MTAR Technologies Ltd Management Discussions

[Image of industrial worker with tablet]

Global Economic Overview

Global economic growth is projected at 3.0% in 2026, before improving to 3.4% in 2027

According to the IMFs recent World Economic Outlook Update, global economic growth is projected at 3.0% in 2026, before improving to 3.4% in 2027. The economic outlook, however, remains uneven across geographies, with energy-importing and vulnerable economies facing greater pressure from geopolitical and commodity-market disruptions, while those integrated into global technology value chains continue to benefit from the ongoing technology-led investment cycle.

In addition, inflation remains a key consideration for the economies globally. The IMF projects global headline inflation at 4.7% in 2026, indicating that the disinflationary momentum witnessed since early 2024 has moderated. Nevertheless, global financial conditions remain broadly supportive by historical standards, providing some support to investment and economic activity.

As per the current scenario, the global economic environment is expected to remain shaped by the various factors including geopolitical developments, energy prices, trade policies and rapid technology-led investment. While the global economy is facing uncertainties, continued investment in AI, digital infrastructure, advanced manufacturing and clean-energy technologies is expected to create opportunities across global industrial and technology value chains.

Source: IMF

Regional Growth %	2026E	2025
World Output	3.0	3.5
Advanced economies	1.7	1.9
Emerging and Developing economies	3.8	4.5

Indian Economic Review

The Indian economy continued to demonstrate strong momentum in FY26, retaining its position among the fastest-growing major economies globally. Indias real GDP grew by 7.7% in FY26, supported by resilient domestic consumption, investment activity and broad-based economic growth.

Looking ahead, the IMF projects Indias GDP to grow by 6.4% in FY27, while the Economic Survey 2025-26 projects growth in the range of 6.8-7.2%, reflecting the underlying strength of the domestic economy despite an uncertain global environment.

Manufacturing continues to remain central to Indias long-term growth strategy. Government initiatives such as Make in India and Production Linked Incentive (PLI) schemes, increasing localisation and continued infrastructure investment are strengthening domestic manufacturing capabilities and supporting Indias growing participation in global supply chains.

Strategic sectors including Aerospace & Defence and Clean Energy continue to witness increasing investments. The Aerospace & Defence sector is benefiting from greater indigenisation, increasing private-sector participation and a sustained focus on exports. Simultaneously, investments across renewable energy, green hydrogen and nuclear power are strengthening Indias energy security and supporting its transition towards a cleaner energy mix.

While geopolitical tensions, energy-price volatility, global trade uncertainties and tariff-related disruptions remain potential headwinds, Indias large domestic market, expanding manufacturing ecosystem, infrastructure investments and policy-led reforms are expected to support sustained economic growth over the medium to long term.

Source: Economic Times, IMF

Y-o-Y growth of the Indian economy

FY 20	FY 21	FY 22	FY 23	FY 24	FY 25	FY 26
Real GDP growth (%)	4.2	6.6	8.7	7.2	8.2	6.5	7.7

Source: Economic Times, IMF

Growth of the Indian economy, FY 26

Q1 FY 26	Q2 FY 26	Q3 FY 26	Q4 FY 26
Real GDP growth (%)	6.7	8.4	7.8	7.8

Source: Economic Times

[Image of robotic manufacturing equipment]

RBI expects Indian Economy to growth at 6.7% supported by strong projected growth in manufacturing, consumption and services sectors

Divisional Review

Clean Energy

Clean technologies such as fuel cells, hydropower and wind energy continue to play a critical role in the global transition towards a low-carbon economy. As global economies accelerate their decarbonisation efforts, these technologies are expected to remain integral to reducing carbon footprint and building a more sustainable and resilient energy ecosystem.

The increasing adoption and scale-up of clean technologies are expected to create significant and scalable opportunities across the value chain. Component and assembly suppliers supporting these technologies are consequently well positioned to benefit from increasing investments, expanding and sustained growth in global demand. MTAR aims to increase its market share in various verticals of Clean Energy to contribute to the global transition to renewables to achieve carbon neutrality.

[Images of wind turbines, data centre, snow-covered equipment, nuclear cooling towers]

MTAR is expanding its presence across various verticals of clean energy, leveraging its precision engineering capabilities to deliver advanced products and solutions that enable sustainable operations and support the global transition towards a cleaner future

Industry Potential

India remains committed to nuclear power as a source of clean, reliable and round-the-clock electricity, supporting the countrys twin objectives of strengthening energy security and advancing sustainable development. Recognising its growing importance in Indias future energy mix, the Government has set an ambitious target of achieving 100 GWe of nuclear power capacity by 2047.

India currently operates 24 nuclear power reactors with an installed capacity of 8.78 GWe. With increasing power demand and the countrys long-term decarbonisation objectives, nuclear energy is expected to play an increasingly important role in providing stable baseload power while complementing the rapid expansion of renewable energy.

Capacity addition through new reactors

As part of its three-stage nuclear power programme, India operates 24 nuclear power reactors with an aggregate installed capacity of 8.78 GWe. In addition, nine reactor units aggregating approximately 7.5 GWe are under construction, while several other projects are progressing through pre-project and preparatory stages.

The commissioning of the indigenously designed 700 MWe PHWRs at Kakarap Units 3 & 4 represents an important milestone in Indias journey towards technological self-reliance and provides the foundation for the deployment of additional 700 MWe PHWRs across the country.

The Government has also approved 10 indigenous 700 MWe PHWRs aggregating 7 GWe under the fleet-mode programme. These comprise Kaiga Units 5 & 6, Gorakhpur Units 3 & 4, Chutka Units 1 & 2 and Mahi Banswara Units 1, 2, 3 & 4. Construction has commenced on Kaiga Units 5 & 6, while the remaining fleet-mode reactors are progressing through various pre-project and preparatory stages. Further, NPCIL has submitted proposals to the Government for 10 additional 700 MWe PHWRs at KAPS 5 & 6, RAPS 9 & 10, NAPS 3 & 4 and Bhirampur 1, 2, 3& 4. The continued expansion of Indias indigenous PHWR programme presents a sizeable long-term opportunity for the domestic nuclear manufacturing and supply-chain ecosystem

India is also pursuing large-scale nuclear capacity addition through collaboration with international players. The proposed Jaitapur Nuclear Power Project in Maharashtra, being pursued in cooperation with France, envisages the development of six large European Pressurised Reactors (EPRs). Once implemented, the project would represent a significant addition to Indias nuclear generation capacity and create opportunities across the highly specialised nuclear supply chain, which is characterised by stringent qualification requirements and high barriers to entry.

Another significant milestone was achieved recently, when Indias indigenously developed 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakam achieved first criticality, marking significant progress towards the second stage of Indias three-stage nuclear power programme. The PFBR is expected to be commissioned by Dec 2026 and government has initiated pre project work for FBR 1 and 2.

Refurbishment of reactors

To uphold the highest standards of nuclear safety and operational excellence, each refurbishment of critical systems upon reaching its design life milestone of approximately 16 years. These life extension initiatives are essential to ensure the continued safe, reliable, and efficient performance of nuclear power plants across the country. The Nuclear Power Corporation of India Limited (NPCIL) has floated the procurement of critical assemblies required for refurbishment of RAPS 2 and MAPs 2 reactors, the contracts shall be awarded in FY 27. These refurbishment of reactors unlock significant market opportunities for domestic equipment manufacturers and technology providers, particularly in the supply of critical reactor systems and components, further reinforcing the vision of Atmanirbhar Bharat in the nuclear sector.

SMRs

The government has announced the establishment of a Rs 200 Bn. Nuclear Energy Mission for the research and development of small modular reactors (SMRs), with a target of operationalising at least five indigenously developed SMRs by 2033. This strategic push is part of broader efforts to accelerate the growth of atomic power in India, supported by amendments to the legal framework to facilitate greater participation from private sector players. These developments are expected to create significant opportunities across the nuclear value chain, particularly for qualified players with established capabilities in the sector.

Source: NPCIL, World Nuclear Association, CRISIL Research

Source: NPCL, Government of India

[Chart: Increase in nuclear capacity in India - Current Capacity 8.8, Under Construction 7.5, Pre-project 5.7, Total Capacity 22 GWe]

Source: NPCL, Government of India

Opportunity for MTAR

MTAR specializes in supplying fuel handling systems for the core of the nuclear island that are functionally critical assemblies of nuclear reactor. Currently, it provides 15 different products essential to the nuclear island and possesses the capability to fulfill the entire core equipment requirements. With the commissioning of its new fabrication facility, the Company is now qualified to manufacture additional key products, including End Shield and Calandria. Reflecting this expanded capability, the Company has actively participated in tenders for several of these new products, thereby broadening its product portfolio and strengthening its market presence.

The Companys manufacturing capacity enables it to address orders from up to four reactors simultaneously, allowing it to efficiently support both new reactor construction and refurbishment projects. It supplies specialized products for the core of the nuclear island- such as fuel machining heads, bridge and column assemblies, drive mechanisms, coolant channel assemblies, and more, not only for new pressurized heavy water reactors but also for the refurbishment of existing reactors, positioning the Company as a key player across the entire reactor lifecycle.

The Company received Rs. 5040 Mn of orders from Kaiga 5 & 6 reactors.

In addition, approx. 1500 Mn of orders are expected in FY 27 from reactors that are identified for refurbishment.

Furthermore, ongoing maintenance requirements for operational reactors are expected to generate annual maintenance orders valued between Rs. 100-200 million, contributing to a steady revenue stream and long-term client engagement.

Source: NPCL, World Nuclear Association, CRISIL Research

[Image of nuclear equipment]

The company has received Rs. 5040 Mn orders for core of the island assemblies for Kaiga 5 & 6 reactors

Tenders for the four nuclear reactors proposed at Mahi Banswara are expected to be floated during FY27.

Under-construction reactors	Construction start	State	Type	Gross capacity (GWe)
PFBR	2004	Tamil Nadu	FBR	0.5
Rajasthan 7 & 8	2011	Rajasthan	PHWR	1.4
Kudankulam 3, 4, 5 and 6	2017	Tamil Nadu	PWR	4.0
Gorakhpur 1 & 2	2018	Haryana	PHWR	1.4
Kaiga 5 & 6	2026	Karnataka	PHWR	1.4

Source: NPCl, World Nuclear Association, CRISIL Research

New reactors planned	State	Type	Gross capacity (GWe)
Gorakhpur 3 & 4	Haryana	PHWR	1.4
Chutka 1 & 2	Madhya Pradesh	PHWR	1.4
Mahi Banswara- 1, 2, 3 & 4	Rajasthan	PHWR	2.8
Kaiga 5 & 6	Karnataka	PHWR	1.4
Kudankulam- 7 & 8	Tamil Nadu	PWR	2.0

Source: NPCl, World Nuclear Association, CRISIL Research

Key Products

? Fuelling Machine Head

? FM Bridge & Column

? Fuel Transfer System

? Coolant Channel Assemblies and other products

? Ball Screws

? Water Lubricated Bearings

? Ram head Assemblies

? Drive Mechanisms

Fuel Cells Industry Potential

The global fuel cell industry is witnessing a robust growth, driven by increasing demand for clean, efficient and distributed power solutions. Global decarbonisation initiatives, growing electricity demand, and technological advancements are accelerating the adoption of fuel cells across stationary power, transportation, and industrial applications.

Fuel cells generate electricity through an electrochemical process using fuels such as hydrogen, natural gas, among others. Their high efficiency, modularity and ability to provide continuous distributed power make them specifically suitable for applications requiring continuous power generation with high reliability. Continued advancements in materials, system design and manufacturing processes are also improving their commercial viability, thereby enabling them to capture greater market share.

Solid Oxide Fuel Cells - Fastest Growing Market

Among various fuel-cell technologies, Solid Oxide Fuel Cells (SOFCs), which can utilise methane as a fuel to generate electricity, are gaining prominence in stationary power applications owing to their high efficiency and ability to provide continuous power. The technology is increasingly finding applications across commercial and industrial facilities, utilities and, more recently, data centres, where demand for reliable, distributed and rapidly deployable power is growing significantly.

Al-Powered Data Centres - A Significant Growth Driver

The rapid expansion of Al and cloud computing infrastructure is driving unprecedented growth in data-centre electricity requirements. At the same time, constraints in existing power grids and extended grid-interconnection timelines are emerging as critical challenges for developers, particularly in the US. According to Rystad Energy, grid-interconnection timelines for large loads in the US have increased significantly and can now extend to approximately three to six years, prompting data-centre operators to increasingly evaluate dedicated on-site power generation.

Fuel cells are emerging as one of the solutions to this challenge due to their combination of continuous power availability, modular scalability and relatively rapid deployment. Certain commercially available SOFC systems can provide on-site power in as little as 90 days, enabling data-centre developers to accelerate the deployment of computing capacity without waiting for lengthy grid connections or large-scale generation infrastructure. This speed-to-power advantage is particularly relevant for Al-powered data centres, where access to electricity is increasingly becoming a critical factor determining the pace at which new capacity can be brought online.

Compared with large conventional generation projects, which can involve significantly longer development and commissioning timelines, modular fuel-cell systems can be deployed progressively alongside increases in data-centre capacity. This provides developers with greater flexibility to align power availability with the rapid scaling of Al computing infrastructure.

According to Rystad Energy, revenues from the data-centre fuel-cell market are projected to increase nearly tenfold, from approximately USD 2.8 Bn in 2025 to around USD 30 Bn by 2030, driven largely by the rapid expansion of Al-led data-centre infrastructure. The sector has a contracted order book of approximately 9 GWe, including framework agreements involving major companies such as Oracle, AEP, Equinix and Brookfield, indicating growing industry confidence in fuel cells as a long-term power solution.

Rystad Energy further projects approximately 10.4 GWe of cumulative fuel-cell demand from data centres between 2026 and 2030. Around 40% of projected US data-centre capacity in 2030 is modelled as likely to pursue dedicated on-site power generation rather than relying solely on conventional grid connections. North America is expected to account for approximately 91% of global installed on-site power-generation capacity, supported by grid constraints, policy incentives and an established domestic supply chain. The growing opportunity is also translating into capacity expansion across the fuel-cell industry.

Opportunity for MTAR

The Company supplies critical components and assemblies for SOFCs and is well positioned to benefit from strong industry tailwinds and growing customer demand.

Source: industry, Rystad Energy, Rabobank Research

Data Centres Infrastructure Solutions Industry Potential

The rapid expansion of Artificial Intelligence (AI), cloud computing and high-performance computing is driving significant investment in data centre infrastructure globally. According to McKinsey, cumulative investment in data centres worldwide could reach nearly USD 7 trillion by 2030, including approximately USD 5.2 trillion required to support AI-related workloads alone.

The growth in AI computing is fundamentally changing the power and thermal requirements of data centres. Energy-intensive AI infrastructure is driving increasing demand for equipment ranging from transformers, electrical distribution and power-management systems to advanced cooling and thermal-management solutions. According to Bank of America estimates cited by Reuters, power consumption per AI rack could increase to more than 1.5 MWe by the end of 2030, nearly 100 times the power consumption of a conventional rack. As power density increases, the corresponding requirement for efficient cooling and thermal-management systems

According to Bank of America estimates cited by Reuters, power consumption per AI rack could increase to more than 1.5 MW by the end of 2030, nearly 100 times the power consumption of a conventional rack. As power density increases, the corresponding requirement for efficient cooling and thermal-management systems is also expected to rise significantly.

This is creating opportunities for specialised equipment manufacturers across the data centre infrastructure value chain. Power availability, cooling capacity and speed of deployment are increasingly becoming critical considerations for data centre developers, resulting in growing adoption of prefabricated and modular infrastructure solutions that can be manufactured offsite and rapidly integrated at the project location.

The emerging opportunity is reflected in the strategic expansion of global engineering and energy-technology companies into this segment. SLB, for instance, has established a dedicated Data Center Solutions business providing modular infrastructure across power delivery, electrical systems and cooling. Its portfolio includes modular server-hall infrastructure integrating power, networking and cooling; Central Utility Buildings housing chillers and air-and liquid-cooling equipment; and modular electrical rooms housing medium-and low-voltage switchgear. SLB states that its modular approach can compress deployment timelines by up to 40% compared with traditional site-built construction.

SLB has also expanded its collaboration with NVIDIA, becoming the modular design partner for NVIDIA DSX AI factories, while continuing to scale its manufacturing capabilities to address growing demand for AI infrastructure.

The increasing participation of global engineering companies in this segment reflects the significant long-term opportunity emerging across power, cooling, modular infrastructure and associated equipment.

As global data centre capacity expands and AI workloads become increasingly power-intensive, the need to improve power efficiency, cooling efficiency and the overall environmental performance of data centres is expected to become increasingly important. This is creating opportunities for the development of more energy-efficient and lower-carbon data centre infrastructure, while providing a significant long-term opportunity for precision engineering companies capable of manufacturing critical components and assemblies for complex power, cooling and modular infrastructure systems

Opportunity for MTAR

The Company has expanded its Low Carbon Solutions portfolio into data centre infrastructure solutions and has received first-article orders from SLB for the manufacture of sheet-metal components and assemblies. Upon successful qualification of first articles, this opportunity has the potential to develop into a scalable revenue stream for the Company, supported by increasing investments in AI data centres and the growing requirement for efficient power, cooling and modular infrastructure solutions.

Source: industry, Economic Times

Market Potential-Hydro Power

Wind Energy

Hydro Power remains an important pillar of the global clean-energy transition, providing reliable, flexible and low-carbon electricity while supporting the integration of intermittent renewable sources such as solar and wind. Its ability to provide dispatchable generation and grid-balancing services is becoming increasingly important as the share of variable renewable energy in the global power mix continues to rise.

In the Indian context, hydropower is seen as a key enabler in the nations transition away In India, hydropower is expected to play an increasingly important role in strengthening energy security and facilitating greater integration of renewable energy into the grid.

Wind energy continues to gain prominence as a key component of Indias transition towards a cleaner and more diversified energy mix. Indias installed wind-power capacity reached approximately 58.1 GW as of July 2026, supported by strong capacity additions and an expanding project pipeline. Wind generation is particularly complementary to solar power, with differences in generation profiles helping improve renewable-energy availability beyond daylight hours and supporting greater stability in the power system.

Opportunity for MTAR

The Company is catering to customers such

The Company is catering to customers such as Andritz, Voith, GE Power, among other by supplying complex fabricated products including draft tubes, spiral casings, rotor and stator assemblies etc. The customer in Hydro Power and Wind Energy sectors are projecting strong demand that is going to translate into steady growth for the company

Source: industry, Economic Times

Oil & Gas

The global oil and gas industry continues to play a critical role in meeting the worlds growing energy requirements, notwithstanding the accelerating transition towards renewable and low-carbon energy sources. Rising energy consumption across emerging economies, driven by industrialisation, urbanisation and economic growth, continues to support demand for oil and natural gas across transportation, power generation and industrial applications. continued investments in exploration, production and energy infrastructure are supporting demand for specialised equipment, technologies and services across the upstream and midstream oil and gas value chain.

The technically demanding operating environment of the oil and gas industry requires equipment capable of withstanding high pressures, temperatures and corrosive environments, creating opportunities for qualified engineering and manufacturing companies capable of meeting stringent material, quality and performance requirements. Leading global oilfield-services and energy-technology companies such as SLB and Weatherford are positioned across multiple parts of the oil and gas value chain and continue to support customers through technologies, equipment and services aimed at improving drilling, production and reservoir performance. Sustained investment by oil and gas producers is therefore expected to translate into corresponding opportunities across the specialised equipment and precision-engineering supply chain.

Opportunity for the Company

The Company is expanding its presence in the Oil & Gas sector by leveraging its precision-engineering capabilities to develop critical components and assemblies for leading global oilfield-services companies. The Company has delivered the first articles for Weatherford and working on the Class A components for SLB. Successful qualification and subsequent transition to serial production are expected to provide the Company with opportunities to increase its share of business with these global customers and progressively expand its Oil & Gas product portfolio.

Indian Space Industry Market Potential

India has emerged as an increasingly important participant in the global space ecosystem, supported by its cost-effective launch capabilities, indigenous satellite technologies and successful scientific and interplanetary missions. Indias space economy, currently estimated at approximately USD 8.4 billion and accounting for around 2% of the global space economy, is targeted to expand to approximately USD 44 billion by 2033, including a significant increase in space exports

The Indian Space Research Organisation (ISRO) has established a distinct position in the global space ecosystem through its track record of cost-effective and technologically advanced space missions. Its capabilities span satellite development, launch vehicles, lunar and interplanetary exploration, space science and commercial launch services. ISRO has so far undertaken 135 spacecraft missions and 105 launch missions, while also launching 434 foreign satellites, underscoring Indias growing capabilities in the global space ecosystem.

ISRO has developed a diversified portfolio of indigenous launch vehicles, including the Polar Satellite Launch Vehicle (PSLV), Geosynchronous Satellite Launch Vehicle (GSLV) and Launch Vehicle Mark-3 (LVM3). These capabilities have progressively reduced the countrys dependence on overseas launch services while enabling India to emerge as a reliable launch partner for domestic and international satellite missions.

Indias space programme has achieved several landmark milestones in recent years. Chandrayaan-3 made India the first country to successfully land near the Moons south polar region, while Aditya-L1 marked Indias first dedicated solar observatory mission. The NASA-ISRO NISAR mission, launched in July 2025, further demonstrated Indias growing capabilities in international space collaboration. ISRO is now progressing towards the Gaganyaan human spaceflight programme, which represents the next major milestone in Indias space journey.

The Indian space sector is also undergoing a significant structural transformation, with the Government encouraging greater private-sector participation across launch vehicles, satellites, components, propulsion systems and space-based services. ISRO is progressively transferring production and operational activities for mature systems to industry, enabling it to focus increasingly on research & development and future missions.

Opportunity for MTAR

The Company has been a trusted partner for over four decades. It has been a strategic partner to ISRO in the development of precision engineered sub systems for PSLV and GSLV programs, including liquid propulsion rocket engines (such as the Vikas engine for PSLV), cryogenic engine sub-systems, electro-pneumatic modules, and more. These products are integral to ISROs flagship missions like Chandrayaan-3 and Aditya-L1 mission. The Company is also involved in manufacturing critical structures, such as grid fins, for the upcoming Gaganyaan human spaceflight With ISROs increasing focus on commercial launches and the rising frequency of missions, the Company is well-positioned to benefit from a higher volume of orders in the coming years.

In line with its growth strategy, the Company is also working to expand its share of ISROs procurement. The company has delivered actuators for ground test applications recently, which is a new product.

Source: industry, Economic Times, ISRO

Key Products

? Vikas Engines

? Cryogenic Upper Stage Engine assemblies including Turbo Pump, Booster Pump and Gas Generator

? Actuator assemblies

Key Products Under development

? Valves for ground test applications

MNC Aerospace industry analysis

Indias defence and aerospace sectors are undergoing a significant transformation, supported by the Governments sustained focus on strengthening indigenous manufacturing, enhancing domestic capabilities and expanding defence exports. The Government of India has set ambitious targets to scale annual defence production to Rs. 3,000 billion by FY29 and defence exports to Rs. 500 billion, reflecting Indias growing ambition to emerge as a major defence manufacturing hub and an integral part of global defence supply chains.

Flagship programmes such as the Advanced Medium Combat Aircraft (AMCA) and Tejas Mk2 reflect Indias advancing capabilities in the indigenous design and development of sophisticated defence platforms. These programmes are being supported by sustained policy initiatives, increased investments in R&D and greater participation of the domestic private sector.

A key focus of Indias indigenisation efforts is the development of sovereign aero-engine capabilities, an area that is strategically important for achieving greater self-reliance in advanced combat aircraft. The Government has reiterated its commitment to developing next-generation aero engines domestically and building a robust indigenous ecosystem around this critical technology. Global aero-engine majors including Safran and Rolls-Royce have expressed interest in partnering with India for the development of high-thrust engines, with proposals encompassing joint development, manufacturing and transfer of critical technologies.

Such programmes, if progressed, could create significant opportunities for the Indian aerospace supply chain across precision-engineered components, advanced materials, engine sub-assemblies, manufacturing, testing and lifecycle support. The domestic aeroengine ecosystem is also gaining momentum through ongoing collaborations. HAL and Safran have commenced the development and production programme for the indigenous Aravalli engine for Indias next-generation military helicopters. Such initiatives are expected to progressively deepen domestic manufacturing capabilities, enhance technological know-how and expand opportunities for Indian companies to participate in increasingly complex and high-value aerospace programmes.

Further strengthening the broader indigenisation drive, in August 2026, the Raksha Mantri approved the transfer of DRDO-developed technologies for all conventional missile systems to the Indian defence industry for domestic production. The initiative is expected to accelerate the transition of indigenous technologies from development to industrial-scale production, enhance domestic value addition and create greater opportunities for Indian manufacturers, MSMEs and technology partners across the defence supply chain.

In addition, global MNCs are increasingly looking to expand their supplier base in India. The perception of India is evolving beyond that of a cost-effective manufacturing destination, with greater emphasis on quality, engineering capabilities and world-class manufacturing infrastructure. This shift positions Indian suppliers with advanced facilities and proven capabilities to capture a larger share of global sourcing opportunities.

Opportunity for MTAR

The Company established its MNC Aerospace division in 2018, initially serving global OEMs such as Rafael and Elbit Systems. Over time, it has significantly expanded its onboarding renowned clients including GKN Aerospace, Thales, Thales Alenia Space, Israel Aerospace Industries (IAI), and Collins Aerospace, among others. With first article deliveries completed, the Company has entered the volume production phase for select programs, and will progressively ramp up production for other customers in a phased manner. Backed by a robust order book and maturing client relationships, the Company is projecting a 45-50% revenue growth in the MNC Aerospace vertical over the next five years.

In the domestic defence segment, the Company continues to strengthen its leadership in high-precision, mission-critical engineered products, such as canisters, magnesium gearboxes, airframes, Wing kit assemblies and various other structural assemblies. The Company has successfully delivered 5-ton and 10-ton actuators for the LCA Tejas program and is poised to receive volume orders in the future. It has also recently commenced development of combustor assemblies for the Scramjet Engine, marking its foray into next-generation propulsion technologies.

With increasing emphasis on indigenisation, supportive government policies, and expanding domestic defence outlays, the Company anticipates strong order inflows in the upcoming quarters across multiple platforms, supported by its proven execution capabilities, deepening engineering expertise, and long-standing customer relationships.

Key Products - MNC Aerospace

? Aerostructures

? Metallic Boxes

? Engine Parts

? Drone Equipment

? Housings

Key Products - Domestic Defence

? Magnesium Gear Boxes for Helicopters

? Actuation Systems

? Aerostructures

? Valves

? Canisters

? Airframes

? Engine Sub Systems

Opportunities and threats

Clean Energy Civil nuclear:

The Company continues to strengthen its positioning across multiple clean energy verticals, aligned with global and domestic efforts towards carbon neutrality. In the civil nuclear segment, the Government of Indias fleet-mode reactor programme is translating into tangible opportunities, with orders for Kaiga 5 & 6 already awarded and tenders for four reactors at Mahi Banswara expected during FY27. Further tenders for upcoming reactors are anticipated over the coming years. With established capabilities in critical nuclear island core assemblies that require stringent qualification standards, the Company is well positioned to participate in the sectors long-term growth.

Clean Energy Fuel cells, Hydel, Wind and Others:

Global governments are emphasizing renewable energy sources to achieve carbon neutrality by 2050. Fuel cells are efficient energy sources; significant growth is expected in this segment due to strong industry tailwinds, boosting Companys revenues. The Company is one stop solution provider for mechanical systems for SOFC fuel cells to a US based customer.

The Company intends to further expand its presence in the Clean Energy sector and has commenced the fabrication of critical structures for Hydropower, Wind Energy, Building on these capabilities, the Company continues to expand its presence across other clean energy verticals, including its entry into data centre energy infrastructure solutions, alongside the fabrication of critical structures for hydropower and wind energy applications. The opportunities in this segment represent a lucrative market potential for advanced equipment manufacturing, reinforcing the Companys long-term growth strategy.

Aerospace and Defence

Space:

ISROs launches might increase as the market share of India in the Global Space economy valued at USD 400 Bn is projected to increase from 2% to 8% by 2033. Vikas Engines and electro-pneumatic modules supplied by MTAR are used in all the launch vehicles where as cryogenic upper stage systems are used in GSLV.

Increased launch activity from ISRO is expected to enhance order volumes for the Company. Its advanced sheet metal facility enables it to pursue new opportunities such as motor casings, thrust chambers, and light alloy structures. The Company has recently delivered actuator assemblies for ground support applications and is also engaged in the development of space-grade valves on a built-to-specification basis.

Defence:

The Government of India has set a bold target of Rs. 500 billion in defence exports by 2029, alongside a projected Rs. 3,000 billion in total defence production by 2029-30, underscoring its strong commitment to becoming a premier exporter of defence systems. In addition, a growing number of global OEMs and MNCs are keen to collaborate with Indian industry partners, creating significant opportunities for the Company to expand its role in the Indian defence sector.

The Aerospace and Defence sector presents significant opportunities across propulsion systems, aerostructures, and allied products. MTAR has been a trusted supplier of airframes, canisters, wing kit assemblies, and base shroud assemblies for various domestic and global programs, demonstrating its strong capabilities in precision manufacturing. With these credentials, the Company is well positioned to capitalize on the sectors robust growth trajectory.

However, any deviation in industry growth trends could have an impact on future revenues, and pose a threat to our growth trajectory.

Company overview

MTAR Technologies is a leading manufacturer in Indias niche precision manufacturing industry. The Company is engaged in the manufacture of mission critical precision engineered systems for Clean Energy- Civil Nuclear Power, Fuel Cells, Hydro Wind, Space and Defence sectors. The Company emerged as a market leader due to its contribution to the Indian civilian nuclear power programme, Indian space programme, Indian defence, global defence as well as global clean energy sectors. The Company is respected for having invested in state-of-the-art facilities comprising machining, assembly, specialised fabrication, painting and special process facilities. The Companys clients comprise ISRO, DRDO, Bloom Energy, Andritz, GE Power, Voith, Rafael, Elbit, GKN Aerospace, IAI, Thales among others. Owing to a complex product portfolio for strategic sectors, MTAR is one of the top three suppliers that provide precision engineering requirements to the Indian Civil Nuclear Power, Space and Defence sectors.

Segment wise or product wise performance

The Company does not operate in the manner of different business segments. However, we do measure revenues based on various customer segments.

Revenue from exports stands at 83% of total revenue from operations in FY 26 as against 79% of total revenue from operations in FY 25. Approx. Rs. 2400 Mn of revenue is derived from new products developed over the past 2-3 years across diverse segments

Sector	Revenue generated from customers in FY 2025-26 (Rs. Mn)	Revenue generated from customers in FY 2024-25 (Rs. Mn)
Clean Energy-Civil Nuclear Power	236	184
Clean Energy-Fuel Cells & Others	6146	4169
Aerospace & Defence	1038	932
Products and Others	1341	1475
Total	8761	6760

Financial overview

Analysis of the profit and loss statement

Revenues:

Revenues from operations reported at Rs. 8,761.08 Mn in FY 26 compared to Rs. 6,759.57 Mn in FY 25. Increase in revenue from operation is 29.61% compared with FY 25.

Expenses:

Total expenses increased by 26.18% from Rs. 6,092.35 Mn in FY 25 to Rs. 7,687.60 Mn. Cost of materials consumed, accounting for 57.46% share of the Companys revenues, increased by 44.45% from Rs. 3,485.05 Mn in FY 25 to Rs. 5,034.25 Mn in FY 26 owing to an Change in the product mix of exports and domestic revenues and Other products. Employees expenses, accounting for a 16.99% share of the Companys revenues, increased by 21.83% from Rs. 1,221.66 Mn in FY 25 to Rs. 1,488.34 Mn in FY 26. Finance costs of the Company remained same in line with increased material consumption and increased revenue. Increased from Rs. 221.60 Mn in FY 25 to Rs. 293.44 Mn in FY 26.

Other expenses of the Company increased by 6.50% from Rs.916.04 Mn in FY 25 to Rs. 975.58 Mn. Increase in others expenses is due to Increase in Out sourcing manpower and Power & Fuel costs.

Analysis of the Balance Sheet Sources of funds

The Equity capital employed by the Company increased by 13% from Rs. 7,307.19 Mn as on March 31, 2025 to Rs. 8,256.82 Mn as on March 31, 2026. Trade Payables increased from Rs. 1,051.41 Mn as on March 31, 2025 to Rs. 1,490.22 Mn as on March 31, 2026.

Applications of funds

PPE (gross) of the Company primarily increased by 15.81% from Rs. 5,586.83 Mn as on March 31, 2025 to Rs. 6,469.93 Mn as on March 31, 2026 owing to an investment in Capex to Increase the capacities in all units as per requirements.

Depreciation on tangible assets increased by 4.51% from Rs. 310.08 Mn in FY 25 to Rs. 324.07 Mn in FY 26 owing to an fixed assets added during the year under review.

Working capital management

Current liabilities of the Company increased by 153.06% from Rs. 2,866.04 Mn as on March 31, 2025 to Rs. 7,252.85 Mn as on March 31, 2026, due to increase in trade payables and advance received from customers. The Current Ratio of the Company stood at 1.56 at the close of FY 26 compared to 2.15 at the close of FY 25. Inventories including raw materials, work-in-progress and finished goods, among others, increased by 44.65% from Rs. 3,452.62 Mn as on March 31, 2025 to Rs. 4,994.22 Mn as on

March 31, 2026. Company dispatched items of long lead time projects and reduced inventory levels with better inventory planning. The inventory cycle is 208 days of turnover equivalent in FY 26 compared with 186 days of turnover equivalent in FY 25.

Company received the trade receivable within due date. Trade receivable increased from Rs. 2,094.43 Mn as on March 31, 2025 to Rs. 3,365.72 Mn as on March 31, 2026. All receivables were secured and considered good and 90% of receivables are not overdue. The Company contained its debtors turnover cycle within 140 days of turnover equivalent in FY 2026. Cash and bank balances of the Company increased from Rs. 166.00 Mn as on March 31, 2025 to Rs. 211.21 Mn as on March 31, 2026.

Other Current Assets increased by 45.20% from Rs. 376.89 Mn as on March 31, 2025 to Rs. 547.25 Mn as on March 31, 2026 account of increase in advance payments made to suppliers.

Margins

The EBITDA margin of the Company increased from 17.85% in FY 25 to 19.52% in FY 25. while net profit margin of the Company increased from 7.97% in FY 25 to 10.9% in FY 26.

Key Ratios

Particulars	2025-26	2024-25	Remarks
Debtors turnover ratio	3.21	3.80	Our debtors turnover ratio is increased due increase in sales during the quarter end of the year under review.
Inventory turnover ratio	1.09	0.99	The decrease in ratio is due to better inventory movement compared with the previous year.
Debt service coverage ratio	3.40	2.31	The increase in Debt service coverage ratio is due to increase in net profits during the year under review.
Current ratio	1.56	2.15	The current ratio of Company decrease is due to increase in borrowings and other current liabilities.
Debt-equity ratio	0.45	0.24	Increase in ratio is due to increase in the borrowings for procurement of property, plant and equipment.
Return on capital employed	12.39%	10.11%	Our ROCE has seen increased in FY 26 compared with FY 25 indicating an improvement in generating returns from the capital employed during the current year.
Net profit margin (%)	10.88%	7.97%	Our net profit margin increased compared with last year indicates an improvement in the companys overall profitability
Return on Net worth	12.25%	7.65%	The improvement indicates enhanced profitability and more effective utilisation of the Companys equity base, resulting in better value creation for shareholders

Risks and concerns

Identifying and assessing risks is crucial for understanding the relationship between different types of risks and the cascading impact they may have on the organisations strategic goals.

Any delays in manufacturing and inspection activities can postpone project execution, thereby impacting revenues and margins. For instance, some inspection delays from customers due to geopolitical scenario in Q4 FY 26 has affected our topline slightly. Such events continue to pose a potential threat to revenues in the future as well. Similarly, since the Company imports the majority of raw materials, any supply chain disruptions could adversely affect revenues. Global geopolitical developments may also result in raw material procurement delays, labour shortages, and customer clearance bottlenecks, further affecting business performance.

To address these challenges, the Company adopts diligent procurement and production planning and follows a defined and comprehensive risk management process, fully integrated with its operations. The Company has established a three-tier risk management structure, consisting of:

Board Risk Management Committee
Apex Risk Management Committee
Functional Risk Management Committee

This structure enables systematic identification, categorization, and prioritization of operational, financial, and strategic business risks. To mitigate them, the Company continues to devote significant time, effort, and human resources, ensuring risks are effectively managed and controlled.

Internal control systems and their adequacy

The Companys internal audit system has been continuously monitored and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are addressed promptly. The audit committee reviews reports presented basis. The committee makes note of the audit observations and takes corrective by the internal auditors on a quarterly actions, if necessary. It maintains constant dialogue with statutory and internal auditors to ensure that internal control systems are operating effectively.

The company also assesses the ICoFR (Internal Controls on Financial Reporting) through third party auditors to monitor its effectiveness.

Information Technology

The Company has continued the implementation of advanced IT solutions and undertaken significant technology upgrades to strengthen business operations. Key areas of improvement include customer order management and dispatches, production planning and reporting, manufacturing processes, financial accounting, and raw material scheduling.

In addition, the Company has carried out necessary upgrades to its ERP system, integrating requirements across functions such as production, finance, sales, manufacturing, storage and warehousing, inventory, and human resource management. These initiatives provide greater control, efficiency, and transparency across the enterprise. Our facilities at Unit 1, Unit 2, Unit 3, EOU, and Unit 6 have been certified for ISO 27001:2013 Information Security Management System.

The Company has further increased its investment in automated shop floor management solutions to reduce cycle times and enhance productivity by effectively addressing product lifecycle bottlenecks.

The Company will continue to invest in IT systems and processes, including robust backup solutions, to enhance operational efficiency, customer service, and decision-making. These initiatives aim to minimize manual intervention, reduce the risks of system failures, and ensure greater reliability of operations.

Human Resources

The Company has adequate manpower to support its future growth and maintains alignment with prevailing industry standards. As of March 31, 2026, the workforce comprised 903 staff members, 1613 workmen (both on-roll and off-roll), and 1951 third-party contract employees.

The Company has consistently maintained amicable industrial relations, with no labour unrest reported in the past seven years. It has two recognised labour unions, duly registered with the relevant authorities.

The Companys personnel policies are designed to attract and retain talent, facilitate smooth integration, encourage continuous skill development, and provide opportunities for career growth. These initiatives foster a mutually beneficial relationship between the Company and its employees, supporting the vision of building a world-class organisation.

65 Corporate Overview Statutory Reports Financial Statements

Particulars	FY 2024-25	FY 2025-26
Staff, including on and off the rolls	695	903
Workmen including on and off the rolls	1426	1613
Third party contractors	1092	1951
Total	3213	4467

Disclosure of Accounting Treatment

During the preparation of the financial statement of FY 2025-26 the treatment, as prescribed in an Accounting Standard, has been followed by the Company. There is no discrepancy in Accounting Treatment as followed by the Company in the last financial year as compared to the previous financial year.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be forward-looking statements within the meaning of applicable securities laws and regulations