Concall AI

Mtar Technologies Limited — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

MTAR Technologies delivered a strong Q3 FY26 performance, achieving its highest-ever quarterly revenue and significant profit growth, driven by robust order inflows across Clean Energy, Civil Nuclear, and Aerospace segments. The company is aggressively expanding capacity in Clean Energy Fuel Cells and anticipates continued exponential growth, supported by a healthy order book and strategic initiatives to improve working capital efficiency.

Highlights

Revenue for Q3 FY26 stood at INR278 crores, marking a robust 59% year-over-year growth.
EBITDA for the quarter was INR64 crores, increasing by 92.5% YoY, with an EBITDA margin of 23%.
Profit Before Tax (PBT) grew by 115.2% YoY to INR46.1 crores, and Profit After Tax (PAT) increased by 117.3% YoY to INR34.7 crores.
The closing order book as of Q3 end reached INR2,394 crores, with INR1,370 crores of new orders received in Q3.
Clean Energy Fuel Cells segment secured INR1,080 crores in orders over the first 9 months of FY26, including INR645 crores in Q3.
Capacity for Clean Energy Fuel Cells is targeted to expand to 12,000 boxes by FY26 end, 20,000 units by FY27 end, and 30,000 units subsequently.
Management expects to cross INR900 crores in revenue for FY26 and achieve 50% revenue growth in FY27.
Working capital days are targeted to improve from 260 days in Q3 to 200-210 days in the next fiscal year.

Key financials

01 Revenue ₹278 Cr +59.3%YoY
02 EBITDA ₹64 Cr +92.5%YoY
03 EBITDA Margin 23%
04 PBT ₹46.1 Cr +115.2%YoY
05 PAT ₹34.7 Cr +117.3%YoY

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	190	174	183	157	136 −28%	278 +60%	306 +67%	361 +130%
Expenses	154	141	149	128	119	214	244	276
EBITDA	37	33	34	28	17 −54%	64 +94%	62 +82%	85 +204%
Margin	19%	19%	19%	18%	13%	23%	20%	24%
Other income	2	3	0	1	4	-1	17	8
Interest	5	6	6	6	6	8	10	16
Depreciation	8	9	10	8	9	9	9	9
Profit before tax	25	22	19	15	6 −76%	46 +109%	60 +216%	68 +353%
Tax rate	26%	25%	25%	26%	24%	24%	26%	25%
Net profit	19	16	14	11	5 −74%	35 +119%	44 +214%	50 +355%
EPS	6.11	5.31	4.62	3.65	1.49	11.43	14.42	16.42

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

Share of Revenue (9 Months FY26)

₹543 Cr Total

Clean Energy Fuel Cell ₹387 Cr 71.3%
Products and Other ₹84 Cr 15.5%
Aerospace and Defence ₹72 Cr 13.3%

Guidance & targets

Order Book

Closing Order Book Order Book · end of FY '26 · High confidence INR2,800 crores

We expect the closing order book to be at INR2,800 crores by end of FY '26 that will enable for sustaining our growth momentum over the coming quarters.

— Srinivas Reddy

Capacity

Clean Energy Fuel Cells Manufacturing Capacity Capacity · end of current fiscal year (FY26) · High confidence 12,000 boxes

We are currently in the process of increasing capacity to 12,000 boxes by end of the current fiscal year

— Srinivas Reddy
Clean Energy Fuel Cells Manufacturing Capacity Capacity · end of FY '27 · High confidence 20,000 units

plan to further scale this to 20,000 units by end of FY '27.

— Srinivas Reddy
Clean Energy Fuel Cells Manufacturing Capacity Capacity · subsequent year (post FY27) · High confidence 30,000 units

planning to actually create facilities to augment capacity up to 30,000 units in the subsequent year.

— Srinivas Reddy

Revenue

Clean Energy Fuel Cells Revenue Revenue · Q4 (current fiscal year) · High confidence INR250 crores

expect to deliver revenues of INR250 crores by end of the current fiscal year in Q4.

— Srinivas Reddy
Overall Revenue Revenue · FY '26 · High confidence INR900 crores+

So, we'll cross about INR900 crores plus for the financial year FY '26.

— Srinivas Reddy
Aerospace Export Revenue (per quarter) Revenue · next year (per quarter) · High confidence INR40 crores to INR50 crores

once it gets converted to volume production, we're looking at almost twice the number as what you can see right now, closer to INR40 crores or even up to INR50 crores per quarter.

— Srinivas Reddy
Aerospace Overall Revenue Revenue · next year (FY27) · High confidence INR150 crores to INR160 crores

So overall, next year, we can look at that kind of a situation where we can do about INR150 crores to INR160 crores in aerospace itself.

— Srinivas Reddy

PLI Scheme

PLI scheme value for critical nuclear components PLI Scheme · upcoming union budget · Medium confidence INR18,000 crores to INR20,000 crores

government is likely to announce a dedicated production-linked incentives, PLI scheme valued at INR18,000 crores to INR20,000 crores for manufacturing of critical nuclear components in the upcoming union budget.

— Srinivas Reddy

Revenue Growth

Overall Revenue Growth Revenue Growth · FY '26 · High confidence 30% to 35%

No, the guidance would remain the same. We would as I said earlier that we would do 30% to 35% growth guidance for this year.

— Srinivas Reddy
Overall Revenue Growth Revenue Growth · FY '27 · High confidence 50%

And FY '27, we're expecting growth of about 50% revenue growth for FY '27 based on the current growth what we have, about INR900 crores plus in the current financial year.

— Srinivas Reddy

Profitability

Overall EBITDA Margin Profitability · FY '26 · High confidence 21% +/- 1%

Yes, we will we have said around 21% plus or minus 1%. And as you know, by end of this 9 months, our EBITDA percent is 19.2%. With the strong forecast in the Q4, we are confident to achieve those numbers, whatever is guided.

— Gunneswara Rao
Overall EBITDA Margin Profitability · next financial year (FY27) · High confidence improved margins

And obviously, the margins, what we said 21% plus/minus 100 bps will -- we are very confident to maintain or do slightly better than that. And the margins would further improve in the next financial year based on the kind of improved margins we have shown in this quarter.

— Srinivas Reddy

Order Execution

INR500 crores Nuclear Orders Execution Order Execution · next 36 months · High confidence within 3 years

The INR500 crores orders should be executed within a period of over a period of 3 years. That's how it is done. That's the timeline that we are looking at.

— Srinivas Reddy

Capex

Clean Energy Capex (for 20,000 units capacity) Capex · next couple of weeks (finalization) · Medium confidence INR50 crores to INR60 crores

So, we are looking at roughly about INR50 crores to INR60 crores of capex that might be required, it's an approximate number. We're still working on it. It should be finalized in the next couple of weeks.

— Srinivas Reddy
Additional Clean Energy Capex (for 30,000 units capacity) Capex · for 30,000 units (post 20,000) · Medium confidence INR40 crores

So that's probably an additional INR40 crores and odd to increase it from 12,000 to sorry, from 20,000 to 30,000.

— Srinivas Reddy

Operations

Weatherford Commercial Operations Operations · by September (FY27) · High confidence full-fledged

our plant is getting ready. We are pushing it to be ready by June, but by September, we should be in a full-fledged commercial operations.

— Srinivas Reddy

Order Inflow

Hydro Power/Wind/Other Products Orders Order Inflow · next year (FY27) · High confidence INR100 crores to INR120 crores

we're looking at about INR100 crores to INR120 crores of orders that we can execute next year.

— Srinivas Reddy
Q4 Order Inflow Order Inflow · Q4 (current quarter) · High confidence INR700 crores to INR800 crores

All this put together, should be roughly around close to INR700 crores to INR800 crores that we are expecting in this quarter.

— Srinivas Reddy

Working Capital

Working Capital Days Working Capital · next fiscal year (FY27) · High confidence 200 to 210 days

The company is targeting working capital levels is approximately around 200 to 210 days in the next fiscal year

— Gunneswara Rao
Working Capital Days Working Capital · Q4 (as is scenario) · Medium confidence 235 days

So, quarter 4, we are targeting around 235 days with as is condition.

— Gunneswara Rao
Working Capital Days (with advances) Working Capital · Q4 (with advances) · High confidence less than 200 days

I think our working capital will drastically reduce if we get advances, then it will be less than 200 days.

— Gunneswara Rao

Opportunity

Nuclear Opportunity per Reactor (new) Opportunity · new reactors · Medium confidence INR350 crores to INR400 crores

So probably it should be going up to about INR350 crores to INR400 crores of opportunity per reactor.

— Srinivas Reddy

Risks & concerns

Elevated Working Capital Days
medium

Working capital days were 260 days in Q3, primarily due to higher receivables, but management targets 200-210 days in the next fiscal year.

Management acknowledged
Design Changes in Fluence Products
low

Fluence products are still a 'work in progress' due to design changes, with no specific feedback given yet.

Management acknowledged
Clean Energy Technology Changes
low

Management believes any future technology changes in clean energy will be 'very minor tweaks, which can be manageable' and will not drastically impact volumes or realizations.

Analyst downplayed

Areas of evasion (3)

Specific details on nuclear order book beyond current visibility
Exact quantification of next year's order inflow
Finalized capex numbers for clean energy expansion

Q&A highlights

3 direct

Offtake visibility for Bloom capacity expansion (30,000 units) and market share. Direct

this is being done purely based on the kind of demand forecast what we have received from the customer, and that's how we are doing it.

Addresses concerns about demand matching aggressive capacity expansion plans, especially given tariff rates.

Asked by Piyush Sevaldasani

Decline in gross margins in Q3 and sustainable levels. Direct

It is purely on the product mix. Just because gross margin is lower, it doesn't mean that our EBITDA will affect.

Clarifies the reason for margin fluctuation and reassures that it won't impact overall profitability (EBITDA).

Asked by Piyush Sevaldasani

Working capital levels and inventory days targets. Direct

The company is targeting working capital levels is approximately around 200 to 210 days in the next fiscal year, supported by ongoing initiatives to optimize our receivables like we are discussing on various advance opportunities from customers.

Addresses a key financial risk (high working capital days) and outlines specific strategies for improvement, including customer advances.

Asked by Vignesh Iyer

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

MTAR Technologies reported its highest-ever quarterly revenue of INR278 crores in Q3 FY26, demonstrating a robust 59% year-over-year growth. EBITDA for the quarter stood at INR64 crores, increasing by 92.5% YoY, resulting in an EBITDA margin of 23%. Profit Before Tax (PBT) and Profit After Tax (PAT) also saw significant increases of 115.2% and 117.3% YoY, reaching INR46.1 crores and INR34.7 crores, respectively. The company expressed confidence in sustaining this momentum.

Strong Order Book and Inflows

The company's closing order book as of Q3 end was INR2,394 crores, with a substantial INR1,370 crores of new orders received across all sectors during Q3. Management anticipates the order book will further grow to INR2,800 crores by the end of FY26. The Clean Energy Fuel Cells segment was a major contributor, securing INR1,080 crores in orders over the first 9 months of FY26, including INR645 crores in Q3 alone, reflecting strong market share and strategic partnerships.

Clean Energy Fuel Cells Capacity Expansion

Driven by rapidly growing demand, particularly from AI-powered data centers, MTAR is undertaking aggressive capacity expansion for its Clean Energy Fuel Cells. The current capacity of 8,000 units is being expanded to 12,000 boxes by the end of the current fiscal year. Further plans include scaling to 20,000 units by the end of FY27 and subsequently to 30,000 units. This expansion involves an estimated capex of INR50-60 crores for the 20,000-unit phase and an additional INR40 crores for the 30,000-unit phase.

Civil Nuclear Sector Outlook

MTAR expects significant growth in the civil nuclear sector, bolstered by robust orders such as the INR500 crores+ for Kaiga Units 5 and 6 nuclear reactors, which are slated for execution over the next three years. The government's anticipated announcement of a Production-Linked Incentive (PLI) scheme valued at INR18,000-20,000 crores for critical nuclear components is expected to provide further impetus. New reactors are projected to offer an opportunity of INR350-400 crores per reactor for MTAR.

Aerospace & Defence Segment Growth

The Aerospace and Defence segment generated revenues of approximately INR72 crores for the first 9 months of FY26. Management projects this segment to achieve INR150-160 crores in revenue next year (FY27) and INR350-400 crores over the next three years. The company is actively engaged in strategic next-generation programs, including AMCA, and is transitioning to volume production for multinational customers, with full-fledged commercial operations for Weatherford expected by September FY27.

Working Capital Management and Future Outlook

Working capital days stood at 260 days in Q3, primarily due to higher receivables from increased turnover. Management is actively working to reduce this to 200-210 days in the next fiscal year through inventory optimization and securing customer advances. For Q4 FY26, the target is around 235 days, with potential to go below 200 days if significant advances are secured. The company maintains its FY26 revenue growth guidance of 30-35% (crossing INR900 crores) and projects 50% revenue growth for FY27, with improved margins.

This is an AI-generated summary of a publicly available earnings call transcript.

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