Order Book Or Contract Wins
Expected: Long-termHIGH confidence
What: AMCA Project: Exclusive Partner
“selection as the exclusive partner for the L&T-BEL consortium’s 5th Generation Fighter Aircraft (AMCA) project.”
Dynamatic Technologies Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +47.9%Average11w Streak
In , Dynamatic Technologies Ltd (Aerospace & Defence - Equipments) is outperforming Nifty 500 with +47.9% relative strength. Fundamentals: Average. On a 11-week streak.
Dynamatic Technologies Ltd Key Facts
- PE Ratio
- 168.0x
- Market Cap
- ₹7,856 Cr
- PAT Growth YoY
- +64%
- Revenue Growth YoY
- +35%
- OPM
- 11.8%
- RS vs Nifty 500
- +47.9%
PE: Mid ExpansionDanger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
🌐FII stake decreased 1.7% this quarter
💰Trading 95% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Long-termHIGH
2. Geographical Expansion
ImmediateMEDIUM
3. Hydraulics Revenue growth of 26.4% y-o-y
HIGH
Key Risks
1. Headwinds in Europe affecting the Metallurgy business
MEDIUM2. Foreign exchange impact of ₹228
LOWSector-Specific Signals
Aerospace Revenue Share50%+200 bps
Hydraulics EBITDA Margin11.5%+710 bps
Metallurgy EBITDA₹(5.0) mnLoss
Net Debt/Equity0.5xInline
Key Numbers
PAT Growth YoY
+64%
Inflection Up
Revenue YoY
+35%
Accelerating
Operating Margin
11.8%
-68 bps YoY
PE Ratio
168.0
Current Price
₹11,568
Dividend Yield
0.04%
Fundamental Score
51/100
Average
3Y PAT CAGR
+42%
Market Cap
8.5K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Dynamatic Technologies Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Geographical Expansion
Expected: ImmediateMEDIUM confidence
What: Hydraulics UK Revenue: 6.1% growth
“whereas the UK business reported a 6.1% a year-over-year increase in revenue”
Hydraulics Revenue growth of 26.4% y-o-y
HIGH confidence
What: Hydraulics Revenue growth of 26.4% y-o-y
“In Hydraulics, we saw robust domestic performance driven by steady demand from tractor OEMs and industrial channels.”
What Are the Key Risks for Dynamatic Technologies Ltd?
Earnings deceleration risks from management commentary
Headwinds in Europe affecting the Metallurgy business
MEDIUMTrigger: Prolonged slowdown in the German automotive sector and geopolitical uncertainties.
Management view: Maintaining strict cost discipline and pivoting capabilities toward aerospace applications.
Monitor: geopolitical
Foreign exchange impact of ₹228
LOWTrigger: Fluctuations in EUR, GBP, and USD vs INR.
Impact: PAT impact: ₹30.94 mn on EBITDA
Management view: Impact was favorable on a Y-o-Y basis.
Monitor: fx
What Is Dynamatic Technologies Ltd's Management Saying?
Key quotes from recent conference calls
“improving domestic demand and localization efforts are expected to drive a gradual recovery in margins. [Previous Hydraulics Recovery guidance]”
“selection as the exclusive partner for the L&T-BEL consortium’s 5th Generation Fighter Aircraft (AMCA) project. [Initiative: L&T-BEL AMCA Project]”
“landmark agreement to manufacture the complete rear fuselage for the Falcon 6X. [Initiative: Dassault Falcon 6X Agreement]”
“Metallurgy business continued to face headwinds in Europe, affected by the prolonged slowdown in the German automotive sector [Risk (geopolitical): MEDIUM]”
What Did Dynamatic Technologies Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹4,248.7 mn
YoY +34.7%QoQ +8.3%
Why: Growth was driven by a 41.8% y-o-y increase in the Aerospace segment and a 26.4% rebound in Hydraulics.
The company saw a significant acceleration in revenue growth compared to the 8.6% y-o-y growth seen in Q2.
EBITDA
₹500.5 mn
YoY +27.4%Margin 11.8%
Why: EBITDA grew due to higher volumes in Aerospace and Hydraulics, though margins were slightly compressed by 70 bps.
Operating profit growth lagged revenue growth due to margin compression in the Aerospace segment.
PAT
₹200.4 mn
YoY +467.7%QoQ +96.7%
Why: Normalised PAT surged due to strong operational performance and the absence of high exceptional items compared to the prior year's base.
The reported PAT was ₹57.7 mn after accounting for an exceptional item of ₹142.7 mn.
Other Highlights
• Aerospace segment revenue reached ₹2,139.7 mn, contributing 50% of total revenue.
• Hydraulics segment rebounded with 26.4% y-o-y growth to ₹1,237.4 mn.
• Exceptional item of ₹142.7 mn recorded in Q3FY26 impacting reported profitability.
What Sector Metrics Matter for Dynamatic Technologies Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Aerospace Revenue Share
50%
YoY +200 bpsQoQ +340 bps
Why: Aerospace grew 41.8% y-o-y, outperforming other segments.
Hydraulics EBITDA Margin
11.5%
YoY +710 bpsQoQ +580 bps
Why: Driven by robust domestic growth and restructuring in the UK.
Metallurgy EBITDA
₹(5.0) mn
YoY LossQoQ Improved
Why: Continued weakness in German automotive sector and high energy costs.
Net Debt/Equity
0.5x
YoY InlineQoQ -0.1x
Why: Improved cash management and net worth growth.
Interest Coverage Ratio
2.2x
YoY +0.6xQoQ +0.4x
Why: Higher operating profit and stable interest costs.
Aerospace EBITDA Margin
21.2%
YoY -630 bpsQoQ -560 bps
Why: Not explained on call; likely due to program mix.
Overall Debt
₹5,425.8 mn
YoY Not GivenQoQ -₹60.7 mn
Why: Reduction in short-term borrowings.
Net Worth
₹7,857.3 mn
YoY Not GivenQoQ +₹207.8 mn
Why: Accretion of profits to reserves.
What Is Dynamatic Technologies Ltd's Management Guidance?
Forward-looking targets from management for Medium term
Margin Outlook
Expected gradual improvement in Hydraulics
Capex Plan
₹383.8 mn
Purchase of property, plant and equipment and intangibles assets
Management Tone: BULLISH
How Fast Is Dynamatic Technologies Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +35% | +4% | Accelerating |
| PAT (Net Profit) | +64% | +42% | Inflection Up |
| OPM | 11.8% | -68 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Dynamatic Technologies Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Dynamatic Technologies Ltd's latest quarterly results?
Dynamatic Technologies Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +63.5% (turning around (inflection up))
- Revenue Growth YoY: +34.7%
- Operating Margin: 11.8% (stable)
Is Dynamatic Technologies Ltd's profit growing or declining?
Dynamatic Technologies Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +63.5% (latest quarter)
- PAT Growth QoQ: +74.3% (sequential)
- 3-Year PAT CAGR: +42.1%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Dynamatic Technologies Ltd's revenue growth trend?
Dynamatic Technologies Ltd's revenue growth trend is accelerating.
- Revenue Growth YoY: +34.7%
- Revenue Growth QoQ: +8.3% (sequential)
- 3-Year Revenue CAGR: +3.9%
How is Dynamatic Technologies Ltd's operating margin trending?
Dynamatic Technologies Ltd's operating margin is stable.
- Current OPM: 11.8%
- OPM Change YoY: -0.7% basis points
- OPM Change QoQ: 0.0% basis points
What is Dynamatic Technologies Ltd's 3-year profit and revenue CAGR?
Dynamatic Technologies Ltd's long-term compounding rates
- 3-Year Profit CAGR: +42.1%
- 3-Year Revenue CAGR: +3.9%
Is Dynamatic Technologies Ltd's growth accelerating or decelerating?
Dynamatic Technologies Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +136.0% bps
- Sequential Acceleration: +100.0% bps
What is Dynamatic Technologies Ltd's trailing twelve month (TTM) performance?
Dynamatic Technologies Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹36 Cr
- TTM PAT Growth: -57.2% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +12.6% YoY
- TTM Operating Margin: 11.0%
Is Dynamatic Technologies Ltd overvalued or undervalued?
Dynamatic Technologies Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 168.0x
- Price-to-Book: 9.6x
What is Dynamatic Technologies Ltd's current PE ratio?
Dynamatic Technologies Ltd's current PE ratio is 168.0x.
- Current PE: 168.0x
- Market Cap: 7.9K Cr
- Dividend Yield: 0.04%
How does Dynamatic Technologies Ltd's valuation compare to its history?
Dynamatic Technologies Ltd's current PE is 168.0x.
- Current PE: 168.0x
- Valuation Assessment: Significantly Overvalued
What is Dynamatic Technologies Ltd's price-to-book ratio?
Dynamatic Technologies Ltd's price-to-book ratio is 9.6x.
- Price-to-Book (P/B): 9.6x
- Book Value per Share: ₹1206
- Current Price: ₹11568
Is Dynamatic Technologies Ltd a fundamentally strong company?
Dynamatic Technologies Ltd is rated Average with a fundamental score of 51.11/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +34.7% (10% weight)
- PAT Growth YoY: +63.5% (10% weight)
- PAT Growth QoQ: +74.3% (10% weight)
- Margins stable (10% weight)
Is Dynamatic Technologies Ltd debt free?
Dynamatic Technologies Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹571 Cr
What is Dynamatic Technologies Ltd's return on equity (ROE) and ROCE?
Dynamatic Technologies Ltd's return ratios over recent years
- FY2023: ROCE 10.0%
- FY2024: ROCE 10.0%
- FY2025: ROCE 9.0%
Is Dynamatic Technologies Ltd's cash flow positive?
Dynamatic Technologies Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹144 Cr
- Free Cash Flow (FCF): ₹77 Cr
- CFO/PAT Ratio: 335% (strong cash conversion)
What is Dynamatic Technologies Ltd's dividend yield?
Dynamatic Technologies Ltd's current dividend yield is 0.04%.
- Dividend Yield: 0.04%
- Current Price: ₹11568
Who holds Dynamatic Technologies Ltd shares — promoters, FII, DII?
Dynamatic Technologies Ltd's shareholding pattern (Mar 2026)
- Promoters: 41.5%
- FII (Foreign): 10.1%
- DII (Domestic): 15.6%
- Public: 32.8%
Is promoter holding increasing or decreasing in Dynamatic Technologies Ltd?
Dynamatic Technologies Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 41.5% (Mar 2026)
- Previous Quarter: 41.9% (Dec 2025)
- Change: -0.37% (decreasing — worth monitoring)
How long has Dynamatic Technologies Ltd been outperforming Nifty 500?
Dynamatic Technologies Ltd has been outperforming Nifty 500 for 11 consecutive weeks, indicating consistent outperformance.
Is Dynamatic Technologies Ltd a new momentum entry or an established outperformer?
Dynamatic Technologies Ltd is an established outperformer with 11 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Dynamatic Technologies Ltd?
Dynamatic Technologies Ltd has 3 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Selection for the 5th Generation Fighter Aircraft project provides long-term visibility.
- Geographical Expansion — Restructuring in Swindon is yielding results and UK demand is improving.
- Hydraulics Revenue growth of 26.4% y-o-y — Driven by robust domestic performance from tractor OEMs and industrial channels.
What are the key risks in Dynamatic Technologies Ltd?
Dynamatic Technologies Ltd has 2 key risks worth monitoring
- [MEDIUM] Headwinds in Europe affecting the Metallurgy business — Prolonged slowdown in the German automotive sector and geopolitical uncertainties.
- [LOW] Foreign exchange impact of ₹228 — Fluctuations in EUR, GBP, and USD vs INR.
What did Dynamatic Technologies Ltd's management say in the latest earnings call?
In Q3 FY26, Dynamatic Technologies Ltd's management highlighted
- "improving domestic demand and localization efforts are expected to drive a gradual recovery in margins. [Previous Hydraulics Recovery guidance]"
- "selection as the exclusive partner for the L&T-BEL consortium’s 5th Generation Fighter Aircraft (AMCA) project. [Initiative: L&T-BEL AMCA Project]"
- "landmark agreement to manufacture the complete rear fuselage for the Falcon 6X. [Initiative: Dassault Falcon 6X Agreement]"
What is Dynamatic Technologies Ltd's management guidance for growth?
Dynamatic Technologies Ltd's management has provided the following forward guidance for Medium term
- Revenue outlook: Not Given
- Margin outlook: Expected gradual improvement in Hydraulics
- Capex plan: ₹383.8 mn for Purchase of property, plant and equipment and intangibles assets
- Management tone: bullish
What sector-specific metrics matter most for Dynamatic Technologies Ltd?
Dynamatic Technologies Ltd's most important sub-sector-specific KPIs from the latest concall
- Aerospace Revenue Share: 50% (YoY +200 bps) (QoQ +340 bps) — Aerospace grew 41.8% y-o-y, outperforming other segments.
- Hydraulics EBITDA Margin: 11.5% (YoY +710 bps) (QoQ +580 bps) — Driven by robust domestic growth and restructuring in the UK.
- Metallurgy EBITDA: ₹(5.0) mn (YoY Loss) (QoQ Improved) — Continued weakness in German automotive sector and high energy costs.
- Net Debt/Equity: 0.5x (YoY Inline) (QoQ -0.1x) — Improved cash management and net worth growth.
- Interest Coverage Ratio: 2.2x (YoY +0.6x) (QoQ +0.4x) — Higher operating profit and stable interest costs.
- Aerospace EBITDA Margin: 21.2% (YoY -630 bps) (QoQ -560 bps) — Not explained on call; likely due to program mix.
Is Dynamatic Technologies Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Dynamatic Technologies Ltd may be worth studying
- Earnings growing at +63.5% YoY
- Revenue growth is accelerating — +34.7% YoY
- Cash flow is positive — CFO ₹144 Cr
What is the investment thesis for Dynamatic Technologies Ltd?
Dynamatic Technologies Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +34.7% YoY
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Headwinds in Europe affecting the Metallurgy business
What is the future outlook for Dynamatic Technologies Ltd?
Dynamatic Technologies Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: accelerating
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Headwinds in Europe affecting the Metallurgy business
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.