.4 mn (+10.3%) and Metallurgy Rs. 2,076.7 mn (+15.8%).