MTAR enters data-centre infrastructure with Rs 45 crore order

MTAR has entered data-centre infrastructure solutions with Rs 45 crore of first-article orders from SLB for sheet-metal components and assemblies. MTAR is executing the initial work over the next six months and has leased a dedicated manufacturing facility intended to support higher production volumes after qualification.

What is MTAR supplying for data-centre infrastructure?

MTAR is supplying sheet-metal components and assemblies for data-centre infrastructure solutions under its clean-energy business. The company identifies SLB as the customer for the Rs 45 crore first-article orders and lists SLB among customers added in clean-energy data-centre infrastructure solutions over the past two to three years.

The SLB work remains at the first-article stage, with execution in progress rather than disclosed volume production. MTAR says it expects further orders after qualification, but it does not quantify potential follow-on orders, unit volumes, revenue timing or the qualification criteria. The disclosed process is that initial components and assemblies must be qualified before a production expansion.

Data-centre infrastructure is a new product vertical alongside MTAR's established clean-energy work. MTAR supplies various products for solid oxide fuel cells, while its hydro-power and wind-energy products include draft tubes and spiral casings. The presentation limits the data-centre offering to sheet-metal components and assemblies.

How significant is the SLB order within MTAR's clean-energy business?

The Rs 45 crore SLB order is separately identified within MTAR's clean-energy activities, whose closing order book was Rs 4,075.5 crore at the end of Q2FY27. That clean-energy figure covers fuel cells, hydro power, wind energy and other activities, so the presentation does not state that it is an order book for data-centre infrastructure alone.

Clean Energy - Fuel Cells, Hydel & Others generated Rs 452.1 crore of revenue in H1FY27. The segment generated Rs 615.4 crore in FY26, compared with Rs 416.9 crore in FY25, while its share of MTAR revenue moved to 59% in H1FY27 from 70% in FY26. The figures show that the data-centre project is being added to a larger clean-energy segment with several existing product lines.

MTAR's total order book was Rs 5,976.5 crore on 30 September 2026. Clean Energy - Fuel Cells, Hydel & Others accounted for 67.2% of that total, compared with 13.6% for civil nuclear power, 7.2% for aerospace and defence, and 12.1% for products and others. The Rs 45 crore SLB order is therefore an identified initial programme within MTAR's largest disclosed order-book category.

When will MTAR execute the first articles and build capacity?

MTAR says its data-centre first-article orders will be executed over the next six months. The presentation does not provide a calendar completion date, a qualification deadline or a date when serial production could begin, beyond stating that first-article execution is under way.

MTAR has leased a manufacturing facility and is establishing the infrastructure and capabilities for data-centre infrastructure solutions. The company describes it as a dedicated facility being developed to support a significant ramp-up in production volumes and meet customer requirements over coming quarters. It does not disclose the facility's location, floor area, capital cost or rated output.

The data-centre facility is distinct from two disclosed fuel-cell and oil-and-gas expansion projects. A greenfield facility for Weatherford, other oil-and-gas customers and phase-two fuel-cell expansion was expected to be commissioned by the end of November 2026. MTAR also says phase three of its fuel-cell capacity expansion at a new facility will be completed by March 2027.

MTAR reports progress in onboarding and training skilled manpower and in adopting automation where feasible for its fuel-cell expansion. These measures are disclosed for fuel cells and are not specifically attributed to the data-centre facility. The presentation therefore does not establish the staffing model or automation plan for the SLB programme.

How does data-centre infrastructure fit MTAR's existing operations?

MTAR presents data-centre infrastructure as an addition to a clean-energy base that includes more than 15 years of experience serving solid oxide fuel cells. It says it has a longstanding relationship with the fuel-cell customer, while SLB is listed among customers added over the past two to three years in data-centre infrastructure solutions and oil and gas.

MTAR's wider portfolio includes reactor-core assemblies and drive mechanisms in civil nuclear power, as well as engine components, sub-assemblies and aircraft structural assemblies in aerospace and defence. The data-centre offering is narrower in the presentation, comprising sheet-metal components and assemblies rather than the reactor assemblies or propulsion-related components supplied in those other sectors.

Products & Others recorded Rs 226.3 crore of revenue in H1FY27, exceeding its FY26 revenue of Rs 134.1 crore. That segment supplies box-build assemblies, ball screws, planetary roller screws and other products, and has commenced ball-screw exports to IAI. MTAR classifies data-centre infrastructure under clean energy rather than Products & Others.

What financial context accompanies MTAR's new market entry?

MTAR reported consolidated revenue from operations of Rs 767.5 crore in H1FY27, compared with Rs 292.2 crore in H1FY26. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose to Rs 184.2 crore from Rs 45.4 crore, while the EBITDA margin increased to 24.0% from 15.5% over the same period.

These H1FY27 results are the financial context for the data-centre entry rather than disclosed revenue from it, because the SLB work is still in first-article execution. Q2FY27 revenue was Rs 406.8 crore, compared with Rs 135.6 crore in Q2FY26, and MTAR disclosed Rs 1,207.2 crore of incoming orders across sectors during Q2FY27.

MTAR recorded net cash used in investing activities of Rs 407.3 crore in the six months ended 30 September 2026, compared with Rs 25.5 crore in the corresponding prior-year period. Property, plant and equipment rose to Rs 637.8 crore at September 2026 from Rs 497.2 crore at March 2026, while capital work-in-progress increased to Rs 112.9 crore from Rs 34.4 crore. MTAR does not allocate these amounts to the dedicated data-centre facility.

Conclusion

MTAR's data-centre entry combines a Rs 45 crore SLB first-article order with a leased dedicated factory for sheet-metal components and assemblies. The initiative adds a new end market to clean energy, which accounted for 67.2% of the Rs 5,976.5 crore total order book on 30 September 2026, but it remains at the qualification stage rather than disclosed volume production.

The next disclosed milestone is execution of the first articles over the next six months, followed by qualification, after which MTAR expects further orders. MTAR also says the dedicated facility is being developed for a production ramp-up over coming quarters, although its capacity, capital cost, qualification date and the value of any subsequent SLB orders remain undisclosed.