MTAR Technologies Targets 30% Revenue Growth Over Next Three Years
The precision engineering firm is also expanding its presence in the fuel cell industry, with expectations of a substantial year-on-year growth.
MTAR Technologies Ltd. aims to clock a 30% year-on-year revenue growth over the next three years, with the Ebitda margin expected to range between 24% and 28%, according to Managing Director Parvat Srinivas Reddy.
The precision engineering firm has seen a strong performance trend in the fourth quarter of the current financial year and expects to sustain this momentum into the next fiscal, Reddy said in an interview with NDTV Profit on Monday.
"We will have revenue growth of 30% year-on-year for the next three years with improved Ebitda margin at 24%, 26%, and 28%, respectively," he said, emphasising that all verticals of the company were poised for steady growth during this period.
In the nuclear segment, MTAR Technologies anticipates executing orders worth Rs 800 crore to Rs 1,000 crore over the next three to three-and-a-half years.
Reddy highlighted that the execution rate for nuclear projects would accelerate significantly from the next fiscal to fiscal 2027. "For FY26, we are looking at doing around Rs 100-crore plus, but if you look at FY27, it jumps over Rs 250 crore. That's how exponentially it's going to grow," he added.
The company is also expanding its presence in the fuel cell industry, with expectations of a substantial year-on-year growth. MTAR Technologies' growth trajectory can become more predictable, with a shift toward linear quarterly expansion.
"I think we have come to a stage where we'll likely move into a linear kind of growth on a quarter-on-quarter basis. For engineering firms, the second half is usually stronger than the first, but moving forward, that pattern may change and become more evenly distributed across quarters," Reddy added.
The company has a strong track record of contributing to India's civil nuclear power programme, space sector and defence industry. Its key clients include Indian Space Research Organisation, Nuclear Power Corp., Defence Research and Development Organisation and Bloom Energy. MTAR Technologies manufactured critical components used in ISRO's 100th satellite launch in January.
Commenting on the company's financial health, Reddy reassured investors about strong receivables and robust operating cash flows, which stood at more than Rs 100 crore in the last quarter. He also confirmed that MTAR was not planning any equity fundraising in the next year.
