Event Type: Q2 and H1 FY27 Earnings Conference Call held on October 30, 2026, at 11:00 a.m. IST.
Purpose: Discussion of quarterly results, business updates, and growth outlook across various segments including clean energy, aerospace & defense, and new verticals.
Management Participants: Mr. Srinivas Reddy (Managing Director and Promoter), Mr. Gunneswara Rao (Chief Financial Officer), Ms. Srilekha Jasthi (Head, Strategy and Investor Relations), and representatives from Orient Capital (Investor Relations Partners).
Materials Available: Investor deck, press release, and results highlights were uploaded on stock exchanges and company website. The transcript of the earnings call is available on the company's website www.mtar.in.
Compliance: The disclosure is made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Quarter-on-Quarter Growth: Revenue grew 12.8% from INR360.7 crores in Q1 to INR406.8 crores in Q2, EBITDA grew 16.6% from INR85.1 crores to INR99.2 crores, PAT grew 19.1% from INR50.2 crores to INR59.8 crores.
Margins: Gross margin improved to 46.8% from 45.5% in previous quarter, EBITDA margin at 24.4% (vs 12.5% in Q2 FY26 and 23.6% in Q1 FY27), PAT margin at 14.7% (vs 3.1% in Q2 FY26 and 13.9% in Q1 FY27).
H1 FY27 Performance: Earnings per share at INR35.78 for the first half.
Business Segment Updates
Clean Energy - Fuel Cells: Phase 2 capacity expansion nearing completion (expected operational by end November 2026), Phase 3 expansion to be housed in new dedicated facility (expected completion by June 2028). Business has potential to scale to INR350-450 crores over next 2 years.
Civil Nuclear: Closing order book of INR820 crores from Kaiga, Gorakhpur, and refurbishment programs. Expecting meaningful ramp-up in H2 FY27 with significant revenue growth from FY28 onwards. Submitted budgetary quotations for upcoming fast breeder reactor program.
Aerospace & Defense: MNC Aerospace business expecting INR150+ crores revenue in current fiscal. Qualification process for first articles with key customer expected completion in current financial year. Volume deliveries under long-term agreement to commence from next fiscal year.
New Verticals:
Data Center Infrastructure: Working on first article orders valued at ~INR45 crores. Manufacturing facility expected operational by March 2027. Business potential to scale to INR350-450 crores over next 2 years.
Oil & Gas: Dedicated manufacturing facility expected operational by end November 2026. Development and first articles qualification completed with Weatherford.
Product Division: Commenced exports of ball screws. Revenue misclassification correction noted - actual Q2 product division revenue was INR126 crores (not INR65 crores as initially reported).
Financial Position & Guidance
Working Capital: Days reduced to 50 as of September 2026 from 172 days in March 2026. Expected to maintain at around 100 days by end of FY27 due to higher revenue forecast.
Cash Flow: Operating cash flow of INR350 crores in H1 FY27 (vs INR39.8 crores in H1 FY26).
Debt Position: Total debt ~INR465 crores (INR189 crores long-term, INR276 crores short-term). Investments stand at INR358 crores.
ROCE: Expected to improve to ~23% by end of FY27 from 17.2% in FY26.
Capex: Total planned capex of INR500 crores (INR350 crores for fuel cells, INR150 crores for other sectors). Funding: 75% through debt, 25% through internal accruals.
Guidance: Reaffirmed annual guidance of 80% revenue growth and 24% EBITDA margin, though management indicated they expect to perform better than guidance.
Order Book & Outlook
Order Inflows: Record order inflows of INR4,102 crores during H1 FY27.
Outlook: H2 FY27 anticipated to be stronger than H1. Expect sustained growth momentum across all business segments with multi-year visibility.
Additional Notes
The document includes the complete transcript of the earnings conference call with management commentary and Q&A session.
The disclosure was signed by Priyanka Agarwal, Company Secretary and Compliance Officer.
