Managing Director Srinivas Reddy anticipates that earnings before interest, taxes, depreciation, and amortization (EBITDA) margins will hover around 24% in FY27, with the order book projected to reach ₹5,000 crore by the end of the year.
Watch the complete discussion here or scroll down for summarized excerpts.
The clean energy sector remains the primary driver of growth for the company, with significant global clients increasing their order volumes and capacity needs. MTAR is expanding its manufacturing capabilities this year to enhance execution across clean energy, aerospace, defence, and nuclear sectors.
For FY27, the company is planning capital expenditures (capex) of ₹250-300 crore, partly financed through debt, to facilitate future growth and capacity enhancement.
In the March quarter of 2026 (Q4FY26), MTAR Technologies reported a 67% year-on-year revenue growth to ₹306 crore, with EBITDA margins improving by 154 basis points to 20.19%. Net profit stood at ₹44 crore, up from ₹14 crore during the same quarter last year.
Telangana-based MTAR Technologies boasts a market capitalization of approximately ₹20,578 crore, with its stock experiencing a remarkable surge of nearly 345% over the past year.
This is an edited transcript of the interview.Q: MTAR Technologies has raised its FY27 revenue growth guidance from 50% to 80%. What prompted this confidence?
A: We carefully reviewed the inputs and our order book, resulting in our decision to raise the guidance to a level we find both comfortable and attainable.
With improved operational leverage, we anticipate EBITDA margins around 24%. We also expect a robust order book close to ₹5,000 crore by FY27’s end, with additional orders anticipated throughout the year.
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Q: Do you have sufficient capacity to meet the targeted order book? Which segments are experiencing the most demand?
A: The clean energy sector is showing the highest demand. Additionally, we are witnessing significant growth in aerospace, defence, and nuclear sectors.
We have qualified for numerous aerospace assemblies and are already in volume production. The absolute numbers in the other sectors are also on the rise this year.
Q: What type of ordering activity are you seeing from clients such as Bloom Energy and Fluence Energy?
A: We already maintain a strong order book in clean energy with expectations for further orders. Existing capacity expansion is in progress, and more capacity additions are underway to meet customer needs.
While specific figures cannot be shared due to non-disclosure agreements (NDAs), the demand remains robust, prompting us to expand our capacities accordingly.
Q: Will clean energy continue to represent a major portion of the order book?
A: Absolutely. Over half of the order book will consistently be sourced from clean energy.
Q: Is the West Asia crisis creating supply-side risks or affecting margins?
A: We encountered some input cost challenges last quarter, but after careful evaluation, we remain confident in our revenue and margin projections. It’s not a major concern currently.
Q: Will FY27 margins trend towards the end of the year, or improve throughout?
A: Last year’s first half was weaker, but we expect a strong performance in the first half of this year, with an even better second half. Enhanced operating leverage should support quarter-on-quarter improvements in margins, aligning with our 24% EBITDA margin guidance.
Q: Working capital days have improved significantly. What factors contributed to this enhancement?
A: We collaborated closely with clients to secure better payment terms and refined our inventory management. As a result, working capital days have decreased notably, and we aim to maintain them in the 150-170 day range moving forward.
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Q: What are the company’s capex and nuclear business plans?
A: Capital expenditures for FY27 are projected to be around ₹250-300 crore to facilitate capacity enhancement and will be partly financed through debt.
In terms of nuclear opportunities, our margins are higher, and we currently possess an order book valued at approximately ₹650 crore set for execution over the next three to three-and-a-half years. MTAR also anticipates additional nuclear opportunities stemming from refurbishment and new reactor projects.
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