MTAR Tech shares hit 5% upper circuit again. What’s behind the renewed optimism?

Shares of 2026 multibagger MTAR Technologies hit the 5% upper circuit for the second session in a row at Rs 5,714 after the company reported a 364.5% year-on-year jump in Q1 net profit to Rs 50.2 crore from Rs 10.8 crore.

The company’s revenue from operations surged 130.4% year-on-year to Rs 360.7 crore from Rs 156.6 crore. EBITDA nearly tripled to Rs 85.1 crore from Rs 28.4 crore, marking a 199.7% increase, while profit before tax jumped 355% to Rs 67.4 crore.

Commenting on the results, Managing Director Parvat Srinivas Reddy said the company delivered another strong quarter, with performance in line with the growth guidance for the current financial year. He added that, beyond the quarterly numbers, the company has reached an inflection point, with each of its key business verticals well positioned to enter the next phase of growth.

MTAR Tech FY27 guidance

The company has guided for 80% revenue growth in the current financial year, with an EBITDA margin of 24% plus or minus 100 basis points. It said its focus extends beyond near-term financial performance, with efforts centred on building a more diversified and resilient business by expanding its product portfolio, increasing wallet share with existing customers and broadening its global customer base.

The company also reiterated its commitment to leveraging its engineering expertise and execution capabilities to strengthen its manufacturing platform and build a world-class manufacturing institution.

MTAR Technologies said it continues to strengthen its position in the civil nuclear power segment, where it supplies critical fuel handling assemblies for nuclear reactor cores. The company recently secured its largest-ever order in this business, worth Rs 504 crore, for the Kaiga 5 and 6 projects, improving order visibility.

It also expects to receive around Rs 150 crore worth of refurbishment orders in FY27 from existing reactors. Looking ahead, the company expects meaningful opportunities from the proposed construction of four reactors at Mahi Banswara, where NTPC is partnering with NPCIL. It added that the government's target of achieving 100 GWe of civil nuclear capacity by 2047 presents significant long-term growth opportunities through new reactor construction, refurbishment projects and maintenance contracts.

Alongside the Q1 release, MTAR Technologies announced that it has received an amended purchase order from an existing customer, increasing the total order value to $324.62 million (approximately Rs 3,100.09 crore) from the earlier $238.76 million (approximately Rs 2,278.96 crore) announced on May 14, 2026.

The amendment adds an incremental order worth $85.86 million (approximately Rs 819.94 crore). The company said it cannot disclose the customer's identity due to confidentiality, while the execution timeline for the order will be decided later.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)