MTAR Technologies Ltd (NSE: MTARTECH) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
P. Srinivas Reddy — Managing Director
Gunneswara Rao Pusarla — Chief Financial Officer
Analysts:
Unidentified Participant
Parth Patel — Analyst
Piyush Sevaldasani — Analyst
Renu Baid — Analyst
Meet Jain — Analyst
Bala Murali Krishna — Analyst
Akshay Jogani — Analyst
Balasubramaniam — Analyst
Aman Vij — Analyst
Dhavan Shah — Analyst
Naman Parmar — Analyst
Dev Thacker — Analyst
Vignesh Iyer — Analyst
Nilesh Jain — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to MTAR Technologies Limited Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Path Patel from MUFG in time. Thank you. And over to you, sir.
Parth Patel — Analyst
Thank you, Rudra. Good morning everyone. On behalf of MTA Technologies, I extend a very warm welcome to all participants on Q3 and 9 months FY26 earnings discussion call. Today on our call we have Mr. Srinivas Reddy, Managing Director and Promoter Mr. Ganeshwar Rao, Chief Financial Officer Ms. Sri Lakha Jasfi, Head Strategy and IR. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on the exchanges on the company’s website. I would like to give a short disclaimer before we begin the call. This call may contain some of the forward looking statements which are completely based upon our belief, opinion and expectations.
As of today. The statements are not a guarantee for our future performance and involves unforeseen risks and uncertainties. With this I would like to hand over the call to Mr. Shaniva. Sir. Over to you sir.
P. Srinivas Reddy — Managing Director
Thank you, Pat. Hello and good morning everyone. Thank you for taking the time to join us today. Today on the call I am joined by Mr. Guneswarop Misrala, Chief Financial Officer, Mr. Sri Laka Jasli, Head Strategy and Investor Relations and Orient Capital Investor Relation Partners. We have uploaded our updated investor deck press release and results highlights on the stock exchanges and company website. I hope everybody had an opportunity to go through the same. I’m pleased to inform you that as highlighted in our previous earnings call, we anticipated a stronger second half of the year and we have delivered accordingly with phenomenal growth.
In Q3 the company recorded revenues of rupees 278 crores representing a robust year over year growth of 59% with EBITDA of rupees 64 crores. This marks the highest quarterly revenue achieved by the company to date and we are confident of sustaining this momentum and achieving further milestones in the coming periods. One of the most encouraging structural developments in the strong growth witnessed across all our business verticals supported by favorable industry tailwinds. Since inception, the company has strategically focused on technology intensive products in high growth sectors and has built a strong exports wing creating a robust foundation for long term sustainable growth.
I’m pleased to inform that our current performance is a direct outcome of this long standing strategic vision. During the current fiscal year to date the company has received its highest ever order inflows in the Clean Energy fuel cells and civil nuclear program segments underscoring the strength of our growth trajectory. The closing order book as of Q3 and stood at rupees 2,394 crores where 1370 crores of orders across all sectors are received in Q3 reflecting robust industrial tailwinds. In the clean energy fuel cells vertical alone, the company received orders worth Rupees 1080 crores during the first nine months of the fiscal year of which approximately Rupees 645 crores were secured in Q3.
This reflects the strong market share of our products and our role as a strategic partner in our customers growth journey. Both the clean energy fuel cells and aerospace verticals are expected to witness exponential growth in the coming years driven by favorable demand trends and expanding market opportunities. Furthermore, we have also received the much anticipated orders of 500 crores plus for the Kaiga units 5 and 6 nuclear reactors reinforcing our strong positioning and long term goal within the Indian nuclear energy ecosystem. We expect the closing order book to be at rupees 2,800 crores by end of FY26 that will enable for sustaining our growth momentum over the coming quarters.
Clean Energy Fuel cells is one of the most exciting sectors and is poised for significant growth driven by the global transition towards clean and sustainable energy sources. In addition to this energy transition, the rapidly growing demand for power for AI driven data centers is activating the need for reliability 24,7 power generation solutions thereby driving strong adoption of solid oxide fuel cells. In this context we are further encouraged by the recent development wherein our customer has entered into a $2.65 billion agreement with AEP for supply of solid oxide fuel cells. Driven by strong demand from AI power data centers, custom conventional data centers and the global clean energy transition, our customer is projected to grow at an average rate of approximately 30% through 2030.
As part of this expansion, the customer expected to add another 2 gigawatt of capacity by the end of CY26 and further scale this to approximately 4 gigawatts in the subsequent years. Aligned with this growing demand and forecast from a customer, we are augmenting our in house manufacturing capacity in a phased and sequential manner. We are currently in the process of increasing capacity to 12,000 boxes by end of the current fiscal year and plan to further scale this to 20,000 units by end of FY27 and further, we are planning to actually create facilities to augment a capacity up to 30,000 units in the subsequent year.
Given our strong engineering capabilities, cost competitiveness and execution track record, we expect to retain a majority market share in these units withstanding previous global uncertainties. Accordingly, the Company has recorded revenues of rupees 387 crores in the clean energy fuel cell segment alone during the first nine months of the fiscal year and expect to deliver revenues of 250 crores by end of the current fiscal year in Q4. We are also anticipating significant growth in the civil nuclear sector starting from next fiscal year supported by robust order Pipeline from Cairo 5 and 6. In addition, we expect to receive further orders from the refurbishment reactors during the quarter and beginning of the next quarter.
Furthermore, the government is likely to announce a dedicated production linked incentive scheme valued at rupees 18 to 20,000 crores for the manufacturing of critical nuclear components in the upcoming Union budget. Such initiatives aimed at strengthening India’s domestic nuclear supply chain are expected to provide further impetus to the growth of a nuclear ecosystem. We believe the Company is well positioned to capitalize on emerging opportunities in the nuclear sector which is marked by high barriers to np. Another sector witnessing strong growth momentum is aerospace and defense. In light of recent European defense security initiatives and pushed by Indian government on exports, we believe that Indian aerospace sector is at a structural inflection point.
With our expanding capabilities, proven execution track record, growing customer base and participation in next generation programs, the Company is well positioned to capture this emerging growth opportunity. In the aerospace and defense segment we achieved revenues of approximately 70 crores for the nine months ended FY26 from various customers. Going forward, we intend to focus on next generation technologies and structural assembly orders. We are actively engaged in strategic next generation programs including AMCA where we have commenced participation in structural assembly tenders. Recently, the company was declared L1 for the main landing gate test setup assembly, marking a key developmental milestone.
We’ll continue to participate in subsequent structural assembly tenders as the program progresses with multinational customers. We plan to progressively graduate to structural assembly orders over the coming years as we enter into volume production for the existing parts. In line with this strategy, the Company is actively working on multiple new enquiries in the products and other vertical segments. The Company has generated revenues of approximately 84 crores and we expect to close the year with revenues of around 130 crores. Overall, the company remains confident of sustaining the growth momentum and expect to grow rapidly over the next three years driven by healthy order book, favorable industrial trends and continued execution excellence.
The company also anticipates a meaningful improvement in margins over the coming quarters supported by operating leverage and favorable shift in product mix towards higher volume production. Return on capital employed is expected to improve even further supported by high asset turnover ratio in the clean energy segment. While there may be a short term impact on working capital base, we expect this to improve substantially over the coming quarters as we continue to optimize inventory levels, secure customer advances in a big way and strengthen receivables management. We’re also expecting significant advances from customers which will enable us to reduce our working capital cycle.
Now our CFO Mr. Ganesh Pradao will discuss in detail on the financial performance of Q3FY26. Please go ahead Dinesh Yeah yeah.
Gunneswara Rao Pusarla — Chief Financial Officer
Good morning all. Thank you for joining us. Over the earning call. We registered a robust growth in this quarter as explained by our MD compared to previous years. So I would like to update on the financial performance for this quarter on YoY performance Q3 YoY for this year versus last year Q3 our revenue from operation at 278 crores in Q3FY26 has increased 174.5 crore in Q3FY25 which translates to 59.3% increase on the YoY basis. EBITDA reported at 64 crores in Q3FY26 as compared to 33.3 crore in Q3FY25. This translates 92.5% increase in on YoV basis.
Profit before tax stands at 46.1 crore in Q3FY26 has increased to rupees 21.4 crore in Q3FY25 115.2% increase on vivo wave basis. Profit after tax was at 34.7 crore in Q3FY26 as against 16 crore in Q3FY25 which is 117.3% on y basis. The company is well positioned to capitalize growth opportunities across the clean energy, civil, nuclear and aerospace sectors as informed by our MD and is actually augmenting the infrastructure support. The future expansion amid the strong growth momentum is visible in these sectors, the company continues to place a strong emphasis on cash flow and discipline and working capital management.
As explained earlier, the working Capital days are 260 days during this quarter primarily due to the higher receivables associated with increased turnover the company is targeting working capital levels is approximately around 200 to 210 days in the next finance next fiscal year supported by ongoing initiatives to optimize our receivables like we are discussing on various advanced opportunities from customers and also we actually work on inventory management to see what else we can reduce inventory center. While there has been a short term impact on cash flows due to elevated receivables, we are confident that we are going to manage our working capital and cash flow from operations by discussing with customers on various advanced advanced initiatives.
In addition, we are confident that we will improve and sustain margins over the coming quarters. And our order book stood at 23 is 2394.90 crores by end of December and we are going to our forecast for the end of this financial year is 2,800 crores and other things are we are working on various growth engines in the company which will enable the company to achieve sustain sustained growth over coming years. While the company has delivered a strong performance this quarter, we remain focused on sustaining this moment achieve further milestone in the coming quarters and coming years.
And we thank you our shareholders for these continued trust and confidence. With this I open the floor for the discussion. Thank you everyone.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who resists to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Piyush Sevaldasani from Sundaram alternates please go ahead.
Piyush Sevaldasani
Yeah, good morning sir. Thank you for the opportunity and congrats for a strong set of results. So my first question is on the uptake visibility for the capacity expansion which we are doing for Bloom, taking hot boxes from 8,000 to 20,000. Now we are talking about taking it to 30,000. So we understand that you know, Bloom is seeing increased acceptance of its products. But can you give some more confidence on the uptake because India is having a higher tariff rate compared to our competitors and how should we think of market share evolving over time.
P. Srinivas Reddy
Thank you for your questions. First I would like to emphasize on the visibility on the expansion for the clean energy segment. So basically we have a capacity as you mentioned, 8,000 units but we are expanding to 12,000 by end of March. Everything is on track with that and then based on a clear visibility given by the customer. We are expanding in a phased manner to 20,000 units, hopefully by end of December. And then with that we’ll have a capacity of about 20,000 units. And then we move on to the phase two of the expansion plan to about 30,000 units.
In the subsequent year, the infrastructure will be built for 30,000 units, but the equipment will be planned in such a way that it’s done in two different phases, or I would say three different phases. Phase one is 12,000, which will be ready by March end, and phase two is about overall 20,000 by December end, and phase three to 30,000 by the subsequent year. This is being done purely based on the kind of demand forecast, what we have received from the customer. And that’s how we are doing it. And as far as tariffs are concerned, as I mentioned even in my earlier call that we are not anyway concerned with being a technology company and the way we have progressed in terms of our competitiveness and various developmental programs we have done for the customer, the demand continues to be the same and hopefully in the future we hope that the tariffs would come down, but that’s not going to affect the company’s growth momentum as we see right now, which we are clearly seeing in the current quarter as well.
Piyush Sevaldasani
So my next question is. Yeah, I think that’s very clear. So my next question is on the gross margins. We have seen a decline in gross margins this quarter. Could you explain why I think we were going through pricing negotiations with Bloom last quarter. Can you help us understand what would be the sustainable gross margins?
P. Srinivas Reddy
You want to answer that?
Gunneswara Rao Pusarla
Yeah. While this current period is current quarter is 46.1% gross profit, whereas nine months ended, if you look at it is 49.5%. It is purely on the product mix. Just because gross margin has lower, it doesn’t mean that our EBITDA will affect. As we explained, many times the gross margins in the fuel cells is lower. In case of domestic, it is higher. But however, the efforts required to make the domestic sales is more compared to the fuel cells because it is continuous production and we were doing over the year. So our EBITDA margins will not impact because of the gross margins.
Piyush Sevaldasani
Guidance which we have earlier mentioned, that continues to stay same, right?
Gunneswara Rao Pusarla
Yeah, we will. We have said around 21% plus or minus 1%. And as you know, by end of this nine months, our EBITDA percentage 19.2%. With the strong for forecast in the Q4, we are confident to achieve those numbers, whatever is guided.
Piyush Sevaldasani
Sure. And then, sir, on the nuclear order. Which we have received for 500 crores. Can you please help us understand what could be the execution cycle for this?
P. Srinivas Reddy
The final crores orders should be executed within a period of over a period of three years. That’s how it is done. That’s the timeline that we are looking at. There are various projects out of this 500 crores. Some will be executed within a year, some one and a half years, some in two years and some projects within three years. So it’s a combination of all this. So all these finders should be excluded within the next 36 months.
Piyush Sevaldasani
Thank you. And that’s it from my side all the way.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference kindly limit the questions to two per participant. Our next question is from the line of Renu bed from IIFL Capital. Please go ahead.
Renu Baid
Yeah, hi, good morning and congratulations sir for the good results. The first question is it’s time to understand the clean energy portfolio more closely. Can you help share what has been the utilization levels for nine month period of the current capacity of 8,000 units and the CAPEX target that we plan over the next two years as we take this capacity to 20,000 and 30,000 in the next 18 months. What is the quantum value we are targeting to spend and whether it would be entirely brownfield expansion at the current units or we may need a combination of new greenfield facility as we move towards 30k units.
By early part of CY27 and I probably it was not very clear in terms of audio. Can you repeat what was the revenue which you’ve guided for Clean energy for fiscal 27 for the current year?
P. Srinivas Reddy
Okay, see the 8,000 capacity utilization I think we are doing it in the current quarter because it’s not only about the equipment but also ramping up a lot of activities involved in the manufacturing process. So we are fully geared up for that and the subsequent quarter I.e. q1 of next year that we’ll be moving up to utilizing the 12,000 capacity which will get commissioned by end of March. And beyond that we are moving the entire facility to the SCZ near the airport for the entire BLOOM operations to expand to up to 20,000 and then subsequently to 30,000 units.
So that will be a completely a new plant which we are trying to establish near the airport. Everything under one roof so that it becomes more operationally more efficient. That’s the basic plan what we’re looking at. What was your second question?
Renu Baid
When we look what is the value spend capex that you’re looking for this expansion Initially we had guided that would be something like 2530 crores for the first phase. So how are we looking at the overall CapEx for clean energy expansion?
P. Srinivas Reddy
So basically that’s right for 12,000 it’s about 35 to 40 whatever numbers we are doing earlier. But for the going from 12,000 to 20,000 the infrastructure is being done for 30,000. The building everything has been constructed for the long term requirement of the company but the equipment installation will be done for additional 8,000 units and subsequently we’ll do for the next phase up to 30,000. So we are looking at roughly about 50 to 60 crores of capex that might be required. This is an approximate number we’re still working on. It should be finalized in the next couple of weeks.
So that’s approximate number what we’re looking at.
Renu Baid
Sure. Second in terms of the. You did mention that for landing gear assembly were recently L1. So what kind of revenue opportunity we expect in the aerospace business from the customer here?
P. Srinivas Reddy
Oh that’s landing gear assembly. That’s referred to the AMCA program which is. We are just working on the prototypes, just the beginning of the whole program. Right. So the prototype is worth around 4 crores but the requirement would be very huge in the coming years. So the various segmental orders that we are being released so that this is a starting point and we’ll see how it goes over the coming years. But the aerospace segment as I said earlier we are doing extremely well. We are doing a lot of MNC customers right now. We are growing pretty rapidly.
We are still doing some first articles. We have entered into volume production with the customers simultaneously working on number of packages. So that’s the kind of. That segment is growing pretty well as a growth engine for MTAR and it will move further up in the coming years.
Renu Baid
Got it. So lastly, would you want to share what is the revised guidance for fiscal 27 and sorry for fiscal 26 and any initial guidance that you would like to indicate for the next fiscal year 27?
P. Srinivas Reddy
No, the guidance would remain the same. We would as I said earlier that we would do 30 to 35% growth guidance for this year. So we’ll cross about 900 crores plus for the financial year FY26 and FY27 we’re expecting growth of about 50% revenue growth for FY27 based on the current growth what we have about 900 crores plus in the current financial year. And obviously the margins what we said 21% plus minus 100bps. We’re very confident to maintain or do slightly better than that. And the margins would further improve in the next financial year based on the kind of improved margins we have shown in this morning.
Renu Baid
Got it. Thanks much and best wishes team. Thank you.
P. Srinivas Reddy
Thank you.
operator
Thank you. Our next question is from the line of me, Jain from Motilal Oswal. Please go ahead.
Meet Jain
So my first question is regarding aerospace business. As you indicated that we are doing multiple first articles. Just wanted to understand in terms of order book. So the last three quarters we have seen a stable order book like a very muted order book from aerospace and defense. So just want to get some clarity. This for a long term contract or how can we look into this?
P. Srinivas Reddy
See we have the long term contracts but the orders, what we show in the order book is based on specific orders being given based on the long term contract. The long term contract is for five years, ten years. Like that. But the orders, what we reflect in the order book is based on the orders that they keep releasing to us on quarter, on quarter basis. So we have the overall order book of around 325 crores in the aerospace and defense sector. Specific to aerospace we have 120 crores of MNC orders. And in space we have 120 crores a Nord and defense about 80 crores.
So the total 325 crores. But this particular vertical is going to grow more and more in aerospace sector as and when we convert the first articles into volume production, which we have already done in the case of few customers and it’s an ongoing process, they’re adding more of the packages based on our performance and achievements that we have done over the last one year.
Meet Jain
Understood. So this quarter we grew almost 70% in the aerospace division. So can you just break it up in terms of how much was the new orders that the completion of first order because of the batch production and how much was the old orders? Just a ballpark number.
P. Srinivas Reddy
You want the breakup of what like.
Meet Jain
We did almost 31 crores of revenue in this quarter for aerospace. Just want to understand as you mentioned that the first articles has been completed and we started batch production for few of the customers in order to get a sense of the quantum of that.
P. Srinivas Reddy
Yeah, it’s about 18 crores. And odd is what we have done for the aerospace export orders for this quarter. Okay, a few 1cr here and we’re giving an approximate.
Meet Jain
Got it, sir. Apart from that, my second question is regarding the products and other segments. In terms of order book expansion, we saw almost 137 stores of order we added in this quarter. So as we know that this segment we also cater to fuel cells, cater to nuclear power. So 137 crore orders is also linked to the a strong order inflow in the bloom part.
P. Srinivas Reddy
Yes. On the ASP division. Yes. We also have a lot of orders coming in from that division. Apart from the other products that we do for ball screws, what lubricate bearings and we’re also we also got qualified for export of ball screws with our MNC customer recently. So that’s something which is very positive for the company. So we started doing exports offer other products as well in terms of ball screws right now.
Meet Jain
Understood. Okay sir, thank you so much.
operator
Thank you. Our next question is from the line of Bala Murli Krishna from Oman Investment Advisors. Please go ahead.
Bala Murali Krishna
Good morning sir. First of all congratulation on your good setup number.
P. Srinivas Reddy
Thank you.
Bala Murali Krishna
And you also delivered a great quarter. So the first question is regarding Sir Bess opportunity. There’s a lot of things going on in the country when it comes to battery energy forest system. So the fluent energy one of our customer fluids energy is also related to energy source system. So do we have any opportunity in this BES Boom sir, in terms of domestic.
P. Srinivas Reddy
No, I actually mentioned about this last time as well. So it’s taking its own time to get this going. In terms of what we need to do in the battery storage systems for domestic there is a market but still it is not it’s going to take a lot more time than what we can anticipate right now. So let’s see how it goes. That’s something which we need to see as and when there’s a major development then we’ll let you know about it.
Bala Murali Krishna
Okay? Sure sir. So in terms of PLS scheme for nuclear so maybe it would be like we need to deploy much capital on yearly basis. But do you think that is it executing these orders is a capital intense to or we can do with very.
P. Srinivas Reddy
Less capital of existing infrastructure. Also we already have the infrastructure for the nuclear programs that we are doing. So the PLI whatever the details of the scheme are not yet known. But once the union budget is done then we know more details which will be definitely beneficial to the company to do more and more. But we have the infrastructure to handle that already.
Bala Murali Krishna
Lastly on this Adani program, any update on SASA and also on the defense license also any products are in the pipeline to get into that different places.
P. Srinivas Reddy
Oh, that’s being still accessed by ADA right now the defense program they’re accessing it. So the probably they’re saying it will take another two, three months for them to shortlist the company. So let’s see what happens.
Bala Murali Krishna
Okay, thank you.
operator
Thank you. Our next question is from the line of Akshay J from Exponent Tribe. Please go ahead.
Akshay Jogani
Thank you for the opportunity and congratulations on a very good set of numbers. So I have a couple of questions. One is on specifically on aerospace. You said that your MNC aerospace revenue this quarter was about 18 crores. Could you give us some color on sort of how do we see this ramping up in in terms of you know, batch processes? Because you know we’ve been hearing a lot of FAI is going on and I mean you know the business has been supposed to scale up and it has been scaling up. Is this 18 crores now a quarterly recurring that we should at least think of as a base case.
That’s one second sir, could you give some thoughts or update on flows. The first article inspections have been done and we are expecting it to commercialize in some time. So if you could give some color on what is it that we are getting to because fluence in the when it’s kind of scaling really, really well. So I would imagine that you would be keen to get into the value chain sooner than later.
P. Srinivas Reddy
So when it comes to the first question, the aerospace what are you looking at? 18192 is just the beginning. Right. We are being growing step by step in aerospace. So part of the first articles what we are working on once it gets converted to volume production, we’re looking at almost twice the number as what you can see right now close into 40 or even up to 50 crores per quarter. So overall next year we can look at that kind of a situation where we can do about 150 to 160 crores in aerospace itself. And as far as fluence is concerned, we’re still working on it.
So we’re working. We have done the first article now there little bit a lot of design changes. They have not yet given us any specific feedback on that. As of now that’s been working on it. But as and when something goes some improvements are done on that then we’ll see how it goes. But as of today it is still a work in progress for us.
Akshay Jogani
Sure. So if I follow up just on the aerospace build commercial aerospace, all of our clientele is currently defense led aerospace globally. I mean the GKN is definitely commercial. But what is our kind of are we working with Airbus, Boeing, other commercial aerospace companies that make you know larger planes for products because I mean that would really bring scalability to the, to the business, right? I mean, could you give some thoughts on where are we on that part of the business?
P. Srinivas Reddy
So that’s the plan, right? So the plan is to work with companies like GKN and ia, which are very good companies who also supply to Airbus and Boeing, not that they don’t supply. So to get Boeing and Airbus and such companies for Indian parts, we are also looking at establishing that as well moving forward over the next one one and a half years. So that’s how we look at the aerospace vertical in a very aggressive manner in terms of building it more and more. And by end of the third year we’re looking at, you know, revenues of at least 350 to 400 crores coming in with various of such customers.
So that’s our vision and the roadmap what we have over the next three years.
Akshay Jogani
Okay, next three years from now, Right? Okay. Okay. And that is MNC Aerospace, right?
P. Srinivas Reddy
Exactly. Because there’s a lot of certifications and processes that are involved. We are almost there in terms of various certifications. So it’s a matter of time that we can get into those kind of activities moving forward.
Akshay Jogani
Absolutely sir, looking forward and you know, wishing you the best.
P. Srinivas Reddy
Thank you.
operator
Thank you. Our next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
P. Srinivas Reddy
Mohit, we can’t hear you at all.
operator
I don’t think so. The Mohit is on the call with us. So our next question is from the line of Bala Subramaniam from Arihant Capital. Please go ahead.
Balasubramaniam
Good morning sir. Thank you so much for the opportunities, sir. ASP assemps are nearly 125,000 per quarter with 16 ASPs per hardbox. I just want to understand like how it is implies whether, how, how, how we are going to take as a bottleneck for this capacity expansion. Right now we have 8,000 units and we are planning to reach up to 30,000 units maybe in one or two years time frame. I just want to understand how, how the capex are moving like concerning about ASP assemblies.
P. Srinivas Reddy
So yeah, that’s a good question. So we are already, we have already planned for the increased quantity of ASPs each quarter in terms of the capacity and as and when we increase the capacity of the hot boxes the ASP capacities also will go up accordingly. So that’s also being planned simultaneously and.
Balasubramaniam
How much capex we are planned for to increase to 30, 30,000 units.
P. Srinivas Reddy
I’ve said earlier about this, it’s a rough number right now but it’s approximately between 50 to 60 crores. That’s what we’re looking at for 20,000 and 30,000 comes later. Right. So that’s probably an additional 40 to 40 crores and odd to increase it from 12,000. Sorry, from 20,000 to 30,000. The infrastructure is being built for 30,000.
Balasubramaniam
Okay sir, so in Q2 I think some of the dispatches has been delayed nearly four weeks. And I just want to understand right now we have 278 crore. How much revenue came from this four weeks dispatches in Q3?
P. Srinivas Reddy
That’s very marginal. Right? I mean whatever we did see, a lot of projects in nuclear are under work in progress because of the long gestation period. So once that is done, the dispatches from nuclear will happen from Q1 of next year in a big way. So that’s how it is. But majority of the orders have been executed based on the cleaners segment and on the aerospace segment as well.
Balasubramaniam
Okay, because why I’m asking this question because our inventory days came down from 282 days to 210 days in Q3. Just want to understand we have like again we restocked for the execution in Q4, sir.
P. Srinivas Reddy
Yeah, because as of the dispatches have gone up the inventory days have also come down because of the exports that we have done. And we are trying to maintain, the CFO is trying to maintain a very tight control on the inventories being positioned based on the needs on quarter, on quarter basis in the lead time by the supplier. So we are monitoring that very closely right now. So the working capital base also gets reduced as much as possible.
Balasubramaniam
Okay sir, so my last question Dom, cost is hardly less than like a single digit percentage which is impacted by tariffs. Whether we are completely observing right now or it’s for fruit to the customers.
P. Srinivas Reddy
No, we are not concerned with tariffs at all with any of our MNC questions.
Balasubramaniam
Okay, thank you.
operator
Thank you. Our next question is from the line of Chavin from Share India. Please go ahead.
Unidentified Participant
Yeah, hello. Hello.
operator
Yes sir, we can hear you.
Unidentified Participant
Yeah, yeah, yeah. So my question was on the nuclear energy side, what is the opportunity size we are expecting once this 20,000 crore if it is PLIs allowed on the nuclear energy site. And what are we supplying on the civil nuclear side to the government?
P. Srinivas Reddy
So basically we have been in the nuclear business for the last 40 years. So we are supplying all the core nuclear reactor components and assemblies through government of npci. We are doing some major projects right now for them. And the PLI would Help obviously waiting for more details on that. And also there is a lot of requirements which are coming into further reactors coming in and where the government has given clearance for the private sector to set up the nuclear reactors. So a lot of, if you look at the roadmap for the next five to 10 years, a lot more reactors are going to come into place where MTR would play a very key role in establishing such reactors by supplying the key assemblies to reactors that we’re looking at.
Unidentified Participant
Okay. Okay. So majority of the opportunity we are expecting from the SMR that are going to be constructed, is it right?
P. Srinivas Reddy
Yeah, that’s a, that’s an added opportunity. But a lot of the other reactors, the government itself is planning to establish 700 megawatt reactors over the next five to eight years. So let’s see how it goes. Right now we have enough orders on hand to handle the existing orders itself.
Unidentified Participant
Okay, okay, understood. Thank you.
operator
Thank you. Our next question is from the line of Aman from Astute Investment Management. Please go ahead.
Aman Vij
Good morning sir. My first question is on the nuclear side. You’ve talked about scaling to start from FY27 itself. So do you expect it to happen in Q1, Q2 itself or will it be back ended in Q3 Q4?
P. Srinivas Reddy
No, it will start from Q1 itself. Hopefully we’re going to start from Q1 itself and then move on from there. We already have started working on the existing orders and the new orders which have come in will slowly start kicking in from Q3 Q4. But the existing orders will start executing from Q1 Q2 onwards.
Aman Vij
And do you expect around say 150 crore to be done in FY27 itself.
P. Srinivas Reddy
In nuclear I think very comfortable. That’s a pretty conservative number for us. But we’ll do much more than that.
Aman Vij
Okay. And FY28 will be further ramped up because we’ll get additional orders saying Q4 and maybe FY27 also.
P. Srinivas Reddy
Yeah, exactly. So we have to see. It’s a very simple calculation. If you have order book of 800 crores in nuclear, let’s say the end of the year, we need to anyway exclude that within the next few years, so.
Aman Vij
Sure sir. And in terms of the next two, three years, where do you see this nuclear order book? Do you think this can grow on top of this? 800 crore or 802,000 crore is a fair ceiling. Before anything newer happens, I will not.
P. Srinivas Reddy
Talk about the how much of orders but definitely I see a huge ramp up one is on the operation side. The ramp up on the operation side. But the number of orders which are going to kick in over the next two, three years is going to be phenomenal because of the new reactors coming in and the government announcing the privatization. So a lot of things are happening. So right now we are very comfortable with this 800 crore plus. A lot more orders are going to kick in over the next 12 years in any case. So in the past we should have never had a very strong order book.
We should do a lot of reactors but with a break. But now I don’t see that break happening. So there’ll be a nice exponential kind of a graph or a growth happening year on year basis based on where we are today.
Aman Vij
Sure sir. And just completing this part. So we got most of the orders from Kaiga 5 and 6 and obviously refurbishment is different. But what I see is every year two, three nuclear reactors are supposed to start or at least depart. So is it fair to them? 300, 500 crore additional order book every year on the conservation.
P. Srinivas Reddy
That’s a very fair number what we are looking at because now they’re planning my BAS for the four reactors, 700 megawatts with NTPC and NPCL combination which is called Ashwini. So a lot of such projects are coming in. The tenders will be floated. So obviously that’s how I said, you know, this area nuclear division also is going to. It will be a very good growth engine for MTR moving forward year on year basis.
Aman Vij
Sure sir. Next set of questions is on say Weatherford and iei. So the first article inspection is taking a little longer than maybe our expectations. So do you expect Weatherford to start scaling in FY27 itself or maybe it is delayed to FY28 29?
P. Srinivas Reddy
That’s a good question. We have already completed the Weatherford first articles. It’s been approved already. The only thing is we are waiting for is for the volume production now to do the volume production. Our plant is getting ready. We are pushing it to be ready by June. But by September we should be fully put in a full fledged commercial operations. So then we get into the volume production. We’re expecting the volume orders also to come in this quarter. So that’s where we stand as far as Weatherford is concerned. It’s all about doing the volume production.
The infrastructure is getting ready for that in the SEZ near the airport. And so now those revenues, part of those revenues will kick in in FY27 and then it will go in a full fledged manner from subsequent year onwards. Aerospace, we are not the first articles are not taking time. There are a lot of parts, lot of assemblies for I already one of the customers you can. We’re already doing into volume production and they’ve added a lot more packages. So both happen simultaneously, the volume and the first articles. The complete batch of first articles should be done and dusted by June, July.
So that’s the timeline we’re looking at and once it is done then they look at volume production. So in aerospace the requirements are very stringent as we all know. Right. It’s for the air traps and all that. So we are right on track with that. As far as we are concerned. A lot of R D and development program happens in first articles which we are successfully doing it. And each month we are doing more than close to about 100 parts per month which is phenomenal. The average industry average is 300 parts per year whereas we’re doing 100 per month.
So we can’t do faster than that. So we’re averaging around 80 to 100 per month to do. Very realistic.
Aman Vij
That is a very good run rate. I think most of the leading aerospace players are doing that much only and we have scaled to this number pretty soon. So yeah, congrats on that sir. Just on Weatherford, so earlier you had talked about maybe 150, 200 crore kind of opportunity. So FY27, maybe 50, 70 and FY28, that full 150 crore ramp up. Is it a fair assumption?
P. Srinivas Reddy
That’s a fair assumption.
Aman Vij
Yes, sure. Finally, final question is on the clean energy on the other side, hydropower, wind and the other part, scaling. Could you quantify? I don’t have the number. What is it today excluding plume and where do you see the scaling of any of these customers? Where you can see scaling to say 100 crore kind of number for us?
P. Srinivas Reddy
No, it’s not just one customer working with ge, working with Andrix. Voice number of customers. Right. Recently we finalized with Andrix about 40 crores of orders in hydro to be executed every year. We have done that recently. So that’s purely based on our past kind of deliverables that we have given to all these customers. A lot of work has been done in that sector over the last two years. So Barrister is another company. So we’re working with various customers. So looking at about 100 to 120 crores of orders that we can execute next year. We are almost there.
100 plus crores purely with these customers. A lot of work has been done. So this is what I keep saying, what you don’t see in the balance sheet is the kind of work MTAR has been doing on the background with various customers, developing various first articles, proving our capabilities to the customers and all that. You will see the results over the next year and moving forward as well.
Aman Vij
Thank you sir for answering the question.
operator
Thank you. Our next question is from the line of Dhawan Shah from Alfacurate Advisors. Please go ahead.
Dhavan Shah
Yeah, thanks for the opportunity sir and congratulations on a great set of numbers. So my question is on the order inflow. I think you mentioned that this year will close with the 2,800 crores kind of the order book. And you also mentioned the revenue could be around 900 odd crore for this year. So if I reverse, reverse calculate the order inflow, it comes to roughly 700, 800 crores of order inflow that can come in the fourth quarter. So if you can, you know, share the, the breakup of the order inflows that you are expecting that can come during this quarter.
The 700, 800.
P. Srinivas Reddy
See it’s a combination of the fuel cell orders, the nuclear orders, the space and aerospace orders. All this put together should be roughly around close to 700 to 800 crores that we’re expecting in this quarter. That’s how our closing order book would be, around 2800.
Dhavan Shah
Understood, understood. So full year order inflow will be roughly 2800 odd crore this year and then next year. What kind of the order inflows are we expecting?
P. Srinivas Reddy
Much more than this. I can’t really quantify the number right now, but we’ll have a pretty good strong order book next year as well. Much higher than what we have today.
Dhavan Shah
Understood. And the incremental opportunity from the bloom would be how much next year. If you can give some, you know.
P. Srinivas Reddy
Guidance on that, it’s very straightforward. I mean basically it’s not on how much, how much are we able to deliver? That’s the big question there. It’s not about the orders. Right. It’s based on the expansion plans that we have. So they’re asking for a lot more. But we are, we have positioned ourselves to deliver 12,000 units. And the expansion plan for 20,000 will happen by December, hopefully. Then we add another additional hot boxes to them. So basically it is 12,000 units is what conservatively we have taken for next financial year.
Dhavan Shah
Understood, understood. And the, the margins can reach up to 25 odd percent. That’s what we are expecting because of the operating limit is right next year.
P. Srinivas Reddy
Yeah, I, as I said earlier, I don’t want to comment on the exact number but if you look at the current quarter margins, it will further improve from there. And obviously with higher operating leverage and better revenues next year our margins will substantially improve.
Dhavan Shah
Understood. Thank you. That’s all from my side.
operator
Thank you. Our next question is from the line of Amar Ahir from Radin Capital. Please go ahead.
Unidentified Participant
Hello. Am I audible, sir?
P. Srinivas Reddy
Hi Amar, you’re audible. Please go ahead.
Unidentified Participant
Is it possible for you to give. A like what will be your utilization. Utilizations right now?
P. Srinivas Reddy
What is that? Utilization of what? I mean all the capacity that you’re.
Unidentified Participant
Having.
P. Srinivas Reddy
On the fuel cell side you’re talking about or.
Unidentified Participant
Oh yeah, on the metal side.
P. Srinivas Reddy
Yeah. We are up to 100 capacity. Literally we are right on the top brim right now at 8,000 capacity. And then by end of March we’ll go up to 12,000 capacity. So we’ll utilize the full capacity utilization what we have.
Unidentified Participant
Okay. And if you could give any guidance on the upcoming orders coming in FY27. And where will your order book standard in FY27?
P. Srinivas Reddy
FY26 I’ve given already just now. We expect 700 to 800 crores of worth of orders this quarter. And then we closed the order book at 28 crores. And if we talk about FY27 then we’ll have a lot more orders coming in. It’s too premature to comment on that right now. But we have even more stronger order book closing order book next year.
Unidentified Participant
Okay. And will it be possible for you. To give a growth guidance for FY27 and margins?
P. Srinivas Reddy
I mentioned this earlier. We’re looking at about 50% of revenue growth guidance for FY27 as of now. And a lot more better margins and improved margins next year compared to 50%.
Unidentified Participant
You mean 5, 0. 50%. Right.
P. Srinivas Reddy
For the FY27. That’s right. Okay sir. And margins, Margins we have seen in Q3 you’ll have a lot more improved margins beyond that. So in FY27. Okay, so that’s it from my.
operator
Thank you. Our next question is from the line of Naman Parmar from Niveshai Investments. Please go ahead.
Naman Parmar
Yeah. Hi. Good morning sir. Thank you so much for the opportunity. So firstly I just wanted to understand. On the nuclear side like thorium based deposit. Right. So we are aggressively working on to create FDR for the thorium based reactor. So any capability that we are creating on that side.
P. Srinivas Reddy
We have already done for the fdr. The majority of the requirements of FDR reactors were done by MTR in the past. Now those reactors have to get commissioned. That’s the first step, we’re expecting those reactors to get commissioned over the next six months is what they have said. And the next cycle is the thorium based reactors. As you know we have 40% of thorium deposits in the world. That’s the nuclear cycle which was created by Baba Atomic Research center many years back. So that’s the cycle which we want to achieve. We are not yet there but ultimately we will be there.
So that’s the idea behind this world.
Naman Parmar
Okay, understood. And secondly on the bookkeeping side. So currently what is your cash flow in the current quarter?
Gunneswara Rao Pusarla
Yeah, the cash flow from operations was 22 crores negative for this year because of the higher revenues which are there which are actually sitting in receivables. But we are working with our customers on the various advanced opportunities for this quarter in Q4. Let us see how the discussions goes on. And definitely we are confident of getting advances from our customers. Our Q4 and year end margin year and cash flows will be better than the last year will be better by getting these adversaries. Yes.
Naman Parmar
Okay. Thank you so much. Thanks.
P. Srinivas Reddy
Thank you.
operator
Thank you. Our next question is from the line of Dave Tacker from I thought. Please go ahead.
Dev Thacker
Thank you for the opportunity. Sir, that on the nuclear side of the how should we see the opportunity per reactor? Like will it be in line with Kaiga’s 250 crore per reactor or should we see this increase for the newer set of reactors?
P. Srinivas Reddy
Slightly more because we are going to add additional assemblies for the new reactors called Enshield and Calendar. So probably it should be going up to about 350 to 400 crores of opportunity per reactor. That’s what we’re looking at. That’s an opportunity. You have to see how it goes.
Dev Thacker
Got it. Thank you. So on the clean energy side. So as the data center power demand is expected to like various estimates double from 60 gigawatts to 140 gigawatts. What percentage of this incremental share can be captured by fuel cells in next three years or five years?
P. Srinivas Reddy
The majority is by the fuel cells. That’s how the bloom demand has gone up so much. You know there’s a huge shortage right now and over the next five years it’s going to be phenomenal. It only depends on how you can cope up with that kind of demand in terms of the expansion plans, the execution cycles and all that. So it’s not only orders per se. It’s on how you can take that as an opportunity demand as an opportunity to convert that into the execution cycle to do it and how soon you can expand your capabilities in terms of the capacities and all that.
So fortunately it’s the other way around. It’s not about orders, but it’s about how much you can produce. That’s where we are right now. The next three to five years.
Dev Thacker
Got it, sir. On the next question would be on the EBITDA margin. We are already at 23% EBITDA margins. So in FY28 we had guided for 28% EBITDA margin. So are we sticking with that guidance or like the 20 plus minus 1% kind of EBITDA margins?
P. Srinivas Reddy
Yeah, FY26, as I said is 20 average is about 21%. But FY27 would be a lot higher than that. Right. So we’ll be in the higher, much higher range. It’s a very clear indications for all of you to see.
Dev Thacker
Got it. Thank you so much, sir. On the one last question, what was the update on the roller screws? And we had also got the license on the ECM and the naval equipment for summaries. Is there any progress on that thing?
P. Srinivas Reddy
We already certified for that as usual. The defense program has lot of certifications for roller schools because it’s an import substitute. It is done already. We’re just waiting for the final papers to come in. They’re very happy with the performance of the roller schools. They have tried and tested it. Everything is done. So they’re just waiting for it. EMA is also same situation. Hopefully this quarter all those certifications will be closed and will be through with the normal or regular production. What they need for the future as an import substitute.
Dev Thacker
Got it. Thank you. And all the best for the next. Thank you.
operator
Right, thank you. Our next question is from the line of Vignesh A from Sequent Investments. Please go ahead.
Vignesh Iyer
Thank you for the opportunity. Congratulations sir on excellent set of number. So my only question is on the working capital side. I heard you earlier where you said that the quarter will be heavier on execution side since we are targeting 35% revenue growth. Wanted to understand what would be the inventory and networking capital levels that we are targeting for end of quarter four and what is the steady state number. That one should look at going forward?
Gunneswara Rao Pusarla
Yeah, yeah. For the quarter four we are targeting around 235 days with as is condition. But we are discussing with some of our customers on advanced payments. I think most probably we will get advanced payment. I think our working capital will drastically reduce. So if we get advances then it will be less than 200 days. Otherwise the 235 days we are estimating by end of this year as is scenario no.
Vignesh Iyer
And what would be the inventory days?
Gunneswara Rao Pusarla
Inventory days as like today, whatever absolute numbers are there, we will be there only here and there 10 days. But with increased turnover in Q4 days will come further come down to say another 5 to 10 days it will come down.
Vignesh Iyer
Right? Right sir. That’s all from my side.
P. Srinivas Reddy
Thank you.
Vignesh Iyer
Thank you.
operator
Thank you. Our next question comes from the line of Jetra from Ebisu Investments Advisors. Please go ahead.
Unidentified Participant
I hope I’m audible. Hi sir. So thank you for this opportunity. So could you please share the current capacity utilization in your aerospace and defense segment?
P. Srinivas Reddy
See, as I said, we have enough capacity to handle up to even 200 crores of business. We are setting up additional capacities and machines are coming in as well. Right now we are doing partial volume and partial first articles. But the kind of revenues that we can generate will be beyond 200 crores plus once all the equipment comes in over the next two, three months.
Unidentified Participant
Okay. Okay, understood. Thank you so much sir. Good wishes.
operator
Thank you. Our next question is from the line of Nilesh Jain from Astute Investment Management Private limited. Please go.
Nilesh Jain
Hi. Thank you for the opportunity. My first question is on the clean energy side. During FY23 we had done a peak revenue, you know, at that time and most of which because there was a change in mod which impacted the volume. Do you see anything such happening maybe next year or where Maybe because of change in technology which might might come into place?
P. Srinivas Reddy
I that I think that that kind of a situation will not happen. There was a drastic change in the kind of design changes happening at that point of time. But even if there are some changes, there’ll be very minor tweaks which can be manageable. That’s not a problem. So I don’t see that happening moving forward.
Nilesh Jain
Okay. And in terms of realization, how do you see that going forward given Bloom is also want to reduce further costs on their side?
P. Srinivas Reddy
Yeah. The cost can be reduced based on primarily on the design side of the story, right. Or the reduction in the BOM cost and all that. Other than that I don’t see any kind of realizations being changed. Suppose if they replace inconel with SS or any change of materials based on the design engineers working together with mtr then the bomb cost comes down when the realization. But that will not affect us because our value add remains the same. So those kind of changes, subtle changes can happen. So that’s the only thing other than that the value add would remain more or less the same.
Nilesh Jain
Okay, thank you. All the best.
operator
Thank you. Ladies and gentlemen, in the interest of time, that was our last question. I would now like to hand the conference over to the management for closing comments.
P. Srinivas Reddy
I would like to thank all of you to attend this earnings call of MTR Technologies and I would like to also thank specifically all the entire team of MTR for putting together such great performance for this quarter and also for the coming quarters. We can clearly see that happening quarter on quarter basis based on all the hard work done over the years. And also I would like to specifically thank all our investors and shareholders in supporting us over the years and also we put in our best efforts to improve further and further quarter on quarter basis.
Thank you so much.
operator
Thank you on behalf of MTAR Technologies Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.