Dynamatic Technologies (505242) Q3 25/26 earnings summary

Executive summary

• Revenue grew 34.7% year-over-year in Q3FY2026 and 16.1% for 9MFY2026, driven by strong performance in the Aerospace segment.

• Aerospace accounted for 50% of Q3FY2026 revenue, with significant new contracts and partnerships, including exclusive selection for the AMCA project and a major agreement with Dassault Aviation.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025.

• Interim dividend of Rs. 5 per equity share declared for FY 2025-26, record date set as 13 February 2026.

• Statutory auditors issued unmodified review reports for both standalone and consolidated results.

Financial highlights

• Q3FY2026 consolidated revenue: Rs. 4,248.7 mn (up 34.7% y-o-y); 9MFY2026: Rs. 11,881.8 mn (up 16.1% y-o-y).

• Q3FY2026 EBITDA: Rs. 500.5 mn (up 27.4% y-o-y), margin at 11.8% (down 70 bps y-o-y).

• Q3FY2026 PAT (excluding exceptional items): Rs. 200.4 mn (up 467.7% y-o-y); consolidated Q3 PAT: Rs. 577 lakhs (impacted by exceptional item); would have been Rs. 1,719 lakhs excluding one-time cost.

• Interim dividend of Rs. 5 per share declared.

• Standalone Q3 FY26 revenue from operations: Rs. 21,826 lakhs, up from Rs. 15,080 lakhs YoY.

Outlook and guidance

• Aerospace expected to sustain growth, supported by strong execution, favorable policy, and new defense allocations.

• Hydraulics to benefit from stable domestic demand, infrastructure spending, and operational improvements.

• Metallurgy faces continued European demand challenges but is pivoting toward aerospace and defense applications.

• Strategic restructuring in UK subsidiary to address supply chain disruptions and rationalize product range.

• Transfer of certain production operations from UK to India to improve operational sustainability.