MTAR Technologies Ltd

Analyst meeting timing update

• Change in timing of MTAR's Analyst/Institutional Investor meeting.
• Date: Friday, 21 August 2026, Hyderabad; in-person meeting with plant visit.
• Revised time: 10:00 a.m. to 2:00 p.m.
• Venue unchanged; meeting remains Group Meeting and Plant Visit.

Meeting Details

• Date: Friday, 21 August 2026.
• Type and mode: Group meeting and plant visit, in-person.
• Venue: Hyderabad; Time: 7:30 a.m. to 11:00 a.m.
• Purpose: Analyst/institutional investor group meetings and plant visit.

Financial Performance

• Q1 FY27 revenue at INR 360.7 crores; YoY growth 130.4%.
• EBITDA margin 23.6% in Q1 FY27, in line with guidance.
• PAT 50.2 crores in Q1 FY27, up 364.5% YoY.
• Gross margin 45.61%; due to revenue mix.
• Operating cash flow from operations: INR 247.69 crores.
• Debt at 30 Jun 2026: INR 423.6 crores; net position near zero.
• Capex guidance: INR 500 crores for this year and next.

Operating Update

• Civil nuclear: highest-ever order inflows; Kaiga 5 & 6.
• Nuclear PFBR program presents large opportunity; criticality achieved.
• Clean Energy: record order inflows; data center infra under development.
• Fuel cell capacity Phase 2 by Sep-Oct; Phase 3 by Mar-2027.
• Aerospace & defense: expect double revenue this fiscal year; ramp continues.
• Data center products: initial batch; dedicated facility planned; 8x demand potential.
• Order book close to INR 5,100 crores; INR 800 crores additional orders expected.

Balance Sheet and Cash Flow

• Working capital days 59 in Q1; target below 100 by year-end.
• GST refunds targeted around INR 70 crores per year.
• Q1 capex ~INR 35 crores; total capex plan INR 500 crores.
• Debt ~INR 20-25 crores after cash; net debt minimal.
• ROCE at 17.2% vs 11.4%; target 23% next year.

Guidance and Outlook

• Guidance reaffirmed: 80% revenue growth for FY27; EBITDA margin ~24% ±100 bps.
• Phase 2 operational by Oct; Phase 3 ready by Mar-2027.
• Data center exports; eight sets of capacity yearly.

Q&A Highlights

• Execution for today's orders expected in next year; ramp depends on expansion timing.
• Kaiga 5 & 6 refurbishment orders about INR 200 crores.
• Total nuclear orders around INR 800 crores.
• Expansion capex around INR 500 crores; funded by internal and debt.
• US data center order size ~₹45 crores; export-focused with eight sets yearly.
• 3–4 year outlook: products ~₹1,000 crores; aerospace ~₹600–700 crores.

Order amendment details

• Customer name withheld due to confidentiality.
• Amended purchase order from an existing customer.
• Total amended PO value: USD 324.62 million (Rs 3,100.09 Crores).
• Incremental order value: USD 85.86 million (Rs 819.94 Crores).
• Execution period: to be decided later.
• Awarding entity: not disclosed; domestic/international status not specified.
• Related party status: not disclosed.
• Impact on MTAR: not disclosed.

Business overview

• Indigenous engineer of critical products for Nuclear, Aerospace & Defence, Clean Energy, and Oil & Gas.
• Strategic push into data centre infrastructure; Nadcap-certified processes underpin in-house capabilities.

Operational highlights

• Q1 FY27 orders worth Rs 2,895 Cr, a quarterly record surpassing FY26.
• Single largest order inflow Rs 504 Cr for Kaiga 5 & 6 civil nuclear project.
• Entered long-term contracts with IAI, Weatherford; SLB data centre infra orders underway.
• Greenfield oil & gas facility planned; Phase 2 expansion for Clean Energy – Fuel Cells.
• Phase 3 Clean Energy expansion to be completed by Mar 2027; Nadcap facility commissioned Jan 2025.

Financial performance

• Q1 FY27 revenue Rs 360.7 Cr; YoY growth 130.4%.
• Q1 FY27 EBITDA Rs 85.1 Cr; margin 23.6%.
• Q1 FY27 PBT Rs 67.4 Cr; PAT Rs 50.2 Cr.
• FY26 revenue Rs 876.2 Cr; PAT Rs 94.0 Cr; EBITDA Rs 171.2 Cr.
• Order inflows in Q1 FY27 Rs 2,895 Cr; strong visibility.
• Working capital measures: receivables 82 days; inventory 145 days.

Capital structure & liquidity

• Total equity Rs 822.6 Cr; total liabilities Rs 1,743.4 Cr (Mar-26).
• Borrowings: current Rs 221.6 Cr; non-current Rs 147.7 Cr.
• Cash & cash equivalents Rs 1.0 Cr; bank balances Rs 20.2 Cr.
• Operating cash flow Rs 196.9 Cr; investing cash flow Rs -352.6 Cr; financing Rs 154.8 Cr.

Strategic priorities & outlook

• Guided revenue growth of 80% for the current year; EBITDA ~24%.
• Expand capacity via greenfield/brownfield expansions in Clean Energy and A&D.
• Widen wallet share with existing customers; pursue new customers across sectors.
• Maintain capital discipline and strengthen cash flows to support growth.

Governance & leadership

• MD: Parvat Srinivas Reddy; management commentary provided.
• Shareholding mix as of Jun-26: Promoters 29.35%; FIIs 24.80%; DIIs 22.35%; Public 23.51%.
• Top holders include Nippon Life India Trustee, HSBC Mutual Fund, HDFC Mutual Fund.

Compliance status

• RTA confirms details of dematerialised securities for the quarter were furnished to all stock exchanges.
• CDSL and NSDL certify that dematerialisation/rematerialisation details were furnished to all stock exchanges.

Encumbrance release

• Release of pledge on 1,25,000 MTAR promoter shares in favour of Bajaj Financial Securities Limited.
• Encumbrance originally created as pledge on 22 May 2026.
• Promoter: A Manogna; PACs include K Shalini, Mita Madhavi, Anushman Reddy.
• Promoter holding post-release: 8,33,497 shares, 2.71% of total share capital.
• Previously encumbered shares: 1,25,000 shares, 0.41% of total capital.
• Lender: Bajaj Financial Securities Limited.
• Post-event encumbrance: 0.00% of total share capital.
• Reason: Repayment of loan.

Ratings action

• Rating Agency: ICRA Limited.
• Long Term Fund Based Cash Credit: Rs 530 crore; rating [ICRA]A+ (Stable); upgraded from A (Stable); enhanced amount.
• Long Term Fund Based Term Loan: Rs 248.24 crore; rating [ICRA]A+ (Stable); upgraded from A (Stable); enhanced amount.
• Long-Term Non Fund Based: Rs 304 crore; rating [ICRA]A+ (Stable); upgrade from A (Stable), A1; enhanced.
• Long-Term Unallocated: Rs 387.76 crore; rating [ICRA]A+ (Stable); upgrade from A (Stable), A1; enhanced.
• Outlook: Stable across all upgraded ratings.