Dynamatic Q2 revenue growth included Rs 28.436 crore FX

Dynamatic Technologies Limited reported Q2FY2027 revenue growth of 15.5% before currency adjustment, but said constant-currency growth was 8.13% after excluding a Rs 28.436 crore foreign-exchange benefit. Reported revenue was Rs 452.73 crore, compared with Rs 392.38 crore in Q2FY2026, showing that exchange rates accounted for a substantial part of the reported increase.

How much did foreign exchange add to Dynamatic's Q2 revenue growth?

Foreign exchange added Rs 28.436 crore to Dynamatic's Q2FY2027 revenue on a year-on-year basis, according to its constant-currency reconciliation. The company reported Q2FY2027 revenue of Rs 452.73 crore, up from Rs 392.38 crore in Q2FY2026, while its currency-adjusted revenue was Rs 424.294 crore.

The reconciliation leaves revenue growth of 8.13% after currency adjustment, compared with 15.5% before adjustment in the foreign-exchange note. This indicates that currency translation contributed 7.37 percentage points to the stated growth comparison. The consolidated financial summary separately reports Q2 revenue growth of 15.4%, rather than 15.5%, and the presentation does not explain the 0.1-percentage-point difference.

Dynamatic's H1FY2027 revenue was Rs 877.54 crore, up 15.0% from Rs 763.31 crore in H1FY2026. However, the presentation provides a constant-currency bridge only for Q2FY2027, so it does not identify the foreign-exchange contribution to the Rs 114.23 crore first-half revenue increase.

Which exchange rates produced the year-on-year revenue benefit?

Higher average euro, pound sterling and US dollar rates against the rupee produced a favourable year-on-year effect for Dynamatic in Q2FY2027. The euro averaged Rs 108.54 in Q2FY2027, versus Rs 98.54 in Q2FY2026, while the pound averaged Rs 125.33 versus Rs 114.72 and the dollar averaged Rs 93.49 versus Rs 86.32.

The year-on-year changes were Rs 10.00, or 10.2%, for the euro; Rs 10.61, or 9.3%, for the pound; and Rs 7.17, or 8.3%, for the dollar. Dynamatic stated that its exposure to euro, pound and dollar transactions was favourable on a year-on-year basis, without disclosing foreign-currency revenue volumes or hedging positions.

The exchange-rate movement was adverse sequentially. The euro average fell from Rs 109.98 in Q1FY2027 to Rs 108.54 in Q2FY2027, the pound declined from Rs 126.95 to Rs 125.33, and the dollar moved from Rs 94.63 to Rs 93.49. Dynamatic quantified the resulting Q2FY2027 revenue effect against Q1FY2027 at negative Rs 4.287 crore.

Which entities contributed to the currency-related revenue impact?

DTL accounted for the largest part of Dynamatic's Rs 28.436 crore year-on-year FX revenue impact, contributing Rs 10.698 crore across euro, pound and dollar exposure. Erla contributed Rs 9.467 crore from euro exposure, while DL UK contributed Rs 8.272 crore from pound and dollar exposure.

The presentation identifies the currency exposure by entity rather than allocating the benefit among Aerospace, Hydraulics and Metallurgy. Therefore, the disclosed figures do not establish how much of the reported revenue growth in any operating segment resulted from currency translation rather than volumes, pricing or product mix.

On a sequential basis, DTL had a negative Rs 1.665 crore revenue effect from exchange rates, Erla had a negative Rs 1.361 crore effect and DL UK had a negative Rs 1.261 crore effect. Together, those amounts equal the negative Rs 4.287 crore Q2FY2027 revenue impact versus Q1FY2027 reported by Dynamatic.

How did Dynamatic's segments perform during Q2FY2027?

All three Dynamatic segments reported year-on-year Q2FY2027 revenue growth, although the company did not split the Rs 28.436 crore currency benefit by segment. Aerospace, the largest contributor to company revenue, reported revenue of Rs 210.77 crore, up 18.1% from Rs 178.52 crore in Q2FY2026.

Aerospace revenue also rose 4.2% from Rs 202.25 crore in Q1FY2027, supported by component and detailed-part manufacturing volumes and Airbus programmes. Its Q2FY2027 EBITDA margin was 21.6%, down from 26.8% a year earlier, with Dynamatic attributing the movement to project mix.

Hydraulics recorded its highest-ever quarterly revenue at Rs 140.40 crore, up 11.2% year on year and 21.0% from Rs 116.04 crore in Q1FY2027. Dynamatic attributed performance to its India business and steady demand from tractor original equipment manufacturers, while management said the transfer of product lines and manufacturing activities from Swindon to Bangalore was expected to be completed in the near term.

Metallurgy reported Q2FY2027 revenue of Rs 101.36 crore, up 15.8% from Rs 87.53 crore in Q2FY2026 but down 4.7% from Rs 106.31 crore in Q1FY2027. Dynamatic linked the year-on-year increase to improved demand from a few original equipment manufacturers at Erla in Germany, while describing the sequential decline as the usual summer slowdown in Europe.

Did foreign exchange also affect Dynamatic's Q2 profitability?

Foreign exchange added Rs 3.698 crore to Dynamatic's Q2FY2027 EBITDA on a year-on-year basis, according to the company's reconciliation. Reported consolidated EBITDA was Rs 55.63 crore, up 20.3% from Rs 46.24 crore in Q2FY2026, and the reported EBITDA margin rose to 12.3% from 11.8%.

Removing the stated FX benefit gives adjusted Q2FY2027 EBITDA of Rs 51.932 crore, which remains above the prior-year reported figure. However, the FX note says this adjusted result should be compared with Rs 54.85 crore before adjustment, rather than the Rs 55.63 crore reported in the consolidated summary. Dynamatic provides no explanation for the difference.

The year-on-year EBITDA benefit comprised Rs 2.140 crore at DTL, Rs 1.218 crore at DL UK and Rs 0.340 crore at Erla. Sequentially, the total EBITDA effect was negative Rs 0.568 crore, including negative Rs 0.333 crore at DTL, negative Rs 0.186 crore at DL UK and negative Rs 0.049 crore at Erla.

Below EBITDA, reported EBIT rose 32.3% to Rs 35.88 crore and normalised profit after tax reached Rs 22.46 crore, up 120.4% from Rs 10.19 crore. The Q2FY2026 normalised profit after tax excludes an exceptional item of Rs 6.88 crore, as stated in the presentation, and normalised earnings per share rose to Rs 33.08 from Rs 15.01.

Conclusion

Dynamatic's Q2FY2027 results show reported expansion across Aerospace, Hydraulics and Metallurgy, while the Rs 28.436 crore currency benefit materially increased the consolidated revenue comparison. Revenue still grew 8.13% on a constant-currency basis, and the disclosed FX effect on EBITDA was Rs 3.698 crore, against reported EBITDA of Rs 55.63 crore.

Next, investors can watch management's planned near-term completion of the Swindon-to-Bangalore Hydraulics transfer and its expectation that Aerospace margins will improve as programmes move toward steady-state production. Dynamatic also disclosed a 21.6% Aerospace EBITDA margin in Q2FY2027 and a challenging European automotive market, both of which may shape subsequent segment results.