Synopsis: MTAR Applied sciences posted weak Q2FY26 outcomes with internet revenue plunging 60.7 % QoQ and 77.4 % YoY to Rs. 4.25 crore. Income declined 13.4 % sequentially and 28.7 % yearly to Rs. 135.59 crore. Margins compressed sharply throughout all parameters, resulting in investor disappointment and a ten % inventory slide.
A number one precision engineering inventory got here underneath heavy promoting stress after posting a steep decline in second quarter earnings. The corporate’s profitability dropped sharply on each quarterly and yearly bases, with margins weakening as a consequence of decrease volumes and lowered working leverage.
MTAR Applied sciences Ltd, a key participant within the clear vitality and aerospace manufacturing area, has a market capitalization of Rs. 7,327.09 crore. The inventory opened at Rs. 2,276.75 towards its earlier shut of Rs. 2,526.85 and hit an intraday low of Rs. 2,276.75, marking a 9.9 % decline from the earlier shut.
Monetary Snapshot – Q2FY26
MTAR Applied sciences reported a big sequential decline in efficiency for Q2FY26. On a quarter-on-quarter foundation, gross sales fell 13.4 % from Rs. 156.58 crore to Rs. 135.59 crore, whereas working revenue dropped 40.1 % from Rs. 28.39 crore to Rs. 16.99 crore. The working margin narrowed from 18.13 % to 12.53 %. Revenue earlier than tax fell 61.7 % from Rs. 14.81 crore to Rs. 5.67 crore, and internet revenue plunged 60.7 % from Rs. 10.81 crore to Rs. 4.25 crore. Earnings per share declined from Rs. 3.51 to Rs. 1.38, whereas PAT margin contracted from 6.9 % to three.1 %. The EBITDA margin additionally slipped from 18.1 % to 12.5 %.
On a year-on-year foundation, MTAR’s topline contracted 28.7 %, falling from Rs. 190.19 crore to Rs. 135.59 crore. Working revenue declined 53.8 % from Rs. 36.82 crore to Rs. 16.99 crore, and the working margin dropped from 19.36 % to 12.53 %. Revenue earlier than tax noticed a pointy fall of 77.6 % from Rs. 25.31 crore to Rs. 5.67 crore, whereas internet revenue tumbled 77.4 % from Rs. 18.77 crore to Rs. 4.25 crore. Earnings per share decreased from Rs. 6.10 to Rs. 1.38. PAT margin weakened from 9.9 % to three.1 %, and EBITDA margin contracted from 19.4 % to 12.5 %, indicating a difficult quarter for the corporate.
Feedback from the Administration
Commenting on the outcomes, Mr. Parvat Srinivas Reddy, Managing Director & Promoter, MTAR Applied sciences, mentioned,
“ We sit up for a considerably robust efficiency within the second half of FY26, with income anticipated to just about double in comparison with the primary half. The Firm anticipates round 30% – 35% year-on-year income development in FY 26 in comparison with FY 25, exceeding our earlier steering of 25%, pushed by further order inflows from our clients which can be slated for execution inside this fiscal yr. Moreover, we reaffirm our EBITDA margin steering of round 21% supported by a stronger margin profile in H2 as a consequence of working leverage and better capability utilization.”
Operational Highlights
MTAR Applied sciences reported a diversified order e book of Rs. 1,296.6 crore as of September 30, 2025. Throughout Q2FY26, the corporate obtained new orders value Rs. 497.7 crore throughout a number of sectors, together with Clear Vitality-Civil Nuclear Energy, Gasoline Cells and Hydel, Aerospace and Defence, and others.
Of the whole order inflows, 55.5 % got here from Clear Vitality (Gasoline Cell, Hydel, and Others), 25.2 % from Aerospace and Defence, 11.6 % from Clear Vitality – Civil Nuclear Energy, and seven.7 % from Merchandise and Others. Export gross sales continued to play a dominant position, contributing 76 % of complete income, with the remaining 24 % coming from the home market.
In regards to the Firm
MTAR Applied sciences Restricted operates 9 superior manufacturing services, together with an export-oriented unit in Hyderabad, Telangana. The corporate serves various sectors reminiscent of Clear Vitality (Civil Nuclear Energy, Gasoline Cells, Hydel, and Others), Aerospace, and Defence. With over 4 many years of experience, MTAR maintains long-standing relationships with main Indian organisations and world unique tools producers (OEMs).
-Manan Gangwar
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