Dynamatic Technologies shares soar 9% after Q1 profit jumps 93% YoY to Rs 21 crore; outlook stays strong

Shares of Dynamatic Technologies gained 12% to Rs 12,261 on the BSE on Monday after it reported a net profit of Rs 20.79 crore for the quarter ended June 30, 2026, compared with Rs 10.77 crore in Q1 FY26. Revenue stood at Rs 424.81 crore, up 14.5% from Rs 370.93 crore in the year-ago quarter.

EBITDA rose 45.9% to Rs 55.11 crore from Rs 37.78 crore in Q1 FY26. EBITDA margin improved to 13.0%, up 280 basis points from the year-ago period. EBIT increased 83.7% to Rs 35.43 crore from Rs 19.29 crore, while EBIT margin stood at 8.3%, up 310 basis points.

The aerospace segment remained the largest contributor to revenue, with revenue rising 17.0% to Rs 202.25 crore from Rs 172.92 crore in Q1 FY26. Hydraulics revenue increased 9.4% to Rs 116.04 crore from Rs 106.12 crore, while metallurgy revenue rose 15.7% to Rs 106.31 crore from Rs 91.88 crore.

Commenting on the results, Udayant Malhoutra, CEO and Managing Director, said the aerospace segment continued to be the major contributor to revenue, supported by execution across key commercial aerospace programmes and an improved product mix, aided by the ramp-up of sheet metal and detail parts at the wholly owned subsidiary, Dynamatic Manufacturing Limited.

The Airbus A220 doors programme made steady progress during the quarter, reflecting the company’s growing capabilities in complex aerostructure manufacturing and reinforcing its position within the global aerospace supply chain.

Aerospace outlook

Dynamatic said the aerospace business continues to benefit from increasing opportunities across commercial aviation and defence systems. The continued ramp-up and growing contributions from these programmes are expected to support long-term business visibility and strengthen the company’s position in the global aerospace value chain.

Hydraulics outlook

The hydraulics segment is expected to benefit from continued demand across the agriculture sector, domestic OEMs, industrial applications and infrastructure-led sectors in India. Continued optimisation of the UK operations, along with the completion of product-line rationalisation between Bengaluru and Swindon, is expected to strengthen competitiveness and support a more efficient operating structure over the medium term.

Metallurgy outlook

While market conditions in Europe remain to be watched closely, the company said early signs of demand recovery at Erla, together with its continued focus on aerospace, defence and specialised engineering applications, are expected to support further improvement in profitability over the medium term.

Interim dividend

The board approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, along with the limited review reports by the company’s statutory auditors.

The board also declared an interim dividend of Rs 3 per equity share with a face value of Rs 10 each for FY27. The record date for determining the shareholders eligible to receive the interim dividend is August 14, 2026. The interim dividend will be paid to shareholders within the statutory timelines.

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