Defence stock engaged in manufacturing and developing components and equipment for the defense, aerospace, nuclear, and clean energy sectors, jumped around 3 percent after securing multiple orders worth Rs. 200 crores across multiple sectors, including clean energy, aerospace, and space.
Stock Price Movement:
In Thursday’s trading session, MTAR Technologies Limited‘s share reached an intraday high of Rs. 1,607.15 per equity share, rising 2.62 percent from its previous day’s close price of Rs. 1,566.15. The stock opened at Rs. 1,566.15 and is currently trading at Rs. 1,576.50. The market capitalization now stands at approximately Rs. 4,849.25 crore.
What Happened:
MTAR Technologies Limited has secured orders worth Rs. 200 crore across multiple sectors, including clean energy, aerospace, and space. The company received Rs. 157.4 crore in orders from Bloom Energy for fuel cells, Rs. 22 crore from civil nuclear power projects, and Rs. 17.9 crore in space-related orders, including those from ISRO.
Additionally, Rs. 2.7 crore worth of orders are for energy storage systems from Fluence, and orders are expected to be executed by the end of the financial year 2026.
MTAR is also in advanced discussions with existing and new customers for further orders, particularly in clean energy and aerospace. The company anticipates significant growth in these sectors due to its strong order book and ongoing projects.
Revenue Guidance:
The company is expecting a total revenue of about Rs. 725 crores for the current year, with an EBITDA margin of around 21 percent.
For the next financial year, FY 2026, the company projects a conservative revenue growth of 20 percent, which would bring its revenue to approximately Rs. 860 crores. This means the company expects steady growth in its earnings over the coming year.
Order Book:
MTAR Technologies shows a robust order book position with total orders worth Rs. 942.25 crore as of September 30, 2024. The company received Rs. 247.02 crore in new orders during Q2 FY25, primarily from sectors like clean energy, civil nuclear power, fuel cells, and hydel.
The order book distribution shows clean energy-civil nuclear power dominating with 54.1 percent of orders, followed by clean energy-fuel cell and hydel at 14.7 percent, space sector at 16.8 percent, defence at 8.4 percent, and products & others at 6.0 percent. Their order book grew from Rs. 894.2 crore in June 2024 to Rs. 942.3 crore in September 2024.
New Developments:
The company is launching new products, including sheet metal assemblies and ASP assemblies. It has also entered into long-term agreements with multinational customers in the aerospace and defense sectors. Additionally, the company is working on ongoing projects in civil nuclear energy, with expectations of significant growth in FY 2026.
Recent quarter results and ratios:
MTAR Technologies Limited’s revenue has increased from Rs. 167 crore in Q2 FY24 to Rs. 190 crore in Q2 FY25, which has grown by 13.77 percent. The net profit of MTAR Technologies Limited is down by 9.52 percent, from Rs. 21 crore in Q2 FY24 to Rs. 19 crore in Q2 FY25.
Written By – Nikhil Naik
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