MTARTECH Q2 FY27 Results Analysis: PAT Surges 1,310%, Revenue Rises 200%

MTARTECH's Q2 FY27 numbers came in strong, with revenue of Rs. 406.77 Cr (+200.00% YoY) and PAT growth of +1309.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

MTAR delivered a second consecutive record quarter with revenue of Rs.406.77 Cr (+200.0% YoY, +12.8% QoQ) and EBITDA margin of 24.38% inside the guided 24% ±100 bps band, while PAT grew 1,309.5% YoY on clear operating leverage. Growth is self-funding — H1 CFO of Rs.349.97 Cr covered Rs.273.05 Cr capex with FCF of +Rs.76.92 Cr — and the Rs.5,943 Cr pro-forma order book supports the 80% FY27 revenue guide. A caveat is that Rs.12.66 Cr of H1 other income was investment gains, modestly inflating reported PAT.

Key Investment Insights

Key Positives

• Revenue grew 200.0% YoY and 12.8% QoQ to Rs.406.77 Cr, a second consecutive record quarter
• Net profit grew 1,309.5% YoY to Rs.59.83 Cr; EPS rose to Rs.19.45 from Rs.1.38
• EBITDA margin of 24.38% is inside management's guided 24% ±100 bps band, up ~1,184 bps YoY
• Cost of materials fell to 56.12% of revenue from 60.30% YoY, demonstrating operating leverage
• H1 CFO of Rs.349.97 Cr was 3.18× PAT; FCF was +Rs.76.92 Cr after Rs.273.05 Cr capex
• Trade receivables fell Rs.51.0 Cr in H1; working-capital days proxy improved to ~168 from ~286
• Debt-to-equity of 0.50 matches the two-year guide; net debt broadly flat at Rs.83.17 Cr
• Order book Rs.5,143 Cr at Q1-end plus Rs.800 Cr announced; nuclear book above Rs.775 Cr

Risk Factors

• Rs.12.66 Cr of H1 other income was investment/asset gains, so reported PAT overstates run-rate operating earnings
• Inventories rose Rs.178.24 Cr in H1 to Rs.678.76 Cr as make-to-order WIP builds ahead of execution
• Finance costs are up 161.4% YoY on expansion debt, though only +2.5% QoQ
• H2 FY27 requires ~Rs.809.67 Cr of revenue and ~Rs.194 Cr EBITDA — both must exceed the record H1 to meet full-year guidance