Ladies and gentlemen, good day and welcome to the MTAR Technologies Limited Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this call is being recorded. With this, I now hand the conference over to Mr. Parag Patil from MUFG in time for opening comments. Thank you, and over to you, sir.
Thank you. Good morning, everyone. On behalf of MTAR Technologies Limited, I extend a very warm welcome to all participants on Q1 FY26 earnings discussion call. Today on our call, we have Mr. Srinivas Reddy, Managing Director and Promoter, Mr. Gunneswara Rao, Chief Financial Officer, Ms. Srilekha Jasthi, Head Strategy and IR. I hope everyone had an opportunity to go through our investor deck and press release that we have uploaded on Exchanges and the company's website. I would like to give a short disclaimer before we begin the call. This call may contain some of the forward-looking statements, which are completely based upon our belief, opinion, and expectations as of today. The statements are not guaranteed for our future performance and involve unforeseen risks and uncertainties. With this, I would like to hand over the call to Srinivas sir. Over to you, sir.
Hello and good morning to everyone. Thank you for taking the time to join us today. Today on the call, I'm joined by Mr. Gunneswara Rao, Chief Financial Officer, Ms. Srilekha Jasthi, Head of Strategy and Investor Relations, and Orient Capital, our Investor Relations Partners. We have uploaded our updated investor deck, press release, and results highlights on the stock exchanges and company website. I hope everybody had an opportunity to go through this earnings. I'm pleased to report a robust performance in Q1, with revenue from operations at INR 156.6 crores, representing a year-on-year growth of 22.1%. EBITDA came in at INR 28.4 crores, showing a year-on-year increase of 70.9%. These results demonstrate stable execution and continued momentum across all our key business segments. As communicated in the previous quarter, we anticipate sequential improvements on a quarter-on-quarter basis, particularly in the second half of the year.
Revenue growth is also expected to be stronger in H2. This momentum will be driven by operating leverage and scale-up of production for new products developed in Clean Energy and aerospace sectors over the past few years. We remain committed very clearly to our FY26 guidance of 25% revenue growth and an EBITDA margin of 21% plus/minus 100 basis points. While tariff-related uncertainties persist with respect to the U.S. market, we remain confident in sustaining our export momentum. This is underpinned by our cost competitiveness and the engineering depth achieved through the indigenization of key components, especially in all the sectors wherever we are exporting to various segments in the U.S. market. And we're also diversified into various other countries in our exports, mainly to Europe and Israel. Our continued focus on innovation and localization enhances our ability to deliver high-value solutions to customers globally despite shifting trade dynamics.
Starting with the Clean Energy segment, we delivered approximately ₹105 crores in revenues in this quarter. This fiscal year, the company has undertaken development of new products for Bloom Energy, further expanding our wallet share in the sector. As highlighted earlier, our cost competitiveness and engineering expertise continue to provide us with a distinct advantage over our Southeast Asian counterparts amidst heightened global uncertainties such as tariffs. We have been assured by all our customers that they will be ensuring a stable stability across all the supply chain partners, especially MTAR being involved in the high-technology segment, and additionally, our customer Bloom Energy has provided a very highest-ever forecast for the execution of our Hot Boxes in the upcoming fiscal year, post the tariffs announcement. Bloom Energy continues to strengthen its position in the data center market by signing strategic agreements.
Most recently, it announced plans to deploy its fuel cell technology at select Oracle Cloud Infrastructure data centers in the U.S. The median data center size is projected to grow by nearly 115% from approximately 175 megawatts today to around 375 megawatts over the next decade, presenting substantial growth opportunities for fuel cell adoption. Clean technologies are playing a critical role in the global transition to a low-carbon economy, driving sustainable growth and energy while unlocking significant long-term growth opportunities for supply chain partners. Looking ahead, we anticipate a robust growth of 15% to 20% in FY26 across the Clean Energy sector, including fuel cells, hydropower, battery storage systems, and others. We continue to maintain strong traction in the Aerospace and Defense vertical, delivering approximately INR 25,000 orders during the Q1.
The company is actively strengthening its defense portfolio and is currently participating in tendering processes for various prestigious programs for the government of India. While we are in the process of developing several new products for leading multinational aerospace customers, we have also participated in tenders for new products such as actuation systems for launch vehicles aimed at increasing our wallet share with ISRO. These initiatives are part of our strategic effort to deepen engagement with key international customers and leading Indian organizations like ISRO and the DRDO. Additionally, European nations are increasingly looking at partnerships and collaborations with Indian defense manufacturers as their supply chain is constrained by limited local manufacturing capacity and skilled workforce shortages, especially in Aerospace and Defense sectors. This dynamic presents significant export opportunities for Indian manufacturers, and MTAR is well-positioned to capitalize on this emerging demand.
We are actively focused on expanding our wallet share with existing European customers while also working on onboarding new clients. We expect revenue growth of approximately 80% from this segment in FY26. With a robust product pipeline and increasing participation in high-value strategic programs, we anticipate exponential growth in this segment over the coming years. In the Civil Nuclear sector, we registered revenues of approximately ₹5.4 crores during Q1. The company has submitted various quotes for the upcoming projects in Kaiga-5 and 6 and refurbishment reactors for Madhya Pradesh, Rajasthan, and Chennai projects. These projects involve critical assemblies, which MTAR is well-versed with. As I mentioned earlier, during the current financial year, we are anticipating orders close to about ₹1,000 coming in from the nuclear division over the next 3 to 6 months.
We anticipate delivering orders worth around ₹60 crores in this sector in FY26, underscoring our ongoing commitment to supporting the nuclear power industry with highly specialized products for the core of the reactor. And this segment is going to grow exponentially year-on-year basis from FY27 onwards, based on the kind of orders that we are expecting to come in during the current financial year. Finally, in the Products and other verticals, we registered revenues of ₹21 crores in this quarter and expect a 20% growth in this segment for FY26. The continuous execution of orders for various new products across Clean Energy, aerospace, and defense sectors highlights our strong execution capabilities and unwavering commitment to operational excellence. The company remains focused on quality, innovation, and process efficiencies as key levers to drive long-term shareholder value.
We anticipate, as I mentioned earlier, increased order inflows in the coming quarters in Civil Nuclear power and as well as in Aerospace and Defense sectors, which are expected to further strengthen our order book substantially. Additionally, the company is actively engaged in advanced discussions with multiple customers in Clean Energy, aerospace, and defense sectors to establish long-term contracts. We have notably entered recently into a long-term agreement with Weatherford over the next five years, beginning the first year following the successful execution of First Article products. Now, I would like to hand over to our Chief Financial Officer, Mr. Gunneswara Rao, who will discuss in detail the financial performance of Q1 FY26.
Thank you, Mr. Srinivas Reddy. Good morning, everyone, and thank you for joining us today for the Q1 FY26 earnings call. First, I would like to extend my sincere gratitude to all our shareholders for the trust and confidence you continue to repose in our company. We are pleased to report that the Q1 of FY26 has been marked by strong financial performance and consistent progress across our strategic growth areas. So, the revenue from operations stood at INR 156.6 crore in Q1 FY26 compared to INR 128.3 crore in Q1 FY25, a 22.1% year-on-year increase. EBITDA was reported at INR 28.4 crore in Q1 FY26, up from INR 16.6 crore in Q1 FY25, a robust 70.9% year-on-year increase. Profit before tax stood at INR 114.8 crore as against INR 6.2 crore in Q1 FY25, reflecting a 138.7% year-on-year growth.
Profit after tax was INR 10.8 crore compared to INR 4.4 crore in Q1 FY25, an impressive 144.2% year-on-year increase. In case of working capital days, it is increased to 267 days from 229 days in the previous quarter. This rise is mainly attributable to the lower revenue realization from some of the customers in the ongoing conflict in that region. So, that is the reason we could not be able to receive the funds in the last week of the last quarter. However, it is received in the first week of the month. Almost $2.5 million is received in the first week of the end of the quarter. As explained by our MD, we are seeing a stronger order visibility in the Civil Nuclear power segment. We expect to receive approximately INR 1,000 crores in the next 3 to 6 months.
As we all know that India's strategic push to increase nuclear power capacity to 100 gigawatts by 2047, we see the clear visibility and forecast for the Civil Nuclear sector. So, to meet this demand, we are setting up a new dedicated facility, which will significantly expand our capacity and enhance delivery capabilities in this vertical. In case of aerospace, last year we have done around INR 45 crores of revenue. This year, we are targeting almost INR 100 to 120 crores of revenue by the end of this financial year. This growth, also driven by the repeat business from our existing customers, also increased production capacity, and which last year we have commissioned a separate unit in Pashamylaram in Hyderabad. So, this production capacity and repeated business will enhance our revenues further. And also, I just wanted to tell you, we wanted to venture into the...
We have already signed a long-term contract in the Oil and Gas sector for Weatherford, and we are venturing... We are creating a dedicated facility in the SEZ to support this vertical. We see promised long-term growth potential in this sector and also tapping into the new markets and customer segments. Thank you again, once again, for your continued support. With this, I've opened the floor for discussion and welcome any questions you may have. Thank you, everyone.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press stars and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press stars and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Vipraw Srivastava from PhillipCapital. Please go ahead.
Right. Hi, sir. I'm audible, right?
Yes.
Yeah, you are audible.
Yes, go ahead.
Right. Great result, sir. Just two questions. First of all, on the financial side from CFO, sir. So, what's the net working capital days you're expecting by the end of this year, and what's the CapEx target for FY26?
Hello?
Yes, sir. Please go ahead.
Yes, sir. Yeah, please go ahead. Yeah, yeah. So, regarding CapEx, for oil and gas sector, we are spending around ₹70 crores of CapEx for this year. Other than that, there is some sustenance CapEx and a few other equipments which we are buying for this financial year. It will be around ₹100 plus crores for this financial year. And as far as next year concerned, only around ₹25 to ₹30 crores is there as per the sustenance CapEx. But we will see as and when any new customers come, we will see at that point of time.
Right. Yeah, he was asking about net working capital days, how it will be?
267 days. Now, it was up from 229 to 267. This is the main reason is some of the customers in Israel, because of the ongoing war, we could not receive almost $2 million worth of receivables. And some other customers also paid in the first week of July. So, if we take into account, it will be as it is same as the last quarter. However, we are trying to maintain our working capital days to targeting to reduce our working capital days to 200 days by the end of this financial year.
Well, you got it. That is very clear. Sir, on Bloom Energy, you mentioned that they have been winning a lot of orders in the U.S. So, you know the Indian data center space is also evolving in a huge way. So, any plans for Bloom to come to India, or they will be currently focused only on the U.S. market?
No, the issue is not about plans to come to India. The idea is that, obviously, post-tariffs announcement, also we got the highest forecast from Bloom for next fiscal year. That's a very good sign, right? And then, apart from that, they're also increasing step by step the wallet share for MTAR at various assemblies, what they're doing for them. So, I would see over the next two years, probably they will look at doing the complete assembly.
I'm just hoping that they will, strategy-wise also for them, for catering to the Asian markets and Indian markets or the European markets, they could probably look at a situation of directly shipping the products from here back to these countries and taking the products to the U.S. for the U.S. market. So, that's, I think, the strategy that they're trying to adopt. That's why our wallet share is also increasing step by step over the last two quarters in what we are doing with Bloom.
Right. And sir, lastly, on the Aerospace and Defense , that has been very well in Europe because of the ongoing conflicts in that region. I mean, the increased fractional share you are seeing, is it a function of the conflict in that region, or is it a structural reason why these companies are tying up within that place?
It's not entirely because of the conflict. So, we don't, obviously, none of us want any conflict anywhere in the world, right? So, basically, if you look at our projects, what we are doing, we are working with US customers, we're working with Israeli customers, with European customers, basically for the civil aircrafts primarily. And then the defense side also, we are working with various projects for all these customers. And it's all based on the needs what they have. And obviously, all these are on long-term contract basis, either we have with IAI or with oilfield, with Weatherford, or with any other company like GKN, different companies that we are working with. So, the way we have proven our first articles and the production, what we have created, the batch quantities and the production, the quality what we have maintained, they're extremely happy with us.
And they're increasing the order book step by step with MTAR, and that's why you see the numbers growing year-on-year basis. And we're expecting the same momentum moving forward as well. All right.
Thank you also.
Thank you.
Thank you.
Thank you. The next question comes from the line of Piyush Sevald asani from Sundaram Alternates. Please go ahead.
Hi, sir. Thank you for the opportunity and congrats for a great set of numbers. My first question is on the Bloom Energy. When we listen to the commentary from Bloom Energy, it seems very strong. However, sir, we are not seeing that kind of growth in our order inflow in the Clean Energy segment. So, can you please help us understand when should we expect large orders from Bloom Energy coming in? Should it be second half of this year or maybe next year? Also, why our growth is only 15% in this segment when Bloom is having so much higher growth?
Okay. The first answer to your question of order inflow is, basically, the forecast from Bloom has been given just after the tariffs were announced. They've given 25% higher numbers than what they are doing this year. So, technically, the orders is just they'll follow automatically. So, whether it will happen in this quarter or next quarter, they will release those orders. So, that's not an issue at all. They've already given us the authorization to go ahead with the sourcing of raw materials and bought-outs for this. And they've sent an official communication as well. So, the order inflow is much higher compared to the current year by about 25% or more. And when we talk about the growth, yeah, we say conservatively 15% to 20%, but we always say that.
But we are expecting a lot more because of our increase in wallet share in various segments where we are working with Bloom. And it's going to go higher and higher. I've explained earlier to Viprav as well.
Sir, my next question is on the nuclear. Can you please help us understand where the orders stand because it's been quite some time you have been pursuing large orders in the nuclear segment?
So, look, basically, now it's in a very advanced stage. We can expect the orders some coming in this quarter, some by next quarter. That's why, as the CFO mentioned, within the next three to six months. These orders of close to INR 1,000 crores are not part of an execution plan for this current financial year. That's why we see a lot of exponential growth in nuclear division moving forward in the next three years.
All these orders have to be executed on a fast-track basis within three years. The reason is one is Kaiga-5 and 6 is on a fast-track basis. It is a new reactor, 700 megawatt reactors, two of them. The rest of them are the refurbishment reactors that we are working with, the reactors in Tarapur, Madhya Pradesh, Rajasthan, and Chennai. All these are coming, are in the pipeline. Tenders have been floated. We are quoted for that. These are all orders which have to be executed in 24 months. There is enough on our plate once these orders kick in for the next three years. Further four reactors are going to come in 700 megawatts in Mahi Banswara in Rajasthan. Those tenders are expected. That is not part of this ₹1,000 crores what I was talking about.
That is something new which we have come to know recently, and that will kick in probably in the second half of this year. The tender should be quoted for that as well, where that's being worked upon right now.
Sir, my last question is on the gross margin. Sir, we saw an improvement in the gross margin despite no material change in the revenue mix. Can you help us understand which segments have better gross margin because despite Clean Energy having much higher revenue mix, gross margins have improved?
Yeah, do you want to answer that?
Yeah. The gross margin, the main reason is we are working on the various long operating cycle projects like Civil Nuclear Power. We have FMBC and FTP systems. Substantial work has been done on those jobs. That is the reason a lot of work is in the form of change in inventory. So, that is reflecting the higher gross margin. And also, some of the Clean Energy products we manufactured for the subsequent quarters. So, it means our production is more than the sales during the last quarter, despite having good numbers. And we have produced for a lot of work in the other areas also. That is the reason gross margins were higher.
Okay. Thank you and all the best.
Thank you. Thank you.
Thank you. The next question comes from the line of Renu Baid from IIFL Securities. Please go ahead.
Yeah. Hi. Good morning, team. My first question is, broadly first to understand the INR 100 crore CapEx that you have mentioned for this year, would that entail us taking up more debt, or how are we planning to fund this CapEx?
See, we are going to take some debt also, maybe 70% is from the debt and 30% internal accruals we'll do. And already our existing debt is around INR 120 crores, around that number. So, we are repaying the existing debt within two to three years of time. This will be funded by the term loans.
Okay. Secondly, I'm not sure. I just want to clarify. Did you mention that for the nuclear products, given the demand which is there, we are planning a dedicated facility for nuclear, or was it only for the oil and gas? Just trying to clarify on that again.
Look, oil and gas, we are setting up a new dedicated facility in SEZ. For a Civil Nuclear Power, we are also setting up a dedicated facility near our existing units here. But that will be not so big facility. It will be a small facility wherever we have a bottleneck further. We are addressing through that new facility.
Okay. Right. Because the current utilization for nuclear facilities would anyway be running pretty low currently.
Yeah. So, this existing yeah. Go ahead, sir.
No, no. We have enough capacities, Renu. But the only thing is, if you look at the quantum of orders we are receiving, like if you have to execute, let's say, a ₹1,000 crore order book in three years, which has never happened in the past, we have enough capacities. But as CFO has mentioned, we'll have certain bottlenecks here and there which we need to address them, including storage of raw material and stuff like that because we're handling a number of projects now moving forward from FY 2027, 2028, 2029. We are creating a small facility next to our Unit 3, if you're aware, which is close by where it handles the nuclear division, to have a support system in terms of addressing these orders and ensuring that these are executed within the time frame.
Because Kaiga-5 and 6 is a time-bound project, and also the refurbishment reactors in Madhya Pradesh, Rajasthan, Chennai, and Tarapur are all time-bound projects. So, we have to ensure that and ensure that we grow in that manner, and then we get subsequent reactors as well, like Mahi Banswara and other reactors coming in subsequently, right? So, we need to create that support system to ensure that we execute these projects in three years' time.
And just a little bit more on the nuclear segment. While you did mention briefly in terms of these orders to come through in the next three to six months, can you share a bit more granular updates in terms of where is Kaiga-5 and 6 stuck? It was expected long back. And similarly, where are we in terms of project award for the refurbishment projects across the three states that you mentioned?
Kaiga-5 and 6 already, as we speak, the discussions are going on. As all of you are aware, it's given to MEIL. So, we have given 16 packages to them. Right now, the final negotiations are going on with the company to finalize it. And hopefully, by end of August or September, we should be able to freeze the Kaiga-5 and 6 orders, what we're expecting in this quarter. And as far as refurbishment of reactors are concerned, we have quoted for at least about 80% of the tenders. Only one or two tenders are pending which are coming in within the next one week. And the information I have is maximum outlay of time to get the orders in place for refurbishment of reactors based on the L1 category. We're expecting within three to six months' time for all the other refurbishments.
Has MTAR already announced L1 on these refurbishment projects or the tender?
No, not yet. We are more or less highly qualified to do these projects, especially the refurbishment of reactors. And so, basically, we are expecting. We are pretty confident of bagging the maximum number of orders. And the announcement should be done, I think, by September, October, by the time they do the evaluation and price bid and all that, price bid, the opening, and all that. So, we're expecting at least the L1 status we'll know probably in the month of September or October.
Got it. Got it. Secondly, when we look at the Bloom Energy portfolio and they have quite pretty strong volumes, so the kind of increase in the wallet share that we're targeting essentially is around the hot boxes alone, or are we also seeing some activities and traction around their other products like electrolyzers where we were the lead partners with them?
Yeah, seeing the wallet share increase, not only in the Hot box segment, but also in the enclosures and other products that we are doing right now over the last three months to six months. That's going on step by step. They're increasing it to ensure that most of the work is done back here. The ultimate goal, I think, is, as I said many years back or even a couple of years back, that they might look at complete assembly system back in India to cater to various other countries back from India to Europe to Asian countries, etc. That's how the wallet share has been increasing step by step over the years.
Right, and last question, if I can. We're probably missing some of your comments around space segment. So, how has been the business? Where are any projects in pipeline? We had some issues with the semi-cryo engine. So, where is that? And the SSLV program where we were investing to have our own independent products, where are we on the product development side?
See, a couple of things here. One is we have been more realistic in our approach, keeping the company as taking the future of the company as the most important factor. First is on the space side, it's a stable kind of a business that we are doing. And in fact, we are hoping that we would bag the electromechanical actuator systems for the space, which we have participated for ISRO, which we have not done earlier. For the first time, they have done it. So, mostly, we are hoping that we would get that project, which is substantial, which will be close to about INR 60 to 70 crores of business coming in only from EMAs. And apart from that, the regular business is going on without any hindrance. The further orders for the cryogenic engines are also expected during this fiscal year.
large number of cryogenic engines are expected during this fiscal year. Other than that, even the cryo engine orders are expected. Now, semi-cryo, Renu is basically, if you have heard about this, the chairman of ISRO has announced that most probably by FY 2027, they will launch, start using the semi-cryo engines. We are working day in and day out to meet and complete the semi-cryo engine hardware dispatch this year. There have been certain design issues in one of the assemblies which we are working on. Hopefully, in this quarter, we'll resolve it along with ISRO. And once that is done, we're all set to launch that semi-cryo program successfully this year. We are hoping for that.
Got it. Got it. Thanks much. Sir, I have a couple of more questions and come back in the queue. Thank you.
Sure, Renu. No problem.
Thank you. The next question comes from the line of Bala Subramanian from Arihant Capital. Please go ahead.
Good morning, sir. Thank you so much for the opportunity. Congratulations for a good set of numbers. Sir, my first question regarding Bloom Energy orders remained robust around 4,000 Hot Box units. Just want to understand, is there any impact on tariffs or U.S. policy shifts like IRA solar subsidy locations? So, my first question.
Your first question, answer to your first question is, as of now, we don't have any kind of impact on the tariffs being announced by U.S. as far as the U.S. customers are concerned. We are in the technology area, and as I mentioned in my speech as well, based on what we have developed over the years and the cost competitiveness and the kind of technology we have developed, we have no such indication. And Bloom also announced a very aggressive forecast for next year post the tariffs announcement. So, we are just focusing on what we are doing right now in terms of developmental activities. And I don't see that's going to be any factor as far as MTAR is concerned.
That was expected in the next 3 to 6 months. It's basically into pressurized heavy water reactors or Smaller Modular Reactors?
These are all pressurized heavy water reactors, PHWRs.
Okay, sir. Okay. And sir, secondly, on the battery storage side, I think proto to delivery when we can expect and when we can do mass production agreements and what kind of revenue potential expected on the Fluence side. And the Fluence is shifting to full-powered assemblies. Is there any additional CapEx required for these assemblies? And how will we compare between Fluence and Hot Boxes in terms of margin?
The margins are probably the similar margins. We can't just assume that right now. But we are still working on the proto too, which hopefully this quarter we should be able to complete it. And once that is done and the final design and all that is frozen, then we move on to discussing about the future with Fluence. So, it's a little premature right now for me to comment on that. But we are in a stage where we have done proto one, we are working on proto two, and then we move on and we talk about the long-term agreement or whatever. So, it depends on Fluence how we want to take it out in the future.
Okay, sir. Sir, final question. The electrolyzers, they have been developed. How do you look at it from the scaling point of view? And are we participating in any PLA schemes? And how will domestic demand pick up in electrolyzer side?
As I said earlier, electrolyzer is going to take time. You need the right infrastructure for that, not only here but also internationally as well. We have developed it, but we are just waiting with our partners, Bloom, to get the order book going on electrolyzers. Internationally, it has to have the right kind of infrastructure for that. Once that happens, then we'll definitely let you know about that.
Okay, sir. Thank you.
Thank you. The next question comes from the line of Meet Jain from Motilal Oswal. Please go ahead.
Thank you for taking my question. First question is, sir, on the product business, we saw de-growth of 24% this year, this quarter, and we expect to guide to around 20% kind of growth, so where do you see which segments are announced? Any clarity on any approvals you're expecting this year for any new products? And also, in terms of how many products are in the development stage on that? That's my first question.
So, on the product side, basically, we are working on ASPs, ball screws, valves, different products. We have actually started executing them as you are aware of it. So, mostly on the valve side, we are looking at a high fraction coming in there on the EMA side as well. And also on the ball screw side, which we got already the export orders from MNC customers, which we are start working on the production right now on the prototype and the volume production as well. So, we are expecting a diversified kind of growth in the products division, which we have expanded it over our NPD division over the last couple of years. And we have taken it forward that way. So, that's how we're going to have that kind of growth moving forward as well.
So, any particular reason for a degrowth this quarter? Any delay or any one-off things? Doesn't matter that?
Not exactly a degrowth because the kind of products requirement that they had for this quarter was slightly less than what it's supposed to be, but it's going to catch up in subsequent quarters. And also, we are adding some more products which will be exported during the subsequent quarters as well, so that's why we are pretty confident to have that kind of growth moving forward.
Okay. Seeing the current geopolitical scenario, can we assume that this is the reason? Can be a reason for a decline or the low requirement for this kind of product in this quarter?
No, absolutely not. It is not because of that. It's because of one of the products like ASPs, there are enough inventory levels in Bloom, and they have access to ship a lot more in the subsequent quarters. And plus, we're adding a lot of other products where we're exporting in ball screws and as well as in valves for the different organizations as well. So, it will catch up and we'll achieve that growth by end of the year.
Okay. Apart from them, the working capital details, we talked about the receivables how it has increased. I would also like to know the inventory. So, we see the inventory days both in the RMN and WIP has seen a sequential increase. So, is it a seasonal kind of phenomenon or there are certain inventories in hand? Can you throw some light on that as well?
Yeah, we can go ahead.
Yeah. The reason is, as I told you, there are a lot of the work is done in the form of WIP in the Q1. That is the reason for increase in WIP. It will be dispatched in the subsequent quarter. And RM also, because of the aerospace revenue, which we are targeting more than INR 100 to 120 crores compared to INR 45 crores in the last year. So, we need to order in a minimum batch sizes. So, eventually, it will come down. But however, our target is 200 days we are targeting by end of this year.
So, for 200 days target, we need to decline these receivable days and 20 days by a significant amount. So, we are expecting.
Yeah. Yeah.
Yeah. Go ahead.
Yeah. Yeah. You go ahead. You go ahead.
We are expecting it will be an equal proportion between both the things or we'll see 20 days elevated and receivables to be better going ahead? How it will be?
No, no. See, we have. There are credit terms agreed with customers where we are focusing on timely collection as far as receivables are concerned. And we are trying to reduce raw material days as much as possible. We are trying to invert the only just-in-time in case of raw material. In the case of WIP, for example, since we are expecting a lot more orders in the nuclear sector, we have to do a lot of work and dispatch in two to three years of time. So, the WIP may increase, but the revenues also proportionately will increase. In absolute terms, WIP may increase, but days may come down because of the higher revenue projections. So, receivables, we are trying our best, and raw material, we are trying to reduce as much as possible.
WIP, in absolute terms, it may increase, but on the days front, it will come down.
Understood. Understood. Okay. Thank you so much, sir.
Thank you very much.
Thank you. The next question comes from the line of Keyur Vadalia from Niveshaay. Please go ahead.
Hello. Congratulations on the success from this year.
Thank you.
I just wanted to know what kind of assemblies we provide for the refurbishment and the upcoming reactors, and is there any assembly under the development or at the approval site?
No. What all we are supplying to the nuclear division all have been done by MTAR for a number of years. So, there's nothing to develop there. We have been working with NPCIL for almost 40 years now with the nuclear division. We all develop products and assemblies that we have done in the past. These are all the requirements that they need. We are one of the leaders in that division. There's nothing to develop there. We have already developed all these.
Okay, and in the refurbishment and the upcoming reactor, what kind of opportunity do you see for the reactor?
I can't quantify the numbers because the tenders are on live right now, but it's a great opportunity. It's almost like we're looking at five reactors going under refurbishment, which is happening at one time, so that's a sizable opportunity that we are looking at right now.
Okay. Thank you.
Thank you. The next question comes from the line of Dhavan Shah from Alpha Accurate Advisors. Please go ahead.
Yeah. Thanks for the opportunity, sir. So, my question is on the Bloom side of the business. If I look at the Bloom's presentation, I think they have mentioned that because of the increasing demand in U.S., power demand in the U.S. because of the hyperscale data center, they are focusing roughly 750 terawatts of new demand by 2030. And they also showed that this new technology of fuel cell, which can help to meet this incremental demand and substitute the demand versus the traditional side of the business. So, how do you see the adoption of that technology in the U.S.? And how are we placed to capture the potential market from that side of the business?
See, that's what I said. In terms of Bloom, we are working with them for the past 10, 12 years right now, and we have been very strong supply chain partners for them. So, whatever opportunities they have, which is very encouraging for us as well, it flows back into MTAR in terms of the kind of orders we get to supply them the required equipment that they need. And they're also trying to increase their wallet share in each of those assemblies that we are supplying to them. So, it's a great opportunity. So, we'll take it step by step, year-on-year basis. And they are well equipped to address their requirements in terms of capacities and all that. So, that should not be an issue for MTAR even moving forward for the next three to four years.
Sir, is there any metric to understand this 750 terawatt-hour of demand would generate how many hot boxes demand incrementally for Bloom? And what could be?
It all depends on the technology, how it moves from year-on-year basis, right? So, it's not necessarily that the hot box today can generate 65 kilowatts. Tomorrow, it can go up to 75 as well. So, each of the hot box generates 65 kilowatts. So, it all depends on how we move forward step by step in terms of improving the technology, which we are continuously working with Bloom as we speak.
Understood, sir. And I think your competitor is from Taiwan, wherein the tariff is roughly 20-odd% versus our tariff is 25%. So, if you can share what is the cost differentiation between us and them. You said that we are lower than them. So, if you can help us to understand in terms of the percentage, how much is?
I'm not aware of what prices the Taiwanese supplier is supplying. But as far as the innovation and various products that we are doing for Bloom, we are far ahead of them. And secondly, as far as the capacities are concerned, we are far ahead of them. And obviously, we have a major wallet share in terms of hot boxes with Bloom compared to the other competitors. So, I don't want to go into specifics, but the difference in tariff will not make any difference as far as Bloom or MTAR is concerned. That should not be a matter at all.
Understood. And sir, if I look at the last three, four quarters, I think the Clean Energy from Bloom is doing roughly ₹100-odd crore of business every quarter for us. So, when do we see this 100 can go up to ₹150 to ₹200 crore per quarter? If you can help us to understand that stuff.
Sir, as I said earlier, you asked the right question as well. So, next year, we're looking at about close to INR 140 to INR 150 crores of revenues coming from Bloom per quarter.
From next year, FY27, you are saying?
Yeah.
Okay. And this year?
This year, it will be like INR 100 crores plus. It will be in that range.
Okay. So, the run rate would more or less be same, 100 crore per quarter?
The run rate for next year is much, much higher.
Understood, sir. Understood. And if you can help us to understand this new product development for Fluence, you mentioned in the presentation that the Proto 1 is already completed. Proto 2 delivery was also expected to be delivered in the Q1 of 2026. So, I believe that that might also have been completed. So, how do you see that kind of the business from Fluence, the incremental opportunity per year? And by when can we see that in the numbers? And secondly, about the Weatherford also, if you can help us to understand the execution is also completely over there. So, what could be the opportunity from that business also?
See, the first step is Fluence. What is important is we need to complete. It's a completely new design. We are doing design and development for them, and we are doing the Proto 2 right now. Once that is completed, then a lot of discussions will happen in terms of finalizing the final product what they want to launch. And that will take some time. So, what we are looking at is once that is done, then we'll be able to talk about the agreements, the future, and things like that. Probably it can reflect in FY27. Hopefully, let's see how it goes. But we have to wait and watch for that. But we are going in the right direction as far as Fluence is concerned. Let's see how it goes. And Weatherford, we are already in advanced stage. In fact, we have almost completed various assemblies and prototypes.
Now they're looking for the batch and volume production. They have asked us in the recent meetings how much capacity that we can spare within the existing units because we are building a separate facility for them near the airport, which will get commissioned by June of next year. That will be a full-fledged program for the next 10 years for Weatherford. We are looking at other oil and gas companies as well within the same facility with different kind of machinery setup. It's going in a very positive way. That will be the add-on revenues coming in for the next financial year in the oil and gas sector in a big way.
Understood, sir. I have more questions. I will get back in queue for the same. Thank you.
Sure.
Thank you. The next question comes from the line of Nikhil Agrawal from Kotak PMS. Please go ahead.
Yes. Good morning, sir. And thanks for the opportunity. So, my question was for Bloom. You mentioned that Bloom has given a forecast of 25% growth in the hot box procurement. So, this is for MTAR specific, or is it for the company as a whole, for Bloom as a whole?
No, it's MTAR specific. The kind of numbers we're doing this year and for next year, if you look at various things that we're doing for them, that's what we're looking at.
Okay. That's great. But so, for the Clean Energy segment, you've given a guidance of about 15% to 20%. So, are we expecting any pressure on realizations, or will you be revising the guidance further as the procurement improves?
See, we have said 15% to 20%, but we're looking at much better percentages going forward for FY27, right? So, we just said 15% to 20%. There's no pressure on realizations, absolutely. That's absolutely out of the window. So, it's going in a very positive way in the right direction. And we are very happy that Bloom is also doing pretty well right now. So, the kind of numbers we're expecting for next year are substantially higher than what we're doing today.
Okay. So, can you help us with the revenue contribution from Bloom for the last two years and the next two years that is expected? Is that possible?
We have done an average run rate of, let's say, INR 100 crores per quarter or INR 110 to 111 in that range, which can go up to, as I mentioned earlier, the question asked me what was asked earlier. So, the kind of forecast we've given probably might touch about INR 130 to 150 crores per quarter.
This can pan out from which quarter onwards? Roundabout?
Next financial year.
Next year. All right. All right. Okay. So, that's it from me. Thank you so much.
Thank you. The next follow-up question comes from the line of Vipraw Srivastava from PhillipCapital. Please go ahead. Please go ahead, sir, with your question.
Hello. I'm audible, right?
Yes, sir.
Yeah, Vipraw, you are right.
So, to keep on the so, Bloom has got one more partner, sir, in Taiwan, right, for manufacturing. So, incrementally, sir, the market share remains the same, right, between you and Kaori. Because my understanding is you are the larger player in terms of market share. So, you maintain your share with Bloom. There is no because of tariffs, there is no shifting of volumes to Taiwan. Taiwanese player, you maintain your share, right, sir? My understanding is correct?
Yes. Absolutely right.
Okay, sir. Got it, sir. And sir, last question, sir, from my end. Sir, obviously, in this budget, last budget, there was a change in the nuclear act. Now, foreign players can also come and invest in the country. So, from a long-term perspective, do you see this having any implication in the nuclear sector with foreign players coming in? Will you be planning to collaborate with them, or will they be a competition to you? Any thoughts on that?
There's nothing like competition to us. See, we are looking at pressurized heavy water reactors in India. And the foreign players are like light water reactors. And they would also subcontract a lot of the requirements back for the Indian companies which are qualified to do that. So, we can only benefit from that. And it's nothing like competition out there.
Got it. Got it. Thanks a lot, sir. Thank you.
Thank you. Ladies and gentlemen, in the interest of time, this will be our last question for today. I would now like to hand the conference over to Mr. Srinivas Reddy for closing comments.
Thank you, everyone, for attending this earnings call. I would like to mention that we are working towards achieving our guidance for sure for this current financial year. We have also been doing a number of developmental activities for the future growth of the company, which all of you are aware of. It's not just about numbers, but kind of innovation and development, what MTAR is doing for the future growth of the company. We are right on track with that. I expect the company to do better and better year-on-year basis. Thank you so much for all your presence in today's earnings call. Thank you so much.
Thank you. On behalf of MTAR Technologies Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.