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    MTAR Technologie

    MTARTECHGood
    Capital Goods·6 Aug 2025
    Management Summary

    MTAR Technologies reported a robust Q1 FY26 performance with strong revenue and EBITDA growth, driven by stable execution across key segments. The company maintained its FY26 guidance for revenue growth and EBITDA margin, anticipating sequential improvements in the latter half of the year. Despite an increase in working capital days due to delayed receivables, management expressed confidence in reducing it and securing significant orders, particularly in the civil nuclear sector.

    Highlights

    8
    • Revenue from operations grew 22.1% YoY to ₹156.6 crores in Q1 FY26.

    • EBITDA increased by 70.9% YoY to ₹28.4 crores.

    • Profit before tax (PBT) reported at ₹114.8 crores, with a stated YoY growth of 138.7% (note: significant discrepancy with reported numbers).

    • Profit after tax (PAT) rose 144.2% YoY to ₹10.8 crores.

    • Working capital days increased to 267 days from 229 days in the previous quarter, with a target to reduce to 200 days by FY26 end.

    • Clean Energy segment contributed ₹105 crores in revenue, while Aerospace & Defence secured ₹25 crores in orders.

    • Anticipated order inflow of approximately ₹1,000 crores from the civil nuclear division in the next 3-6 months.

    • FY26 guidance maintained at 25% revenue growth and 21% EBITDA margin (+/- 100 bps).

    Concerns

    1
    • Discrepancy in reported Profit Before Tax (PBT) figures and growth rate in the transcript

    What Changed1

    vs Q2 FY26

    Guidance items31 → 16 (-15)

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue from Operations₹156.6 Cr+22.1%YoY
    2. 02EBITDA₹28.4 Cr+70.9%YoY
    3. 03Profit Before Tax₹114.8 Cr+138.7%YoY
    4. 04Profit After Tax₹10.8 Cr+144.2%YoY
    5. 05Working Capital Days267 days

    Segment breakdown

    Clean Energy
    ₹105 Cr Revenue
    Aerospace & Defence
    ₹25 Cr Orders
    Civil Nuclear
    ₹5.4 Cr Revenue
    Products and Other Verticals
    ₹21 Cr Revenue
    List

    Guidance & targets

    16
    CategoryTargetPriority
    Revenue
    Revenue Growth
    25%
    High
    Profitability
    EBITDA Margin
    21% +/- 100 bps
    High
    Working Capital
    Working Capital Days
    200 days
    High
    Capex
    Total Capex
    INR100+ crores
    High
    Capex
    Sustenance Capex
    INR25-30 crores
    Medium
    Clean Energy
    Growth
    15-20%
    High
    Aerospace & Defence
    Revenue Growth
    approximately 80%
    High
    Civil Nuclear
    Order Inflow
    INR1,000 crores
    High
    Civil Nuclear
    Delivery from Orders
    INR60 crores
    High
    Civil Nuclear
    Order Book Execution
    INR1,000 crores
    High
    Products and Other Verticals
    Growth
    20%
    High
    Aerospace
    Revenue
    INR100-120 crores
    High
    Bloom Energy
    Forecast (MTAR specific)
    25% higher numbers
    High
    Bloom Energy
    Revenue (MTAR specific)
    INR140-150 crores per quarter
    High
    Bloom Energy
    Revenue (MTAR specific)
    INR100+ crores per quarter
    High
    Space
    Electromechanical Actuator Systems (EMA) Project Business
    INR60-70 crores
    High

    Risks & concerns

    3
    RiskSeverity

    Tariff-related uncertainties in the U.S. market

    Management remains confident in sustaining export momentum due to cost competitiveness and engineering depth, stating no impact on MTAR.Management downplayed

    medium

    Delayed receivables from customers in conflict regions (Israeli area)

    This caused an increase in working capital days in Q1 FY26, but the funds were received in the first week of July.Management acknowledged

    medium

    Discrepancy in reported Profit Before Tax (PBT) figures and growth rate in the transcript

    The transcript states Q1 FY26 PBT of INR114.8 crores with a 138.7% YoY growth from Q1 FY25 PBT of INR6.2 crores, which is mathematically inconsistent (actual growth would be ~1750%). This was not addressed during the call.Analyst not addressed

    high

    Q&A highlights

    3

    “So look, basically, now it's in very advanced stage. We can expect the orders some coming in this quarter, some by next quarter. That's why the CFO mentioned within the next 3 to 6 months. These orders of close to INR1,000 crores are not part of our execution plan for this current financial year. That's why we see a lot of exponential growth in nuclear division moving forward in the next 3 years.”

    This question clarifies the timing and magnitude of the anticipated large nuclear orders, providing crucial visibility into future revenue streams and capacity planning.

    asked by Piyush Sevaldasani

    3 min read6 chapters

    Detailed Narrative

    01

    Q1 FY26 Financial Performance Overview

    MTAR Technologies reported a robust Q1 FY26, with revenue from operations growing 22.1% year-on-year to ₹156.6 crores. EBITDA saw a significant increase of 70.9% year-on-year, reaching ₹28.4 crores. Profit after tax (PAT) also demonstrated strong growth, up 144.2% to ₹10.8 crores. However, a notable discrepancy was observed in the reported Profit Before Tax (PBT) of ₹114.8 crores, which was stated to have grown 138.7% from ₹6.2 crores in Q1 FY25, a figure inconsistent with the actual calculation.

    02

    Clean Energy Segment: Sustained Momentum and Expansion

    The Clean Energy segment delivered approximately ₹105 crores in revenues during Q1 FY26. Management anticipates a robust growth of 15-20% in this sector for FY26, driven by new product development for Bloom Energy and increasing wallet share. Bloom Energy has provided a 25% higher forecast for the next fiscal year, and MTAR expects revenues from Bloom to reach ₹140-150 crores per quarter in FY27, up from ₹100+ crores per quarter in FY26. The company is also exploring opportunities in electrolyzers and battery storage systems (Fluence).

    03

    Aerospace & Defence: Strong Traction and Export Opportunities

    MTAR maintained strong traction in the aerospace and defence vertical, securing approximately ₹25 crores in orders during Q1 FY26. The company targets ₹100-120 crores in aerospace revenue for FY26, an ~80% growth from ₹45 crores last year. Initiatives include developing new products for multinational aerospace customers and participating in tenders for actuation systems for launch vehicles. European nations' supply chain constraints present significant export opportunities for Indian manufacturers, which MTAR is well-positioned to capitalize on.

    04

    Civil Nuclear Sector: Significant Order Inflow Expected

    The civil nuclear sector registered revenues of approximately ₹5.4 crores in Q1 FY26. Management anticipates a substantial order inflow of around ₹1,000 crores in the next 3-6 months, primarily from upcoming projects in Kaiga-5 and -6 and refurbishment reactors across Madhya Pradesh, Rajasthan, and Chennai. These orders are expected to be executed within 3 years, driving exponential growth from FY27 onwards. The company is also setting up a small dedicated facility to address bottlenecks and support the execution of these time-bound projects.

    05

    Working Capital and Capex Management

    Working capital days increased to 267 days in Q1 FY26 from 229 days in the previous quarter, mainly due to delayed receivables from customers in a conflict region, which have since been collected. Management targets reducing working capital days to 200 by the end of FY26. For FY26, the company plans a total capex of over ₹100 crores, including ₹70 crores for the new Oil & Gas sector facility and the remainder for sustenance and other equipment. This capex will be funded by a mix of 70% debt and 30% internal accruals.

    06

    New Market Entry and Product Development

    MTAR is venturing into the Oil & Gas sector, having signed a long-term contract with Weatherford and establishing a dedicated facility in SEZ, expected to be commissioned by June next year. This is projected to be a full-fledged program for the next 10 years, bringing significant add-on revenues. The company is also progressing with Proto 2 delivery for Fluence in the battery storage segment and continues to develop electrolyzers, awaiting the right infrastructure and order book to scale up.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.