MTAR Technologies Q2 revenue hits record Rs 406.8 crore

MTAR Technologies Limited reported record revenue of Rs 406.8 crore in the second quarter of financial year 2027 (Q2 FY27), up 200% year on year, while its earnings before interest, tax, depreciation and amortisation (EBITDA) margin rose to 24.4% from 12.5%. Management attributed the improvement to execution, product mix and operating leverage.

What drove MTAR Technologies' record Q2 FY27 revenue?

MTAR Technologies said execution across its product portfolio produced Rs 406.8 crore of revenue from operations in Q2 FY27, its highest quarterly revenue. The figure rose from Rs 135.6 crore in Q2 FY26 and Rs 360.7 crore in Q1 FY27, representing 200% year-on-year growth and 12.8% sequential growth.

The higher revenue was accompanied by growth in each reported profit measure. EBITDA reached Rs 99.2 crore in Q2 FY27, compared with Rs 17 crore a year earlier and Rs 85.1 crore in Q1 FY27; profit before tax was Rs 80.3 crore and profit after tax was Rs 59.8 crore.

How did MTAR Technologies' margins change in Q2 FY27?

MTAR Technologies' EBITDA margin increased to 24.4% in Q2 FY27, from 12.5% in Q2 FY26 and 23.6% in Q1 FY27. Management said the year-on-year and sequential improvement reflected higher revenue, a better product revenue mix and operating leverage.

Gross margin rose to 46.8% in Q2 FY27 from 45.5% in Q1 FY27, which management linked to a better product mix. Profit after tax margin reached 14.7%, compared with 3.1% a year earlier and 13.9% in Q1 FY27, while earnings per share were Rs 19.45 for the quarter and Rs 35.78 for H1 FY27.

The pace of profit growth exceeded revenue growth in the reported comparisons. EBITDA increased 483.3% year on year from Rs 17 crore, while profit before tax rose 1,314.6% from Rs 5.7 crore and profit after tax increased 1,309.5% from Rs 4.2 crore.

Will MTAR Technologies exceed its FY27 guidance?

Management said MTAR Technologies expects to perform above its existing FY27 guidance of 80% revenue growth and a 24% EBITDA margin, but did not formally revise either target on the October 30, 2026 earnings call. The managing director said the company did not want to change guidance during the financial year, while expressing confidence that performance would be on the higher side of both measures.

Management expects H2 FY27 to be stronger than H1 FY27, supported by the order book and execution priorities. In civil nuclear, MTAR Technologies reported a closing order book of Rs 820 crore, supported by orders from Kaiga, Gorakhpur and refurbishment programmes, and expects a meaningful execution ramp-up in H2 FY27.

The civil-nuclear outlook extends beyond the current year. Management expects significant revenue growth in that segment from FY28 onward and said it had submitted budgetary quotations for future fast breeder reactor programmes, while also submitting quotations to private-sector players intending to bid for four proposed 700-megawatt reactors at Mahi Banswara.

Which businesses are expected to support MTAR Technologies' growth?

MTAR Technologies identified civil nuclear, fuel cells, multinational aerospace, domestic defence, data-centre infrastructure and oil and gas as growth areas. In multinational aerospace, management is aspiring to generate more than Rs 150 crore of revenue in FY27, with volume deliveries under one long-term agreement expected to start in the next financial year after first-article qualification.

Fuel-cell Phase 2 capacity was expected to be operational by the end of November 2026 and to be about 30% above existing capacity, according to management. The larger Phase 3 expansion is expected by June 2028, and management said the dedicated facility would raise manufacturing capacity multifold and accommodate multiple products.

Data-centre infrastructure was executing first-article orders valued at about Rs 45 crore. Management said the business could scale to Rs 350 crore to Rs 450 crore over the next two years after successful completion and qualification of the first articles, with a fully operational data-centre facility expected by the end of March 2027.

In oil and gas, MTAR Technologies expects its dedicated manufacturing facility to become operational by the end of November 2026. First-article development and qualification with Weatherford had been completed, management said, while first articles for other customers were in progress and a meaningful production ramp-up was anticipated from FY28.

How are MTAR Technologies' cash flow and expansion plans changing?

MTAR Technologies reported operating cash flow of Rs 350 crore in H1 FY27, compared with Rs 39.8 crore in H1 FY26, alongside a reduction in working-capital days to 50 at September 2026 from 172 at March 2026. The chief financial officer attributed these movements to higher profitability, tighter working-capital management and customer advances.

Management expects working-capital days to be about 100 by the end of FY27 because stronger H2 revenue and planned FY28 execution require additional receivables and inventory. The chief financial officer also said the company was pursuing improved commercial terms and expected goods and services tax refunds of about Rs 70 crore to Rs 80 crore a year.

The company has planned about Rs 500 crore of capital expenditure, including Rs 350 crore for fuel cells and Rs 150 crore for oil and gas, aerospace and other verticals. Management said it intends to fund 75% through debt and 25% through internal accruals; total debt stood at about Rs 465 crore, including Rs 189 crore of long-term debt, while investments were about Rs 358 crore.

Conclusion

MTAR Technologies combined record Q2 FY27 revenue of Rs 406.8 crore with a 24.4% EBITDA margin, as EBITDA rose to Rs 99.2 crore from Rs 17 crore a year earlier. The reported outcome also included higher gross margin, a rise in profit after tax to Rs 59.8 crore, and operating cash flow of Rs 350 crore in H1 FY27.

The next measures to watch are H2 FY27 execution against management's 80% revenue-growth and 24% EBITDA-margin guidance, the civil-nuclear order-book conversion, and capacity milestones. Management expects fuel-cell Phase 2 to start by end-November 2026, the data-centre facility to be fully operational by end-March 2027, and fuel-cell Phase 3 to be completed by June 2028.