Multibagger MTAR Technologies shares drop nearly 4% despite 223% surge in Q4 net profit

Synopsis

MTAR Technologies shares fell nearly 4% despite reporting a sharp 223% jump in Q4 net profit, driven by strong revenue growth and improved operational performance. While costs rose during the quarter, margins improved, reflecting efficiency gains. The company continues to benefit from demand across aerospace, defence and clean energy segments.

Shares of multibagger stock MTAR Technologies declined as much as 3.6% to their day's low of Rs 6,030 on the NSE on Wednesday despite reporting a strong jump in fourth-quarter earnings, helped by robust growth in revenue and improved operating performance across its businesses.

The Hyderabad-based precision engineering company posted a consolidated net profit of Rs 44.28 crore for the March quarter, sharply higher than Rs 13.72 crore reported in the same period last year, reflecting a growth of about 223%.

Revenue from operations for the quarter rose nearly 67% to Rs 306 crore from Rs 183 crore a year earlier. The increase was mainly driven by higher product sales, which rose to Rs 303 crore from Rs 179 crore in the corresponding quarter last year.

Profit before tax stood at Rs 59.54 crore in Q4, up from Rs 18.62 crore in the year-ago period, marking an increase of nearly 220%.

For the full year FY26, the company reported consolidated net profit of Rs 94.03 crore, compared with Rs 52.89 crore in FY25, translating into growth of close to 78%.

Annual revenue from operations rose 31% to Rs 876.21 crore from Rs 675.99 crore in the previous financial year.

Profit before tax for FY26 increased to Rs 126.15 crore from Rs 71.57 crore in FY25, registering growth of more than 76%.

Total expenses during the March quarter rose to Rs 262.92 crore from Rs 164.50 crore in the same quarter last year. Cost of materials consumed increased to Rs 165 crore from Rs 95.66 crore, reflecting higher production activity and execution.

Employee benefit expenses came in at Rs 43.05 crore compared with Rs 34.51 crore a year earlier, while finance costs rose to Rs 9.62 crore from Rs 5.93 crore. Despite the rise in costs, the company’s quarterly profit before tax margin improved to nearly 18.4% from 10.2% in the year-ago quarter, indicating better operational efficiency.

MTAR Technologies operates across sectors such as clean energy, civil nuclear power, aerospace and defence, and precision engineering manufacturing. The company has been strengthening its execution capabilities and expanding its order pipeline amid growing opportunities in strategic manufacturing and energy transition-related businesses.

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