MTARTECH Q2 FY27 Earnings Call: Record Order Inflows of Rs. 4,102 Cr, Guides 80% Revenue Growth

MTARTECH held its Q2 FY27 earnings call on October 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Across Revenue, Margins and Profitability

• Revenue of Rs.406.8 crore — highest-ever quarterly revenue, up 200% YoY from Rs.135.6 crore in Q2 FY26 and 12.8% QoQ from Rs.360.7 crore in Q1 FY27, driven by good execution across the product portfolio.
• EBITDA of Rs.99.2 crore — up 483.3% YoY (vs Rs.17 crore in Q2 FY26) and 16.6% QoQ; margin of 24.4% vs 12.5% in Q2 FY26 and 23.6% in Q1 FY27, aided by higher revenue, better mix and operating leverage.
• PAT of Rs.59.8 crore — up 1309.5% YoY (vs Rs.4.2 crore in Q2 FY26) and 19.1% QoQ; PAT margin at 14.7% vs 3.1% in Q2 FY26. PBT at Rs.80.3 crore, up 1314.6% YoY.
• Gross margin improved to 46.8% — from 45.5% in Q1 FY27, mainly on better product revenue mix; EPS at Rs.19.45 for Q2 FY27 and Rs.35.78 for H1 FY27.
• Working capital days reduced to 50 — as of September 2026 from 172 days in March 2026; management targets ~100 days by end of FY 2026-2027 and ROC of ~23% by end of FY27 (vs 17.2% in FY26).
• Operating cash flow of Rs.350 crore in H1 FY27 — total debt ~Rs.465 crore (Rs.189 crore long-term, Rs.276 crore short-term) against investments of Rs.358 crore, implying net debt of ~Rs.107 crore per management.
• Products revenue restatement — Q2 products & others revenue reported at Rs.65 crore was actually ~Rs.125-126 crore; ~Rs.60 crore of box-build supplies was misclassified under clean energy, with a corrected presentation to be re-uploaded.

Rs.4,102 Cr H1 Inflows; Nuclear Ramp Weighted to FY28 Onwards

• Record order inflows of Rs.4,102 crore in H1 FY27 — management expects momentum to sustain and a strong closing order book by end of FY 2026-2027, though the MD declined to confirm further growth from the Q2 level.
• Civil nuclear closing order book of Rs.812 crore — inflows from Kaiga, Gorakhpur and refurbishment programs; the Rs.134 crore Q2 FY27 nuclear inflow is refurbishment with a 2-year execution timeline.
• Order book execution timeline — majority executable within 12-18 months; nuclear orders span 3-3.5 years and fuel cell orders about 1 year; management does not expect any decline in order book revenue conversion as nuclear and aerospace scale up.
• Kygo 5 & 6 nuclear revenue timing — certain revenues expected in FY 2026-2027, but the majority will kick in from FY 2027-2028 onwards, extending through FY29 and FY30, citing raw material and specialized bottle lead times.
• Government of India targets 100 GW of nuclear capacity by 2047 — management cited "Government of India targeting 100 GW nuclear by 2047" as the key long-term opportunity driver; MTAR supplied the majority of core assemblies for the prototype fast breeder reactor and has submitted budgetary quotations for the upcoming FBR program.
• Mahi Banswara potential of Rs.700-1,000 crore — MD indicated potential orders from the 4 proposed 700 MW reactors at Mahi Banswara if they materialize (period unspecified), with orders going directly to major private players; MTAR is actively submitting quotations to private sector bidders.
• Advance payment terms — civil nuclear power orders carry 30-40% advances per tender document; other customers negotiate individually (some at 20%); management aims to secure more advances to avoid increasing working capital and debt.

Bloom-Led Expansion; Data Center Vertical Scaling Toward Rs.350-450 Cr

• Phase 2 fuel cell expansion nearing completion — facility expected operational by end of November 2026 (Q3 FY27), a ~30% build above existing capacity; Phase 3 in a new dedicated facility with overall expansion expected complete by June 2028 (FY 2028-2029); workforce onboarding substantially complete and automation being implemented.
• Data center first articles of ~Rs.45 crore — customer has indicated a requirement of 8x the first-article value; MD confirmed the analyst's read of ~Rs.350-400 crore potential order inflows (period unspecified); dedicated facility fully operational by end of March 2027 (Q4 FY27), with phase one by end of November/early December 2026 and phase two by June 2027.
• Data center scale potential of Rs.350-450 crore — over the next two years (i.e., by FY 2028-2029) following first-article qualification; substantial volumes from new verticals expected from FY 2027-2028.
• Hot box duopoly intact — management confirmed no supplier other than MTAR and a South Korean company has developed the capability ("No, nobody else"); hot box replenishment orders may arrive at end of FY 2026-2027 or beginning of FY 2027-2028, dependent on customer schedules.
• Not exclusively tied to Bloom — management noted many companies are attempting entry but need to reach Bloom's technology level, which took Bloom 12-15 years to develop, and will assess the landscape "from time to time"; analyst cited Nattech (Netherlands) aggressively entering the Indian fuel cell market — industry context only.
• Hot box indigenization — most components going into the assembly are indigenized, though certain areas still require imports; specifics on pre-integrated diagnostic/thermal components withheld citing the NDA with the customer.
• Bloom 800-volt DC architecture — management said it is too premature to give a timeline for orders; a dedicated MTAR team works with Bloom Energy on various projects on a continuous basis.

Aerospace Qualification Complete; Products Guided at ~Rs.500 Cr for FY27

• 4 aerospace customers as of Q2 FY27 — some in volume production, others in first articles; management expects to finish first articles and move into volume production by end of FY 2026-2027; the ~1.5-year qualification process (including NADCAP and individual customer qualifications) is complete.
• Rs.150 crore+ MNC aerospace revenue aspiration for FY 2026-2027 — vs a small base three years ago; long-term agreement volume deliveries commence FY 2027-2028; expansion planned over the coming 2-3 years to cater to new customers.
• Customer consolidation win — management cited one customer previously sourcing from 16 different companies that has now awarded the entire package to MTAR.
• AMCA program prototypes in execution — main landing gear support structure and fuselage door assembly; volume production expected "much later" (period unspecified); Tejas remains the current volume program, with LCA Tejas actuator assembly volume orders anticipated in the coming period.
• Products vertical guided at ~Rs.500 crore for FY 2026-2027 — Q2 products revenue actually ~Rs.125-126 crore after reclassification; run-rate reclassified from Rs.100 crore to Rs.125 crore, with management confirming a similar run rate going forward; ball screw exports commenced in Q2 FY27.
• Long-term vertical targets cited by analyst — management guidance of Rs.600-700 crore defense & aerospace revenue by FY30 (vs Rs.100 crore actual in FY 2025-2026) and >Rs.1,000 crore products by FY30 (vs Rs.134 crore in FY 2025-2026); MD said growth is "backed up by clear customer forecasts and orders" and sees no issues achieving the goal.

Rs.500 Cr Capex Plan; FY27 Guidance Held With Upside Bias

• FY 2026-2027 guidance reaffirmed at 80% revenue growth and 24% EBITDA margin — management will not change guidance mid-year but is confident of delivering above guidance on both revenue and margin, with margin improvement expected in H2 FY27 on the anticipated ramp-up.
• Total capex of ~Rs.500 crore by end of FY27 — ~Rs.100 crore incurred in FY 2025-2026 plus ~Rs.400 crore in FY27; split Rs.350 crore for fuel cells and Rs.150 crore for other verticals including oil & gas and aerospace; funded 75% debt / 25% internal accruals.
• Sustenance plus growth capex of Rs.50-100 crore per annum — over the next 1-2 years (FY 2027-2028 to FY 2028-2029); CFO said capex deployed should generate at least 3x of present revenue (period unspecified), with gross block rising to only Rs.1,000-1,200 crore maximum even after the Rs.500 crore spend.
• Analyst flagged implied H2 run-rate of ~Rs.450-470 crore per quarter — at 90-95% growth despite 30% phase-two capacity addition, questioning why guidance was not raised; MD declined to comment on the upside scenario (analyst also noted inventory of Rs.680 crore, ~5 months of FY27 revenue guidance).
• Working capital trajectory — ~100 days targeted by end of FY 2026-2027 (elevated by H2 receivables and 1-2 months of advance raw material procurement for FY 2027-2028; otherwise run-rate would be ~50-60 days); long-term goal of ~150 days over the next 2-3 years (FY 2028-2029 to FY 2029-2030); GST refunds of ~Rs.70-80 crore per year expected (period unspecified).
• AI capex slowdown fears dismissed — MD Srinivas Reddy called US AI capex slowdown concerns "unwanted speculation," stating the company is growing across multiple segments with very strong customer-provided forecasts.
• Oil & gas ramp — development and first-article qualification completed with Weatherford; dedicated facility operational by end of November 2026; meaningful production ramp-up anticipated from FY 2027-2028 onwards.

H2 FY27 Expected Stronger; Execution Is the Near-Term Priority

• H2 FY27 expected stronger than H1 — supported by the robust order book and execution focus; management expects a meaningful civil nuclear execution ramp-up in H2 FY27 and significant revenue growth from FY 2027-2028 onwards.
• Greenfield evaluation underway — management is evaluating new greenfield manufacturing facilities to cater to anticipated demand, with further developments expected over coming quarters; nuclear capex is already implemented, with the company to observe nuclear division growth over FY 2027-2028 before planning a major facility.
• Geopolitical impact contained — the West Asian situation has had no impact on exports or shipments as of Q2 FY27, with only certain consumable costs rising; Q2 forex gain of Rs.2.3 crore out of a total of Rs.8.5 crore.
• No local hindrances — management stated the local government "has been very supportive on every aspect" and no project-specific or local challenge is holding back performance.
• Asset fungibility limits disclosure — CFO declined vertical-wise asset turnover detail citing customer NDAs; ~15 of 16 units are fungible across sectors, though 100% utilization is not possible in some areas due to scale of operations.
• Bill discounting minimal — only ~$1 million of receivables discounted as of Q2 FY27, done organically; management closed reiterating commitment to sustainable growth and long-term stakeholder value.