Dynamatics: 93% profit rise, but FX did half the work

Dynamatic Technologies Limited (NSE: DYNAMATECH) grew Q1 FY27 consolidated revenue 14.5% to ₹421.7 crore. EBITDA rose 45.9% to ₹55.11 crore. Net profit jumped 92.9% to ₹20.79 crore. The stock has returned 98% in 52 weeks and trades at 159 times earnings. What happened Aerospace grew 17% to ₹202.25 crore, at 48% of revenue, with EBITDA margin at 23.8%. The Airbus A220 doors programme progressed. Hydraulics revenue grew 9.4% to ₹116 crore and metallurgy 15.7% to ₹106 crore. Why it matters India's aerospace exports jumped from ₹119 billion in FY19 to ₹588 billion in FY25. Dynamatic serves Airbus, Boeing, Bell Helicopter, HAL and Dassault. Its Dynamatic-Oldland Aerospace unit delivers over 800 aircraft shipsets a year. My view Read the headline carefully. Constant-currency revenue grew only 3.9%. After removing the ₹39.26 crore forex tailwind, EBITDA falls to ₹49.97 crore, not ₹55.11 crore. The business is improving, but the headline overstates it. Five year net profit: ₹15, ₹43, ₹122, ₹43 and ₹32 crore across FY22 to FY26. Revenue grew 6.7% per year, but profit swung wildly. One quarter of recovery does not erase that history. Net debt stands at ₹473 crore and net debt to EBITDA is 2.4 times. Aerospace expansion needs continued capital and leverage is not trivial. ICICI Securities has a Buy with a ₹15,340 target, about 11.5% above the 1 October close of ₹13,756. What I am watching Q2 FY27 results, constant-currency revenue growth, debt reduction and aerospace margin above 23%. On the chart, ₹10,000 is the nearest key support. My stance: Hold. The aerospace story is real. But a P/E of 159 already prices in years of near-flawless execution. Disclosure: I do not hold a position in Dynamatic Technologies Limited at the time of writing. This is not investment advice.