Dynamatic Technologies Ltd

Key disclosures

• Dispatched IAR access letters to shareholders without registered email addresses.
• 51st AGM scheduled for September 15, 2026 at 2:30 PM via VC/OAVM.
• Annual Report 2025-26 and AGM notice available online; no physical copies unless requested.
• KYC/PAN updates mandatory; payments to folios without updates will be electronic.

Financial highlights

• FY2026 consolidated revenue from operations ₹1,62,134 lakhs.
• Consolidated EBITDA ₹18,268 lakhs.
• EBITDA margin 11.27%.
• Consolidated PAT ₹3,241 lakhs.
• PAT margin 2.00%.
• Consolidated EPS ₹47.73.
• CFO ₹9,534 lakhs.
• Net debt to equity 0.74x.
• Aerospace revenue ₹77,561 lakhs.
• Aerospace EBITDA ₹17,755 lakhs.

Business Overview

• Diversified engineering firm serving aerospace, hydraulics, and metallurgy.
• Three segments: Aerospace 48%, Hydraulics 27%, Metallurgy 25% of Q1 FY2027 revenue.
• Global footprint with facilities in India, UK, and Germany.
• Strategic focus on high-value aerospace, defence, unmanned tech, and international expansion.

Operational Highlights

• Q1 revenue Rs 4,248.1 mn, up 14.5% YoY.
• Aerospace revenue Rs 2,022.5 mn; up 17.0% YoY.
• Hydraulics revenue Rs 1,160.4 mn; up 9.4% YoY.
• Metallurgy revenue Rs 1,063.1 mn; up 15.7% YoY.
• Airbus A220 doors program progressed; ramp-up of detail parts at Dynamatic Manufacturing.

Financial Performance

• EBITDA Rs 551.1 mn; margin 13.0% (vs 10.2%).
• EBIT Rs 354.3 mn; margin 8.3%.
• PAT Rs 207.9 mn; YoY up 93%.
• Normalised PAT Rs 207.9 mn; margin 4.9%; Normalised EPS Rs 30.62.
• Constant currency view: revenue Rs 3,855.5 mn; EBITDA Rs 499.7 mn.

Capital Structure & Liquidity

• Total debt Jun-26 Rs 5,272.6 mn; cash Rs 541.2 mn; net debt Rs 4,731.4 mn.
• Net worth Rs 8,184.9 mn; LTM EBITDA Rs 2,000.1 mn.
• Long-term debt Rs 2,994.9 mn; short-term debt Rs 2,277.7 mn.

Strategic Priorities & Outlook

• Aerospace growth from commercial and defence programs; Airbus A220 ramp expected.
• Focus on high-value aerospace, defence, unmanned tech; expand international operations.
• Hydraulics to benefit from Indian OEM demand; UK restructuring to improve efficiency.
• Metallurgy: Europe demand recovery; focus on aerospace, defence, and specialised engineering.

Risks & Mitigation

• FX exposure across EUR/GBP/USD; impact largely favorable; constant currency view provided.
• UK restructuring and Bangalore transfer to boost efficiency and cost competitiveness.

Governance & Ownership

• Shareholding as of Jun-26: Promoters 41.5%, FIIs 10.7%, DIIs 8.4%, AIF 7.5%, Bodies Corporate 5.9%, Others 26.1%.
• Board: five of eight directors are independent.

Financial results approved

• Board approved unaudited Standalone and Consolidated results for quarter ended 30 June 2026 with limited review.
• Standalone Q1 FY2027: revenue 20,026 lakhs; PAT 988 lakhs; EPS 14.55.
• Consolidated Q1 FY2027: revenue 42,481 lakhs; PAT 2,079 lakhs; EPS 30.62.

Dividend declarations

• Interim dividend of Rs 3 per equity share for FY2026-27; record date 14 Aug 2026.
• Dividend to be paid before statutory timelines.
• Final dividend for FY2025-26: Rs 5 per share declared earlier; to be paid after AGM.
• Subject to shareholders' approval.

Labour Code impact

• Labour Code changes caused one-time non-cash costs: Standalone Rs 1,095 lakhs; Consolidated Rs 1,427 lakhs.
• Costs relate to revised wage definitions and past service costs under Ind AS 19.

IP transfer and restructuring

• DLUK hydraulics IP rights transferred to Dynamatic Manufacturing Limited; non-cash tax charge Rs 562 lakhs in DLUK.
• Consolidation eliminates intra-group effects; DLUK operations shifted to India.

Auditor remarks

• Standalone and Consolidated results reviewed; auditors issued unmodified conclusions.

Meeting Details

• Board Meeting scheduled for 7 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider unaudited financial results for the quarter ended 30 June 2026.
• Consider declaration of interim dividend, if any, to equity shareholders.

Other Notes

• Trading window closed from 1 July 2026; reopens 48 hours after results publication.

Dematerialisation/rematerialisation reporting

• Details of dematerialised/rematerialised securities for the quarter ended 30 June 2026 were furnished to all exchanges.

Business

• Dynamatic Technologies operates Aerospace, Hydraulics, and Metallurgy businesses.
• Aerospace was the largest FY26 revenue contributor at 48%.

Operational highlights

• Aerospace delivered first complete Airbus A220 door ship-set ahead of schedule.
• Entered Hutchinson collaboration to expand advanced aerospace composites capabilities.
• Hydraulics improved throughput and supply-chain integration between Bangalore and Swindon.
• UK Hydraulics restructuring continued with product-line rationalisation and workforce optimisation.

Financial performance

• FY26 revenue rose 15.5% to Rs. 16,213.4 million.
• FY26 EBITDA increased 15.4% to Rs. 1,826.8 million; margin was 11.3%.
• FY26 EBIT rose 19.1% to Rs. 1,060.6 million; margin improved to 6.5%.
• FY26 normalised PAT increased 39.4% to Rs. 599.8 million.
• Q4FY26 revenue grew 13.8% to Rs. 4,331.6 million; EBITDA margin was 11.2%.
• Aerospace FY26 revenue grew 27.6%; Hydraulics 6.4%; Metallurgy 6.9%.
• Metallurgy EBITDA fell 71.8% in FY26, reflecting weak German automotive demand and high energy costs.

Capital structure

• Total debt increased to Rs. 5,293.8 million in March 2026 from Rs. 4,510.4 million.
• Net debt rose to Rs. 4,614.0 million; net debt to EBITDA was 2.5x.
• Cash and cash equivalents increased to Rs. 679.8 million.
• Net worth increased to Rs. 7,935.2 million.

Outlook

• Aerospace remains the main growth and profitability driver.
• Hydraulics margins are expected to improve with domestic demand and UK restructuring.
• Metallurgy expects gradual stabilisation from specialised engineering and defence opportunities.

Risks

• Metallurgy faces weak European automotive demand, high energy costs, and geopolitical uncertainty.
• Foreign exchange movements materially affected reported revenue and EBITDA.
• Management highlighted competitive pressures and macroeconomic uncertainty as ongoing risks.

Governance

• Promoter holding declined slightly to 41.5% in March 2026.
• FII holding fell to 10.1%, while DII holding rose to 8.4%.
• Board approved audited standalone and consolidated FY26 financial results on May 19, 2026.