Dynamatic Tech. Q1 FY27 Results (NSE: DYNAMATECH)
Signal: Steady quarter
The read
The operating trajectory improved materially versus the recent 11% Q4FY26 margin: consolidated EBITDA margin is now 14.4%, Aerospace result grew 23.5% and Metallurgy turned profitable, but the PAT/EPS inconsistency and non-operating other income of ₹588 lakh, equal to 22.3% of verified PBT, make bottom-line quality difficult to underwrite.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹424.81 Cr | +14.5% | -1.9% |
| EBIT | ₹41.31 Cr | N/A | |
| Net profit | 0 lakh | N/A | |
| EPS | ₹30.62 | +93.2% | |
| EBIT margin | 14.4% |
P&L walk
Revenue rose to ₹42,481 lakh, +14.5% YoY and -1.9% QoQ; EBITDA was ₹6,099 lakh at a 14.4% margin, while EBIT was ₹4,131 lakh. Finance costs increased to ₹1,492 lakh, +6.1% YoY, and other income fell to ₹588 lakh, -41.8% YoY; the verified XBRL PAT value is ₹0 despite the financial statement printing PAT of ₹2,079 lakh.
Segments
Aerospace is driving the group, with revenue of ₹20,225 lakh, +17.0% YoY, and segment result of ₹3,599 lakh, +23.5%; Metallurgy turned profitable at ₹66 lakh from a ₹153 lakh loss, while Others remained loss-making at ₹279 lakh.
Key positives
- Consolidated revenue reached ₹42,481 lakh, +14.5% YoY, accelerating from +13.7% in Q4FY26.
- EBITDA margin improved to 14.4% from the recent Q4FY26 OPM of 11%, indicating a positive operating inflection, although the filing does not provide a comparable EBITDA figure for the prior-year quarter.
- Aerospace segment result rose to ₹3,599 lakh, +23.5% YoY, faster than Aerospace revenue growth of 17.0% YoY.
- Metallurgy turned profitable at ₹66 lakh versus a ₹153 lakh loss YoY, providing a second source of incremental earnings.
- Segment assets increased 9.0% YoY to ₹1,91,320 lakh while depreciation rose 6.4% YoY to ₹1,968 lakh, a clean asset-base cross-check.
Key concerns
- The consolidated PAT value in the verified XBRL is ₹0, despite the printed statement reporting PAT of ₹2,079 lakh and EPS of ₹30.62; this data inconsistency must be resolved before relying on earnings multiples.
- Other income was ₹588 lakh, 41.8% below the year-ago ₹1,010 lakh but still 22.3% of verified PBT, increasing dependence on non-operating income in the earnings-quality assessment.
- Hydraulics revenue declined 11.6% QoQ to ₹11,604 lakh, and the overseas hydraulic restructuring remains an execution risk.
- Finance costs increased 6.1% YoY to ₹1,492 lakh, even as revenue grew 14.5%.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.