MTAR Tech stock plummets 16% as Q4 net profit falls 53%

MTAR Technologies shares have traded flat over the past year.

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26 Aug, 2025 12:21

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MTAR Technologies shares declined 16 percent in trade on May 29 after the defence player reported a sharp fall in net profit for March qaurter.

On May 28, the company announced 53.4 percent decline in Q4 consolidated net profit at Rs 4.9 crore as against Rs 10.4 crore in the year-ago period.

At 11.30 am, MTAR Technologies shares were quoting at Rs 1,888.35 apiece on the NSE, down 8.4 percent from the previous close.

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In Q4FY24, the firm's revenue from operations clocked in at Rs 143 crore, up 20.8 percent from Rs 118.4 crore in corresponding quarter in FY23. However, EBITDA dropped 23.6 percent to Rs 18.2 crore in Q4FY24 as against Rs 23.9 crore in Q3FY24.

Motilal Oswal retained its buy call on the company despite the weak operating performance. The EBITDA margin contracted 12.2 percentage points YoY to 12.7 percent, led by a 320 bps contraction in gross margins to 45.3 percent and an increase in other expenses/employee expenses.

On May 22, Motilal Oswal initiated coverage on MTAR Technologies Ltd with a buy rating and kept a target price of Rs 2,800 a share, seeing a 33 percent upside.

MTAR Tech, a key supplier to global MNCs and government departments, has carved a niche in precision engineering. Motilal Oswal notes that as the largest supplier of fuel cell components to Bloom Energy (BE), MTAR will benefit from rising fuel cell demand. The company is expanding its product range with BE, aiming for complete fuel cell integration.

Additionally, MTAR's nuclear, space, and defense segments offer significant growth potential. With strong manufacturing and customer relations, MTAR is expected to achieve a 39 percent CAGR in the order book and 38 percent in revenue from FY24-26, the Motilal report said

MTAR Technologies shares have traded flat over the past year, as compared to a 25 percent gain in the benchmark Nifty 50 index.

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