Synopsis: The share of this defence and precision engineering company has delivered close to 400 percent returns in one year, supported by Rs 2,580 crore order book and upgraded FY27 growth guidance driven by clean energy and defence demand.
India’s defence industry continues to see heightened attention owing to its growing spending on home-grown production of manufacturing, aerospace, defence, and strategic technologies. Companies which have a presence in the defence, nuclear, and clean energy supply chains are experiencing greater order flows and growth prospects due to increased investments by governments and other clients globally in these sectors.
In this article, we are going to highlight MTAR Technologies, which is a precision engineering firm providing services in the defence, aerospace, nuclear, and clean energy industries. We will discuss the firm’s business profile, revenue breakdown, order book status, FY27 revenue growth forecast, capital expenditure plans, recent financial performance, and other factors likely to facilitate its achieving its 80 percent revenue growth target for FY27.
About the Company
MTAR develops and manufactures components and equipment for the defence, aerospace, nuclear and clean energy sectors. The company was incorporated in 1970 by the promoters to cater to the technical and engineering needs of the Indian government in the post-embargo regime. MTAR has manufacturing footprints in Hyderabad with seven units spread across a 4 km radius and a dedicated export facility as well.
With a market capitalization of Rs 24,972 crore, the share of the company today closed at Rs 8,118 per share, giving around 384 percent return in the last one year and around 700 percent return in the last five years, only 6 percent down from its 52-week high of Rs 8,715 per share.
Revenue Segmentation
MTAR Technologies’ Q4 FY26 net revenues stood at Rs 306.1 crore, driven by the Clean Energy and Fuel Cells, Hydel and Others segment, which brought in Rs 217.3 crore or 71 percent of total revenues. This was the biggest business segment for MTAR Technologies and the main contributor to performance in the quarter.
Aerospace & Defence segment generated Rs 31.4 crore with a contribution of 10 percent to Q4 FY26 revenues, while Civil Nuclear Power segment recorded Rs 7 crore or 2 percent of revenues in the quarter. Both segments add to diversification and play an important role in the company’s growth strategy in the long term.
Products & Others segment brought in Rs 50.1 crore or 16 percent of quarterly revenues. Geographically, export business remained the key revenue generator, contributing 83 percent to Q4 FY26 revenues, while domestic business contributed 17 percent of revenues in the quarter.
Order book Break-up
The company witnessed record orders during FY26 at Rs 2,453.3 crores, demonstrating the strong order inflows for its different segments. In Q4 FY26, MTAR Technologies bagged new orders to the tune of Rs 481.6 crore, thereby making it easier for the company to foresee its revenues in FY27.
As on 31 March 2026, the total order book of MTAR Technologies was Rs 2,581.9 crore. The Clean Energy – Fuel Cell, Hydel and Others segment accounted for the maximum percentage of orders at 51.2%, followed by Civil Nuclear Power at 26.3%, Aerospace & Defence at 14% and Products & Others at 8.5%.
FY27 Guidance and Capex Plans
MTAR Technologies has hiked its FY27 revenue growth forecast to 80 percent plus (±5 percent) from 50 percent earlier. Assuming FY26 revenues at Rs 876 crore, revenues for FY27 could lie between Rs 1,533 crore and Rs 1,621 crore, with the midpoint at about Rs 1,577 crore. EBITDA margins have been forecasted by management at around 24 percent.
MTAR ended FY26 with an order backlog of Rs 2,580 crore, while FY27 is expected to witness the backlog reaching about Rs 5,000 crore. Management is very sure about obtaining big-ticket orders in clean energy, nuclear, defense, aerospace, oil & gas, and data center infrastructure businesses.
To support its growth, MTAR plans to make investments of Rs 250-300 crore towards capacity addition in FY27 and FY28. Going forward, MTAR estimates that investments in the tune of Rs 500-700 crore may be required to support the growth trajectory.
Strong Q4 Performance and Improved Cash Flow
MTAR Technologies reported a strong Q4 FY26 performance, with revenue rising to Rs 306 crore from Rs 183 crore in Q4 FY25, reflecting a growth of around 67 percent. EBITDA increased to Rs 62 crore from Rs 34 crore during the same period, while profit before tax surged to Rs 59.5 crore compared to Rs 18.6 crore a year earlier.
The company’s profit after tax stood at Rs 44 crore in Q4 FY26, up sharply from Rs 14 crore in Q4 FY25, marking a growth of about 222 percent. For FY26, MTAR reported an EBITDA margin of 19.5 percent, generated operating cash flow of Rs 196.9 crore, and improved working capital efficiency with working capital days reducing to 172 days from 278 days.
Can MTAR meet its guidance?
Revenue Growth Guidance Upgraded to 80 Percent: The management of MTAR Technologies has upgraded its FY27 revenue growth guidance to 80 percent (±5 percent) from 50 percent. The increase in revenue guidance indicates management’s optimism about customer demand and visibility of operations. With FY26 revenue of Rs 876 crore, the company expects FY27 revenue between Rs 1,533 crore to Rs 1,621 crore.
Order Book Provides Strong Base for Revenue Growth: The order book of MTAR at the end of FY26 stood at Rs 2,580 crore, which has provided a good base for future revenue growth. The management has also indicated that more orders will come in various business segments with the order book at FY27 end estimated to be around Rs 5,000 crore.
Clean Energy Remains Largest Engine of Growth: Clean energy will provide around 70 percent of FY27 revenue, which makes it the largest engine of growth for the company. Capacity expansion is in process to meet the growing demand of customers, while more revenues will come in through higher volume from existing customers.
Nuclear & Defence Businesses Drive Growth: Nuclear and Defence segments of MTAR continue to enhance their growth prospects. The company has order backlog of over Rs 650 crores for nuclear and over Rs 360 crores for defense and aerospace, which would contribute to top-line growth in the coming years.
Capacity Expansion and Margins Enhance Execution: To meet future demand, the company has plans to spend Rs 250-300 crores on capacity additions in FY27 and FY28. The company has also announced that its EBITDA margins will be at around the 24 percent level, driven by operational leverage, working capital efficiency, and higher volumes.
Conclusion
MTAR Technologies is set to begin FY27 with significant momentum, driven by record bookings, robust Rs 2,580 crore book orders, improved cash flows, and robust profitability performance. MTAR has upgraded guidance on its revenue with a growth of 80 percent from FY26 levels, and the strong demand for clean energy, nuclear, defence, aerospace, and data centre infrastructure is indicative of its optimism regarding its growth outlook.
Although the growth expectation is ambitious, there seem to be several factors at play for the firm, which include capacity additions, better working capital management, diversified book order pipeline, and visibility owing to existing customer relationships. Order execution and capacity commissioning along with sustained booking will be key parameters for the investors to keep an eye on as the firm aims to achieve its FY27 guidance.
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