MTAR FY26 ends with record orders and a sharp Q4 profit rebound

MTAR Technologies closed FY26 with a clear message: demand visibility has improved, execution picked up in Q4, and the order book is now large enough to shape the next phase of capacity and product decisions. In Q4 FY26, revenue rose to Rs. 306.1 crore from Rs. 183.1 crore a year ago, while EBITDA increased to Rs. 61.8 crore from Rs. 34.2 crore. Profit after tax came in at Rs. 44.3 crore versus Rs. 13.7 crore in Q4 FY25. For the full year, revenue grew to Rs. 876.2 crore from Rs. 676.0 crore, EBITDA reached Rs. 171.2 crore versus Rs. 120.9 crore, and PAT improved to Rs. 94.0 crore from Rs. 53.4 crore.

The quarter also stood out for the pace of profit improvement. Q4 FY26 PAT margin expanded to 14.5 percent from 7.5 percent in the year-ago quarter. EBITDA margin rose to 20.2 percent from 18.7 percent. Gross margin, however, softened to 44.2 percent from 52.3 percent, suggesting that while operating leverage and other income supported the earnings jump, the cost mix and project execution profile remained key drivers to watch.

Order book momentum sets the tone for FY27

The most important operating indicator in the presentation is the scale and mix of new orders. MTAR reported its highest ever order inflows of Rs. 2453.3 crore in FY26, including Rs. 481.6 crore of orders booked in Q4 FY26. This supported a diversified order book of Rs. 2581.9 crore as of 31 March 2026.

The build-up mechanics also matter. The company disclosed that the order book moved from Rs. 2394.9 crore as of 31 December 2025, added Q4 inflows of Rs. 481.6 crore, and reduced by Rs. 294.6 crore of sales restated at the order book, to end at Rs. 2581.9 crore as of 31 March 2026. Sales were restated at order book excluding forex fluctuations, price escalations and scrap sales. For investors, that definition is useful because it frames the order book as a tighter measure of executable backlog rather than a headline number distorted by accounting line items.

The composition of the order book points to where management expects demand to concentrate. Clean Energy civil nuclear power accounts for 26.3 percent. Clean Energy fuel cell, hydel and others forms the largest share at 51.2 percent. Aerospace and defence contributes 14.0 percent, while products and others make up 8.5 percent. This mix shows MTAR leaning into clean energy-linked engineered manufacturing, while still maintaining a meaningful aerospace and defence pipeline.

A portfolio where clean energy is doing the heavy lifting

FY26 revenue mix reinforces the same theme. Clean Energy fuel cells, hydel and others grew to Rs. 615.4 crore in FY26 from Rs. 416.9 crore in FY25, and contributed 70 percent of FY26 revenue. The segment also dominated Q4 FY26 at Rs. 217.3 crore, or 71 percent of quarterly revenue.

Aerospace and defence has been steady and growing, though at a slower scale than the clean energy ramp. FY26 aerospace and defence revenue was Rs. 103.8 crore versus Rs. 93.2 crore in FY25. In Q4 FY26 it contributed Rs. 31.4 crore. Civil nuclear power remained small in revenue terms in FY26 at Rs. 23.6 crore, up from Rs. 18.4 crore in FY25, with Q4 FY26 at Rs. 7.0 crore.

Products and others is the fourth leg of the mix and has moderated after a strong FY25. The segment delivered Rs. 134.1 crore in FY26 versus Rs. 147.5 crore in FY25. In Q4 FY26, it stood at Rs. 50.1 crore, indicating a stronger quarter even if the full-year number softened.

Exports remain a core feature of MTAR’s delivery profile. In FY26, exports were 82 percent of revenue, while domestic was 18 percent. Q4 FY26 was similar with exports at 83 percent and domestic at 17 percent. For investors, this strengthens the case that order flow and execution are tied to global customer demand and cross-border program schedules, while also implying currency, logistics, and customer concentration considerations that come with export-heavy manufacturing.

New customers, new products, and capacity decisions

Order book scale is only useful if it converts into revenue without stressing working capital or execution bandwidth. MTAR’s customer additions over the past 2 to 3 years suggest that diversification is happening across end markets.

On the aerospace side, the company added GKҒ Aerospace, Collins Aerospace, THALES, IAI, and ThalesAlenia Space. On clean energy and data center infrastructure solutions, it added SLB, and also disclosed that it has received Rs. 35 crore of orders from SLB to supply components and assemblies for data center infrastructure solutions. In clean energy hydro power, wind energy and others, it listed ANDRITZ Hydro, GE Power, VOITH, and Hitz. In oil and gas and others, it listed Weatherford, metso, INDO TECH and SLB.

The operational narrative in aerospace has also shifted from qualification to production for certain programs. MTAR reported delivery of first articles and said volume production is in progress for engine components and other products. It also said volume production is underway for storage boxes. It completed design and development of the load-bearing structure Z Adapter for Thales Alenia Space. For another program, first articles are under progress and volume production will be taken up as per the long-term agreement after completion of first articles.

In structural assemblies, MTAR received an order for a main landing gear support structure test box assembly for the AMCA program, is participating in other tenders of structural assemblies for fighter jet programs, and expects significant orders for actuator assemblies for LCA Tejas Mark IA. These disclosures matter because they position aerospace as more than a steady revenue line. They indicate that MTAR is building credentials in higher complexity assemblies, which can lengthen customer relationships if execution remains consistent.

Capacity planning is also aligned with demand. The company said it is expanding clean energy capacity in a phased manner in line with customer requirements. It also announced a greenfield facility for oil and gas to cater to requirements of Weatherford and other customers, with commissioning expected by September 2026. For investors, the timing is important: a near-term commissioning window suggests that the company expects order-to-revenue conversion in oil and gas to require dedicated infrastructure rather than incremental capacity within existing sites.

Margins, cash flow, and working capital discipline

The FY26 profit trajectory shows improvement, but it also highlights the importance of cost control and execution quality. Gross margin in Q4 FY26 was lower than last year, yet EBITDA and PAT expanded sharply. Part of the Q4 improvement came from other income of Rs. 16.4 crore compared with nil in Q4 FY25, and the full-year other income rose to Rs. 23.1 crore from Rs. 5.2 crore. Finance costs also increased to Rs. 29.4 crore in FY26 from Rs. 22.2 crore in FY25, consistent with higher borrowings.

The balance sheet reflects this expansion phase. Total assets rose to Rs. 1743.4 crore as of March 2026 from Rs. 1130.3 crore a year ago. Property, plant and equipment increased to Rs. 497.2 crore from Rs. 436.1 crore. Inventories rose to Rs. 500.5 crore from Rs. 346.1 crore. Trade receivables increased to Rs. 336.8 crore from Rs. 209.8 crore. On the liabilities side, total borrowings increased meaningfully, with non-current borrowings at Rs. 147.7 crore versus Rs. 81.1 crore and current borrowings at Rs. 221.6 crore versus Rs. 96.2 crore.

Cash flow shows that operating cash generation improved alongside earnings. Net cash from operating activities was Rs. 196.9 crore in FY26 versus Rs. 101.3 crore in FY25. The company highlighted CFO to revenue from operations at 25.3 percent for FY26, up from 17.0 percent in FY25 and 13.5 percent in FY24. At the same time, investing cash flow was negative Rs. 352.6 crore, reflecting capex and investment outflows, while financing cash flow was positive Rs. 154.8 crore.

Working capital, often the stress point for engineered manufacturing businesses, showed clear improvement by March 2026. Total working capital days reduced to 172 in March 2026 from 266 in December 2025 and 274 in September 2025. Both components improved: other than WIP fell to 84 days and WIP to 88 days by March 2026. Quarter-on-quarter, receivables were 140 days in Q4 FY26 versus 134 days in Q3 FY26, inventory was 208 days versus 210, WIP improved to 88 days from 105, and payables were 100 days versus 106. The net picture is that execution and process control improved, especially in WIP, which often signals better throughput and project scheduling.

The capital return metrics also suggest a recovery year after weaker returns in FY24 and FY25. RoCE improved to 17.2 percent in March 2026 from 9.7 percent in March 2025. RoE rose to 12.1 percent from 7.7 percent. Debt to equity increased to 0.45 from 0.24, which frames the FY26 growth as one supported by leverage and balance sheet expansion, not only by internal accruals.

What FY26 says about MTAR’s next phase

FY26 was built on two linked developments: record order inflows and better financial conversion in the second half, culminating in a strong Q4. The order book of Rs. 2581.9 crore provides revenue visibility and supports the decision to expand capacity in clean energy and commission a greenfield oil and gas facility by September 2026. Customer additions across aerospace, clean energy, hydro, and oil and gas indicate that the pipeline is broader than a single program.

The quarter also makes it clear what investors should track next. First is conversion quality: whether the clean energy-heavy order book translates into revenue without worsening working capital again. Second is margin stability: Q4 showed strong EBITDA and PAT growth even with lower gross margin, helped by other income, so the sustainability of operating margin will depend on execution, mix, and cost control. Third is balance sheet discipline: borrowing rose as assets expanded, and debt to equity moved up to 0.45, so returns will need to remain healthy as new facilities come online.

The overall theme is disciplined execution with expanding opportunity. MTAR enters FY27 with a stronger backlog, visible capacity actions, and improving cash generation. If the company maintains working capital control and continues moving aerospace programs from first articles to volume production, the order book strength could translate into another year of growth with improving capital efficiency.