MTAR Technologies Limited Q2 revenue rises 200% to ₹406.8 crore

MTAR Technologies Limited reported record revenue of ₹406.8 crore in Q2 FY27, a 200% year-on-year increase from ₹135.6 crore, supported by execution across its product portfolio. Profit after tax rose 1,309.5% year-on-year to ₹59.8 crore, while EBITDA increased 483.3% to ₹99.2 crore.

What did MTAR Technologies report in Q2 FY27?

MTAR Technologies reported its highest-ever quarterly revenue of ₹406.8 crore for the quarter ended September 2026. Revenue was 12.8% higher than ₹360.7 crore in Q1 FY27 and 200% above the ₹135.6 crore reported in Q2 FY26.

The company said the increase was driven by good execution across its product portfolio. EBITDA rose to ₹99.2 crore from ₹17 crore a year earlier, producing an EBITDA margin of 24.4%. Profit before tax increased to ₹80.3 crore from ₹5.7 crore, while profit after tax grew to ₹59.8 crore from ₹4.2 crore.

The quarterly PAT margin was 14.7%, compared with 3.1% in Q2 FY26 and 13.9% in Q1 FY27. Earnings per share stood at ₹19.45 for the quarter. For the first half of FY27, earnings per share was ₹35.78.

How did MTAR Technologies improve margins and cash generation?

MTAR Technologies attributed the quarter's performance to execution and product mix. Gross margin was reported at 46.8%, compared with 45.5% in the preceding quarter, indicating an improvement in the mix of products delivered during the period.

The company also reported a material improvement in working-capital management. Working-capital days declined to 50 at the end of September 2026 from 172 days at the end of March 2026. Management said better margins and tighter working-capital control contributed to the reduction.

Cash flow from operations was ₹350 crore in H1 FY27, compared with ₹39.8 crore in H1 FY26. Management stated that customer advances, improved payment terms and expected goods and services tax refunds were among the factors supporting the working-capital position.

MTAR Technologies expects working capital to be around 100 days by the end of FY27 because of its higher revenue forecast for the second half and FY28. It also expects return on capital employed to improve to around 23% by the end of FY27, from 17.2% in FY26. These are management expectations rather than reported outcomes.

What is driving MTAR Technologies' second-half outlook?

MTAR Technologies expects H2 FY27 to be stronger than H1 FY27, supported by its order book and continued focus on execution. The company did not disclose an absolute revenue forecast or order-book value in the material provided, but management said its momentum should continue into the second half.

The company's operations span products and systems linked to sectors including civil nuclear, defence, aerospace, fuel cells and other industrial applications. During the call, management referred to growth drivers including ball screws, roller screws, water-lubricated bearings, exports of ball screws to Cummins, and various assemblies and box builds.

Management also said it works with four multinational aerospace customers across volume-production and first-article programmes. It expects to complete first articles for some programmes by the end of the year and move towards volume production. This remains a management update and does not quantify the potential revenue contribution.

The company has described capacity additions as part of its operating plan. According to management commentary cited in the available earnings material, Phase 2 adds around 30% to existing capacity, while the larger Phase 3 expansion is expected to be ready by June of the following year.

Why does nuclear capacity matter for MTAR Technologies?

MTAR Technologies highlighted the Government of India's target to achieve 100 GW of nuclear power capacity by 2047 as a long-term opportunity. The company said it has invested over decades in manufacturing capabilities and sees scope for demand as domestic nuclear capacity is expanded.

The government target is relevant because nuclear projects require specialised, precision-engineered equipment and long project execution cycles. MTAR Technologies' comments indicate that civil nuclear is among the sectors considered important to its future opportunity set, alongside defence and aerospace-related work.

However, the company did not provide a nuclear order-book figure, project-wise revenue expectation or timeline for converting this broader opportunity into sales. Investors therefore have reported Q2 results and management's sector commentary, but not a quantified estimate of nuclear-related revenue.

The company also reported a retrospective subsidiary amalgamation adjustment in relation to its Q2 FY27 net-profit reporting. The reported net profit was ₹59.8 crore, or ₹598.32 million, after that adjustment. All monetary figures in this report are presented in ₹ crore for consistency.

How do the Q2 results affect investors and industry operations?

For investors, the central reported change is the scale of operating and profit growth. Revenue rose by ₹271.2 crore year-on-year, EBITDA rose by ₹82.2 crore and profit after tax rose by ₹55.6 crore. The increase in PAT margin to 14.7% from 3.1% also shows that profitability rose faster than revenue during the quarter.

The lower working-capital days and higher operating cash flow are equally relevant because engineering and project businesses can require substantial funding while orders are executed. The movement to 50 days at September-end from 172 days in March indicates a meaningful shift in the company's reported cash-conversion position during H1 FY27.

No share-price movement, valuation data or analyst estimate was provided with the earnings material. As a result, the reported information supports an assessment of MTAR Technologies' operating performance, but does not establish an immediate stock-market reaction.

For industry participants, the results point to active execution in precision manufacturing across multiple end markets. Management's references to capacity expansion, aerospace first articles and nuclear opportunities indicate areas being prepared for future production, although commercial outcomes will depend on orders, project schedules and execution.

Conclusion

MTAR Technologies delivered a record Q2 FY27, with revenue of ₹406.8 crore, EBITDA of ₹99.2 crore and profit after tax of ₹59.8 crore. The results combined strong year-on-year growth with higher margins, a reduction in working-capital days and substantially higher H1 operating cash flow.

The next disclosed milestones are execution in H2 FY27, which management expects to exceed H1, and progress on capacity expansion. Investors will also watch whether working capital remains close to management's FY27 expectation of around 100 days and whether ROCE moves towards the indicated level of around 23%.