Dynamatic Technologies Ltd. — Investor Presentation 2025

Aug 7, 2025

7th August 2025

• 1. The Secretary Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400001 .
• 1. The Secretary National Stock Exchange of India Limited "Exchange Plaza" Bandra-Kurla Complex Bandra East, Mumbai - 400051

Dear Sir/Madam,

Sub: Investor Presentation. Ref: Scrip Code: 5052421 DYNAMATECH

We wish to inform you that the Board of Directors of the Company, at their meeting held on August 7, 2025, has approved the un-audited Standalone and Consolidated Financial Results of the Company for the quarter ended June 30, 2025 ("Financial Results").

In this respect, we enclose herewith the Presentation on the Financial Results of the Company for the quarter ended June 30, 2025. This is also available on the website of the Company at www.dynamatics.com.

We kindly request you to take this letter along with the enclosures on record.

Thanking you,

Yours faithfully , ::s?~ imited ~ and Company Secretary

ShivaramV

Chief Legal Officer Membership No.: ACS 19173

Registered Office Dynamatic Technologies limited JKM Plaza Dynamatic Aerotropolis 55 KIADB Aerospace Park Bangalore 562 149 India Tel +91 802111 1223 +91 802204 0535

www.dynamatics.com

Corporate Identity Number: L72200KA 1973PLC002308

Q1 FY2026 EARNINGS PRESENTATION

Hydraulics Aerospace Metallurgy

Q1 FY2026 PERFORMANCE HIGHLIGHTS

Highlights Q1 FY2026 vs. Q1 FY2025

• Revenue of Rs. 3,709.3 mn; up by 7.1% from Rs. 3,462.8 mn in Q1 FY2025
• o Aerospace segment revenue of Rs. 1,729.2 mn; up by 27.3% from Rs. 1,358.5 mn
• o Hydraulics segment revenue of Rs. 1,061.2 mn; down by 10.9% from Rs. 1,191.1 mn
• o Metallurgy segment revenue of Rs. 918.8 mn; up by 0.7% from Rs. 912.6 mn
• EBITDA of Rs. 377.8 mn; down by 5.7% from Rs. 400.5 mn in Q1 FY2025
• o EBITDA margin of 10.2%; down by 138 bps
• EBIT of Rs. 192.9 mn; down by 15.1% from Rs. 227.2 mn in Q1 FY2025
• o EBIT margin of 5.2%; down by 136 bps
• PAT stood at Rs. 107.7 mn as against Rs. 113.9 mn in Q1 FY2025; down by 5.4%

Revenue (Rs. Mn) and EBITDA Margin (%)

FINANCIAL PERFORMANCE SUMMARY

Consolidated Performance Highlights

Rs. Mn	Q1		y-o-y Growth (%)	Q4	q-o-q Growth (%)
	FY26	FY25		FY25
Revenue	3,709.3	3,462.8	7.1%	3,806.7	(2.6)%
EBITDA	377.8	400.5	(5.7)%	379.4	(0.4)%
Margin (%)	10.2%	11.6%		10.0%
EBIT	192.9	227.2	(15.1)%	206.9	(6.8)%
Margin (%)	5.2%	6.6%		5.4%
PBT	153.3	117.1	30.9%	192.9	(20.5)%
PAT	107.7	113.9	(5.4)%	160.9	(33.1)%
Margin (%)	2.9%	3.3%		4.2%
EPS (Rs.)	15.86	16.77		23.70

• The revenue in Q1 FY2026 increased by 7.1% on a y-o-y basis

• Aerospace segment revenue up by 27.3%, Hydraulics segment revenue down by 10.9% and Metallurgy segment up by 0.7% on a y-o-y basis
• Q1 FY2026 EBITDA declined by 5.7% y-o-y with margin of 10.2%
• PAT stood at Rs. 107.7 mn as against Rs. 113.9 mn in Q1 FY2025; down by 5.4%

Management Commentary

PERFORMANCE HIGHLIGHTS

Management Commentary

Commenting on the results, Mr. Udayant Malhoutra, CEO and Managing Director said:

AEROSPACE: The Aerospace segment continued to be the leading contributor to your Company's revenues this quarter. It remains at the forefront of our operations and consistently delivers superior margins, reinforcing its role as a cornerstone of our business. We are seeing increased volumes in both the Airbus A320 family and A330 programs, aided by a normalizing supply chain that has improved delivery timelines. The Airbus A220 doors project is progressing well, with assembly for First Article Inspection (FAI) now underway. The Boeing P8 and F15 programs continue at a steady pace.

Hydraulics: The India Hydraulics segment experienced higher demand across all customer segments—tractor OEMs, industrial, and aftermarket—during the quarter. To meet this growing demand, we have expanded capacity in India and are now delivering higher volumes of pumps. Sales of tractors and construction equipment remain steady. In contrast, our UK business faced headwinds due to lower customer demand. We are in the final stages of rationalizing our product lines between the Bangalore and Swindon facilities, focusing on operational efficiency and strengthening margins.

Metallurgy: The Metallurgy segment remains under pressure due to ongoing weakness in the German automotive sector and broader geopolitical uncertainties. We have implemented several cost-reduction measures to maintain lean operations. At the same time, we are making strategic progress in diversifying into aerospace and defense applications, with prototype development and initial testing of defense components underway. While the shift is gradual given the nature of the business, this geographic and sectoral transformation is inevitable.

© 2025 Proprietary Information of Dynamatic Technologies Limited Falcon 6X Rear Fuel Tank Assembly Line 50th Shipset delivery of A220 Escape Hatch Door 8500 Shipsets delivery of Flap-track-beam assemblies

PERFORMANCE HIGHLIGHTS

Foreign Exchange Fluctuation

				Q1 FY2026 vs. Q4 FY2025		Q1 FY2026 vs. Q1 FY2025
Exchange Rate	Q1 FY2026	Q1 FY2025	Q4 FY2025	Impact	Impact %	Impact	Impact %
EURO vs. INR	96.58	89.76	90.86	5.72	6.3%	6.82	7.6%
GBP vs. INR	113.52	104.92	108.34	5.18	4.8%	8.60	8.2%
USD vs. INR	85.32	83.34	84.67	0.65	0.8%	1.99	2.4%

Impact due to change in average exchange rates (Y-o-Y)

	Q1 FY2026 vs. Q1 FY2025			Q1 FY2026 vs. Q4 FY2025
Particulars	Erla	DL UK	DTL	Total Impact	Erla	DL UK	DTL	Total Impact
Currency	EURO	GBP/ USD	EURO/GBP/USD		EURO	GBP/ USD	EURO/GBP/USD
Revenue (Rs. Mn)	64.85	66.24	37.96	169.05	54.38	39.87	37.96	132.21
EBITDA (Rs. Mn)	1.29	5.73	13.21	20.23	1.08	3.45	13.21	17.74

• On a constant currency basis, Q1 FY2026 revenue, if adjusted for a foreign exchange impact of Rs. 169.05 mn would be Rs. 3,540.3 mn (representing an increase of 2.2% compared to an increase of 7.1% before adjustment)
• On a constant currency basis, Q1 FY2026 EBITDA, if adjusted for a foreign exchange impact of Rs. 20.23 mn would be Rs. 357.6 mn (compared to Rs. 377.8 mn before adjustment)
• The Company has exposure to EUR, GBP and USD. The impact from EUR, GBP and USD transactions were favorable on a Y-o-Y basis

AEROSPACE SEGMENT

Financial Overview

Rs. Mn	Q1		y-o-y Growth (%)	Q4	q-o-q Growth (%)
	FY26	FY25		FY25
Revenue	1,729.2	1,358.5	27.3%	1,728.0	0.1%
EBITDA	400.0	365.3	9.5%	432.9	(7.6)%
Margin (%)	23.1%	26.9%		25.1%
EBIT	291.3	266.8	9.2%	336.3	(13.4)%
Margin (%)	16.8%	19.6%		19.5%

Performance Overview

• The aerospace segment reported a growth of 27.3% y-o-y in Q1 FY2026 driven by resilient performance of Aerospace industry and execution of commercial order book
• Outlook: The aerospace segment is expected to maintain its strong momentum, supported by the execution of key programs and the transition of new projects into serial manufacturing. Growing focus on regional connectivity, defense modernization, and sustainable aviation are expected to create further opportunities
• Strategy: Focus on industrializing secured programs, deepening our manufacturing engineering capabilities, and developing new airframe assemblies and detail parts to enhance revenue potential as well as to improve long-term margins.

HYDRAULICS SEGMENT

Financial Overview

Rs. Mn	Q1		y-o-y Growth (%)	Q4	q-o-q Growth (%)
	FY26	FY25		FY25
Revenue	1,061.2	1,191.1	(10.9)%	1,104.8	(3.9)%
EBITDA	35.9	92.7	(61.3)%	(19.6)	nm
Margin (%)	3.4%	7.8%		(1.8)%
EBIT	3.6	62.3	(94.2)%	(51.6)	nm
Margin (%)	0.3%	5.2%		(4.7)%

Performance Overview

• In Q1 FY2026, the Hydraulics segment witnessed a year-over-year decrease of 10.9%. While Indian business recorded 20.3%, the UK business performance impacted over 50% due to lower customer demand on y-o-y basis
• Outlook: The Indian hydraulics segment is expected to outperform overall growth, driven by high infrastructure and agricultural demand. Also Government flagship programs like PM Gati Shakti and Smart Cities Mission are accelerating demand and fueling robust growth in FY 2026. Market conditions in Europe remain challenging, but domestic demand drivers provide a positive medium-term outlook.
• Strategy: Focus on rationalizing product lines between Bangalore and Swindon facilities to enhance cost efficiency and streamline operations. Efforts will continue toward improving aftermarket penetration, implementing value engineering, and optimizing operations to strengthen margins and support sustainable growth in the coming quarters.

METALLURGY SEGMENT

Financial Overview

Rs. Mn	Q1		y-o-y Growth (%)	Q4	q-o-q Growth (%)
	FY26	FY25		FY25
Revenue	918.8	912.6	0.7%	944.3	(2.7)%
EBITDA	17.1	36.2	(52.8)%	38.2	(55.2)%
Margin (%)	1.9%	4.0%		4.0%
EBIT	(15.3)	1.9	nm	4.9	nm
Margin (%)	(1.7)%	0.2%		0.5%

Performance Overview

• Metallurgy segment has shown marginal increase of 0.7% in Q1 FY2026. However, this segment continued to be under pressure owing to weakness in the German automotive sector coupled with geopolitical uncertainties stemming from high inflation and stagnation of private consumption leading to lower demand
• Outlook: Going forward, the segment performance will majorly be consumer-driven, considering rising real incomes, a robust labor market, high savings and expected interest rate cuts.
• Strategy: Focus on high margin product mix, rationalization of low margin products alongside development of aerospace castings and forgings in the future is expected to drive the business growth in the coming quarters

QUARTERLY FINANCIAL TRENDS

Revenue (Rs. Mn) and Growth % (Q-o-Q) EBITDA (Rs. Mn) and Margin (%)

1,157.1 1,018.1 1,083.4 1,224.8 1,191.1 1,305.8 978.7 1,104.8 1,061.2 1,422.4 1,200.4 1,025.5 1,059.8 912.6 825.0 666.4 944.3 918.8 1,045.7 1,290.1 1,345.8 1,419.3 1,358.5 1,482.9 1,509.1 1,728.0 1,729.2 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26

Hydraulics Metallurgy Aerospace

Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26

Hydraulics Metallurgy Aerospace

QUARTERLY FINANCIAL TRENDS

(Rs. Mn)	Jun-24	Mar-25	Jun-26
Long Term	2,267.2	2,252.3	2,440.6
Short Term	2,208.5	2,258.1	2,359.1
Total Debt	4,475.7	4,510.4	4,799.7
Less: Cash & Cash Equivalents	697.9	459.0	452.1
Net Debt	3,777.8	4,051.4	4,347.6
Add: Lease Liabilities	1,239.8	1,202.1	1,207.3
Overall Debt	5,017.6	5,253.5	5,554.9
Net Worth	6,795.8	7,175.0	7,560.1
LTM EBITDA	1,624.6	1,583.2	1,561.1

Capital Structure Net Debt/LTM EBITDA & Debt/Equity (x)

Interest Expense (Rs. Mn) & Interest Coverage (x)

1. Interest Coverage ratio = Operating Profit / Interest Expense

DYNAMATIC OVERVIEW

Diversified business	• A combination of stable and high growth businesses with highly engineered products for the automotive, hydraulic and aerospace industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions
Competitive market position	• One of the world's largest manufacturers of hydraulic gear pumps; leadership in hydraulic gear pumps market for over 45 years • Has 70% share of the Indian organized tractor market, supplies to almost all OEMs in India • Pioneer and leader in the Indian private sector and the UK for manufacture of high precision airframe structures and aerospace components. Tier I supplier to the global aerospace OEMs such as Airbus, Boeing, Bell Helicopters, Dassault Aviation, Deutsche Aircraft and HAL • Manufactures high precision, complex metallurgical ferrous castings for performance critical components such as turbochargers and exhaust manifolds and has capabilities to develop complex metallurgical components on single source basis
Locational advantages	• World-class manufacturing facilities in India, UK and Germany will give the company business advantages in the post-COVID world, as customers look for local deliveries from suppliers

DYNAMATIC OVERVIEW

Vertically Integrated Facilities	• Owns one of the most advanced ferrous foundries in Europe (Germany) capable of manufacturing highly intricate castings • In-house division for design validation and optimization, analysis and prototypes • 8 Facilities worldwide, located in Bangalore (India), Swindon and Bristol (UK) and Schwarzenberg (Germany)
R&D and Intellectual Property	• Owns several patents for various products and designs in India and internationally • Has the design IP for all the products manufactured in the Hydraulics segment • R&D units recognized by Department of Scientific and Industrial Research, Government of India
Blue Chip Customers	• Metallurgy: BMW, MAN, Daimler, Volkswagen, Audi • Hydraulics: Cummins, Escorts, John Deere, Mahindra & Mahindra, Same Deutz-Fahr • Aerospace : Airbus, Bell Helicopter, Boeing, HAL, Dassault Aviation, Deutsche Aircraft
Board and Management	• Highly qualified board and management team with significant industry experience • 3 out of 7 Directors are Independent

DYNAMATIC OVERVIEW

Combination of Stable and High Growth Businesses

AEROSPACE 46.6% of Q1 FY2026 Revenue	Wings, rear fuselages, ailerons, wing • flaps and major airframe structures • Ramp structure assembly AFT Pylon assembly •	Airbus • Boeing • Bell • Deutsche • Aircraft	Spirit Aerosystems • HAL • Dassault Aviation •
HYDRAULICS 28.6% of Q1 FY2026 Revenue	Hydraulic valves • • Hydraulic gear pumps Combined displacement pump packages • Fan drive systems • • Fixed displacement pumps	Cummins • Eicher • • Escorts John Deere • JCB •	Mahindra & Mahindra • New Holland • • Same Deutz-Fahr Terex • MacDon •
METALLURGY 24.8% of Q1 FY2026 Revenue	Casting and forging •	Audi • • BMW Daimler • IHI •	MAN • • Volkswagen BorgWarner • AGCO •

BLUE CHIP INVESTOR BASE

Shareholding Structure

Shareholding Pattern Trend Equity History

Shareholders	Jun-24	Mar-25	Jun-25
Promoters	41.9%	41.9%	41.9%
FIIs	17.1%	13.3%	13.2%
DIIs	5.5%	6.6%	6.8%
Alternative Investment Fund	5.8%	6.9%	6.0%
Bodies Corporate	5.3%	6.2%	6.4%
Others	24.5%	25.2%	25.7%
Total	100.0%	100.0%	100.0%

Key Investors

• HDFC Mutual Fund
• Alchemy and Group
• Samena Capital
• Abakkus Group
• Madhusudan Kela and Group
• Al Mehwar Commercial Investments L.L.C. (Noosa)
• Cohesion MK Best Ideas Sub-trust
• Carnelian Structural Shift Fund
• Girish Gulati HUF

Year	Event	Year End Equity Capital (Rs. Mn)
1974	Initial Public Offering	2.9
1987	Rights Issue	11.2
1992	Rights Issue	21.0
1994	Rights Issue	31.5
1995	Bonus Issue	41.9
2008	Amalgamation	48.1
2008	Qualified Institutional Placement	54.1
2014	Preferential Convertible Warrants	60.4
2014	Qualified Institutional Placement	63.4
2023	Preferential allotment	67.9

FINANCIAL STATEMENTS

Consolidated P&L Statement (Q-o-Q)

Profit & Loss Statement (Rs. Mn)	Q1 FY25	Q4 FY25	Q1 FY26
Revenues
Revenue from operations	3,462.8	3,806.7	3,709.3
Expenses
Cost of materials and components consumed	1,644.7	1,740.2	1,833.0
Change in inventory of finished goods and work-in-progress	(58.9)	91.9	12.5
Employee Benefit Expenses	774.2	862.2	804.4
Other Expenditure	702.3	733.0	681.6
Total expenses excluding D&A	3,062.3	3,427.3	3,331.5
Operating Profit (EBITDA)	400.5	379.4	377.8
Depreciation and Amortization Expenses	173.3	172.5	184.9
EBIT	227.2	206.9	192.9
Other Income	30.1	125.8	101.0
Finance Costs	140.2	139.8	140.6
PBT	117.1	192.9	153.3
Tax Expenses	3.2	32.0	45.6
PAT	113.9	160.9	107.7
EPS	16.8	23.7	15.9
Margins (%)
Gross Margins	54.2%	51.9%	50.2%
EBITDA margins	11.6%	10.0%	10.2%
PAT margins	3.3%	4.2%	2.9%
Y-o-Y Growth (%)
Total Revenues	(4.5)%	2.8%	7.1%
EBITDA	8.2%	(11.5)%	(5.7)%
PAT	(72.5)%	(71.8)%	(5.4)%

IMPORTANT NOTICE

This presentation contains statements that contain 'forward looking statements' including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Dynamatic Technologies' ('Dynamatic' or the 'Company') future business developments and economic performance.

While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.

Dynamatic undertakes no obligation to publicly revise any forward-looking statements to reflect future / likely events or circumstances.

CONTACT DETAILS

Mr. Chalapathi P Executive Director & Chief Financial Officer E: chalapathi.p@dynamatics.net

Mr. Shivaram V Chief Legal Officer and Company Secretary E: shivaram.v@dynamatics.net

Dynamatic Technologies Limited JKM Plaza Dynamatic Aerotropolis 55 KIADB Aerospace Park Bangalore 562 149 India

T: +91 80 2111 1223 / 2204 0535

www.dynamatics.net

CIN: L72200KA1973PLC002308