MTAR Tech shares surge as $86m order hike backs 80% revenue target
Indian precision engineering firm MTAR Tech hit its daily trading limit after a tripling of EBITDA and a massive upgrade to an existing order validated its aggressive growth targets.
MTAR Tech shares surged 5% to hit their daily trading limit after the Indian precision engineering firm reported a 130.4% year-on-year jump in first-quarter revenue to Rs 360.7 crore. The dramatic top-line expansion drove profit before tax up 355% to Rs 67.4 crore, while EBITDA nearly tripled to Rs 85.1 crore.
The robust earnings were accompanied by a significant expansion of the company's order book, which served as the primary catalyst for the stock's rally. MTAR secured an amended purchase order from an undisclosed existing customer, increasing the total contract value by $85.86 million to $324.62 million. The execution timeline for this incremental work, worth roughly Rs 820 crore, has yet to be determined.
In parallel, the company reinforced its positioning within India's civil nuclear power sector by securing its largest-ever order in that specific division. The Rs 504 crore contract covers the supply of critical fuel handling assemblies for the Kaiga 5 and 6 nuclear reactor projects. This win provides substantial medium-term revenue visibility in a strategically important infrastructure segment.
Management used the quarterly release to reaffirm its ambitious guidance for the current financial year. MTAR is targeting 80% overall revenue growth paired with an EBITDA margin of 24%, plus or minus 100 basis points. Achieving this margin target would mark a stabilization following the massive operational leverage realized in the first quarter.
Managing Director Parvat Srinivas Reddy noted that the company has reached an inflection point, stating that each of its key business verticals is now well positioned to enter the next phase of growth. The firm indicated its strategy extends beyond simply hitting near-term financial targets, focusing instead on increasing wallet share with existing clients and broadening its global customer base.
For market participants, the combination of explosive quarterly profitability and a rapidly expanding backlog suggests MTAR is successfully scaling its high-margin engineering operations. The dual drivers of domestic nuclear infrastructure and large-scale confidential international contracts provide a diversified foundation to support the company's aggressive annual targets.
