MTAR Technologies Q4 FY26: order book strength meets a sharper FY27 growth stance

MTAR Technologies ended Q4 FY26 with its highest quarterly revenue to date, supported by stronger execution and a healthier cash flow profile. Consolidated revenue from operations rose to INR306.1 crore in Q4 FY26 versus INR183.1 crore in Q4 FY25. EBITDA increased to INR61.8 crore from INR34.2 crore, while PAT rose to INR44.3 crore from INR13.7 crore.

For FY26, revenue from operations stood at INR876.2 crore versus INR676.0 crore in FY25. EBITDA was INR171.2 crore compared with INR120.9 crore last year. PAT increased to INR94.0 crore versus INR53.4 crore. Alongside the numbers, management raised FY27 revenue growth guidance to around 80% plus or minus 5%, with an EBITDA margin guidance of around 24%, indicating confidence in both demand visibility and operating leverage.

Order inflows and a clean-energy led backlog

MTAR reported its highest annual order inflows at INR2,453.3 crore in FY26, with Q4 FY26 contributing INR481.6 crore. The closing order book as of 31 March 2026 stood at INR2,581.9 crore. The company noted it had earlier guided for INR2,800 crore but saw a marginal shortfall due to deferrals of certain nuclear and defence orders into the next quarter.

The order book is heavily skewed towards clean energy linked programs. Civil nuclear represented 26.3% of the backlog, while fuel cell, hydel and other clean energy work formed 51.2%. Aerospace and defence made up 14.0%, and products and others accounted for 8.5%.

Management also highlighted a clean energy opportunity connected to AI data centers. The company disclosed receipt of INR35 crore of first-article export orders from SLB for components and assemblies for data center infrastructure solutions. Management commentary suggested this program could scale materially over the next couple of years, subject to first-article completion and long-term contracting.

FY26 performance: growth with margin variability

MTAR’s FY26 growth was broad based, but margin movement was mixed. FY26 gross profit margin was 47.7% versus 49.4% in FY25. Management attributed the pressure to higher consumables and freight costs amid geopolitical uncertainty, along with cost absorption related to expansion-led headcount additions.

EBITDA margin improved to 19.5% in FY26 versus 17.9% in FY25, reflecting better operating leverage despite gross margin pressure. PAT margin also improved to 10.7% from 7.9%.

A key positive in FY26 was cash generation. Net cash from operating activities rose to INR196.9 crore versus INR101.3 crore in FY25. The company linked this improvement to better margins and improved payment terms negotiated across multiple customers.

Segment mix: clean energy dominates revenue

In FY26, MTAR’s revenue mix remained anchored to clean energy work outside civil nuclear. Clean Energy fuel cells, hydel and others contributed INR615.4 crore, around 70% of FY26 revenue. Aerospace and defence delivered INR103.8 crore, around 12%. Products and others was INR134.1 crore, around 15%. Civil nuclear revenue stood at INR23.6 crore, around 3%.

The geographic mix shows MTAR is export led. Exports accounted for 82% of FY26 revenue, and 83% in Q4 FY26.

Capacity creation and the balance sheet trade-off

Management’s FY27 guidance is supported by a stated focus on capacity build-out. The investor deck describes a phased capacity expansion plan in clean energy aligned to customer requirements. On the call, management said initial clean energy expansion has been commissioned and that further capacities will be added during FY27 and beyond.

In oil and gas, the company is setting up a greenfield facility to cater to Weatherford and other customers, with commissioning expected by September 2026. Management linked the facility to a longer ramp-up cycle as volume production expands.

This expansion cycle is also visible in leverage. Debt to equity rose to 0.45x as of March 2026. Management stated it is comfortable funding near-term expansion through debt and aims to maintain debt to equity around 0.5 over the next two years.

Key takeaways

MTAR ended FY26 with a combination of stronger execution, improved operating cash flow, and a large clean energy led backlog. Management’s decision to raise FY27 growth guidance to around 80% plus or minus 5%, along with a 24% EBITDA margin target, is a clear statement of confidence in both demand and capacity readiness.

The key variables to track through FY27 are execution consistency across quarters, working capital discipline as volumes rise, and the pace at which first-article programs in AI data center infrastructure, aerospace, and oil and gas translate into repeat production orders.