MTAR Technologies (MTARTECH) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue was INR 135.6 crores, down from INR 156.6 crores in Q1 FY26 and INR 190.19 crores in Q2 FY25, with 12.5% EBITDA margin; H2 is expected to deliver nearly double the sales of H1, driven by robust order inflows and revised revenue growth guidance of 30%-35% for FY26, up from 25%.

• Order book closed at INR 1,296.6 crores at Q2 end, with INR 480 crores in additional orders post-Q2; FY26 closing order book is projected at INR 2,800 crores.

• Strong growth is anticipated in clean energy (fuel cells), nuclear, aerospace, and defense segments, with major capacity expansions and new customer additions underway.

• The Board approved a merger scheme for its wholly owned subsidiaries, pending regulatory approvals.

Financial highlights

• Q2 FY26 revenue: INR 135.6 crores (down 28.7% year-over-year); H1 FY26 revenue: INR 292.2 crores (down 8.3% year-over-year).

• Q2 FY26 EBITDA: INR 17 crores (12.5% margin); Q2 FY26 PAT: INR 4.2 crores; Q2 FY26 gross profit margin improved to 51.2% from 47.5% in Q2 FY25.

• Q2 FY26 basic and diluted EPS: INR 1.38, down from INR 3.52 in Q1 FY26 and INR 4.90 in Q2 FY25.

• Cash flow from operations improved to INR 39.8 crores in Q2 FY26 from negative INR 1 crore in the previous quarter.

Outlook and guidance

• FY26 revenue growth guidance raised to 30%-35% year-over-year, with H2 sales expected to be 2x H1.

• Annual EBITDA margin expected to average 21%.

• Working capital days targeted to reduce to 220 by year-end.

• The company is pursuing regulatory approval for the merger of its subsidiaries.