Synopsis: MTAR Technologies posted weak Q2FY26 results with net profit plunging 60.7 percent QoQ and 77.4 percent YoY to Rs. 4.25 crore. Revenue declined 13.4 percent sequentially and 28.7 percent annually to Rs. 135.59 crore. Margins compressed sharply across all parameters, leading to investor disappointment and a 10 percent stock slide.
A leading precision engineering stock came under heavy selling pressure after posting a steep decline in second quarter earnings. The company’s profitability dropped sharply on both quarterly and yearly bases, with margins weakening due to lower volumes and reduced operating leverage.
MTAR Technologies Ltd, a key player in the clean energy and aerospace manufacturing space, has a market capitalization of Rs. 7,327.09 crore. The stock opened at Rs. 2,276.75 against its previous close of Rs. 2,526.85 and hit an intraday low of Rs. 2,276.75, marking a 9.9 percent decline from the previous close.
Financial Snapshot – Q2FY26
MTAR Technologies reported a significant sequential decline in performance for Q2FY26. On a quarter-on-quarter basis, sales fell 13.4 percent from Rs. 156.58 crore to Rs. 135.59 crore, while operating profit dropped 40.1 percent from Rs. 28.39 crore to Rs. 16.99 crore. The operating margin narrowed from 18.13 percent to 12.53 percent. Profit before tax fell 61.7 percent from Rs. 14.81 crore to Rs. 5.67 crore, and net profit plunged 60.7 percent from Rs. 10.81 crore to Rs. 4.25 crore. Earnings per share declined from Rs. 3.51 to Rs. 1.38, while PAT margin contracted from 6.9 percent to 3.1 percent. The EBITDA margin also slipped from 18.1 percent to 12.5 percent.
On a year-on-year basis, MTAR’s topline contracted 28.7 percent, falling from Rs. 190.19 crore to Rs. 135.59 crore. Operating profit declined 53.8 percent from Rs. 36.82 crore to Rs. 16.99 crore, and the operating margin dropped from 19.36 percent to 12.53 percent. Profit before tax saw a sharp fall of 77.6 percent from Rs. 25.31 crore to Rs. 5.67 crore, while net profit tumbled 77.4 percent from Rs. 18.77 crore to Rs. 4.25 crore. Earnings per share decreased from Rs. 6.10 to Rs. 1.38. PAT margin weakened from 9.9 percent to 3.1 percent, and EBITDA margin contracted from 19.4 percent to 12.5 percent, indicating a challenging quarter for the company.
Comments from the Management
Commenting on the results, Mr. Parvat Srinivas Reddy, Managing Director & Promoter, MTAR Technologies, said,
“ We look forward to a significantly strong performance in the second half of FY26, with revenue expected to nearly double compared to the first half. The Company anticipates around 30% – 35% year-on-year revenue growth in FY 26 compared to FY 25, exceeding our earlier guidance of 25%, driven by additional order inflows from our customers that are slated for execution within this fiscal year. Furthermore, we reaffirm our EBITDA margin guidance of around 21% supported by a stronger margin profile in H2 due to operating leverage and higher capacity utilization.”
Operational Highlights
MTAR Technologies reported a diversified order book of Rs. 1,296.6 crore as of September 30, 2025. During Q2FY26, the company received new orders worth Rs. 497.7 crore across multiple sectors, including Clean Energy-Civil Nuclear Power, Fuel Cells and Hydel, Aerospace and Defence, and others.
Of the total order inflows, 55.5 percent came from Clean Energy (Fuel Cell, Hydel, and Others), 25.2 percent from Aerospace and Defence, 11.6 percent from Clean Energy – Civil Nuclear Power, and 7.7 percent from Products and Others. Export sales continued to play a dominant role, contributing 76 percent of total revenue, with the remaining 24 percent coming from the domestic market.
About the Company
MTAR Technologies Limited operates nine advanced manufacturing facilities, including an export-oriented unit in Hyderabad, Telangana. The company serves diverse sectors such as Clean Energy (Civil Nuclear Power, Fuel Cells, Hydel, and Others), Aerospace, and Defence. With over four decades of expertise, MTAR maintains long-standing relationships with leading Indian organisations and global original equipment manufacturers (OEMs).
-Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
