MTAR Tech shares rally 5% on tripled earnings, Rs 820cr order bump
MTAR Technologies reversed a recent selloff after reporting a tripling in first-quarter EBITDA and securing a massive order amendment that cements its order visibility.
MTAR Technologies shares gained 5% on Tuesday, recovering from a four-day, 12% decline, after the Indian precision engineering firm posted a dramatic surge in first-quarter earnings. Revenue from operations soared 130.4% year-on-year to Rs 360.7 crore, up from Rs 156.6 crore in the prior-year period. Profit before tax jumped 355% to Rs 67.4 crore, while EBITDA nearly tripled to Rs 85.1 crore.
The results validate the company's aggressive expansion targets and provide a clear roadmap for investors tracking its scale-up. MTAR has guided for 80% revenue growth for the current financial year, accompanied by an EBITDA margin of 24% plus or minus 100 basis points. This margin target suggests the company can maintain profitability despite rapid top-line expansion. Management indicated that the strategy extends beyond near-term financial performance, focusing instead on building a more diversified and resilient business model.
Managing Director Parvat Srinivas Reddy said the company "delivered another strong quarter, with performance in line with the growth guidance for the current financial year." He added that "beyond the quarterly numbers, the company has reached an inflexion point, with each of its key business verticals well positioned to enter the next phase of growth."
The earnings beat was paired with two distinct order developments that highlight MTAR's strengthening market position. In the civil nuclear power segment, MTAR secured its largest-ever contract, worth Rs 504 crore, to supply critical fuel handling assemblies for the Kaiga 5 and 6 nuclear reactor projects. This win substantially improves the company's order visibility in a sector that demands high barriers to entry and relies on highly specialized engineering capabilities.
Separately, an existing undisclosed customer amended a previous purchase order, increasing its total value to $324.62 million, or roughly Rs 3,100.09 crore. The revision adds $85.86 million, or approximately Rs 819.94 crore, to the original contract value. The execution timeline for this incremental order has not yet been determined due to ongoing confidentiality agreements.
