Thank you, Rudra. Good morning, everyone.

On behalf of MTAR Technologies, I extend a very warm welcome to all participants on Q3 and 9 months FY26 earnings discussion call. Today on our call, we have Mr.

Srinivas Reddy, Managing Director and Promoter; Mr. Gunneswara Rao, Chief Financial Officer; Ms.

Srilatha Justi, Head Strategy and IR. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on the exchanges around the company's website.

I would like to give a short disclaimer before we begin the call. This call may contain some of the forward-looking statements which are completely based upon our belief, opinion and expectations as of today.

The statements are not a guarantee for our future performance and involves unforeseen risk and uncertainties. With this, I would like to hand over the call to Mr.

Srinivas sir. Over to you, sir.

Thank you, Parth. Hello, and good morning, everyone.

Thank you for taking the time to join us today. Today on the call, I am joined by Mr.

Gunneswara Rao Pusarla, Chief Financial Officer; Ms. Srilatha Justi, Head Strategy and Investor Relations; and Orient Capital, our investor relations partners.

We have uploaded our updated investor deck, press release, and results highlights on the stock exchanges and company website. I hope everybody had an opportunity to go through the same.

I'm pleased to inform you that, as highlighted in our previous earnings call, we anticipated a stronger second half of the year, and we have delivered accordingly with phenomenal growth in Q3. The company recorded revenues of ₹278 crores, representing a robust year-over-year growth of 59%, with EBITDA of ₹64 crores.

This marks the highest quarterly revenue achieved by the company to date, and we are confident of sustaining this momentum and achieving further milestones in the coming periods. One of the most encouraging structural developments is the strong growth witnessed across all our business verticals, supported by favorable industry tailwinds.

Since inception, the company has strategically focused on technology-intensive products in high-growth sectors, and has built a strong exports wing, creating a robust foundation for long-term sustainable growth. I am pleased to inform that our current performance is a direct outcome of this long-standing strategic vision.

During the current fiscal year to date, the company has received its highest-ever order inflows in the clean energy fuel cells and civil nuclear program segments, underscoring the strength of our growth trajectory. The closing order book as of Q3 end stood at ₹2,394 crores, with ₹1,370 crores of orders across all sectors are received in Q3, reflecting robust industrial tailwinds.

In the clean energy fuel cells vertical alone, the company received orders worth ₹1,080 crores during the first 9 months of the fiscal year, of which approximately ₹645 crores was secured in Q3. This reflects the strong market share of our products and our role as a strategic partner in our customers' growth journey.

Both the clean energy fuel cells and aerospace verticals are expected to witness exponential growth in the coming years, driven by favorable demand trends and expanding market opportunities. Furthermore, we have also received the much-anticipated orders of ₹500 crores plus for the Kaiga Units 5 and 6 nuclear reactors, reinforcing our strong positioning and long-term role within the Indian nuclear energy ecosystem.

We expect the closing order book to be at ₹2,800 crores by the end of FY26, that will enable for sustaining our growth momentum over the coming quarters. Clean energy fuel cells is one of the most exciting sectors and is poised for significant growth, driven by the global transition towards clean and sustainable energy sources.

In addition to this energy transition, the rapidly growing demand for power for AI-driven data centers is accelerating the need for reliability, 24/7 power generation solutions, thereby driving strong adoption of solid oxide fuel cells. In this context, we are further encouraged by the recent development wherein our customer has entered into a $2.65 billion agreement with AEP for supply of solid oxide fuel cells.

Driven by strong demand from AI-power data centers, conventional data centers, and the global clean energy transition, our customer is projected to grow at an average rate of approximately 30% through 2030. As part of this expansion, the customer is expected to add another 2 gigawatt of capacity by the end of CY26 and further scale this to approximately 4 gigawatts in the subsequent years.

Aligned with this growing demand and forecasts from our customer, we are augmenting our in-house manufacturing capacity in a phased and sequential manner. We are currently in the process of increasing capacity to 12,000 boxes by end of the current fiscal year, and plan to further scale this to 20,000 units by end of FY27.

Further, we are planning to actually create facilities to augment capacity up to 30,000 units in the subsequent year. Given our strong engineering capabilities, cost competitiveness, and execution track record, we expect to retain a majority market share in these units, withstanding previous global uncertainties.

Accordingly, the company has recorded revenues of ₹387 crores in the clean energy fuel cells segment alone during the first 9 months of the fiscal year, and expect to deliver revenues of ₹250 crores by end of the current fiscal year in Q4. We're also anticipating significant growth in the civil nuclear sector, starting from next fiscal year, supported by robust order pipeline from Kaiga 5 and 6.

In addition, we expect to receive further orders from refurbishment reactors during the quarter and beginning of the next quarter. Furthermore, the government is likely to announce a dedicated production-linked incentives, PLI scheme, valued at ₹18 to ₹20,000 crores for the manufacturing of critical nuclear components in the upcoming Union Budget.

Such initiatives, aimed at strengthening India's domestic nuclear supply chain, are expected to provide further impetus to the growth of the nuclear ecosystem. We believe the company is well-positioned to capitalize on emerging opportunities in the nuclear sector, which is marked by high barriers to entry.

Another sector witnessing strong growth momentum is aerospace and defense. In light of recent European defense security initiatives and push by Indian government on exports, we believe that Indian aerospace sector is at a structural inflection point.

With our expanding capabilities, proven execution track record, growing customer base, and participation next-generation programs, the company is well positioned to capture this emerging growth opportunity. In the aerospace and defense segment, we achieved revenues of approximately ₹72 crores for the 9 months ended FY26 from various customers.

Going forward, we intend to focus on next-generation technologies and structural assembly orders. We are actively engaged in strategic next-generation programs, including AMCA, where we have commenced participation in structural assembly tenders.

Recently, the company was declared L1 for the main landing gear test set up assembly, marking a key developmental milestone. We continue to participate in subsequent structural assembly tenders as the program progresses.

With multinational customers, we plan to progressively graduate to structural assembly orders over the coming years as we enter into volume production for the existing parts. In line with this strategy, the company is actively working on multiple new enquiries.

In the products and other vertical segments, the company has generated revenues of approximately ₹84 crores, and we expect to close the year with revenues of around ₹130 crores. Overall, the company remains confident of sustaining the growth momentum and expect to grow rapidly over the next 3 years, driven by healthy order book, favorable industrial trends, and continued execution excellence.

The company also anticipates a meaningful improvement in margins over the coming quarters, supported by operating leverage and favorable shift in product mix towards higher-volume production. Return on capital employed is expected to improve even further, supported by high asset turnover ratio in the clean energy segment.

While there may be a short-term impact on working capital days, we expect this to improve substantially over the coming quarters as we continue to optimize inventory levels, secure customer advances in a big way, and strengthen receivables management. We're also expecting significant advances from customers, which will enable us to reduce our working capital cycle.

Now our CFO, Mr. Gunneswara Rao, will discuss in detail on the financial performance of Q3 FY26.

Please go ahead, Gunesh.

Good morning all. Thank you for joining us over the earning call.

We registered a robust growth in this quarter as explained by our MD, compared to previous years. I would like to update on the financial performance for this quarter.

On YoY performance, Q3 YoY for this year versus last year Q3, our revenue from operation at ₹278 crore in Q3 FY26 as against ₹174.5 crore in Q3 FY25, which translates 59.3% increase on the YoY basis. EBITDA reported at ₹64 crore in Q3 FY26 as compared to ₹33.3 crore in Q3 FY25, this translates 92.5% increase on YoY basis.

Profit before tax stands at ₹46.1 crore in Q3 FY26 as against ₹21.4 crore in Q3 FY25, 115.2% increase on YoY basis. Profit after tax was at ₹34.7 crore in Q3 FY26 as against ₹16 crore in Q3 FY25, which is 117.3% on YoY basis.

The company is well-positioned to capitalize growth opportunities across the clean energy, civil nuclear, and aerospace sectors as informed by our MD, and is actively augmenting the infrastructure support the future expansion. Amidst the strong growth momentum is visible in these sectors, the company continues to place a strong emphasis on cash flow and discipline, and working capital management.

As explained earlier, the working capital days are 260 days during this quarter, primarily due to the higher receivables associated with increased turnover. The company's targeting working capital levels is approximately around 200 to 210 days in the next fiscal year, supported by ongoing initiatives to optimize our receivables.

We are discussing on various advance opportunities from customers, and also we actually work on inventory management to see what else we can reduce inventories and all. While there has been a short-term impact on cash flows due to elevated receivables, we are confident that we are going to manage our working capital and cash flow from operations by discussing with customers on various advance initiatives.

In addition, we are confident that we will improve and sustained margins over the coming quarters. Our order book stood at 2,394.90 crores by end of December, and our forecast for the end of this financial year is ₹2,800 crores.

Other things are, we are working on various growth engines in the company, which will enable the company to achieve sustained growth over coming years. While the company has delivered a strong performance this quarter, we remained focused on sustaining this movement, achieve further milestone in the coming quarters and coming years.

We thank our shareholders for these continued trust and confidence. With this, I open the floor for the discussion.

Thank you, everyone.

Yeah. Good morning, sir.

Thank you for the opportunity, and congrats for a strong set of results. Sir, my first question is on the offtake visibility for the capacity expansion which we are doing for Bloom, taking hot boxes from 8,000 to 20,000 now.

We are talking about taking it to 30,000. We understand that Bloom is seeing increased acceptance of its products, but can you give some more confidence on the offtake because India is having a higher tariff rate compared to our competitors, and how should we think of market share evolving over time?

Thank you for your patience. First, I would like to emphasize on the visibility on the expansion for clean energy segment.

Basically, we have a capacity, as you mentioned, 8,000 units, but we are expanding to 12,000 by end of March. Everything is on track with that.

Then, based on a clear visibility given by the customer, we are expanding in a phased manner to 20,000 units hopefully by end of December. Then with that, we'll have a capacity of about 20,000 units.

Then we move on to the phase two of the expansion plan to about 30,000 units in the subsequent year. The infrastructure will be built for 30,000 units, but the equipment will be planned in such a way that it's done in two different phases, or I would say three different phases.

Phase one is 12,000, which will be ready by March end. Phase two is about 20- overall 20,000 by December end, and phase three to 30,000 by the subsequent year.

This is being done purely based on the kind of demand forecast what we have received from the customer, and that's how we're doing it. As far as tariffs are concerned, as I mentioned even in my earlier call, that we are not anyway concerned with being a technology company and the way we have progressed in terms of our competitiveness and various developmental programs we have done for the customer, the demand continues to be the same.

Hopefully, in the future, we hope that the tariffs would come down. That's not going to affect the company's growth momentum as we see right now, which we are clearly seeing in the current quarter as well.

Got that. I think that's very clear.

My next question is on the gross margins. We have seen a decline in gross margins this quarter.

Could you explain why? I think we were going through pricing negotiations with Bloom last quarter.

Can you help us understand what could be the sustainable gross margins?

Gunesh, you want to answer that?

Yeah. While current quarter is 46.1% gross profit, whereas 9 months ended if you look at, it is 49.5%.

It is purely on the product mix. Just because gross margin has lower, it doesn't mean that our EBITDA will affect.

As we explained many times, the gross margins in the fuel cells is lower, in case of domestic it is higher. However, the efforts required to make the domestic sales is more compared to the fuel cells because it is continuous production, and we were doing over the years.

Our EBITDA margins will not impact because of the gross margins.

Got that. Our EBITDA guidance which we have earlier mentioned, that continue to stay same, right?

We have said around 21% plus or minus 1%. As by end of this 9 months, our EBITDA percent is 19.2%.

With the strong forecast in the Q4, we are confident to achieve those numbers. Whatever is guided.

Sure. Then, sir, on the nuclear order, which we have received for ₹500 crores, can you please help us understand what could be the execution cycle for this?

See, the ₹500 crores orders should be executed over a period of 3 years. That's how it is done.

That's the timeline that we're looking at. There are various projects out of this ₹500 crores.

Some will be executed within a year, some 1.5 years, some in 2 years, and some projects within 3 years. It's a combination of all this, all this 500 should be executed within the next 36 months.

Got that. Thank you, and that's it from my side.

All the best.

Yeah. Hi, good morning and congratulations for such a good results.

The first question is just trying to understand the clean energy portfolio more closely. Can you help share what has been the utilization levels for 9-month period of the current capacity of 8,000 units, and the capex target that we plan over the next 2 years as we take this capacity to 20,000 and 30,000 in the next 18 months?

What is the quantum value we are targeting to spend, and whether it would be entirely brownfield expansion at the current units, or we may need a combination of new greenfield facility as we move towards 30k units by early part of CY27? It was not very clear in terms of audio, can you repeat what was the revenue which is guided for clean energy for fiscal '27 for the current year?

Okay. See, the 8,000 capacity utilization, I think we are doing it in the current quarter, Renu, because it's not only about the equipment, but also ramping up a lot of activities involved in the manufacturing process, we are fully geared up for that.

The subsequent quarter, that is Q1 of next year, we'll be moving up to utilizing the 12,000 capacity which will get commissioned by end of March. Beyond that, we are moving the entire facility to the SEZ near the airport for the entire Bloom operations to expand to up to 20,000 and then subsequently to 30,000 units.

That will be a completely a new plant which we are trying to establish near the airport. Everything under one roof, so that it becomes more operationally more efficient.

That's the basic plan what we're looking at. What was your second question, Renu?

What is the value spend, capex that you're looking for this expansion? Initially we had guided that should be something like ₹25-30 crores for the first phase.

How are we looking at the overall capex for clean energy expansion?

Basically, that's right. For 12,000, it's about 35 to 40, whatever numbers we have given earlier.

For going from 12,000 to 20,000, the infrastructure is being done for 30,000. The building, everything has been constructed for the long-term requirement of the company.

The equipment installation will be done for an additional 8,000 units, and subsequently we will do for the next phase up to 30,000. We are looking at roughly about ₹50 to ₹60 crores of capex that might be required.

It's an approximate number, we're still working on it. Should be finalized in the next couple of weeks.

That's the approximate number what we're looking at.

Sure. Second, you did mention that for landing gear assembly, we're recently L1.

What kind of revenue opportunity we expect in the aerospace business from the customer here?

No, that landing gear assembly that's with reference to the AMCA program. We're just working on the prototypes.

It's just the beginning of the whole program, right? The prototype is worth around ₹4 crores, but the requirement would be very huge in the coming years through the various segmental orders that are being released.

This is the starting point, and we'll see how it goes over the coming years. The aerospace segment, as I said earlier, we are doing extremely well.

We are doing a lot of MNC customers right now. We are growing pretty rapidly.

We are still doing some first articles, we have entered into volume production with the customers simultaneously, working on number of packages. That segment is growing pretty well as a growth engine for MTAR, and it will move further up in the coming years.

Got it. Sir, lastly, would you want to share what is the revised guidance for fiscal '27 and sorry, for fiscal '26, and any initial guidance that you would like to indicate for the next fiscal year '27?

No, the guidance would remain the same. As I said earlier, that we will do 30% to 35% growth guidance for this year, we'll cross about ₹900 crores plus for the financial year FY26.

FY27, we're expecting growth of about 50% revenue growth for FY27 based on the current growth what we have, about ₹900 crores plus in the current financial year. Obviously, the margins, what we said, 21% plus minus 100 bps, we are very confident to maintain or do slightly better than that.

The margins would further improve in the next financial year based on the kind of improved margins we have shown in this quarter.

Got it. Thanks much, and best wishes team.

Thank you.

Thank you, Renu.

Sir, my first question is regarding our aerospace business. As you indicated that we are doing multiple first articles, just wanted to understand in terms of order book.

The last three quarters, we have seen a stable order book, a very muted order book from aerospace and defense. Just wanted to get some clarity, is this for a long-term contracts, or how can we look into this?

See, we have the long-term contracts, but the orders what we show in the order book is based on specific orders being given based on the long-term contracts. The long-term contract is for 5 years, 10 years, like that, but the orders what we reflect in the order book is based on the orders that they keep releasing to us on quarter-on-quarter basis.

We have the overall order book of around ₹325 crores in the aerospace and defense sector. Specific to aerospace, we have ₹120 crores of MNC orders.

Then space, we have ₹120 crores and odd, and defense about ₹80 crores. There's totally ₹325 crores.

This particular vertical is going to grow more and more in aerospace sector as and when we convert the first articles into volume production, which we have already done in the case of two customers, and it's an ongoing process. They're adding more of the packages based on our performance and achievements that we have done over the last 1 year.

Understood. This quarter, we grew around 70% in aerospace division.

Can you just break it up in terms of how much were the new orders that's a combination of first articles and the batch production, and how much was the old orders, just a ballpark number?

You want the break up for what?

We did almost ₹31 crores of revenue in this quarter for aerospace. Just wanted to understand, as you mentioned, that the first article has been completed and we started batch production for few of the customers.

Just want to get the sense of the quantum of that.

It's about ₹18 crores and odd is what we have done for the aerospace export orders for this quarter.

Okay.

It could have plus minus a few ₹1 crore here and there, I'm just giving an approximate number.

Got it, sir. Apart from that, my second question is regarding the products and other segments.

In terms of order book expansion, we saw almost ₹137 crores of order we added in this quarter. As we know that this segment we also cater to fuel cells, we cater to nuclear power.

So, ₹137 crore orders is also linked to the strong order inflow in the fuel Bloom part?

Yes, on the ASP division, yes. We also have a lot of orders coming in from that division, apart from the other products that we do for ball screws, water lubricated bearings.

We also got qualified for export of ball screws with our MNC customer recently. That's something which is very positive for the company.

We started doing exports of our other products as well in terms of ball screws right now.

Understood. Sir.

Thank you so much.

Good morning, Srinivas sir. Congratulations on the good set of numbers.

Thank you, Bala.

Also delivered a great quarter. The first question is regarding, sir, BESS opportunities.

A lot of things going on in the country when it comes to battery energy storage system. Fluence [unclear] for our customers for clean energy is also related to energy storage systems.

Do we have any opportunity in this BESS front, sir, in terms of domestic [unclear]?

No, I have actually mentioned about this last time as well, it's taking its own time to get this going in terms of what we need to do in the battery storage systems. For domestic, there is a market, but still it's going to take a lot more time than what we can anticipate right now.

Let's see how it goes. That's something which we need to see as and when there is a major development, then we'll let you know about it, Bala.

Sure, sir. Sir, in terms of this PLI scheme for nuclear, sir, maybe we need to deploy much capital on near-end basis, but do you think that executing these orders is a capital intensive, or we can do with very less capital of existing infrastructure also?

We already have the infrastructure for the nuclear programs that we are doing. Whatever the details of the scheme are not yet known, but once the Union Budget is done, then we'll know more details, which will be definitely beneficial to the company to do more and more.

We have the infrastructure to handle that already.

Sure, sir. Lastly, on this Adani program, AMCA program, any update on sir, and also on the defense licenses, do we any products in the pipeline to get into the defense licenses?

No, that's being still assessed by ADA right now, the defense program. They're assessing it.

Probably they're saying it'll take another 2, 3 months for them to shortlist the companies, let's see what happens.

Sir. That's all from my side.

Thank you, sir.

Thank you for the opportunity, and congratulations on a very good set of numbers. Sir, I have a couple of questions.

One is specifically on aerospace. You said that your MNC aerospace revenue this quarter was about ₹18 crores.

Could you give us some color on sort of how do we see this ramping up in terms of batch processes, because we've been hearing a lot of FAIs going on, and the business has been supposed to scale up, and it has been scaling up. Is this ₹18 crores now a quarterly recurring that we should at least think of as a base case?

That's one. Second, sir, could you give some thoughts or update on Fluence?

The first article inspections have been done, and we are expecting it to commercialize in some time. If you could give some color on what is it that we are getting to, because Fluence is the winner, it's listed and it's kind of scaling really, really well.

I would imagine that we would be keen to get into the value chain sooner than later.

When it comes to the first question, the aerospace, what you're looking at, ₹18-19 crores, is just the beginning, right? We have been growing step by step in aerospace.

Part of the first articles, what we're working on, once it gets converted into volume production, we're looking at almost twice the number as what you can see right now, closing to 40 or even up to ₹50 crores per quarter. Overall, next year, we can look at that kind of a situation where we can do about ₹150 to ₹160 crores in aerospace itself.

As far as Fluence is concerned, we're still working on it. We have done the first article, now A lot of design changes They have not yet given us any specific feedback on that as of now, they're still working on it.

As and when some improvements are done on that, then we'll see how it goes. As of today, it is still a work in progress for us.

Sure, sir. If I could follow up, just on the aerospace bit, commercial aerospace, a lot of our clientele is currently defense-led aerospace globally, IAI.

The GKN is definitely commercial, but are we working with Airbus, Boeing, other commercial aerospace companies that make larger planes for products, because that would really bring scalability to the business, right? Could you give some thoughts on where are we on that part of the business?

That's the plan, right? The plan is to work with companies like GKN and IAI, which are very good companies, who also supply to Airbus and Boeing, not that they don't supply.

To get Boeing and Airbus and such companies for engine parts, we are also looking at establishing that as well, moving forward over the next 1, 1.5 years. That's how we look at the aerospace vertical in a very aggressive manner in terms of building it more and more.

Moving by end of the third year, we're looking at revenues of at least ₹350 to ₹400 crores coming in with various of such customers. That's our vision and the roadmap what we have over the next 3 years.

Next 3 years from now, right? Okay.

That is MNC aerospace, right?

Exactly, because there's a lot of certifications and processes that are involved. We're almost there in terms of various certifications, it's a matter of time that we can get into those kind of activities moving forward.

Absolutely, sir. Looking forward and wishing you the best.

Thank you.

Mohit, we can't hear you at all.

Good morning, sir, and thank you so much for the opportunities. Sir, ASP assemblies are nearly 126 thousand per quarter with 16 ASPs per hot box.

I just want to understand how we are going to take as a bottleneck for this capacity expansion? Right now we have 8,000 units and we are planning to reach up to 30,000 units maybe in 1 or 2 years' time frame.

I just want to understand how the capex are moving concerning about the ASP assemblies?

That's a good question. We have already planned for the increased quantity of ASPs each quarter in terms of the capacity.

As and when we increase the capacity of the hot boxes, the ASP capacities also will go up accordingly. That's also being planned simultaneously.

Sir. How much capex we have planned to increase to 30 30,000 units, sir?

I've said earlier about this, it's a rough number right now, but it's approximately between ₹50 to ₹60 crores. That's what we're looking at for 20,000.

And 30,000 comes later, right? That's probably an additional 40 to ₹40 crores and odd to increase it from 12,000 to sorry, from 20,000 to 30,000.

The infrastructure is being built for 30,000.

Sir. Sir, in Q2, I think some of the dispatches has been delayed nearly 4 weeks, and I just want to understand right now we have ₹278 crore.

How much revenue came from this 4-month 4 weeks' dispatches in Q3?

That's very marginal, right? See, a lot of projects in nuclear are under work in progress because of the long gestation period.

Once that is done, the dispatches from nuclear will happen from Q1 of next year in a big way. That's how it is.

Majority of the orders have been executed based on the clean energy segment and on the aerospace segment as well.

Sir. Because why I am asking this question, because our inventory days came down from 282 days to 210 days in Q3.

Just want to understand again we restocked for the execution in Q4, sir?

Because as and when the dispatches have gone up, the inventory days have also come down because of the exports that we have done. The CFO is trying to maintain a very tight control on the inventory being positioned based on the needs on quarter-on-quarter basis in the lead time by the suppliers.

We are monitoring that very closely right now, so that our working capital days also gets reduced as much as possible.

Sir. Sir, my last question.

BOM cost is hardly less than a single digit percentage which is impacted by tariffs. Whether we are completely absorbing right now, or it's pass-through to the customers?

No, we are not concerned with tariffs at all with any of our MNC customers.

Sir, got it. Thank you.

Hello. Hello?

Yeah. My question was on the nuclear energy side.

What is the opportunity size we are expecting once this ₹20,000 crore if it is PLIs allowed on the nuclear energy side? What are we supplying on the civil nuclear side to the government?

Basically, we have been in the nuclear business for the last 40 years, we are supplying all the core nuclear reactor components and assemblies to Government of NPCIL. We are doing some major projects right now for them.

We're just waiting for more details on that. Also, there is a lot of requirements which are coming in with further reactors coming in, and where the government has given clearance for the private sector to set up the nuclear reactors.

If you look at the roadmap for the next 5 to 10 years, a lot more reactors are going to come into place, where MTAR would play a very key role in establishing such reactors by supplying the key assemblies to the nuclear reactors what we're looking at.

Okay. Majority of the opportunity we are expecting from the SMR that are going to be constructed, is it is right,

sir? That's an added opportunity, but a lot of the other reactors the government itself is planning to establish, 700 megawatt reactors over the next 5 to 8 years, let's see how it goes.

Right now, we have enough orders on hand to handle the existing orders itself.

Okay. Understood.

Thank you.

Good morning, sir. My first question is on the nuclear side.

You have talked about scaling to start from FY27 itself. Do you expect it to happen in Q1, Q2 itself, or will it be back-ended in Q3, Q4?

No, it will start from Q1 itself. Hopefully, we're going to start from Q1 itself, and then move on from there.

We already have started working on the existing orders, and the new orders which have come in will slowly start kicking in from Q3, Q4, but the existing orders will start executing from Q1, Q2 onwards.

Do you expect around say ₹150 crore to be done in FY27 itself in nuclear?

I think very comfortably. That's a pretty conservative number for us, but we'll do much more than that.

Okay. FY28 will be further ramp up because we'll get additional orders say in Q4 and maybe FY27 also.

Exactly. See, it's a very simple calculation.

If we have order book of ₹800 crores in nuclear, let's say by end of the year, we need to anyway execute that within the next 3 years, so.

Sure, sir. In terms of say next 2, 3 years, where do you see this nuclear order book?

Do you think this can grow on top of this ₹800 crore, or ₹800 to ₹1,000 crore is a, say, a ceiling before anything newer

I would not talk about the how much of orders, but definitely I see a huge ramp up. One is on the operation side, the ramp up on the operation side, but the number of orders which are going to kick in over the next 2, 3 years is going to be phenomenal because of the new reactors coming in and the government announcing the privatization.

A lot of things are happening. Right now we are very comfortable with this ₹800 crores, plus a lot more orders are going to kick in over the next 1, 2 years in any case.

In the past, we never had a very strong order book. We used to do a lot of reactors, but with a break.

Now I don't see that break happening. There'll be a nice exponential kind of a graph or a growth happening year-on-year basis, based on where we are today.

Sure, sir. Just completing this part, we've got most of the orders from Kaiga 5 and 6, and obviously refurbishment is different, but what I see is every year two, three nuclear reactors are supposed to start or at least three parts, is it fair to assume ₹300-500 crore additional order inflow every year on the conservative side?

That's a very fair number what we're looking at. Because now they're planning Mahi Banswara four reactors, 700 megawatts with NTPC and NPCIL combination, which is called ASHVINI.

A lot of such projects are coming in, the tenders will be floated. Obviously, that's how I said, this area, nuclear division also it'll be a very good growth engine for MTAR moving forward year-on-year basis.

Sure, sir. Next set of question is on, say, Weatherford and IAI.

Sir, the first article inspection is taking little longer than maybe our expectations, do you expect Weatherford to start scaling in FY27 itself, or maybe it is delayed to FY28, '29?

That's a good question. We have already completed the Weatherford first articles.

It's been approved already. The only thing is we're waiting for is for the volume production.

Now to do the volume production, our plant is getting ready. We're pushing it to be ready by June, but hope by September, we should be fully in a full-fledged commercial operations.

Then we get into the volume production. We're expecting the volume orders also to come in this quarter.

That's where we stand as far as Weatherford is concerned. It's all about doing the volume production, the infrastructure is getting ready for that in the SEZ in the airport.

Now those revenues, part of those revenues will kick in in FY27, and then it'll go in a full-fledged manner from subsequent year onwards. Aerospace, the first articles are not taking time.

There are a lot of parts, a lot of assemblies for IAI. Already one of the customer, GKN, we're already doing into volume production, and they've added a lot more packages, both happen simultaneously, the volume and the first articles.

IAI, the complete batch of first articles should be done and dusted by June, July. That's the timeline we're looking at, and once it is done, then they'll look at volume production.

In aerospace, the requirements are very stringent, as we all know, right? It's for the aircrafts and all that, we are right on track with that, as far as we are concerned.

A lot of R&D and development program happens in first articles, which we are successfully doing it. Each month, we're doing more than close to about 100 100 parts per month, which is phenomenal.

The industry average is 300 parts per year, whereas we're doing 100 per month. We can't do faster than that.

We're averaging around 80 to 100 per month, to be realistic.

That is a very good run rate. I think most of the leading aerospace players are doing that much only, and we have scaled to this number pretty soon.

Congrats on that, sir. Just on Weatherford, earlier you had talked about maybe ₹150-200 crore kind of opportunity.

FY27, maybe 50, 70, and FY28, that's full ₹150 crore ramp up, is it a fair assumption?

That's a fair assumption, yeah.

Sure, sir. Final question is on the clean energy on the other side, hydropower, wind, and the other part scaling.

Could you quantify, I don't have the numbers, what is it today excluding Bloom, and where do you see this scaling of any of this customer where you can see scaling to, say, ₹100 crore kind of number for us?

No, it's not just one customer, we're working with GE, working with Andritz, Voith, number of customers, right? Recently, we finalized with Andritz about ₹40 crores of orders in hydro to be executed every year.

We have done that recently, so that's purely based on our past kind of deliverables that we have given to all these customers. A lot of work has been done in that sector over the last 2 years.

Barrister is another company. We're working with various customers, we're looking at about ₹100 to ₹120 crores of orders that we can execute next year.

We're almost there, ₹100-plus crores purely with these customers. A lot of work has been done.

This is what I keep saying, what you don't see in the balance sheet is the kind of work MTAR has been doing on the background with various customers, developing various first articles, proving our capabilities to the customers, and all that you will see the results over the next year and moving forward as well.

Thank you, sir, for answering the questions.

Thanks for the opportunity, sir, and congratulation on a great set of numbers. My question is on the order inflow.

I think you mentioned that this year we'll close with the ₹2,800 crores kind of the order book, and you also mentioned the revenue could be around 900-odd crore for this year. If I reverse calculate the order inflow, it comes to roughly 700, 800 crores of order inflow that can come in the fourth quarter.

If you can share the breakup of the order inflows that you are expecting that can come during this quarter, the 700, 800-odd crore.

See, it's a combination of the fuel cell orders, the nuclear orders, the space and aerospace orders. All this put together should be roughly around close to 700 to 800 crores that we're expecting in this quarter.

That's how our closing order book would be around 2,800.

Understood. Understood.

Full-year order inflow would be roughly 2,800-odd crore this year. Then next year, what kind of the order inflows are we expecting?

Much more than this. I can't really quantify the number right now, but we'll have a pretty good, strong order book next year as well, much higher than what we have today.

Understood. Understood.

The incremental opportunity from the Bloom would be how much next year, if you can give some guidance on that?

Basically, it's not on how much are we able to deliver. That's the big question there.

It's not about the orders, right? It's based on the expansion plans that we have.

They're asking for a lot more, but we positioned ourselves to deliver 12,000 units, and the expansion plan to 20,000 will happen by December, hopefully. Then we add another additional hot boxes to them.

Basically, it is 12,000 units is what conservatively we have taken for next financial year.

Understood. Understood.

The margins can reach up to 25-odd percent, that's what we are expecting because of the operating leverage, right, next year?

As I said earlier, I don't want to comment on the exact number, but if you look at the current quarter margins, it will further improve from there. Obviously, with a higher operating leverage and better revenues next year, our margins will substantially improve.

Understood, sir. Thank you.

That's all from my side.

Thank you.

Hello. Am I audible, sir?

Hi, Amar, you're audible. Please go ahead.

Is it possible for you to give what will be your utilizations right now?

What is that? Utilization of what?

Of

the capacity that you are having.

On the fuel cell side, you're talking about, or?

On the fuel cell side.

We are up to 100% capacity, literally we are right on the top brim right now at 8,000 capacity, and then by end of March, we'll go up to 12,000 capacity. We utilize the full capacity utilization what we have.

Okay. If you could give any guidance on the upcoming orders coming in FY27, and where will your order book stand at in FY27?

FY26,

I've given already just now. We're expecting around ₹700 to ₹800 crores worth of orders this quarter.

Then we close the order book at ₹2,800 crores. If you talk about FY27, then we'll have a lot more orders coming in.

It's too premature to comment on that right now, but we'll have even a more stronger closing order book next year.

Okay. Would it be possible for you to give a growth guidance for FY27 and margins?

I mentioned this earlier, we're looking at about 50% of revenue growth guidance for FY27 as of now, and a lot more better margins and improved margins next year. Compared to

50% Okay, 50%, you mean 5-0, 50%, right, for the FY27?

That's right.

Sir. Margins?

Margins, you have seen in Q3, we'll have a lot more improved margins beyond that, in FY27. Sir.

That's it from my side. Thank you.

Yeah. Hi, good morning, sir.

Thank you so much for the opportunity. Sir, firstly, I just wanted to understand on the nuclear side.

India has a lot of thorium-based deposit, right? We are aggressively working on to create FBR for the thorium-based reactor.

Any capability that we are creating on that side?

We have already done for the FBR. The majority of the requirements of FBR reactors were done by MTAR in the past.

Now those reactors have to get commissioned, that's the first step. We're expecting those reactors to get commissioned over the next 6 months is what they have said.

The next cycle is the thorium-based reactors. As we have 40% of thorium deposits in the world.

That's the nuclear cycle which was created by Bhabha Atomic Research Centre many years back. That's the cycle which we want to achieve.

We're not yet there, but ultimately we will be there. That's the idea behind this whole issue.

Yeah. Understood.

Secondly, on the bookkeeping side, currently, what is your cash flow in the current quarter?

Gunesh, can you?

The cash flow from operations was ₹22 crores negative for this year because of the higher revenues which are there, which are actually sitting in receivables. We are working with our customers on the various advance opportunities for this quarter in Q4.

Let us see how the discussions goes on, and definitely we are confident of getting advances from our customers. Our Q4 and year-end margin year-end cash flows will be better than the last year.

Will be better. By getting these advances, yes.

Understood.

Thank you so much,

sir. Thanks.

Thank you.

Thank you for the opportunity, sir. Sir, on the nuclear side, how should we see the opportunity per reactor?

Will it be in line with Kaiga's 250 crore per reactor, or should we see this increase for the newer set of reactors?

Slightly more, because we are going to add additional assemblies for the new reactors, called end shield and calandria. Probably it should be going up to about 350 to 400 crores of opportunity per reactor.

That's what we're looking at. That's an opportunity, we have to see how it goes.

Got it, sir. Got it.

Thank you. Sir, on the clean energy side, sir, as the data center power demand is expected to in various estimates double from 60 gigawatts to 140 gigawatts, what percentage of this incremental share can be captured by fuel cells in next 3 years or 5 years?

Majority is by the fuel cells, right? That's how the Bloom demand has gone up so much.

There's a huge shortage right now, and over the next 5 years, it's going to be phenomenal. It only depends on how you can cope up with that kind of demand in terms of the expansion plans, the execution cycles, and all that.

It's not only the orders per se, it's on how you can take that as an opportunity, demand as an opportunity to convert that into execution cycle to do it and how soon you can expand your capabilities in terms of the capacities and all that. Fortunately, it's the other way around, right?

It's not about orders, but it's about how much you can produce. That's where we are right now over the next 3 to 5 years.

Got it, sir. Got it.

Thank you, sir. Sir, next question would be on the EBITDA margin.

At current quarter, we are already at 23% EBITDA margin, in FY28, we had guided for 28% EBITDA margin, are we sticking with that guidance, or the 20 plus minus 1% kind of EBITDA margin?

FY26, I said, is going to average is about 21%, but FY27 would be a lot higher than that. Right?

We'll be in the much higher range. This is a very clear indications for all of you to see.

Got it, sir. Got it.

Thank you, sir. Sir, one last question.

What is the update on the roller screws, and we had also got the license on the ECM and the naval equipment for submarine, is there any progress on that front?

We're already certified for that. As usual, the defense program has a lot of certifications for roller screws because it's an import substitute.

It is done already. We're just waiting for the final papers to come in.

They're very happy with the performance of the roller screws. They've tried and tested it, everything is done.

They're just waiting for it. EMA is also same situation.

Hopefully, this quarter, all those certifications will be closed and we'll be through with the normal or regular production what they need for the future as an import substitute.

Got it, sir. Thank you so much, and all the best for the next quarters.

Thank you.

Thanks.

Thank you for the opportunity, and congratulations, sir, on an excellent set of numbers. Sir, my only question is on the working capital side.

I heard you earlier where you said that the quarter four will be heavier on execution side since we are targeting 35% revenue growth. Wanted to understand what would be the inventory and net working capital levels that we are targeting for the end of quarter four, and what is the steady state number that one should look at going forward?

Gunesh, you want to answer that?

Yeah. For the quarter four, we are targeting around 235 days with as is condition.

We are discussing with some of our customers on advance payments. I think most probably we will get advance payment.

I think our working capital will drastically reduce if we get advances. Then it will be less than 200 days.

Otherwise, 235 days we are estimating by end of this year as is scenario now.

What would be, sir, the inventory days?

Inventory days as like today whatever absolute numbers are there, we will be there only here and there 10 days. With increased turnover in Q4, days will further come down to say another 5 to 10 days it will come down.

Right. Right, sir.

That's all from my side. Thank you.

Thank you, Vignesh.

I hope I'm audible. Hi, sir.

Thank you for this opportunity. Could you please share the current capacity utilization in your aerospace and defense segment?

See, as I said, we have enough capacity to handle up to even ₹200 crores of business. We are setting up additional capacities and machines are coming in as well.

Right now, we're doing partial volume and partial first articles. The kind of revenues that we can generate, it will be beyond ₹200 crores plus once all the equipment comes in over the next 2, 3 months.

Okay. Understood.

Thank you so much, sir. Good wishes.

Hi, thank you for the opportunity. My first question is on the clean energy side.

During FY23, we had done a peak revenue at that time. Post which, because there was a change in model which impacted the volume, do you see anything such happening maybe next year or where maybe because of change in technology which might come into place?

I think that kind of a situation will not happen. There was a drastic change in the kind of design changes happened at that point of time.

Even if they have some changes, there'll be very minor tweaks, which can be manageable, that's not a problem. I don't see that happening moving forward.

In terms of realization, how do you see that going forward given Bloom is also want to reduce further costs on their side?

The cost can be reduced based primarily on the design side of the story, right? Reduction in the BOM costs and all that.

Other than that, I don't see any kind of realization to change. Suppose if they replace Inconel with SS or any change of materials based on the design engineers working together with MTAR, then the BOM cost comes down, then the realization.

That will not affect us, because our value add remains the same. Those kind of changes, subtle changes can happen.

That's the only thing. Other than that, the value add would remain more or less the same.

Okay. Sure.

Thank you, and wish you all the best.

Thanks.

I would like to thank all of you to attend this earnings call of MTAR Technologies. I would like to also thank specifically the entire team of MTAR for putting together such great performance for this quarter and also for the coming quarters.

We can clearly see that happening quarter-on-quarter basis based on all the hard work done over the years. Also I would like to specifically thank all our investors and shareholders in supporting us over the years.

Also, we'll put in our best efforts to improve further and further on quarter-on-quarter basis. Thank you so much.