Dynamatic Technologies Hydraulics EBITDA rose 123.3% in Q2

Dynamatic Technologies Limited’s Hydraulics segment reported record Q2FY2027 revenue of Rs 140.40 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 16.12 crore, up 123.3% year on year, as EBITDA margin rose to 11.5% from 5.7% while manufacturing activities and product lines continued transferring from Swindon to Bangalore.

How did Dynamatic Technologies Hydraulics perform in Q2FY2027?

Dynamatic Technologies Hydraulics recorded its highest-ever quarterly revenue in Q2FY2027, with sales of Rs 140.40 crore, up 11.2% from Rs 126.29 crore in Q2FY2026 and 21.0% from Rs 116.04 crore in Q1FY2027. EBITDA was Rs 16.12 crore, compared with Rs 7.22 crore a year earlier and Rs 14.46 crore in the preceding quarter.

Dynamatic Technologies Hydraulics expanded EBITDA margin by 5.8 percentage points year on year, although the Q2FY2027 margin was 1.0 percentage point below Q1FY2027’s 12.5%. Earnings before interest and tax (EBIT) rose 215.0% year on year to Rs 12.41 crore from Rs 3.94 crore, increasing EBIT margin to 8.8% from 3.1%.

What drove Dynamatic Technologies Hydraulics revenue growth?

Dynamatic Technologies Hydraulics said its India business drove Q2FY2027 growth, with steady demand from tractor original equipment manufacturers (OEMs) supporting the Rs 140.40 crore of revenue. Management also cited sustained demand from domestic OEMs, industrial customers and aftermarket channels, and said the business achieved its highest-ever monthly sales of hydraulic pumps during the quarter.

The first-half result indicates that the Q2 increase extended beyond a single quarter. H1FY2027 revenue grew 17.5% to Rs 256.44 crore from Rs 232.41 crore in H1FY2026, while EBITDA increased 182.9% to Rs 30.58 crore from Rs 10.81 crore. The H1 EBITDA margin was 11.9%, compared with 4.7% a year earlier, and EBIT rose to Rs 23.08 crore from Rs 4.30 crore.

Dynamatic Technologies Hydraulics contributed 31% of consolidated Q2FY2027 revenue, compared with 27% in Q1FY2027 and 32% in Q2FY2026. Aerospace remained the largest contributor at 47%, while Metallurgy represented 22%, within consolidated revenue of Rs 452.73 crore that increased 15.4% year on year.

What does the Swindon to Bangalore transfer involve?

Dynamatic Technologies said the transfer of manufacturing activities and product lines from Swindon to Bangalore was expected to be completed in the near term as of Q2FY2027. Management identified streamlined operations, production efficiency and the Hydraulics segment’s long-term competitiveness as priorities for the transfer.

The stated strategy is to scale Bangalore operations after the product-line transfer, broaden sales to domestic OEMs, industrial customers and aftermarket customers, and pursue value engineering and product-mix improvements. Management also cited a leaner UK cost base, while saying the UK market was likely to remain subdued in the near term.

Dynamatic Technologies marked production of 1,00,000 pumps in August 2026, providing context for the hydraulic-pump operation. The presentation does not disclose Bangalore or Swindon output, the cost of the transfer, expected savings, capacity additions or a completion date beyond “near term,” so it does not quantify the financial effect of the consolidation.

How does Dynamatic Technologies Hydraulics compare with other segments?

Dynamatic Technologies Hydraulics delivered EBITDA growth of 123.3% in Q2FY2027, while consolidated EBITDA increased 20.3% to Rs 55.63 crore. Aerospace generated the largest segment EBITDA at Rs 45.57 crore, but this was 4.9% below the prior year and its margin declined to 21.6% from 26.8% because of project mix. Metallurgy reported EBITDA of Rs 3.49 crore against a loss of Rs 1.53 crore.

Hydraulics’ Q2FY2027 EBITDA margin of 11.5% was below Aerospace’s 21.6% and above Metallurgy’s 3.4%. In Q2FY2026, the respective margins were 5.7%, 26.8% and negative 1.7%, showing that Hydraulics had a materially higher year-on-year margin while Aerospace’s margin declined and Metallurgy returned to a positive margin.

At group level, Dynamatic Technologies reported a Q2FY2027 EBITDA margin of 12.3%, compared with 11.8% a year earlier. Hydraulics’ Rs 140.40 crore of revenue was below Aerospace revenue of Rs 210.77 crore and above Metallurgy revenue of Rs 101.36 crore, placing its 31% revenue contribution between the group’s other two operating segments.

What is Dynamatic Technologies Hydraulics’ outlook?

Management expects demand in India to remain healthy, supported by farm mechanisation, a stable rural economy and infrastructure spending, while it expects the UK market to remain subdued in the near term. Management said a lower cost base should limit the UK market’s effect on segment earnings and described the restructuring as complete in its outlook.

The reported Q2FY2027 benchmark is Rs 140.40 crore of revenue and an 11.5% EBITDA margin, following a 12.5% margin in Q1FY2027. Management’s plan combines scaling Bangalore operations, value engineering, product-mix improvement and a leaner UK cost base; the presentation provides no revenue, margin or earnings target for the segment.

Conclusion

The Q2FY2027 result shows a change in Hydraulics’ earnings mix: EBITDA rose more than ten times as fast as revenue, and the segment’s margin moved from 5.7% to 11.5% year on year. That improvement came while Hydraulics accounted for 31% of Dynamatic Technologies’ revenue and while Aerospace remained the group’s largest segment by sales.

The next disclosed issue is completion of the Swindon-to-Bangalore transfer, which management expected in the near term but did not date or quantify. Subsequent results can show whether Bangalore scaling, domestic tractor OEM demand and the lower UK cost base maintain margins near the 11.5% reported in Q2FY2027.