MTARTECH - MTAR Technologies Limited Share Price

MTAR Technologies Limited's management provided a strong outlook for FY '27, anticipating an approximately 80% revenue growth compared to FY '26, adjusting from a prior estimate of 50%. The growth estimate comes with a margin of +/- 5%. For FY '26, the company reported record revenues of INR 876 crores, an increase of about 30% from INR 676 crores in FY '25. The EBITDA for FY '26 reached INR 171.2 crores, translating to EBITDA margins of around 19.5%. Net profit after tax was INR 94 crores, up from INR 53.4 crores the previous year.

Management's key forward-looking points include:

1. Sector Contributions: The clean energy sector is projected to contribute around 70% to total revenues, with the nuclear and aerospace sectors expected to deliver significant numbers subsequently.

2. Order Book: The closing order book for FY '26 was INR 2,580 crores with an expectation to grow to approximately INR 5,000 crores by the end of FY '27. The company secured orders worth INR 481 crores during the quarter.

3. Capacity Expansion: The management is focused on expanding capacities in clean energy and oil and gas, anticipating the commissioning of a new plant by September.

4. Long-term Contracts: A significant contract for supplying infrastructure assemblies for AI data centers is anticipated to be worth between INR 400 crores to INR 500 crores over the next couple of years.

5. Cash Flow and Working Capital Management: Positive operating cash flow of INR 196 crores was reported, with initiatives in place to sustain this moving forward.

6. Capex Plans: Planned capex of INR 250-300 crores over the next two years to enhance capacities, with an emphasis on automation and efficiency.

Overall, management's confidence in execution capabilities and customer demand positions MTAR for robust growth in the coming financial year.

Major Questions and Answers from MTAR Technologies Earnings Call (May 13, 2026)

Question 1: "Is it possible to break your revenue expectation of 80% growth for FY '27, how much do you expect to come from the clean energy, nuclear, and defense sectors?"

Answer: "The clean energy sector will contribute about 70% of our expected revenue for FY '27. The other verticals, while growing significantly, will collectively make up the remaining 30%. We see phenomenal growth across all sectors, but clean energy is our fastest-growing area."

Question 2: "Can you break up the expected order inflow of approximately INR 40 billion for FY '27 between clean energy, nuclear, and defense?"

Answer: "Most of our order inflow will be from clean energy and other sectors, including oil and gas, defense, and aerospace. We are confident that our closing order book will reach INR 5,000 crores by the end of FY '27, with substantial contributions expected from clean energy and ongoing projects."

Question 3: "Are you seeing tenders for refurbishment of reactors, and what about the Mahi Banswara tender?"

Answer: "Yes, tenders for the Mahi Banswara new reactors are expected this year. We have already submitted bids for refurbishment and are confident about securing these orders, which do not impact our overall business outlook."

Question 4: "Can you repeat the guidance for FY '27 and '28?"

Answer: "Our updated guidance for FY '27 is an 80% revenue growth, plus or minus 5%, and EBITDA margins of around 24%. This reflects our customer requirements and current expansion efforts."

Question 5: "What are your capital expenditure plans for FY '27?"

Answer: "We anticipate capital expenditures of around INR 250-300 crores spread over the next two years to support additional capacity expansions. These expansions are critical for meeting customer demand."

Question 6: "What are the cash flow expectations given significant revenue growth for FY '27?"

Answer: "We have negotiated improved payment terms and expect our operating cash flow to maintain the current levels, which are around 25% of EBITDA. Our focus on working capital will continue to support this."

Question 7: "What is your outlook on debt levels for FY '27?"

Answer: "We aim to maintain a debt-to-equity ratio of about 0.5. Although we've seen an increase in debt due to expansion plans, we'll be actively managing repayments."

Question 8: "Can you provide insights into the components supplied to new customers in AI data centers?"

Answer: "We are providing various assemblies for data center infrastructure, which holds about 70% value addition on our products. The initial order is INR 35 crores, with potential revenues reaching up to INR 500 crores over the next few years."

Each answer reflects the management's strategy and expectations, illuminating their confidence in future performance and growth across various sectors.