MTAR Tech Eyes 50% Revenue Growth in FY27, Margins to Hit 25%

Introduction

MTAR Technologies has set an ambitious target for the fiscal year 2026-27, projecting a substantial 50% increase in revenue. This optimistic forecast follows a strong performance in the third quarter of FY26 and is underpinned by a robust order book and sustained demand from its key sectors: clean energy, nuclear power, and aerospace. The company's management has expressed confidence in its execution capabilities and is actively expanding its production capacity to meet future demand.

Stellar Q3 FY26 Performance

MTAR Technologies reported a remarkable performance for the quarter ending December 2025. The company's consolidated revenue from operations surged by 59.3% year-on-year, reaching ₹278 crore compared to ₹174.5 crore in the same period last year. This top-line growth translated into even stronger profitability. Net profit jumped 117.3% to ₹34.7 crore from ₹16.0 crore in Q3 FY25. The company's operational efficiency also saw significant improvement, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) rising 92.5% YoY to ₹64.0 crore. Consequently, the EBITDA margin expanded to 23.0% from 19.1% a year ago, beating analyst estimates and setting a positive tone for the upcoming quarters.

Upward Guidance for FY26 and FY27

Building on its strong Q3 performance, MTAR has reaffirmed its revenue growth guidance of 30-35% for the current financial year (FY26). Managing Director Parvat Srinivas Reddy stated that the company is on track to achieve this target, with the fourth quarter expected to be particularly strong. Looking ahead, the company is targeting an accelerated growth trajectory. For FY27, MTAR projects a revenue growth of approximately 50% over its FY26 base. This confidence stems from strong customer feedback and a healthy order pipeline. Alongside revenue growth, profitability is also expected to improve. The company anticipates EBITDA margins to average around 21% for FY26, with a sequential improvement leading to a healthier range of 24-25% in FY27.

Robust Order Book and Inflow Pipeline

The company's growth projections are backed by solid revenue visibility. MTAR expects to close the financial year 2026 with an order book of approximately ₹2,800 crore after achieving revenues of over ₹900 crore for the year. The order inflow remains strong, with new orders trickling in from all key divisions. The company anticipates securing close to ₹700 crore in new orders during the final quarter of FY26 alone. For the next financial year, FY27, the company is forecasting new order inflows of at least ₹2,000 crore, with potential for an even higher intake.

Key Growth Drivers: Clean Energy and Aerospace

Demand from high-growth sectors continues to be the primary engine for MTAR's expansion. The clean energy segment, particularly the manufacturing of fuel cells for clients like Bloom Energy, remains a significant contributor. The global push towards sustainable energy sources provides a structural tailwind for this division. Similarly, the civil nuclear power and aerospace sectors are providing a steady stream of high-value orders. The company's expertise in manufacturing mission-critical precision components makes it a preferred partner for both domestic and international clients in these strategic industries.

Strategic Capacity Expansion

To support its aggressive growth targets, MTAR is undertaking a phased expansion of its manufacturing capacity. The company is investing in infrastructure to scale its production capabilities systematically. Currently operating at a capacity of 8,000 units, MTAR plans to increase this to 12,000 units by March 2026 with a capital expenditure of ₹40 crore. A further expansion to 20,000 units is planned by December 2026, requiring an additional investment of ₹40-50 crore. The company is also laying the groundwork for an eventual capacity of 30,000 units, ensuring it is well-prepared to handle increasing volumes over the next two years.

Market Reaction and Stock Performance

Investors have responded positively to the company's strong performance and bright outlook. MTAR Technologies' shares have delivered impressive returns, gaining more than 93% over the past year. Following the announcement of its Q3 results and future guidance, the stock surged over 7%. The company's current market capitalization stands at ₹9,107.61 crore, reflecting strong investor confidence in its long-term growth story.

Management's Perspective

Parvat Srinivas Reddy emphasized that the company's focus has shifted from securing orders to ensuring flawless execution. "It's not about the orders anymore. It's about how much we can execute," he stated, highlighting the strength of the existing demand. The management's priority is to ramp up production, train its workforce, and enhance operational efficiencies to deliver on its commitments. This execution-centric approach is crucial for translating the strong order book into sustained revenue and profit growth.

Conclusion

MTAR Technologies is positioned for a period of accelerated growth, driven by strong industry tailwinds and strategic investments in capacity. With a clear roadmap for 50% revenue growth in FY27, improving margins, and a robust order pipeline from high-demand sectors like clean energy and aerospace, the company's outlook appears strong. The key to realizing this potential will be its ability to execute its expansion plans efficiently and meet the growing demands of its global customer base.