Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
MTAR Technologies Ltd (NSE: MTARTECH) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
P. Srinivas Reddy — Managing Director
Gunneswara Rao Pusarla — Chief Financial Officer
Analysts:
Irfan Rahim — Analyst
Renu Baid — Analyst
Dhavan Shah — Analyst
Meet Jain — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the MTAR Technology Limited Q4FY26 earning conference call. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Irfan Rahim from MUFG in time.
Thank you to you sir.
Irfan Rahim — Analyst
Thank you. Thank you Juliss. Good morning everyone. On behalf of MTOR Technologies, I extend a warm welcome to all participants on Q4 and FY26 earnings on call. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward looking statements which are completely based upon belief, opinion and expectation. As of today, this statement are not guarantee of our future performance and involve unforeseen risk and uncertainties. With this I would like to hand over the call to Srinivasa.
Over to you sir. Thank you.
P. Srinivas Reddy — Managing Director
Hello and good morning to everyone. Thank you for taking the time to join us today. Today on the call I’m joined by Mr. Dineshwar Rao, Chief Financial Officer Ms. Vilka, Jesse Head Strategy and Investor Relations and Orient Capital, our investor relations partners. We have uploaded our updated investor deck press release and results highlights in the stock exchanges and company website. I hope everybody had an opportunity to go through the same. MTR has achieved record 4th quarter sales of rupees 306 crores and EBITDA of 61.8 crores with PAT of about 44.2 crores.
For the year we have achieved revenue of 876 crores with EBITDA of 171.2 crores and PAT of 94 crores. The outlook for next financial looks very positive and having confidence in execution of orders on hand, we are raising our guidance for FY27 from 50% revenue growth to 80% plus 80% revenue growth plus minus 5% with clear EBITDA margins of around 24% for the year. Mainly due to our initial expansion of capacities in various sectors in clean energy which is already commissioned. Apart from clean energy, the oil and gas plant will also be commissioned by September end and will be fully operational.
The nuclear and aerospace sectors will contribute in much larger numbers. With nuclear projects being executed this year having strong order book and volume production commenced in aerospace division with certain customers, we can also look ahead with confidence in spite of geopolitical crisis as we are now well prepared and we are in much stronger position now to achieve the required growth and the required margins as well. The closing order book for FY26 is at 2580 crores and we had given a guidance of 2,800 crores.
The marginal difference is due to some nuclear orders and the defense orders being deferred to the current quarter which does not have any impact on our business outlook for this year. We have secured orders of 481 crores during the quarter and we are very confident of receiving large orders across various sectors during FY27 and also we will end up with a very strong order book by end of FY27, much larger than the closing order book of FY26 and the estimated closing order book would be close to about 5000 crores at the end of the year.
As you are aware, the company has always been strategically positioned to focus on technology, incentive and differentiated products and we are now witnessing the results of these efforts today. Exports contribute to majority of our revenues reflecting the vision laid out way back in 2010. The manner in which the strategic decisions have unfolded reinforces our confidence in the direction we have taken. We are working on several key initiatives which I will now take you through and which we believe are expected to deliver significant outcomes in the coming years based on the advanced visibility.
We have built capacities for our customers in the past and we will be rapidly building capacities in clean energy sector during the current year and expand capacities as well as in subsequent years in this sector based on the customer requirements. We will never be any, we will never face or the customer would never face any kind of bottleneck in terms of the timely deliverables that they’re supposed to meet and the teams are actively engaged in rapidly building these capacities, training their employees and ramping up the operations to meet the customers demand.
Further, we’ll be entering into long term contract with another international customer in supplying key infrastructure assemblies for AI data centers for which we have already received the first article export orders for Rupees 35 crores and we have a potential of reaching 400 to 500 crores over the next couple of years. This is a significant development in the area of clean energy sector which we are really excited about at this point of time. MTR has been in civil nuclear program for more than 35 years and now we have the strongest order book of 60 crores plus and all these orders have to be executed over the next three to three and a half years.
We do have the capacities to address the orders and we are expecting more orders in the areas of refurbishment of reactors and also reactors, new reactors during the current financial year. This again will be on the growth path year on year basis based on strong order book and execution capabilities of the company. Having rich experience in the field over the years. Another vertical of MPR being the defense and aerostate business vertical and we have orders for more than 360 crores and the business has demonstrated tremendous growth and continues to hold strong long term potential.
We are catering to several reputed MNC customers in this segment and we have already commenced volume production. And we are also working on. Yeah and we are also working on the first article at the same time. The first articles for IAI should be completed by September of this year and should enter into volume production by October in the current financial year. We are gearing up our capacities in this sector as well to handle the increased orders from these customers. In the domestic defense business we are focusing on various programs of defense, mainly landing grades, structural assemblies for various aircraft programs, actuator assemblies, programs, etc.
And we are moving in the right direction in this segment and we are very positive of building this segment in a much bigger manner moving forward. The product division is moving in the right direction with revenues increasing year on year basis. And for the current year we should cross more than 200 crores in this segment itself. We’re already qualified now for various ball screws supplies to even MNC customers as well during the last financial year. And moving forward we expect a lot more orders to come in in terms of supplies of ball spruce with these MNC customers.
Finally, it has been a great year with a positive operating cash flow of 196crores. And we ended with net working capital days of 172 days compared to the previous quarter of 278 days. We’ll continue to focus on NWC in the coming quarters as well. I would like to thank all the team members of MTR for their exceptional efforts during the year and their continued focus and dedication towards achieving the growth of the company and moving forward as well. The entire focus is going to be purely on achieving the required growth and delivering the required products to the customers on a timely basis.
I would now hand over the call to our Chief Financial Officer who will take you through in detail with regards to all the financial information of the company. Thank you.
Gunneswara Rao Pusarla — Chief Financial Officer
Thank you. Mr. Srinivas Reddy. Hello everyone. Good morning. Thank you for joining us on the earning call. We delivered a robust performance in FY26 registering a strong growth compared to the corresponding period last year. I would now like to take you through the company’s financial performance for the year. Overall, the company witnessed healthy growth on both YOY and quarter on quarter basis driven by strong execution across key business segments. When comes to the full year performance in FY26 versus FY25 revenue from operation stood at 876 crores in FY26 as against 676 crores in FY25 which is around 30% increase in YoY.
EBITDA reported at 171 crores in the FY26 as compared to 121 crores in FY25, an increase of 41.7% percent increase when it comes to profit before tax. 126 crores in FY26 as against 72 crores in FY25 which is almost 75.1% increase in YoY. Profit after tax was at 94 crore in FY26 as against 53.4 crore in FY25 registered as a 76.2% increase when compared to quarter four FY26 versus quarter four FY25. Our revenue for this quarter is quarter four is 306 crore in FY26 as against 183 crores in FY25. EBITDA reported at 62 crore in FY26 as compared to 34 crore in FY25 an increase of 81% in compared to the previous year.
Fourth quarter profit before tax stand at 59.5 crore in FY26 as against 18.6 crores in FY25. Profit after tax was at 44 crore in FY26 as against 14 crore in FY25 which is an almost 222% increase on YY basis. We are witnessing a strong growth across sectors in which the company operates. Amid this positive moment, the company continues to maintain strong focus on cash flow discipline, prudent capital allocation and effective working capital management. Our working capital days stood at 172 crore during FY26 when compared to Q3 or 267 days which is supported by various initiatives taken by the company including the better payment terms with the customers.
The company is targeting to maintain a working capital level at a similar level by end of the current fiscal year our gas margins are at 47.7% and when compared to last year 49.4% were also impacted due to increased input prices of Consumables and other freight costs amid the prevailing geopolitical uncertainties. Our EBITDA margin is at 171crores which is 19.5%. We have guided around 2020% plus or minus 1%. 21% were plus or minus 1%. We guided and we achieved 19.5% which is due to the gross margin impact.
Due to prevailing uncertainties in geopolitical regions and also increase in headcount due to ongoing expansions activities in the company. Our ROC is at 17.2% versus 11.4% in the last year. Where also we are also expecting a significant growth going forward due to increased turnover. And also our margins will improve improve significantly. As our MD has already indicated, we will have a better operating leverage and also increase the turnover will allow us to give contribution to the company. Our PAT is at 10.7% versus 7.8% compared to the previous year.
This also will improve in the current financial year due to increased turnover and the margins. Our other important aspect we would like to highlight is our cash flow from operations are 196.9 crores in this fiscal year compared to 101 crores in the last financial year. This is mainly due to the margins, additional margins and also the better payment terms negotiated with customers. And we are continuously monitoring the working capital in every line item we are monitoring and we will see that we will achieve the further improvement in the cash flow from operations.
We believe that the road ahead is highly promising and we are actively focused on expanding capacities, diversification into new verticals, strengthening our customer base across all existing segments. While the opportunities are ahead are exciting, we remain equally committed to addressing potential challenges proactively to sustain our growth momentum over the long term. Thank you everyone for your continued support. And we thank you all the stakeholders of the company for their continuous trust and confidence reposing on us.
Thank you everyone. Now we open the floor for the question and answers.
Questions and Answers:
Operator
Thank you. We’ll now begin the question and answer session. Anyone who wishes to ask question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use answered while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Irfan Rahim
Yeah. Good morning sir and thanks for the opportunity and congratulations on a very very good year. My first question is is it possible to break your revenue expectation of 80% growth or roughly around 16 billion I think revenue are expecting for FY27. How much do you expect to come from the clean energy in nuclear and defense? Broad breakup will be helpful.
P. Srinivas Reddy
Basically the clean energy sector would be around close to about 70% and the rest would be all the other verticals. The absolute numbers of the other verticals are also phenomenally growing year on year basis, which is very good. But the cleaners segment is growing much faster. That’s where we are
Irfan Rahim
Understood. My second question, given the order book expectation of order backlog expectation of 50 billion which means that expecting order inflow of approximately 40 billion right in FY27. Can this break up this number also between clean energy, nuclear and defense? Your expectation, broad expectation?
P. Srinivas Reddy
No, the orders are going to flow in mainly from clean energy and all the other sectors. If you remember I’ve said about the oil and gas, we talked about the defense and aerospace sectors which we are in advanced stage in volume production as well. So the order info would come in from various directions for different verticals. But we are very confident of having the closing order book around 5000 crores by the end of this year. Mainly in clean energy and the other sectors as well, which we are in advanced stage of execution with various customers and we have proven our quality and timely deliverables to all the customers in various sectors at this point of time.
Irfan Rahim
My last question on nuclear sir. Are you seeing the tender for refurbishment of reactor or something like Mahe Bhaswara tender getting floated? Are you still having some conversation around those opportunities?
P. Srinivas Reddy
Yeah, absolutely. See my Bhaswada is new reactors. This is called the Ashwin project in joint collaboration with NTPC and nccl. So those tenders are expected this year. The refurbishment reactors we have already ported. And that’s why I said that around 250 crores of orders were deferred for this quarter. We are pretty confident of getting those orders but it does not have any impact on our business outlook for this year.
Irfan Rahim
Understood. Are there any other opportunity for the formation of reactor in the near future in this fiscal. Yeah, they should be.
P. Srinivas Reddy
Yeah, absolutely. I mean it’s a continuous process, right? We have a lot more reactors right now and as and when the reactors are taken for repurchase permission and there has an opportunity to participate in that.
Irfan Rahim
Understood sir. Thank you and best of. Thank you.
Operator
Thank you. The next question is from the line of Bala Murali Krishna from Oman investor advisor. Please go ahead.
P. Srinivas Reddy
Bala. Can it be clear because the voice is not that clear.
Operator
Come more closer to your answer. Yeah, thank you.
Irfan Rahim
Yeah, Is it fine now? Yeah. Could you please repeat the 27 and 28?
P. Srinivas Reddy
No, I’ve said we are based on the kind of requirements by the various customers that we have and the latest inputs that we have. It is very clear that we have the guidance would be now from earlier we mentioned as 50% of revenue growth but now it will be around 80% plus minus 5% around that area and also the margins will be around close to about 24%.
Irfan Rahim
So on the bloom side. So we are having some capex plans. So are you on track and do you have anything to foster?
P. Srinivas Reddy
No, we are on track. As I mentioned earlier in my speech that we’ve already commissioned the initial phase of expansion which is very good and that’s into. We’re also training the employees and ramping up the whole thing. So that’s already done in terms of the initial phase and now we are moving into the rapidly moving into the additional capacities that we are planning during the current financial.
Irfan Rahim
Lastly on this any updates collaboration with.
P. Srinivas Reddy
There is no further update on that as of now.
Irfan Rahim
Okay, that should thank you.
Operator
Thank you. The next question is from the line of Renu Bed Puligalia from IIFL Capital. Please go ahead.
Renu Baid
Yeah, hi, good morning team and congratulations on this healthy performance. So my first question to you is while one of I think one of the largest customer in the clean energy has rolled out a pretty aggressive multifold capacity expansion plan in the U.S. What would be your CapEx plan over the next two to three years? And I’m not sure if you can quantify or not, but are you also looking for a multifold expansion in your manufacturing capacity? Your revenue growth tend to indicate significant jump in the growth potential as well?
P. Srinivas Reddy
Absolutely, yes. We are obviously we had multiple calls and we are rapidly focusing on additional capacity. We are doing that. We can’t disclose the numbers as such because we have signed NDA but we are moving ahead with rapidly with multiple capacity expansions required by the customers and customer and that’s on track right now we are focusing, the entire team is focusing on that and not only on the capacities but also we are parallel training the employees and moving forward with it so that these capacities can be utilized with the best of efficiency.
And also we are incorporating automation as well wherever required. So that demand for dependency also comes down to a larger extent. Not everything can be done you can do automation, but wherever possible we are doing that. So more or less we are right on track with what the customer needs and we are entirely focusing on that. And you will see the capacities coming into play by end of this year and again next year as well. So everything is on track as far as the implementation plan for building additional capacities are concerned.
And as far as the capex is concerned, it’s a rough figure. We have we’re looking at around 250 to 300 crores of capex which we are looking at to build all these capacities, multiple capacities for the customer.
Renu Baid
And this 250 to 300 crore capex is for 27, 28. Two years.
P. Srinivas Reddy
Yeah, it’s spread over two years. It’s not exactly one year.
Renu Baid
Gotcha. Sure. And just curious on this side, given that the customer is doing multi fold, do you think there could be more vendors which could be added on the supply side? And how confident are we on MTAs broadly retaining wanted to share with the customer?
P. Srinivas Reddy
We are really not concerned with that because we know it’s learning curve is very steep in this and we have enough on our plate. Doesn’t really matter to us at all. And it’s not easy to establish this technology and also to ramp up at the same time. And we have been satisfying the customer over the last 10, 15, 12, 15 years now. So we have been working with them together as genuine partners and we strongly believe that we will adhere to their requirements over the coming years very comfortably. So we are not really worried about that.
Renu Baid
Super. So second, pretty impressive. I think last few years one of the persistent concerns was working capital stretch and impact on cash flows. So good to see that working capital has finally started to improve cash flows. OCS is near 25% of EBITDA along with growth. So the question here is now that we are looking at significant step up on the revenue side, nearly 70, 80% plus revenue growth, do we expect these ops to EBITDA to broadly sustain at these levels? And you’ve guided for similar networking capital cycle.
So are we expecting the advances from customer to broadly sustain going forward as well?
P. Srinivas Reddy
No. Basically we have negotiated good payment terms with various customers, not necessarily with one particular customer looking at the kind of requirements they have and we have clearly told them that the terms have to be much better to improve our working capital days and also looking at our operating cash flows being positive. So this is a continuous endeavor from our side and you will see improvements happening during the current financial year as well. So we will sustain those margins pretty comfortably right now and we are on track with that.
So as far as the improved guidance is concerned or the margins are concerned, we are very clear. We have done all the analysis over the last couple of months. In spite of the current geopolitical situation we are pretty confident that we are much in a much stronger position today to confidently say that we’ll be able to achieve this.
Renu Baid
And this last question While our debt for the year overall has increased to about close to 370 crores how are we looking at the borrowing level of debt levels to be over the next two years? 2028.
P. Srinivas Reddy
You want to answer that?
Gunneswara Rao Pusarla
Hello. Yeah our see presently we need to raise a debt for the increased expansion plan. So we have considered in metrics debt is an option to go ahead as far as today is concerned. So every year we are also repaying and also we are increasing a debt of term loan. We are increasing. We are able to negotiate it at a better payment terms which is INR. INR loans we are negotiated at a better term. So for the time being our debt equity ratio is very healthy. So there is no issue of raising a debt and we will see that we repay the debt as fast as possible.
And the capacity expansion is requires the capital either you need to go for debt or for raising the capital from the external sources but we are doing on the debt basis as of today.
Renu Baid
Perfect. Any targeted levels for 1527 on the debt side end of the year number.
Gunneswara Rao Pusarla
See like. Like that said today we are at we wanted to maintain a debt equity ratio for next two years zero point in the range of around 0.5. We’ll see how it goes.
Renu Baid
Perfect. Thank you and best wishes team. Thank you.
Operator
Thank you. A reminder to all participants please restrict yourself to two questions. The next question is from the line of Sumil Jain from Lucky Investment. Please go ahead.
Irfan Rahim
Thanks for taking my question. So you know you’ve indicated multiple capacity expansions on the hot boxes side. I understand that you cannot give a quantitative number but is the number going to be significantly higher than the previously mentioned number of boxes? You know on the previous call as you discussed if you could give some sense directionally on the capacities on site.
P. Srinivas Reddy
Yeah absolutely. See when I said multifold capacity expansions we’re working on it. Obviously the numbers are significantly higher. As I said I can’t specify quantify the details but yes, absolutely it’s on a significantly higher side.
Irfan Rahim
Got it. Now on fluence I see that that customer has been dropped from. So you know the customer list that you mentioned in the presentation. Can you give a sense on that project?
P. Srinivas Reddy
Yeah, I told this in the last earnings call itself that fluence is still deliberating because of the various factors on the duties imposed on batteries and various other things for exports. So this is something which we have done the prototype for them, but they’re still deliberating it. So we have dropped it because we have enough on our plate right now. And as and when they have the requirements, we already done the prototypes for them so we can move ahead with them whenever they’re ready with it.
It’s still open, but it’s not a closed door situation. But I think about it unless I see some traction on that. So let’s see how it goes.
Irfan Rahim
Got it. Now finally, if you could give us a sense of the opportunity size with the new customer onboarded for AI data centers. And also on the sbr, as you recently mentioned on an interview, if you could give us a sense in the next two, three years what these businesses could look like in terms of either order and show or execution.
P. Srinivas Reddy
I did mention about the data center infrastructure with another customer as well. That’s really for the company in terms of diversifying and getting more into the AI data center business opportunities that we are doing. We’ve already received the first access order for that which is close to about 35 crores. And then as I said over the next couple of years if everything goes well, we’re looking at almost like 400 to 500 crores of revenues being generated from that. And we are looking at a separate.
We already have the basic infrastructure for that to deliver the orders for the first articles and as well as certain volume production that they need. And based on how it goes, we’ll try to build infrastructure for them as well in the coming years. And as far as the FDR is concerned, that’s along. We worked on major assembly’s for the FDR for a long time back and finally it went critical. So hopefully we have done a major contribution for that, for that project and as and when the government decides to add in a few more reactors and we will have definitely an opportunity to work with that as well.
Irfan Rahim
Can I squeeze in another question if that’s okay?
P. Srinivas Reddy
Yeah, it’s fine, go ahead.
Irfan Rahim
On the oil and gas side, so some of our other peers have mentioned the signing of major contracts, multi year contracts with the same customer that we quote. If you could help us understand the opportunity size or the total machine parts procurement with each of these oil and gas customers and how much is currently being sourced from India, how much can incrementally be sourced from India and your competitive positioning in that space.
P. Srinivas Reddy
Yeah, so as I said the plant see we have done successfully the first articles for the customer and they really appreciated our Quality and the kind of work we have done for them. This is on the webstock assembly which we have done for them. And obviously the potential is around 35 to $40 million over a period of time as and when we get into the major volume production. And also we’re adding a lot more customers in the oil and gas. We’re just not depending on one customer. We are looking at the other customers which we have received orders as well for first articles going on track with it.
And the good news is that the main plant is going to be operational by September. So it’s like a chicken X story. Right. And you need to have a real dedicated plant for this which is going to grow very rapidly over the next five to ten years the way things are going right now. And that’s we are right on time with the kind of facility we have. And this sector would grow very rapidly moving forward as well.
Irfan Rahim
All right, thanks a lot. I’ll join back again. Thank you.
Operator
Thank you. The next question is from the line of Vipro Srivastava from Philip Capital. Please go ahead.
Irfan Rahim
Oh yeah. Hi sir, good afternoon. Quickly sir, on the hedging given that you know we have received a very large other income because of currency depreciation. So any light you can throw on the hedging policy and what kind of other income we can expect in coming years
P. Srinivas Reddy
We are able to answer that. Please
Gunneswara Rao Pusarla
Can you come again
Dhavan Shah
Sir on the heading policy. Sir, given that you know there is a lot of currency depression which is happening and hence you have received other income. So what is the heading policy and you know what kind of range you can look at for FY27
Gunneswara Rao Pusarla
On the revenue side you are talking correct
Dhavan Shah
Other income. So currency depreciation and other income coming in
Gunneswara Rao Pusarla
Today we are. We have 25 crores mainly because of the foreign exchange gain we have received in this year. So we will anyway it is a realized mostly the realized and someone is something is on unrelated forex gain also is there and in the current financial year also we are witness. We have spoken to the bankers many people the U.S. The dollar will be in the similar range and it will further rupee will depreciate. That is what the forecast is showing. So that. That. That way also we will gain in terms of the you know foreign exchange fluctuations will help us become so more than 70% of revenues from the exports only imports are maximum 30 to 35%.
So thereby we will gain on this also.
Irfan Rahim
Sure. So thank you. Thank you. Thank you. Thanks all from my end.
Gunneswara Rao Pusarla
Thank you.
Operator
Thank you. The next question is from the line of meet Jain from Motilal Oswal. Please go ahead.
Meet Jain
Hello, I’m audible.
Operator
Yes sir, you are. Please go ahead.
Meet Jain
Thank you. Go ahead. Thank you for the opportunity, sir. A very good set of numbers and a very strong guidance. So my one question I. Most of the questions are answered. My one question is regarding this AMCA jet landing errors report. So just want to understand. Can you throw some more light on this key? What end the quantum of the size and what at what level currently are we in this circle? This. And which are the customers for this?
P. Srinivas Reddy
No, basically it’s in the initial stage right now. SRI Lake. I want to answer this question because you are handling this. Are you there?
Renu Baid
It’s a 4 crore order means.
P. Srinivas Reddy
Okay, so what we understand earlier that we were. So
Meet Jain
We were there
Renu Baid
Are.
Meet Jain
Hello?
Unidentified Participant
Hello. Yeah, yeah, please. Yeah, I was not able to
Meet Jain
Hear you. I was not able to hear you earlier.
Unidentified Participant
Okay. Okay. So it’s a 4 crore order which we got and it’s the first structural SME which we managed to win for AMCA. So right now we are floating the tenders for structural assemblies and we have started participating in all the tenders and we are one of the eight qualified vendors for these structural assembly.
Meet Jain
So this is similar to what we were doing along with Adani group that we didn’t receive. Or this is something different because that was also AMCA project and
Unidentified Participant
Yeah, that is different. And this is different because both are for. That is for the entire integration of AMCA aircraft. But parallel there are tender going on for structural assemblies of AMCA and there are only eight qualified vendors who can participate in these structural assemblies.
Meet Jain
Understood. Our second question is on this new client that we added SLP in both our oil and gas and clean energy. So going ahead, whatever revenue that we record will be putting in the same head of as a fuel cell or we’ll be getting a separate head for this.
P. Srinivas Reddy
No, it will be in the cleaner segment. As such, as far as the data center infrastructure is concerned, as far as the assemblies for oil and gas will go into the oil and gas.
Meet Jain
So currently sir, we are doing this prototyping work for them right now, right? Yeah,
P. Srinivas Reddy
That’s right.
Meet Jain
Okay. They’re doing the prototype
P. Srinivas Reddy
Work. As I mentioned, they are in multiple. They are in multiple segments, not only in oil and gas but also into the infrastructure building for the data center. So both. So they’ll go in the respective settings.
Meet Jain
Understood. And the last question on this, like you mentioned that we have received some better payment terms and also we See some advances, capital advances that came from the customers. So this will be a normal norm going ahead or this is a one time advance that we received.
P. Srinivas Reddy
So it’s. It’s not about anything. When I say we’re talking about better payment terms, it’s a multiple factors, right? It is not about advances, it’s about better payment terms in terms of credit period and all multiple factors which we have negotiated with not just one customer, with multiple customers. The way we are growing, we felt that we should we are in a position to discuss with our customers and ensure that we are on track with their requirements, the kind of volumes that are going up and the demand which has been created.
So we are able to do that in a more efficient manner right now. And this will be a continuous process. There’s nothing like one time as you mentioned. It will be a continuous thing and we’ll sustain it moving forward as well to maintain our working capital and the number of days and operating taxes.
Meet Jain
Okay, that’s good to know. I’m so sorry to participate. One more question. So the 20% kind of growth that we emphasize for FY27, how it will be back ended for H2 will be major or it will be well spread out between all the quarters?
P. Srinivas Reddy
That’s a very good question you should ask. So if you look at last year it was. We had a weak first half, right. And a strong second half. But this year it will be. We’ll have a very good first half and a much better second half. That’s what it wanted.
Meet Jain
Okay, thank you so much for the information.
Operator
Thank you. The next question is from the line of Piyushani from Sundaram Alternate. Please go ahead.
Irfan Rahim
Yes. Hi sir. Congrats for a good set of numbers. So my first question is on the gross margins there is a 190 basis point sequential depth. So can you please help us understand the reasons for that? Has there been any renegotiations with our customer in clean energy?
P. Srinivas Reddy
Absolutely not. It’s not about negotiation on the price, it’s about deliverables right now. So there’s enough requirement by not only one customer but various customers that we have. And it’s purely because of the last quarter was mainly certain parts have gone up because of. All of you are aware about certain geopolitical situations. Our input costs have gone up on the operation side, but that’s very marginal. So I think as I mentioned earlier, we are pretty confident and strong enough right now to, you know, to adhere to the margins that we have said right now.
And also the Revenues that we have declared, the guidance, what we’ve declared. So there’s no question of reduction in prices or anything like that. That’s not the case.
Irfan Rahim
So my next question is on the capex plan where you have talked about this 250 to 300 crores and the multifold capacity expansion which we have talked about. So this would ideally lead to a much higher, much, much higher asset turn for us versus what we are currently doing. So do you think this is absolutely.
P. Srinivas Reddy
Okay.
Irfan Rahim
So do you think this is sufficient enough to cover for growth for next two, three years?
P. Srinivas Reddy
No, see we are going step by step, right? When I say multifold capacity expansions in various sectors is purely based on the demand. What we have, not just for this year, for the coming years as well. So we are planning year on year basis. So that’s how we are implementing the whole plan based on the customer needs, which is very promising for us right now. And since we are in this line for many years it becomes that much more easier for us to implement the capacities and also to execute them. The execution is the most important aspect of it and we are pretty confident about it.
The way we are increasing our headcount, the management bandwidth and also training the required people to get them qualified, we are doing that ahead of time and we always had these capacities in the past as well ahead of time and which has actually given us a very good result because of having such capacities. And we’re doing the same thing even now and this time around it is purely based on the demand which has been told to us and the visibility which has been given by our customers. That’s how we are moving forward.
Irfan Rahim
Got it. And so lastly on this nuclear execution we have I think around 700 crores of order book. So what kind of revenue should we assume for this year? Because I think you have said that in next three years we assume the execution of the current order book.
P. Srinivas Reddy
Yeah, see we have to execute over the next three, three and a half years. Some of them are like close to four years but most of the orders should get executed in the next three and a half years. So you see a real upsurge in revenues in the current year moving forward as well, even higher revenues. That’s why I mentioned that we are in a very sweet spot in terms of nuclear division because we never had this kind of order book in the past. And this order book will continue to grow actually because a lot of, even if you look at over the next 50 years a lot of private players are also coming with this Program, nuclear program which is announced by the government of India.
So we have the enough infrastructure to handle this because we have been in this line for 35 plus years. So this will be on the growth part for sure.
Irfan Rahim
That’s it. From my side. Thank you and all the best.
P. Srinivas Reddy
Thank
Operator
You. Thank you. The next question is from the line of Dhawan Shah from Africa. Advisor, please go ahead.
Dhavan Shah
Yeah, thanks for the opportunity sir. And my question is on the, because guidance like there is a strong visibility from the bloom plus other segments are also, you know, you know, doing well. So what is our internal guidance by when can we achieve 5000 crores of revenue?
P. Srinivas Reddy
That’s a very long drawn question anyway, so I, I can’t talk about that right now when we’re going to achieve 5000 crores. But the way we are moving forward, I think we are on track with that number probably. Let’s see. I can’t just say anything right now about that. But one thing I can promise you that we are on track with that
Dhavan Shah
By FY30. Is it possible?
P. Srinivas Reddy
Hopefully yes. Let’s see how it goes. I can’t commit right now on that. We have a clear roadmap to be where we want to be by FY30.
Dhavan Shah
And how much capex do you have to do, you know, to achieve that kind of revenues? Any incremental capex apart from this 250crore?
P. Srinivas Reddy
No, we will be having incremental capex year on year basis. That’s very clear. In terms of additions of capacity year on year basis based on clear visibility given by various customers of ours and each year we’ll evaluate that and we’ll plan it ahead of time. So that’s an ongoing process, the kind of growth that we are looking at right now.
Dhavan Shah
But as per your estimates, how much capex we have to do, you know, to achieve 5000 crores of revenue internally? Is it like 500 crore, 600 crore? How much? These are internal estimates
P. Srinivas Reddy
That we specify that right now but probably between 500 to 700
Dhavan Shah
And and we are also building the greenfield capacity. So that would be enough, you know, to achieve this kind of growth.
P. Srinivas Reddy
Yeah, absolutely. I mean we are building the infrastructure for the future growth and also adding equipment in a phased manner based on the requirement of the customers and that’s been more than enough.
Dhavan Shah
Understood. And when can we see, you know, the operating leverage play out? Because I think the product mix is also changing, you know, from being fuel to other segments maybe year down the line. So how do you see the operating margins play out, you know Once we’ll achieve the scale
P. Srinivas Reddy
Well, the operating leverage will improve because of. We’ll have better operating leverage because of the kind of revenues or volumes that we’re doing right now. And it’s not only in one product but multiple products that we are working with the customers and start seeing that from the current finance theory itself.
Dhavan Shah
Okay, thank you. That’s all from answer.
Operator
Thank you. The next question is from the line of God of Naguri from Evan Dispatch, please go ahead.
Unidentified Participant
Hi, thanks. Thanks for the opportunity. Just in continuation to the question which was previously asked, can you share more details on what kind of components that you are supplying to these data center solutions? Is it part of MEP or part of RACS or any more details and what is the value add in those components by mcap? That’s question one second is on the execution and the margin risk. And where I’m coming from is that obviously orders inflow is obvious and hearing the commentary of your client, it’s given that order should come in.
But what we hear is that your peer or the competitor is also increasing capacity in their home market and you are also expanding the capacity as well. So do you foresee margins kind of be at risk in the longer term or in the near term? Because the raw mat and multiple commodities have seen a sharp price hike, it would be difficult for you to pass on these increase in the price of the client. So these are my two questions.
P. Srinivas Reddy
To answer the first question, we are dealing with the various assemblies required to build a data center infrastructure and the value addition is close to about 70% in this area and it’s pretty profitable and it’s not. It’s very specialized job that we are doing and we are doing the first articles right now. We’ll know more about it as when we finish the first article, which is close to 35 crores. That itself is a big number. And as far as the capacities that you’re looking at, see, we’re not looking at competition.
See, the most important thing for MTAR is what we have done over the last 12, 15 years and how we have partnered with our customers in ensuring that, being very innovative in our approach, bringing automation into play, doing various other innovative aspects with the customer. There’s enough on the plate for us to work on and there is no. The most important aspect is that there is a pressure on deliverables more than anything else right now to ensure that we deliver everything what we need and we are focusing primarily on that.
Unidentified Participant
Okay, okay. I mean if you can just elaborate a little bit more on margins because in this quarter also we have not seen much operating leverage benefit in the gross margins and EBITDA margins. And despite a good run rate in this quarter and given that we have seen a sharp inflation across category, do you foresee, I mean what gives you confidence that margins would see expansion on these orders inflow?
P. Srinivas Reddy
See, it’s not only about one sector, right? If you look at the current financial year, last year we were working on various aspects in different sectors. In first article we are building the WIP for various nuclear programs and all that. So you will see the margins coming into play because of not only one sector but multiple sectors that we are dealing with. Right. And the kind of volumes that we are looking at this year like last year we had, it’s not about 1/4, right? Last we look at last year we had certain impact because of geopolitical situation.
But we are beyond that right now because we evaluated everything and we studied that and that’s why we said, you know, we are in a much stronger position moving forward as well. So if you look at the last year we had a weak first half of weak first half in revenues last year. But this year, as I said, our first half itself is very strong and the second half will be even much better than that. So obviously the operating leverage will come into play big time quarter on quarter basis as we are ramping up step by step quarter on quarter basis for the deliverables.
And that will help a lot in terms of improving the margins in one given sector and all the other sector. Also the volumes are going up in absolute numbers. People talk about percentages, but I would always look at the numbers in how which we are growing in each of these sectors which is very promising. And that’s also contributing a lot to coming with improved margins quarter on quarter basis and ending the year at about around 24% EBITDA margins for the year.
Gunneswara Rao Pusarla
Just to add MD’s point, see we. We have spent almost 28% on the fixed cost, both salaries and other expenditure. With increased revenue we will have a at least 5% operating leverage. We will, we are estimating definitely. There is no issue as far as the meeting the EBITDA targets conservative scenario. Also we have considered
Unidentified Participant
Okay, and is it possible to quantify how much of the new product development cost is expressed out in PNL in SI26.
Gunneswara Rao Pusarla
This is a continuous process. Even last year also we are working on first articles in aerospace and other things and this year we are completing the mostly all the first articles of all the customers customers in aerospace so we will have a volume production in the future with the same set of people and missionary. We are going to do much more revenue than what was done in the last financial year. So this first article, new product development is a continuous process in the company. Every year we are incurring that expenditure which is already factored in our actual margins and also whatever margins we have communicated to shareholders in this call.
Unidentified Participant
All right. Okay. Okay. But is it possible to quantify in FY26 as a percentage of revenue how much FA. FA expenses revenue.
Gunneswara Rao Pusarla
It’s not so much because if you look at our revenue, mostly 90% of the revenue is only from the existing products. What we are doing only oil and gas. Already we have done the first article and the facilities coming up in September of this year some. So we are going to do that production around the next six months. We are doing the volume production because already we have done the first article. So other clean energy sectors we have already done only in the aerospace first articles are happening and this year is almost is completing by September.
All the September or December maximum it is completing. So it is not sizable material amount to quantify. That’s what I want to say.
Unidentified Participant
Okay, thanks. Thanks. Thanks for the time and all the best for the future.
Operator
Thank you. The next question is from the line of Abhijit Singh from Systematics. Please go ahead.
Irfan Rahim
Thank you for the opportunity, sir. And congrats on creation of results. First question on the nuclear business. Our capabilities and capacities in the nuclear business, are they fungible across reactor technologies? Pswr fast builder. So in case one picks up faster than the other, are we placed to supply, you know, across these technologies? And how does the scope change if that happens?
P. Srinivas Reddy
No, all the assets are fungible. You know, whether it is FDR or phwr, that doesn’t really matter. The technology is different but the machineries and all are fungible across both the reactors. So that’s not an issue at all. And we have built our own machines earlier for taking care of the FBR reactors. And we continue to operate those machines, very specialized machines. And they are fungible as well across all sectors. So it’s not an issue at all.
Irfan Rahim
Right. You mentioned that you’re expecting an order info from another reactor in FY27. So the content for that would be similar to the one that we received in FY26 or there would be a change.
P. Srinivas Reddy
So can you repeat your question?
Irfan Rahim
Considering the order info expected in FY27 from this year, the quantum of that would be similar to that one that we received in FY26 of about 5 billion. No,
P. Srinivas Reddy
No, we can’t, we can’t quantify that. See we have refurbishment of reactors and the new reactors. So it depends on the timing of the tenders and when the department would release the orders. So it will be a major orders that will flow in but I can’t assure the timing of that. So as and when they’re coming. Yes, the quantum would be similarly
Irfan Rahim
On the part of the nuclear business. So what is the kind of nature of the order? What is the scope of our business in the nucleus for the provision orders and how to look at it from the perspective of frequency? Let’s say how many orders do we expect for Anna in the next two to three years? It depends on the refurbishment
P. Srinivas Reddy
Of. Yeah, so basically depends on the refurbishment of the reactors when they are due. And we have been, we have already we got some orders of the refurbishment of various reactors. Overall it’s five reactors who got some orders on those refurbishment reactors. We’re getting some more in this quarter. So basically this was a pool and channel SMD that we are looking at in the refurbishment area which we are. Which we have been doing for ages right now. So that’s, that’s an ongoing process. So each time they declare as and when they need to refurbish the reactor and such reactors is an opportunity for MTAR to cater to the requirements of the NPCL to handle this reactors.
Irfan Rahim
Okay, sir. Thank you Lord. That’s it from my end.
P. Srinivas Reddy
Yeah, thank you.
Operator
Thank you. The next question is from the line of AMAN from Assisted Investment Management. Please go ahead.
Irfan Rahim
Good afternoon sir. My first question is on the nuclear site. So we are mostly doing products which are related to say machining head and all those things you had talked about. We are also trying to enter Calendria and all those products. So can you give an update by when do we expect the approval and when we can start bidding for such products for addressable market per reactor also increases?
P. Srinivas Reddy
No, technically we are already qualified for Calendar and enshield and like for the Mahi Bashwin project. They have intimated to all the tenders will come in this year for that and which we are qualified for that. So we’ll be able to participate and this is for the first time we’ll be doing it. We have the infrastructure and we are qualified for that right now. So we’ll be participating in that and we’re expecting the orders in that area as well. That’s the increase in wallet share in what we can contribute to NPCA.
Irfan Rahim
Sure. That is helpful. You talked about scaling from Q1 itself. Is it on track or there’s some delay and only Q2 Q3 we can see scaling of nuclear business.
P. Srinivas Reddy
No nuclear business would scale primarily the way we are looking at is by the time we get the raw materials in place and all that. We are working on it. We are. We already have orders earlier orders where it’s an advanced stage of execution. So you will really feel the scaling up going from Q2 onwards in a big way.
Irfan Rahim
My next question is on the oil and gas side. You very nicely explained the chicken and egg situation where customers were looking for us to put the plant. And finally the plant is coming online now by September. So could you talk about what kind of peak sales we can do from that plant and also is there a brownfield capacity expansion that is possible? Because a lot of these customers want big plants and they have very big timelines next three, five years visibility. So could you talk about a little bit on that part.
P. Srinivas Reddy
See the plant the way we have built the infrastructure and the equipment and machinery. It’s a multi fold plant in various requirements of a number of other customers as well. So if you look at 3 to 4 years horizon we are looking at about the oil and gas plant is getting commissioned in September can grow up to even 450 to 500 crores of revenue in that one plant itself.
Irfan Rahim
That is helpful. Aerospace side you talk about significant order from actuator assembly which we are expecting from LCA mark 1 8. So is it like 50 hundred crores?
P. Srinivas Reddy
I think it’s about 130 to 150 crores. And that we have done it, we got qualified, we have supplied them and we are doing that and we are expecting that order. We’re supposed to get it in the last quarter itself but hopefully we’re getting. We should get that in this quarter
Irfan Rahim
And sorry for say X number of years only and this we can expect to be repeated every year for at least 23 years.
P. Srinivas Reddy
We have to see that. You know like basically it’s a three issue material. What you’re talking about here is the order. What I’m talking about is the raw material is the issue from the department. So just the value at what we’re looking at. And so let us get the first batch of orders and then we’ll see how it goes. It also depends on the programs that they want to set up. Right. So
Irfan Rahim
Yes, sure. That’s it for my side. Thank you.
Operator
Thank you. Due to time considered we take this as a last question. I now hand the conference over to the management for closing comments.
P. Srinivas Reddy
So I’d like to thank first all the MTR team members for a phenomenal job done last year. But we’re also focusing on the future years as well and the way things are going. We are very positive about how we are going to grow in the current year and maintain sustaining our margin and as well as the implementation of various capacities expansions that we are looking at in the current year. So a lot of focus is being done in these areas as well and we are very confident of moving ahead and surging ahead with the growth that we’re looking at not only for this year but years to come.
We have a clear roadmap for the next, at least for the next five years. We have a very clear roadmap of what we need to do to build this company to a much greater level, that’s for sure. And I would also like to thank all our shareholders investors for imposing faith in us over the years and moving forward as well. We would assure that we’ll adhere to whatever we have mentioned in terms of our guidance and as well as the margin profile that we have explained. Thank you so much all of you for sparing your time to join us in this earnings call.
Thank you so much.
Operator
Thank you on behalf of musg. In time. That concludes this conference. Thank you for joining us. You may now disconnect your lines.