Mtar Technologies Limited — Q1 FY26 earnings call

Call held 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

  • 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

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

Key financials

  1. Revenue from Operations ₹156.6 Cr +22.1%YoY
  2. EBITDA ₹28.4 Cr +70.9%YoY
  3. Profit Before Tax ₹114.8 Cr +138.7%YoY
  4. Profit After Tax ₹10.8 Cr +144.2%YoY
  5. Working Capital Days 267 days

What they filed

Q1 FY27: revenue up 129.9%, net profit up 354.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue190 174 183 157 136 −28%278 +60%306 +67%361 +130%
EBITDA37 33 34 28 17 −54%64 +94%62 +82%85 +204%
Net profit19 16 14 11 5 −74%35 +119%44 +214%50 +355%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

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

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 25%
    We remain committed very clearly to our FY '26 guidance of 25% revenue growth and an EBITDA margin of 21%, plus/minus 100 basis points.

    — Srinivas Reddy, Managing Director and Promoter

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 21% +/- 100 bps
    We remain committed very clearly to our FY '26 guidance of 25% revenue growth and an EBITDA margin of 21%, plus/minus 100 basis points.

    — Srinivas Reddy, Managing Director and Promoter

Working Capital

  • Working Capital Days Working Capital · by end of this financial year · High confidence 200 days
    However, we are targeting to reduce our working capital days to 200 days by end of this financial year.

    — Gunneswara Rao, Chief Financial Officer

Capex

  • Total Capex Capex · FY26 · High confidence INR100+ crores
    It will be around INR100-plus crores for this financial year.

    — Gunneswara Rao, Chief Financial Officer

  • Sustenance Capex Capex · FY27 · Medium confidence INR25-30 crores
    And as far as the next year concerned, only around INR25 crores to INR30 crores is there as per the like sustenance capex.

    — Gunneswara Rao, Chief Financial Officer

Clean Energy

  • Growth Clean Energy · FY26 · High confidence 15-20%
    Looking ahead, we anticipate a robust growth of 15% to 20% in FY '26 across clean energy sector, including fuel cells, hydropower, battery storage systems and others.

    — Srinivas Reddy, Managing Director and Promoter

Aerospace & Defence

  • Revenue Growth Aerospace & Defence · FY26 · High confidence approximately 80%
    We expect revenue growth of approximately 80% from this segment in FY '26.

    — Srinivas Reddy, Managing Director and Promoter

Civil Nuclear

  • Order Inflow Civil Nuclear · next 3 to 6 months · High confidence INR1,000 crores
    during the current financial year, we are anticipating orders close to about INR1,000 crores coming in from the nuclear division over the next 3 to 6 months.

    — Srinivas Reddy, Managing Director and Promoter

  • Delivery from Orders Civil Nuclear · FY26 · High confidence INR60 crores
    We anticipate delivering orders worth around INR60 crores in this sector in FY '26 underscoring our ongoing commitment to supporting the nuclear power industry with highly specialized products for the core of the reactor.

    — Srinivas Reddy, Managing Director and Promoter

  • Order Book Execution Civil Nuclear · 3 years · High confidence INR1,000 crores
    if you have to execute, let's say, INR1,000 crores order book in 3 years, which has never happened in the past, we have enough capacities.

    — Srinivas Reddy, Managing Director and Promoter

Products and Other Verticals

  • Growth Products and Other Verticals · FY26 · High confidence 20%
    Finally, in the products and other verticals, we registered revenues of INR21 crores in this quarter and expect a 20% growth in this segment for FY '26.

    — Srinivas Reddy, Managing Director and Promoter

Aerospace

  • Revenue Aerospace · end of this financial year · High confidence INR100-120 crores

    Previously INR45 crores (last year) → INR100-120 crores

    This year, we are targeting almost INR100 crores to INR120 crores of revenue by end of this financial year. This growth also driven by the repeat business from our existing customers, also increased production capacity and which last year, we have commissioned a separate unit in Pashamylaram in Hyderabad.

    — Gunneswara Rao, Chief Financial Officer

Bloom Energy

  • Forecast (MTAR specific) Bloom Energy · next fiscal year · High confidence 25% higher numbers
    post tariffs announcement also, we got the highest forecast from Bloom for next fiscal year. That is a very good sign, right?

    — Srinivas Reddy, Managing Director and Promoter

  • Revenue (MTAR specific) Bloom Energy · next year (FY27) · High confidence INR140-150 crores per quarter
    So next year, we're looking at about close to INR140 crores to INR150 crores of revenues coming from Bloom per quarter.

    — Srinivas Reddy, Managing Director and Promoter

  • Revenue (MTAR specific) Bloom Energy · this year (FY26) · High confidence INR100+ crores per quarter
    This year, it will be like whatever, INR100 crores plus it will be in that range.

    — Srinivas Reddy, Managing Director and Promoter

Space

  • Electromechanical Actuator Systems (EMA) Project Business Space · null · High confidence INR60-70 crores
    So mostly, we are hoping that we would get that project, which is substantial, which will be close to about INR60 crores to INR70 crores of business coming in only from EMA.

    — Srinivas Reddy, Managing Director and Promoter

Risks & concerns

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

    high

    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

  • Tariff-related uncertainties in the U.S. market

    medium

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

    Management downplayed

  • Delayed receivables from customers in conflict regions (Israeli area)

    medium

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

    Management acknowledged

Q&A highlights

3 direct
Nuclear Order Book and Execution Timeline Direct
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

Working Capital Days and Capex Funding Direct
So regarding capex, for oil and gas sector, we are spending around INR70 crores of capex for this year. Other than that, there is some sustenance capex and a few other equipments which we are buying for this financial year. It will be around INR100-plus crores for this financial year. ... See, we are going to take some debt also, maybe 70% is from the debt and 30% internal accruals we'll do.

This addresses the company's capital allocation strategy, funding sources for expansion, and efforts to manage working capital, which are key indicators of financial health.

Asked by Renu Baid

Bloom Energy's Market Strategy and MTAR's Wallet Share Direct
No. The issue -- it's not about plan to come to India. The idea is that obviously, post tariffs announcement also, we got the highest forecast from Bloom for next fiscal year. That is a very good sign, right? And then apart from that, they're also increasing step by step the wallet share for MTAR at various assemblies, what we are doing for them.

This provides insight into the strategic direction of a major customer (Bloom Energy) and MTAR's deepening engagement, indicating sustained growth potential in the clean energy segment despite market uncertainties.

Asked by Vipraw Srivastava

3 min read 6 chapters

Detailed narrative

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.

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).

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.

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.

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.

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.

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