About the Company:

Mtar Tech is engaged in the business of manufacturing high precision and heavy equipment, components, machines for sectors including nuclear, aerospace, defence, etc.  

The Company provide one-stop solutions though the integration of its value-chain comprising design, precision machining, assembly, testing, quality control, specialized  fabrication, brazing, heat treatment and other specialized processes. The Company focuses on complex mission critical projects that are difficult for most service providers, especially precision components with close tolerances (5-10 microns) and critical assemblies that serve projects of national importance. The Company specializes in the design and fabrication of complex assemblies like Fueling Machine Head, Bridge & Column, Coolant Channel assemblies and Drive Mechanisms for the core of nuclear reactors; Liquid Propulsion Engines, Electro-Pneumatic Modules for Space Launch Vehicles and Base Shroud Assemblies and Air frames etc. for missiles in the Space & Defence sectors; SOFC and hydrogen units for Fuel cells in the Clean Energy sector.

The Company operate through six state of-the-art manufacturing facilities including one export oriented unit, each of which is situated in Hyderabad and is in the process of establishing sheet metal and specialized fabrication facilities at Adibatla unit. The units are equipped with state-of-the-art machining, assembly & testing, specialized fabrication, heat treatment, surface treatment and quality control facilities. These facilities have been invested with high tech CNC milling, turning, floor boring, jig boring machines etc., assembly and testing facilities as well as specialized fabrication, quality control, heat treatment, surface treatment and other specialized processes. The Company is a leading national player in precision engineering catering to strategic sectors on account of its deep technology commitment. The Company's state-of-the-art facilities comprise more than 400 equipment items.

Business Segments:

Company operates in 6 various business segments which includes Civil Nuclear power, Space, Defence and Aerospace, Clean Energy, Ball Screws and Roller Screws and Marine.

Under Civil Nuclear Power business segment company has contributing to Indian civilian nuclear power programme over past four decades and have established relationships with leading Indian Organizations such as NPCIL. Company manufacture and supply highly complex products to the core of the nuclear reactor and its product portfolio in Nuclear includes complex assemblies such as fuel machining head, drive mechanisms, bridge and column and coolant channel assemblies, among others. 

Under Space segment company manufactures Liquid propulsion engines, cryogenic engine sub-systems, electro-pneumatic modules, satellite valves, grid fin structures, etc. for space launch vehicles, precision-engineered assemblies for various MNC aerospace companies.

Under Clean Energy Segment company is involved in the manufacturing and specialized fabrication of critical assemblies to customers such as Bloom Energy, Andritz, among others. It also supply power units, specifically hot boxes to Bloom Energy USA with which, it has been associated with, for over nine years, and currently, involved in the development and manufacture of hydrogen boxes and electrolyzer, to serve Bloom Energy. While hot boxes use methane to generate power, hydrogen boxes shall use methane to generate hydrogen that shall in-turn, be used to generate power. In addition, electrolysers will produce methane-free hydrogen that shall be used to produce power. It is also catering to critical structures for customers such as Andritz, Voith, GE Power, etc. in Hydel sector.

Under Ball Screw segment MTAR is the sole manufacturer of Ball screws in India, it is equipped with finest integration, precision machining and fabrication facilities. The company integrates its development process with the expertise of its R&D to provide the highest standard engineered products for the nation’s key sectors. MTAR supplies it for critical applications at India’s prestigious organisations like ISRO, NPCIL, Defence sector and BHEL which are widely used in manufacturing applications in Defence, Nuclear power reactors, Aerospace, medical equipment, missiles and CNC machines, Ball screws feature a long-threaded shaft with balls to withstand load and can move heavy load at fast speeds with accuracy.

Under Marine segment company is working towards manufacturing high precision shafts, component and assemblies for propulsion for ships. MTAR can help global companies in fabrication of Water Jet propulsion system in India to optimize the costs and increase Indeginouss Content of systems.

Under Defence and Aerospace segment company is working together with Indian and International defence organizations with a strong foot hold in realization of the high precision mechanical sub systems, systems, and system’s Integration meeting all the quality norms of the industry.  MTAR is augmenting its infrastructure facilities continuously with the latest state-of-art equipment to meet all the norms of the industry and to cater the needs of the Indian and international Industry making it a world class manufacturing hub for Defence and Aerospace sector to cater to all their requirements.

Clientele:

Company has huge clientele in both India and internationally, comprising of central or state governments, public sector units and private sector units.

Segment wise clientele is as follows:

Civilian Nuclear Sector: DAE, NPCIL, BARC, ECIL, IGCAR, Bhavini and Nuclear Fuel Complex.

Space & MNC Aerospace: ISRO, LPSC, SDHC-SHAR, SAC, RAFAEL, TATA, ELBIT SYSTEMS, THALES, COLLINS AEROSPACE, THALESALENIA SPACE, GKN AEROSPACE.

Defence: MOD, ADA, BDL, HAL, DRDO and various organizations of DRDO.

Clean Energy: ANDRITZ HYDRO, BLOOM ENERGY, GE, VOITH HYDRO, HITZ.

Marine, Oil & Energy: KONGSBERG, TECHNIPFMC.

Others: WORLDWIDE OILFIELD MACHINE, BALAJI AMINS LTD.

Orderbook:

As of Q3 FY25, MTAR Technologies had an unexecuted order book of 894 crore. The company secured 817 crores in orders across sectors in FY25, including 400+ crore in Clean Energy and Aerospace. The Aerospace order book stood at 187 crores, while 1,000 crores in nuclear orders is expected over the next 3–6 months, including projects for Kaiga 5 & 6 reactors and refurbishment work.

On a remarkabke note, the engine for the PSLV-C25, which launched the Mars Orbiter Mission Spacecraft (Mangalyaan mission), was supplied to ISRO by the Company. The engine for the PSLV-C49, which injected EOS-01 (earth observation satellite) was also provided to ISRO by the Company. The Company was integral to GSLV Mark III engine for the Chandrayaan II mission. It has been serving Civil Nuclear Power sector customers for over 35 years; it sustained relationships with Nuclear Power Corporation of India Limited for over 16 years. The Company is developing associated technology for roller screws that substitutes imports across the Defence and Space segments for the first time in India. The Company is manufacturing or fabricating grid fin components, liquid propulsion engines and other assemblies for Gaganyaan, India's first human flight mission. The Company is committed to reduce the global carbon footprint through the manufacture of SOFC units, hydrogen boxes and electrolyzer for fuel cells of Bloom Energy. SOFC units use methane as an input to generate power; the process generates 66% less carbon than thermal power plants. In collaboration with Bloom Energy, the Company has developed prototypes for hydrogen boxes that draw on hydrogen as an input to generate power and the manufacture of electrolyzer that generate green hydrogen from steam. It also fabricates specialized components for hydel power sector.

Company’s New product development includes First articles of valves for naval programs shall be delivered in FY 25 and Significant volumes are expected post the completion of first articles. Company also Received Rs. 2.7 Crs worth orders for 2 proto units that was completed by end April, Additional orders for another 3 proto units shall be released subsequently; dispatches to be done by end June and Volume production to commence in a progressive way post the delivery of proto units. Company has also entered into long-term agreement with IAI and Received Rs. 28.5 Crs. of orders so far in FY 25. It has Commenced production of first articles for IAI and batch production shall start from FY 26. Company has also manufactured first articles for Weatherford in Oil & Gas sector to be delivered by end FY 25 and Volume production shall commence in H2 FY 26.

MTAR has received Rs. 15.4 Crs order for manufacturing and supply of full-scale and subscale combustors for the development of cutting-edge air-breathing engine technology for defence programs. The company shall execute the order by September 2025 as per the contract terms. This shall strengthen the capabilities further in the supply of systems for future generation engines related to various Defence programs.

MTAR Technologies Limited has also secured orders worth Rs. 200 Crs in Clean Energy – Fuel Cells, Civil Nuclear Power, MNC Aerospace and Space verticals. Out of the above orders Rs. 157.4 Crs of orders are from Bloom Energy in Clean Energy – Fuel cells division, Rs. 2.7 Crs of orders are for first articles from Fluence in Clean Energy – Energy Storage systems, Rs. 22.0 Crs of orders are from Clean Energy - Civil Nuclear Power and Rs. 17.9 Crs orders are from Space including orders from ISRO and MNC Aerospace customers. Majority of the orders will get executed by end of FY 26.

Fundamentals:

Financial Results:

The financial performance Y-o-Y Q3 FY '25 versus Q3 FY '24. Revenue from operations stood at Rs. 174.5 crores in Q3 FY '25 as against Rs. 118.4 crores in Q3 FY '24, reflecting a 47.4% year-on-year growth. EBITDA was Rs. 33.3 crores in Q3 FY '25 compared to Rs. 23.9 crores in Q3 FY '24, registering a 39.4% increase.

Profit before tax stood at Rs. 21.4 crores in Q3 FY '25, up from Rs. 12.9 crores in Q3 FY '24, representing 66.3% growth. Profit after tax increased 52.8% year-on-year, reaching Rs. 16 crores in Q3 FY '25 compared to Rs. 10.4 crores in Q3 FY '24.

The company has been strengthening its financial position with a reduction of Rs. 10 crores long-term debt, bring it down to Rs. 142.4 crores to Rs. 132.5 crores. The total repayment obligation for FY '26 stands at Rs. 46 crores.

Cash flow from operations was robust at Rs. 102 crores in Q3 FY '25, significantly outpacing FY '24's total annual cash flow from operations of Rs. 57.4 crores. The improvement was driven by efficient working capital management with Rs. 58 crores generated through reduction of receivables and increasing payable days.

Conclusion:

MTAR Technologies stands out as a strategic player in India’s precision engineering landscape, serving high-growth sectors such as space, defense, clean energy, and nuclear power. The company's robust order book, longstanding client relationships—including ISRO, DRDO, and Bloom Energy—and its ability to deliver complex, high-value components place it in a strong position to benefit from the country’s expanding focus on self-reliance and technological advancement.

From an industry perspective, the Indian precision manufacturing sector is poised for accelerated growth, driven by rising domestic defense procurement, expanding space missions, and global supply chain realignment. Government initiatives like “Make in India” and PLI schemes are creating a supportive ecosystem for companies like MTAR to scale operations and tap into global demand.

While short-term margins may face pressure due to raw material costs and ongoing capacity expansion, MTAR’s long-term fundamentals remain sound. For investors seeking exposure to India's strategic manufacturing and defense indigenization themes, MTAR Technologies presents a compelling opportunity with long-term growth potential.

HET ZAVERI
info@smartinvestment.in

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