Defence stock jumps 9% after receiving ₹226 Cr orders to supply clean energy & aerospace products

One of the small-cap defence stocks engaged in manufacturing and developing components and equipment for the defense, aerospace, nuclear, and clean energy sectors. The stock jumps 8.90 percent after securing orders worth Rs. 226 crores across the Clean Energy and Aerospace segments. 

Stock Price Movement: 

With a market capitalization of Rs. 5,453.68 crore, the shares of MTAR Technologies Limited jumped to Rs. 1773 per equity share, rising to nearly around 8.90 percent from its previous day’s close price of Rs. 1627.75. 

What Happened: 

MTAR Technologies Limited has secured orders worth Rs. 226 crore across the Clean Energy and Aerospace segments. The company has received an order worth USD 22.57 million (approx. Rs. 190.90 crores) from Bloom Energy Corporation, which will be executed by October 2025, and IAI Limited granted a USD 1.81 million (approx. Rs. 15.31 crores) order to be completed by December 2025. 

Additionally, the order from Rafael Advanced Defence valued at USD 0.95 million (approx. Rs. 7.99 crores) to be completed by April 2026, and IMI Systems granting an order valued at USD 1.39 million (approx. Rs. 11.74 crores) to be completed by April 2025. 

Revenue Guidance: 

MTAR Technologies Limited projects full-year revenue of Rs. 725 crores with a 21% EBITDA margin. For FY 2026, revenue is expected to grow 20% to Rs. 860 crores, driven by aerospace and clean energy growth, alongside improved margins and cash flow. 

Orderbook: 

In the first half of FY 2025, MTAR Technologies Limited executed orders worth Rs. 192 crores in the clean energy sector, which now stands at Rs. 493 crore, with a 20% revenue growth anticipated in FY 2026. In aerospace, the company delivered Rs. 17 crore and expects to execute Rs. 45 crore in the second half. 

The space sector contributed Rs. 16 crores in H1 FY 2025, with a projected revenue of Rs. 25 crores for H2. The order book stands at Rs. 158 crore. In defense, revenue was Rs. 8.6 crore in H1 FY 2025, with an annual estimate of Rs. 20 crore and developmental orders secured worth Rs. 15 crore.

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New Developments: 

MTAR Technologies Limited is launching innovative products, including sheet metal and ASP assemblies. The company has secured long-term agreements with multinational aerospace and defense customers and is advancing civil nuclear energy projects, anticipating significant growth in FY 2026. 

Recent quarter results and ratios: 

MTAR Technologies Limited’s revenue has increased from Rs. 167 crore in Q2 FY24 to Rs. 190 crore in Q2 FY25, which has grown by 13.77 percent. The net profit of MTAR Technologies Limited is down by 9.52 percent, from Rs. 21 crore in Q2 FY24 to Rs. 19 crore in Q2 FY25. 

MTAR Technologies Limited’s revenue and net profit have grown at a CAGR of 28.31 percent and 15.93 percent, respectively, over the last four years. 

In terms of return ratios, the company’s ROCE and ROE should be 11.4 percent and 8.37 percent, respectively. The debt-to-equity ratio of the company is to be 0.26x, which shows the company is almost debt-free. MTAR Technologies Limited’s EPS is to be Rs. 12.7. 

Company Overview: 

MTAR Technologies Limited was founded in 1970 and develops and manufactures high-precision components and equipment for the defence, aerospace, nuclear, and clean energy sectors. 

The company is headquartered in Hyderabad and operates seven manufacturing units and an export facility. MTAR produces specialized products like ball screws, roller screws, and actuation systems for diverse applications. 

Written By – Nikhil Naik 

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