Summary
MTAR Technologies Limited - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026, 11:00 a.m. IST
Event Participants
Executives 3 Gunneswara Rao (CFO), Srilekha Jasthi (Head, Strategy and IR), Srinivas Reddy (MD and Promoter)
Analysts 11 Akshay J (Xponent Tribe), Aman (Astute Investment Management), Amar Ahir (Raedan Capital), Bala Murali Krishna (Oman Investment Advisors), Balasubramaniam (Arihant Capital), Charvin (Share India), Dev Thacker (ithought), Dhavan Shah (AlfAccurate Advisors), Meet Jain (Motilal Oswal), Nilesh Jain (Astute Investment Management), Renu Baid (IIFL Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹278 crores | +59.3% YoY; Highest quarterly revenue achieved to date driven by across-the-board vertical growth. |
| EBITDA | ₹64 crores | +92.5% YoY; Margin at 23.0%, supported by operating leverage and product mix. |
| Profit After Tax (PAT) | ₹34.7 crores | +117.3% YoY; Significant growth due to scale benefits and operational efficiency. |
| Order Book | ₹2,394.9 crores | ₹1,370 crores in new orders secured in Q3; Guided to reach ₹2,800 crores by end of FY 26. |
| Order Inflow (Clean Energy) | ₹1,080 crores | 9M FY 26 total; ₹645 crores secured in Q3 alone reflecting strong SOFC demand. |
| Order Inflow (Nuclear) | ₹500+ crores | Secured for Kaiga Units 5 & 6; to be executed over a 36-month period. |
| Gross Margin | 46.1% | Lowered by product mix (higher Clean Energy share) but offset by manufacturing efficiencies. |
| Working Capital Cycle | 260 days | Primarily elevated due to high receivables; targeted to reduce to 200-210 days in FY 27. |
Geographic & Segment Commentary
- Clean Energy (Fuel Cells): Recorded ₹387 crores in 9M FY 26 with Q4 revenue guidance of ₹250 crores. Focus is on expanding Hot Box capacity from 8,000 to 12,000 units by March 2026, and further to 30,000 units by FY 28 to meet AI data center power demand.
- Civil Nuclear: Strong growth anticipated from FY 27 driven by the ₹500+ crore Kaiga order and upcoming refurbishment projects. Management expects the segment to benefit from a potential ₹18,000-₹20,000 crore government PLI scheme for critical components.
- Aerospace & Defence: Achieved ₹72 crores revenue in 9M FY 26; current order book stands at ₹325 crores. Strategic shift toward structural assembly orders and participation in next-gen programs like AMCA (Advanced Medium Combat Aircraft).
Company-Specific & Strategic Commentary
- Capacity Expansion (SEZ Plant): The company is consolidating Bloom Energy operations into a new facility near the Hyderabad airport to house the 20,000–30,000 unit capacity. This move aims to improve operational efficiency and provide a centralized manufacturing hub under one roof.
- Product Diversification: MTAR has successfully qualified for the export of ball screws to MNC customers. The company is also completing certifications for import-substitute products like roller screws and electro-mechanical actuators (EMA) for defense programs.
- Customer Depth: Deepening relationship with Bloom Energy as they project a 30% average growth through 2030, driven by a $2.65 billion agreement with AEP for SOFCs to power data centers.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | ₹900+ crores (FY 26) | Represents 30-35% YoY growth; backed by strong Q4 delivery of fuel cells. |
| Revenue Growth | 50% (FY 27) | Management targets ~₹1,350+ crores based on capacity ramp-up and nuclear execution. |
| EBITDA Margin | 21% +/- 100 bps (FY 26) | Expected to sustain with significant improvement in FY 27 due to operating leverage. |
| Order Book | ₹2,800 crores (March 2026) | Expecting ₹700-₹800 crores in additional inflows during Q4 FY 26. |
Risks & Constraints
| Risk | Context |
|---|---|
| Working Capital Intensity | Elevated receivables at 260 days impact cash flows; management is negotiating customer advances to mitigate this. |
| Execution Timelines | Aerospace First Article Inspections (FAI) are stringent and time-consuming; delays in volume production for clients like Weatherford could impact near-term scale. |
| Concentration Risk | Significant reliance on a single major customer in the Clean Energy segment (Bloom Energy) for volume growth. |
Q&A Highlights
Clean Energy Capacity & Demand
- Question: What is the visibility for expanding capacity to 30,000 units? (Piyush Sevaldasani)
- Answer: Expansion is phased (12k by March, 20k by Dec, 30k thereafter) based on clear demand forecasts from the customer for AI data centers. Capex for the 20k-30k phase is estimated at ₹50-₹60 crores plus additional equipment costs (Srinivas Reddy).
Nuclear Segment Scaling
- Question: How much revenue can we expect from Nuclear in FY 27? (Aman)
- Answer: ₹150 crores is a conservative estimate; the company expects to perform much higher as existing and Kaiga orders kick in from Q1 FY 27 (Srinivas Reddy).
Aerospace Progress
- Question: How are first articles progressing compared to volume production? (Meet Jain/Akshay J)
- Answer: MTAR is averaging 80-100 first article parts per month, which is well above industry averages. MNC aerospace revenue was ₹18 crores this quarter, expected to double to ₹40-₹50 crores/quarter as FAIs convert to volume production (Srinivas Reddy).
Financial Discipline
- Question: Why did gross margins decline this quarter? (Piyush Sevaldasani)
- Answer: It is purely a function of product mix; Clean Energy has lower gross margins but requires less effort/overheads than domestic nuclear, so EBITDA remains protected (Gunneswara Rao).
Key Takeaway
MTAR Technologies delivered its strongest quarterly performance to date in Q3 FY 2026, with revenue growing 59.3% YoY to ₹278 crores and EBITDA margins expanding to 23.0%. The company is benefiting from a structural surge in demand for Solid Oxide Fuel Cells (SOFC) driven by AI-powered data centers, prompting a capacity expansion plan to reach 30,000 units by FY 2028. Strategically, MTAR is diversifying its revenue base through significant order wins in Civil Nuclear (₹500+ crore Kaiga order) and a transition toward volume production in its Aerospace MNC segment. Management has provided a robust outlook, guiding for 50% revenue growth in FY 2027 while maintaining focus on reducing the working capital cycle through customer advances. The company remains a critical beneficiary of the global clean energy transition and India’s domestic nuclear and defense indigenization programs.
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