MTAR’s Q4 margin slips QoQ despite 67.17% revenue growth
Expenses grew faster than revenue sequentially, while other income made up 27.53% of pre-tax profit.
Filed 12 May 2026, 16:46 IST · after market close · MTAR Technologies Ltd (MTARTECH)
Key takeaways
- Consolidated Q4FY26 revenue grew 67.17% YoY, while operating profit rose 81.00%.
- Operating margin fell 2.84 percentage points QoQ as expenses grew 14.17% against 10.11% revenue growth.
- Other income contributed 27.53% of pre-tax profit, making the 222.74% YoY net-profit increase less purely operating.
Revenue growth outpaced operating profit over FY25
Consolidated revenue rose 67.17% YoY, while operating profit grew faster at 81.00% because expenses increased 64.00%. Sequentially, revenue rose 10.11%, but operating profit fell 3.45%, showing weaker operating leverage at the higher sales base. Among 71 Industrials peers that have reported, MTAR’s 20.19% operating margin was 4.53 percentage points above the 15.66% median.
Sequential cost growth cut the margin
Expenses grew 14.17% QoQ against 10.11% revenue growth, narrowing operating margin by 2.84 percentage points. Interest expense also rose 24.77% QoQ, while the tax rate increased 0.85 percentage points. YoY, the margin expanded 1.54 percentage points as revenue growth exceeded expense growth, although interest expense still increased 62.23%.
Margin recovered from Q2 but remains below Q3
The operating margin fell from 23.03% in Q3FY26 to 20.19% in Q4FY26, after reaching 12.54% in Q2FY26. Management said FY26 brought the company its highest order inflows of Rs 2,453.3 cr, and that it had received an order for a Main Landing Gear Support Structure Test Box assembly for the AMCA programme. The company said volume production had started for engine components and other aerospace products, while management said significant actuator-assembly orders were expected for LCA Tejas Mark IA.
Other income was material to reported profit
Other income accounted for 27.53% of pre-tax profit, so the reported net-profit growth included a significant non-operating contribution. The YoY tax rate was lower by 0.68 percentage points, which also provided a modest lift to net profit. The results were filed after market close, so the stock reaction is not part of this read.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹306 cr | ₹278 cr | +10.11% | +67.17% |
| Other income | ₹16 cr | ₹-1 cr | — | +54533.33% |
| Expenses | ₹244 cr | ₹214 cr | +14.17% | +64.00% |
| Operating profit | ₹62 cr | ₹64 cr | -3.45% | +81.00% |
| Operating margin (%) | 20.19% | 23.03% | — | — |
| Interest | ₹10 cr | ₹8 cr | +24.77% | +62.23% |
| Depreciation | ₹9 cr | ₹9 cr | +2.38% | -6.03% |
| Profit before tax | ₹60 cr | ₹46 cr | +29.10% | +219.76% |
| Tax | ₹15 cr | ₹11 cr | +33.51% | +211.43% |
| Net profit | ₹44 cr | ₹35 cr | +27.64% | +222.74% |
| EPS (₹) | ₹14.40 | ₹11.28 | +27.66% | +222.87% |
Operating margin of 20.19% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects significant orders for actuator assemblies for LCA Tejas Mark IA.
Expansion
- The company is expanding clean-energy capacities in phases to support customer requirements and growing demand.
- The company is setting up a greenfield Oil & Gas facility expected to be commissioned by September 2026.
New orders
- The company received its highest order inflows of Rs. 2453.3 Crs in FY26.
- The company received an order for the Main Landing Gear Support Structure Test Box assembly for the AMCA program.
New products
- Volume production is underway for aerospace storage boxes.
- First articles for aerospace products are under progress, with volume production planned after completion under a long-term agreement.
New initiatives
- The company delivered first articles and has started volume production for engine components and other aerospace products.
- The company completed the design and development of the Z Adapter load-bearing structure for Thales Alenia Space.
What to watch
- Whether operating margin holds above 20.19% after the 2.84-percentage-point QoQ decline.
- Whether other income remains below the 27.53% share of pre-tax profit.
- Progress on the phased clean-energy capacity expansion and the Oil & Gas facility management said was expected to be commissioned by September 2026.