Dynamatic Technologies (505242) Q4 25/26 earnings summary

Executive summary

• Revenue grew 15.5% year-over-year to Rs. 16,213.4 mn in FY2026, with the Aerospace segment contributing 48% of total revenue and leading growth.

• EBITDA increased 15.4% to Rs. 1,826.8 mn, while EBIT rose 19.1% to Rs. 1,060.6 mn; PAT excluding exceptional items was Rs. 599.8 mn, up 39.4% year-over-year.

• Q4FY2026 revenue rose 13.8% year-over-year to Rs. 4,331.6 mn, with EBITDA up 28.1% and EBIT up 41.4%.

• Standalone and consolidated audited financial results for FY2026 were approved, with auditors issuing unmodified opinions.

• Dr. Udayant Malhoutra was re-appointed as CEO & Managing Director for five years starting 1 October 2026, subject to shareholder approval.

Financial highlights

• FY2026 EBITDA margin was 11.3%, stable year-over-year; EBIT margin improved by 20 bps to 6.5%.

• Q4FY2026 EBITDA margin improved by 120 bps to 11.2%; EBIT margin rose by 140 bps to 6.7%.

• Normalised EPS for FY2026 was Rs. 88.34, up from Rs. 63.39 in FY2025; consolidated EPS was Rs. 47.73, down from Rs. 63.39.

• Gross margin for FY2026 was 49.8%, down from 53.4% in FY2025.

• Total dividend for FY26 is ₹10 per equity share (₹5 interim + ₹5 final), subject to shareholder approval.

Outlook and guidance

• Aerospace segment expected to maintain strong growth, driven by robust demand in commercial and defence programs and deepening global supply chain integration.

• Hydraulics segment anticipates gradual margin improvement, aided by stable domestic demand and ongoing UK restructuring.

• Metallurgy segment faces cautious demand in Europe but expects medium-term support from specialized engineering and defence applications.

• The company is realigning UK operations due to supply chain challenges, transferring production to India and rationalizing product lines.

• The impact of new Indian labour codes will be evaluated and accounted for in future periods.