MTAR Technologies Ltd (MTARTECH) Q1 FY27 Earnings Call: Revenue Surges 130% YoY, Order Book Crosses Rs. 5,900 Cr

MTAR Technologies Ltd held its Q1 FY27 earnings call on July 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Revenue, Profit Surge on Strong Execution

• Revenue of Rs.360.7 Cr in Q1 FY2026-2027, up 130.4% YoY (vs Rs.156.6 Cr in Q1 FY2025-2026), the highest-ever quarterly revenue.
• EBITDA of Rs.85.1 Cr (+199.7% YoY), margin of 23.54%, in line with full-year guidance of 24% ± 100 bps for FY2026-2027.
• PAT of Rs.50.2 Cr (+364.5% YoY), with PAT margin expanding to 13.92% from 6.9% in Q1 FY2025-2026.
• Gross margin of 45.61% in Q1 FY2026-2027, down from 47.65% in Q1 FY2025-2026 due to revenue mix; management monitoring improvement.
• ROCE of 17.2% in Q1 FY2026-2027, up from 11.4% in Q1 FY2025-2026; management targets 23% in FY2027-2028.
• Interest cost of Rs.16 Cr in Q1 FY2026-2027; management expects this to reduce on a quarter-on-quarter basis over the remaining quarters of FY2026-2027.
• Operating cash flow of Rs.247.69 Cr in Q1 FY2026-2027, vs Rs.191.66 Cr in Q1 FY2025-2026, driven by better commercial terms and working capital management.

Record Order Book; FY27 Guidance Reaffirmed

• Total order book of Rs.5,900 Cr as of July 29, 2026 (Rs.5,143 Cr at Q1 end plus Rs.800 Cr of orders received on the call date).
• Management reiterated FY2026-2027 guidance of 80% revenue growth and EBITDA margin of 24% ± 100 bps, expressing confidence to outperform.
• Management also cited a 30% ±5% revenue growth guidance for FY2026-2027 in a separate context, with a potential update by end of Q2 FY2026-2027.
• Closing order book target of Rs.5,000 Cr for FY2026-2027 already exceeded at Q1 end.
• Order book predominantly short-cycle, with execution ranging from 2 months to 2 years.
• Nuclear division order book at ~Rs.800 Cr (historic high), including Kaiga 5&6 reactors and refurbishment orders.
• Data center order book of Rs.45 Cr, to be executed by March 2027 (Q4 FY2026-2027); first article underway.

Nuclear Momentum Accelerates; Clean Energy Capacity Scaling

• Civil nuclear: highest-ever order inflow for Kaiga 5&6 reactors in Q1 FY2026-2027; management cited the Government of India's target of "100 GW nuclear capacity by 2047" as a long-term TAM driver.
• Nuclear refurbishment orders of ~Rs.130-140 Cr expected in Q2 FY2026-2027, with total refurbishment at ~Rs.200+ Cr.
• Four new reactor projects being bid, larger than the Kaiga 5&6 project; orders expected in FY2027-2028.
• PFBR program achieved criticality; Government of India is planning two additional reactors, with MTAR working directly with the government (not EPC contractors), per management.
• Clean energy: record order inflows in Q1 FY2026-2027; fuel cell capacity expansion on track — Phase 2 commissioning by Sep-Oct 2026, Phase 3 (multifold) by March 2027.
• Data center infrastructure solutions: initial batch in process with customer requiring 8 sets per year; all work is for export.
• Regarding US data center concerns, management stated such delays are "unwanted noise" and the business is progressing in the right direction with no issues.

Defence Actuators, Aerospace Ramp-Up, Long-Term Product Goals

• Actuator program valued at Rs.4.42-4.52 Cr per platform; management expects this value to grow further.
• LCA Tejas Mk 1A opportunity > Rs.250 Cr for actuator assemblies and wing gates; volume orders expected.
• Aerospace & defence: targeting doubling of segment revenue in FY2026-2027, with significant ramp-up over next 3-4 years.
• First articles in aerospace now in production ramp-up; orders expected to increase 10-15x in volume.
• Product business (currently ~Rs.100-130 Cr annual): management guided it could cross "Rs.1,000 crores by FY30" (FY2029-2030).
• Aerospace & defence business: management indicated it could reach "Rs.600-700 crores by FY30" (FY2029-2030).
• Major contract with an MNC for large supply of ball screws for the aerospace division, indicating strong export momentum.
• New product revenue of ~Rs.100 Cr in Q1 FY2026-2027 (~50% of clean energy segment revenue); management expects continued growth with H2 stronger than H1.

Margin Guidance Maintained; Rs.500 Cr Capex Over Two Years

• EBITDA margin guidance of 24% ± 100 bps for FY2026-2027; Q1 FY2026-2027 came in at 23.54%, in line.
• Gross margin declined to 45.61% in Q1 FY2026-2027 from 47.65% in Q1 FY2025-2026, due to revenue mix.
• Working capital days improved to 159 in Q1 FY2026-2027 from 172 in FY2025-2026; management targets ~100 days by end of FY2026-2027.
• Inventory days fell from 208 to 145 and receivables from 140 to 82 (Q1 FY2026-2027 vs prior quarter).
• Capex of Rs.500 Cr planned over FY2026-2027 and FY2027-2028 combined, with ~40% allocated to non-clean energy segments.
• Q1 FY2026-2027 capex spend of ~Rs.30-35 Cr; total Rs.80 Cr capitalized (previously in CWIP).
• Net debt of ~Rs.20-25 Cr after adjusting Rs.379 Cr of investments against Rs.423.6 Cr of debt; balance sheet described as strong.
• Management targets minimum asset turnover of 4-5x on new investments, aspiring to 6x (period unspecified).