Foreign institutional investors (FIIs) significantly increased their stake in MTAR Technologies Limited throughout FY26, demonstrating strong confidence in the defence technology company's prospects. According to reports from The Financial Express, FIIs' holding in the company rose from 6.74% in Q4FY25 to 17.3% by the end of Q4FY26, representing an increase of over 10.5 percentage points. This substantial stake increase occurred despite broader market weakness, with the Nifty 50 declining by over 9.4% since the beginning of 2026. The latest market data shows Nifty 50 slipped 31.95 points to 23,618 while BSE Sensex declined 114.19 points to 75,200.85 on Tuesday, reflecting continued volatility in equity markets.
The company achieved exceptional order inflows during FY26, receiving record order inflows worth ₹2,453.3 crore throughout the fiscal year. As reported by The Financial Express, ₹481.6 crore worth of orders were secured in Q4FY26 alone. The company's total order book stood at ₹2,581.9 crore as of March 31, 2026, with sector-wise distribution showing 51.2% for civil nuclear power segment, 26.3% for other clean energy products, 14% for defence and aerospace, and 8.5% for other products. Notably, MTAR secured a significant blanket purchase order worth ₹2,278.96 crore from an existing international client on May 14, 2026.
MTAR delivered impressive financial results for FY26, with sales increasing by 29.6% year-on-year from ₹676 crore in FY25 to ₹876.2 crore. As reported by The Financial Express, the company achieved a remarkable 76% YoY growth in profits, with profit rising from ₹53.4 crore in FY25 to ₹94 crore in FY26. The company maintains a return on capital employed (ROCE) of 15.2%, slightly below the industry median of 16.6%. Management guidance for FY27 anticipates revenue growth of around 80% with EBITDA margin expected at around 24%.
The company is actively expanding across multiple business verticals to capitalize on growing demand. According to The Financial Express, MTAR is increasing production capacity for engine components and storage boxes in aerospace and defence segments, while developing new products including load-bearing structure-Z adapter for Thales Alenia Space. The company received a prestigious order for Main Landing Gear Support Structure Tex Box assembly for the AMCA Program and is exploring opportunities in structural assemblies for fighter jet programs. Additionally, MTAR is establishing a new facility for the clean energy business and venturing into the Oil & Gas sector, with a greenfield facility for clients like Weatherford expected to be operational by end of September 2026.
Despite strong fundamentals, MTAR's stock is trading at premium valuations compared to industry averages. As reported by The Financial Express, the stock trades at a price-to-earnings ratio of 213.8x, significantly higher than the industry median of 64.6x. The price-to-book value ratio stands at 25.4x, exceeding the industry median of 7.9x, indicating the stock is relatively overpriced. The company's diversified business model spans aerospace, defence, clean energy, and space segments, positioning it well for continued growth in the expanding defence sector.
