1. At a Glance – Missile Parts, Nuclear Nuts & a Very Expensive Stock
MTAR Technologies is that kid in class who does rocket science, nuclear reactors, hydrogen fuel cells, and defense gearboxes—and then charges the market 124x earnings for the privilege. Q3 FY26 came in hot with ₹278 Cr revenue (+59% YoY) and ₹35 Cr PAT (+132% YoY), pushing OPM back to a respectable 23% after a messy FY24–FY25 margin wobble. Market cap sits at ₹8,437 Cr, stock price at ₹2,742, and the share has casually delivered ~79% return in one year.
But here’s the masala: ~70%+ revenue dependence on Bloom Energy, promoter holding drifting down to 30.6%, and ROE chilling at 7–8% like it’s on a government lunch break. The order book looks sexy at ₹894 Cr, nuclear orders are lining up, and exports form 79% of revenue. So is MTAR a strategic national asset… or a beautifully engineered valuation bubble? Let’s open the bolts.
2. Introduction – Born in Embargo, Raised on Precision
Founded in 1970, MTAR was literally created because India couldn’t import critical components post-embargo. So the promoters said, “Fine, we’ll machine it ourselves.” Fast forward five decades, and MTAR is now machining cryogenic engine subsystems, nuclear reactor assemblies, fuel cell components, aerospace actuators, and random things that sound like they belong in ISRO PowerPoint slides.
This is not a volume business. This is tolerance-level microns, zero-failure, sign-20-NDAs-before-talking kind of engineering. That’s why MTAR has survived multiple tech cycles and now supplies to ISRO, NPCIL, DRDO, HAL, and global giants like Bloom Energy, Rafael, Elbit, Andritz, Voith.
But precision engineering doesn’t automatically mean precision capital allocation. And the stock market doesn’t forgive
dependency risk easily. So the real story is not what MTAR does—but how concentrated and cyclical that revenue engine is. Ready?
3. Business Model – WTF Do They Even Do?
Think of MTAR as a backend enabler. They don’t launch rockets; they make the parts that must not fail when rockets launch.
Segment Breakdown (9MFY25):
- Clean Energy – Civil Nuclear (36%)
Reactor internals, fuel machining heads, drive mechanisms, ball screws, water-lubricated bearings. Import substitution heaven. - Clean Energy – Fuel Cells, Hydel & Others (28%)
Hot boxes, hydrogen systems, electrolyzer prototypes—aka Bloom Energy territory. - Products & Others (22%)
Roller screws, electro-mechanical actuators, sheet metal, fabrication. - Space (9%)
Cryogenic subsystems, propulsion engines, valves. - Defence (2%)
Gearboxes, aerostructures, actuators.
MTAR isn’t chasing volume. It’s chasing qualification, certification, and long-cycle contracts. That’s good for moats—but bad when one customer sneezes and your EBITDA catches flu.
Question: Would you sleep peacefully if one client paid 70% of your salary?
4. Financials Overview – Q3 FY26 Redemption Arc
Quarterly Comparison (₹ Cr, Standalone)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 278 | 174 | 136 | +59.3% | +104.4% |
| EBITDA | 64 | 33 | 17 | +94% | +276% |
| PAT | 35 | 16 | 5 | +132% | +600% |
| EPS (₹) | 11.43 | 5.31 | 1.49 | +115% | +667% |
Annualised EPS (Q3 rule):
Average of Q1, Q2, Q3
