MTAR Technologies has released a tremendous set of results for the first quarter of FY2025-26, reinforcing its position as a key supplier in the precision engineering and aerospace and defence sectors. The company reported a consolidated revenue from operations of ₹156.6 crore for Q1 FY26, marking an impressive 22.1% year-on-year increase compared with ₹128.3 crore in the same quarter of the previous fiscal. This strong growth highlights MTAR’s ability to execute well in a challenging macroeconomic environment marked by global uncertainty and increased tariff barriers.
Superb numbers
Profitability was the standout metric this quarter. MTAR’s EBITDA soared 70.9% year-on-year to ₹28.4 crore, compared with ₹16.6 crore in Q1 FY25. Margins expanded significantly, with the EBITDA margin improving from 12.9% to 18.1%. The company also achieved a notable increase in profit after tax (PAT), which surged by 144.2% to ₹10.8 crore, up from ₹4.4 crore a year ago. Profit before tax was ₹14.8 crore, a 138.7% jump over the same period last year. This substantial jump in both margins and bottom-line numbers demonstrates not only volume growth but also improved cost efficiencies and operational execution.
Robust order book
The company’s order book remains healthy at ₹930.2 crore, with new orders worth ₹105.3 crore secured in the quarter. MTAR has commenced batch production for major aerospace clients and entered into long-term agreements with global players like Israel Aerospace Industries (IAI) and Weatherford. Looking ahead, management maintains a confident outlook, expecting even stronger execution in the second half of the fiscal year. The leadership is particularly optimistic about increased inflows from the clean energy, civil nuclear, and defence sectors, areas supported by ongoing government spending and international opportunities.
Operating Cash flows positive
On the cost side, the company continued to invest in its people and technical capabilities, expecting that higher employee costs incurred this quarter will gradually normalise as operating leverage kicks in. MTAR also reported positive operating cash flows and a reduction in net working capital, underlining continued improvements in balance sheet strength.
Despite challenges such as global market volatility, export-oriented uncertainties, and rising protectionism, MTAR Technologies’ Q1 performance illustrates its resilience and growth capability. Efficient order execution, diversified sectoral exposure, and a visionary management team put MTAR in a strong position for the quarters ahead. The focus now shifts to further margin improvements and sustained revenue growth, as the company seeks to capitalise on robust demand pipelines in its core industries.
