MTAR Technologies lifts operating margin to 23.58% as revenue jumps 130.37%
Revenue grew faster than expenses, supporting a 3.39-percentage-point sequential margin gain despite a 64.76% rise in interest expense.
Filed 29 Jul 2026, 16:49 IST · after market close · MTAR Technologies Ltd (MTARTECH)
Key takeaways
- Consolidated revenue grew 130.37% year on year, while operating margin expanded 5.45 percentage points to 23.58%.
- Net profit rose 364.66% year on year to Rs 50.23 cr, helped by a 1.52-percentage-point reduction in the tax rate.
- Other income accounted for 11.71% of pre-tax profit, while interest expense increased 172.34% year on year.
Revenue growth translated into operating leverage
MTAR Technologies reported consolidated revenue growth of 130.37% year on year in Q1FY27, while expenses rose 115.03%. The wider gap between revenue and costs lifted operating margin by 5.45 percentage points to 23.58%. Sequentially, revenue increased 17.86% and operating margin improved by 3.39 percentage points.
Higher interest costs offset part of the profit conversion
Interest expense rose 172.34% year on year and 64.76% sequentially, but stronger operating profit still drove pre-tax profit growth of 355.1% year on year. The tax rate fell 1.52 percentage points year on year and 0.15 percentage points sequentially, adding to the increase in net profit. Other income represented 11.71% of pre-tax profit, so reported earnings also included a meaningful non-operating contribution.
Margin recovered after the Q4FY26 setback
Operating margin declined from 23.03% in Q3FY26 to 20.19% in Q4FY26, before recovering to 23.58% in Q1FY27. The current margin was 8.94 percentage points above the 14.64% median for the 27 Industrials peers that had reported the quarter. This marks a reversal of the previous quarter's margin decline rather than a continuing downtrend.
Results were filed after market close
The consolidated results were filed at 16:49 IST on 29 July 2026, after the market closed. There is therefore no post-results stock reaction to assess yet.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹361 cr | ₹306 cr | +17.86% | +130.37% |
| Other income | ₹8 cr | ₹16 cr | -51.86% | +1193.44% |
| Expenses | ₹276 cr | ₹244 cr | +12.86% | +115.03% |
| Operating profit | ₹85 cr | ₹62 cr | +37.60% | +199.68% |
| Operating margin (%) | 23.58% | 20.19% | — | — |
| Interest | ₹16 cr | ₹10 cr | +64.76% | +172.34% |
| Depreciation | ₹10 cr | ₹9 cr | +7.19% | +15.77% |
| Profit before tax | ₹67 cr | ₹60 cr | +13.20% | +355.10% |
| Tax | ₹17 cr | ₹15 cr | +12.58% | +329.50% |
| Net profit | ₹50 cr | ₹44 cr | +13.44% | +364.66% |
| EPS (₹) | ₹16.33 | ₹14.40 | +13.40% | +363.92% |
Operating margin of 23.58% compares with a Industrials sector median of 14.64% across 27 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 23.58% after the Q1FY27 recovery.
- Whether interest expense moderates from the 64.76% sequential increase.
- Whether other income remains below or above its 11.71% share of pre-tax profit.