Dynamatic Technologies bank facilities affirmed 'IND A' with stable outlook

Dynamatic Technologies Limited announced that India Ratings and Research (Ind-Ra) has affirmed its bank loan facilities at 'IND A' with a Stable Outlook. This reaffirmation is based on the company's diversified revenue base, competitive market position, and strong order book, particularly within its aerospace segment.

The aerospace segment continues to be a key profit driver, contributing over 60% to total EBITDA and ₹6.1 billion in revenue in FY25, a 19% increase from FY24. Despite flat overall revenue at ₹14,038 million in FY25 due to muted growth in hydraulics and metallurgy, Ind-Ra projects a 6-7% year-on-year revenue rise in FY26, improving to 12-15% in FY27, driven by aerospace and defence orders.

Credit metrics remained stable in FY25, with interest coverage at 2.9x and net leverage at 3.4x, and are expected to improve further from FY27. EBITDA margins, however, moderated to 10.2% in 1QFY26 from 11.3% in FY25, largely due to demand slowdowns and macroeconomic conditions in overseas markets. The company’s working capital cycle remains elongated at 109 days in FY25, leading to continued reliance on bank lines.