Dynamatic Tech Revenue Segmentation: Which Segment Contributed the Highest Revenue in Q4?

Synopsis: Dynamatic Technologies strengthened its aerospace presence during FY26 through global partnerships, Airbus program execution and diversified industrial operations, while balancing European market challenges with long-term manufacturing expansion plans. 

The shares of this small-cap company majorly engaged in manufacturing hydraulic gear pumps and automotive turbochargers serving clients across aerospace, automotive and many more were in focus after its aerospace segment grew by 28 percent. 

With the market capitalization of Rs. 6,837 Crores, the shares of Dynamatic Technologies Ltd were trading at around Rs. 10,067 per share which is 18 percent discount from its 52 weeks high of Rs. 12,875 per share and is trading at a P/E of 137 whereas industry P/E stands at 31 

Aerospace Emerged as the Biggest Growth Driver

Dynamatic Technologies saw its Aerospace business become the company’s largest revenue contributor during FY26. The segment contributed 48 percent  of total revenue compared to 43 percent  in FY25, while quarterly this segment revenue increased 27.6 percent  year-on-year from Rs. 607.85  Crores  to Rs. 775.61  Crores . The growth was supported by strong execution of commercial aerospace programs and increasing participation in the global aerospace supply chain.

A major achievement during the year was the successful delivery readiness of the first complete ship-set of all eight Airbus A220 doors from the company’s Bengaluru facility ahead of schedule. This highlighted the company’s growing capability in precision aerostructure manufacturing and strengthened its relationship with global aerospace customers.

The company also entered into a collaboration with Hutchinson to expand capabilities in advanced aerospace composites. Alongside growing momentum in Airbus programs and defence aerospace initiatives, the partnership is expected to create opportunities in commercial and security-related aerospace applications in the coming years.

Hydraulics Business Maintained Stable Momentum

The Hydraulics segment contributed 30 percent  of FY26 revenue and continued to benefit from strong domestic OEM demand, rising mechanisation trends and infrastructure activity in India. Segment revenue increased 6.4 percent  year-on-year from Rs. 458.04  Crores  to Rs. 487.38  Crores .

The company also focused on improving operational efficiency between its Bangalore and Swindon facilities through supply chain integration and manufacturing improvements. In the UK business, restructuring initiatives including workforce optimisation and rationalisation of selected product lines were undertaken to align operations with changing European market conditions and improve long-term profitability.

Metallurgy Business Faced European Pressure but Shifted Strategy

The Metallurgy segment continued to operate in a difficult environment due to weakness in the German automotive sector, high energy costs and geopolitical uncertainty in Europe. Despite these challenges, the segment recorded 6.9 percent  annual revenue growth, reaching Rs. 358.1  Crores  compared to Rs. 334.83  Crores  in FY25.

To reduce dependence on traditional automotive demand cycles, the company continued shifting the segment toward aerospace, defence and specialised engineering applications. Management also maintained strict cost discipline and focused on improving the product mix toward higher-value applications to support long-term resilience.

Financial Performance Reflected Broad-Based Growth

Dynamatic Technologies reported consolidated FY26 revenue of Rs. 1621.34  Crores , up 15.5 percent  from Rs. 1403.8  Crores  in FY25. EBITDA increased 15.4 percent  to Rs. 182.68  Crores , while EBIT rose 19.1 percent  to Rs. 106.06  Crores . Normalised PAT excluding exceptional items increased 39.4 percent  year-on-year to Rs. 59.98  Crores  from Rs. 43.04  Crores .

In Q4FY26, revenue rose 13.8 percent  year-on-year to Rs. 433.16  Crores , while EBITDA increased 28.1 percent  to Rs. 48.61  Crores  with EBITDA margin improving to 11.2 percent  from 10 percent  in Q4FY25.

Diversified Global Presence and Strong Customer Base

The company operates eight facilities across India, the UK and Germany and serves customers across aerospace, hydraulics and metallurgy businesses. Dynamatic works with global companies including Airbus, Boeing, Bell, Dassault Aviation, HAL, BMW, Audi, Mahindra & Mahindra, John Deere and Cummins.

Dynamatic also holds around 70 percent  share in India’s organised tractor hydraulic market and remains one of the world’s largest manufacturers of hydraulic gear pumps. The company continues investing in R&D, advanced manufacturing and engineering capabilities to strengthen its long-term position across industrial and aerospace markets

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