Precision engineering firm MTAR Technologies is expecting an Ebitda margin of 21% in FY26, according to its Managing Director (MD) Parvat Srinivas Reddy. This will be achieved with the help of a strong order book.
“By the end of the year, we will look at about 21% Ebitda margins with plus or minus 100 basis points. We are right on track with that. The approx order book by end of the year should be close to about Rs 1,500 to 2,000 crore,” he said during a conversation with NDTV Profit on Wednesday.
The company is targeting 25% year-on-year (YoY) revenue growth in FY26 and 30% YoY thereafter. “25% growth for this year. But moving forward, we'll move to about 30% year-on-year basis,” the MD added.
Of the current Rs 930-crore order book, MTAR Technologies plans to execute approximately Rs 800 crore in FY26. The company expects orders worth over Rs 1,000 crore from its nuclear business in the next three to six months.
When questioned about capital expenditure, Reddy explained that MTAR Technologies' strategy involves building capacity as it expands into new verticals. Having established facilities for its aerospace and defence clients last year, the company is now focusing on building capacity for its new oil and gas segment.
He assured that existing segments have sufficient capacity to meet current demands. “So, it depends on what kind of projects we undertake and how we take them forward. But we have enough capacity on the existing segments that we have. Any new area that we're entering, we keep adding those facilities to take them forward,” Reddy said.
He underlined the importance of research and innovation to the company's business.
“MTAR has been an innovation-driven company in terms of the kind of products we develop and the way we work with our MNC customers and also with the Government of India, defence and space sectors, etc. We have been there for the last 40-50 years,” the top executive said.
Shares of MTAR Technologies ended 2.48% lower at Rs 1,550.9 apiece on the NSE, while the benchmark Nifty 50 dropped 0.31% to close at 24,574.2.
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