Dynamatic H1 profit more than doubles as EBITDA margin expands

Dynamatic Technologies Limited (Dynamatic) reported H1FY2027 normalised profit after tax of Rs 43.25 crore, up 106.3% from Rs 20.96 crore, as revenue increased 15.0% to Rs 877.54 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin expanded 161 basis points to 12.6%.

How much did Dynamatic’s H1FY2027 profit increase?

Dynamatic’s normalised profit after tax (PAT) increased 106.3% year on year to Rs 43.25 crore in H1FY2027 from Rs 20.96 crore in H1FY2026. The company presents the prior-year figure after excluding an exceptional item of Rs 6.88 crore, making the reported comparison one of normalised PAT.

The increase in normalised PAT exceeded the 15.0% rise in revenue. Normalised profit before tax (PBT) rose 52.2% to Rs 51.53 crore from Rs 33.85 crore, while normalised earnings per share increased to Rs 63.70 from Rs 30.87. PAT margin was 4.9% in H1FY2027, compared with 2.7% in H1FY2026, an increase of 220 basis points.

Did Dynamatic’s operating margin improve faster than revenue?

Yes. Dynamatic’s H1FY2027 EBITDA margin increased to 12.6% from 11.0% in H1FY2026, a 161-basis-point expansion, while EBITDA rose 31.8% to Rs 110.74 crore. Revenue increased by Rs 114.23 crore to Rs 877.54 crore, whereas EBITDA increased by Rs 26.72 crore over the same period.

EBIT grew 53.7% to Rs 71.31 crore from Rs 46.40 crore. EBIT margin increased to 8.1% from 6.1%, a 205-basis-point rise. The reported changes show that H1FY2027 normalised PAT growth coincided with wider EBITDA and EBIT margins, rather than with sales growth alone.

The first-half margin also reflected differing quarterly levels. Dynamatic reported EBITDA margin of 13.0% in Q1FY2027 and 12.3% in Q2FY2027, resulting in an H1FY2027 margin of 12.6%. Q2FY2027 EBITDA was Rs 55.63 crore, up 20.3% year on year from Rs 46.24 crore and 0.9% above Q1FY2027 EBITDA of Rs 55.11 crore.

Which Dynamatic segments drove H1FY2027 revenue growth?

Aerospace was Dynamatic’s largest revenue segment in H1FY2027, contributing Rs 413.02 crore and growing 17.5% from Rs 351.44 crore in H1FY2026. Its share of group revenue was 46%, compared with 47% a year earlier. Aerospace added Rs 61.58 crore of revenue, the largest absolute increase among the three disclosed businesses.

Hydraulics generated H1FY2027 revenue of Rs 256.44 crore, up 10.3% from Rs 232.41 crore, and represented 30% of revenue against 29% in H1FY2026. Metallurgy revenue increased 15.8% to Rs 207.67 crore from Rs 179.41 crore, while its revenue share remained 24%. All three segments recorded year-on-year growth.

The revenue mix shifted modestly towards Hydraulics and away from Aerospace. Aerospace’s 46% H1FY2027 share remained ahead of Hydraulics at 30% and Metallurgy at 24%, but was one percentage point lower than in H1FY2026. This occurred despite Aerospace’s 17.5% growth exceeding Dynamatic’s consolidated H1 revenue growth of 15.0%.

What does Dynamatic’s Q2FY2027 result show about the half year?

Dynamatic’s Q2FY2027 revenue was Rs 452.73 crore, up 15.4% from Rs 392.38 crore in Q2FY2026 and 6.6% above Q1FY2027 revenue of Rs 424.81 crore. Q2FY2027 EBITDA margin was 12.3%, compared with 11.8% a year earlier and 13.0% in Q1FY2027.

Normalised Q2FY2027 PAT more than doubled to Rs 22.46 crore from Rs 10.19 crore in Q2FY2026, an increase of 120.4%. It was also 8.0% above Q1FY2027 normalised PAT of Rs 20.79 crore. Q2FY2027 normalised PBT was Rs 25.14 crore, up 35.7% year on year but 4.7% below Rs 26.39 crore in Q1FY2027.

Aerospace revenue in Q2FY2027 increased 18.1% to Rs 210.77 crore, Hydraulics rose 11.2% to Rs 140.40 crore, and Metallurgy increased 15.8% to Rs 101.36 crore. The quarterly revenue mix was 47% Aerospace, 31% Hydraulics and 22% Metallurgy, compared with 46%, 32% and 22%, respectively, in Q2FY2026.

Conclusion

Dynamatic’s H1FY2027 performance combined 15.0% revenue growth with faster increases in EBITDA, EBIT and normalised PAT. The 161-basis-point increase in EBITDA margin to 12.6%, alongside a 205-basis-point rise in EBIT margin to 8.1%, provides the operating context for normalised PAT increasing 106.3% to Rs 43.25 crore.

Management said the transfer of Hydraulics manufacturing activities and product lines from Swindon to Bangalore is expected to be completed in the near term. It also said the Airbus A220 doors programme continued to advance, while Hydraulics commemorated manufacturing 100,000 pumps in August 2026; progress on these disclosed initiatives is the next operational development to watch.