Ladies and gentlemen, please stay connected. The conference call will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to MTAR Technologies Limited Q1 FY 2027 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Vidhi Vasa. Thank you, and over to you, ma'am.
Thank you, Atharva. Good morning, everyone. On behalf of MTAR Technologies, I extend a very warm welcome to all the participants for Q1 FY 2027 earnings discussion call. Today on our call, we have Mr. Srinivas Reddy, Managing Director and Promoter, Mr. Gunneswara Rao, Chief Financial Officer, and Ms. Srileka 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 the exchange and on 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. These statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. Now, I hand over the call to Srinivas, sir. Over to you, sir.
Hello, and good morning, 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. Srileka Jasthi, Head Strategy Investor Relations, and Orient Capital, our investor relation partners. We have uploaded our updated investor deck, press release, and results highlights on the stock exchange at company website. I hope everybody had an opportunity to go through the same. I'm pleased to share that we have delivered another strong quarter with our quarterly performance remaining in line with our growth guidance provided for the current fiscal year. We continue to see strong momentum across all our business verticals, supported by favorable industry tailwinds and a healthy pipeline of opportunities. During the quarter, we registered revenue of INR 360.7 crores with an EBITDA margin of 23.6%, which is in line with our annual guidance.
While the financial performance is very encouraging, what gives me greater confidence is not just the numbers, but the direction which the company is heading right now. We strongly believe that the company is at an inflection point with each of our key business verticals positioned for next phase of growth. The sectors in which we operate, be it civil nuclear power, aerospace and defense, and clean energy, all are witnessing strong growth across both domestic and international markets. With long-term strategic vision and a strong spirit of innovation, we have built differentiated capabilities and niche product portfolio across these strategic sectors, consistently investing in technologies and capabilities well ahead of broader market adoption. Today, as these sectors gain significant momentum, the strength and diversity of our key product portfolio are redefining our growth trajectory and creating multiple avenues for sustained long-term growth.
In Civil Nuclear power, the capabilities we have built over the past five decades with lot of foresight are translating into meaningful opportunities moving forward. We received our highest ever order inflow in this segment during the last quarter for Kaiga 5 & 6 reactors. Looking forward for more orders from refurbishment of existing reactors during the current quarter as well. I am also pleased to highlight our notable contribution to the [inaudible] reactors, which recently achieved criticality, a strategically significant milestone for India's nuclear energy program. The company has played a pivotal role in this prestigious national program, having supplied a majority of the critical assemblies for the reactors, reflecting the depth of our engineering and manufacturing capabilities built over decades. Looking ahead, the proposed development of four nuclear reactors at Mahi Banswara through the NTPC-NPCIL partnership represents another significant opportunity for the company.
With the Government of India targeting 100 GW of nuclear power capacity by 2047, we believe the long-term opportunity for the company in this sector is substantial. From an execution perspective of current orders, we expect to see a very meaningful ramp-up during the current fiscal year, with a significant growth happening moving forward as well. We already have a strong order book in this segment and supported by a healthy pipeline of opportunities and regular order inflows expecting going forward as well. We believe Civil Nuclear vertical has transitioned to a more consistent and sustainable growth trajectory, with substantially reduced cyclicality compared to the past. Clean Energy continues to demonstrate a strong momentum. We received record order inflow during the quarter, further strengthening our already robust order book and providing strong visibility for growth going forward.
Our capacity augmentation plan for fuel cells being implemented in three phases remains on track, with phase one already commissioned, with phase two to be commissioned by September, October of this year. While phase three, which is a multi-fold capacity expansion, will be completed by the half of 2027. Facility being developed for fuel cells is designed to support multiple products under one roof, providing us with greater scale and operational efficiency. An important point to highlight here is that our expansion is not limited to adding physical capacity. We have initiated manpower training and are working on automation initiatives well ahead of capacity coming on stream, ensuring that we are operationally prepared to support the expected ramp-up in volumes moving forward in the coming years.
While we continue to cater to multiple areas within Clean Energy, we are also focused on further depths that can become meaningful growth drivers over the long term. In line with this strategy, we have entered the data center infrastructure solution segment, where we see significant growth potential. Special set of data center infrastructure products are currently in progress. Upon successful completion of the qualification process, we expect a meaningful ramp-up over the next year. We are currently working on the first batch of products against a potential requirement of eight times this requirement for the order, what we have received at this time, providing opportunity for a substantial scale-up of this vertical. To support this opportunity, we're also setting up a dedicated facility for data center infrastructure solutions.
We are witnessing a good traction in hydropower and wind energy segments as well. We continue to pursue select products in this segment. Clean energy will remain a major driver of revenues by end of this fiscal year. In aerospace and defense, the growth remains encouraging. We expect significant order inflows as multiple programs and customer engagements are in progress. In the domestic defense segment, we are anticipating volume orders for actuator assemblies for LCA business Mark 1A, as well as orders for wing assemblies and electromechanical actuators for various defense programs. With overall opportunity potential exceeding more than INR 250 crores, the execution from domestic space vertical is expected to witness a steady growth. Our MNC aerospace business continues to demonstrate phenomenal growth potential, with significant demand from existing customers for products that have already been qualified.
To support the anticipated volume ramp-ups, we are setting up multiple subunits within our existing dedicated aerospace facility. One of our key differentiators has been the pace at which we have established customer-specific manufacturing capabilities, including our new dedicated aerospace facility and Nadcap approved special processes facility. Our ability to establish these capabilities within a short timeframe has been viewed very positively by our customers and reinforces their confidence in our ability to support their growing requirements. With qualified products moving towards higher volumes, increasing demand from existing customers, and multi-year visibility across key programs, we believe aerospace and defense is well-positioned to emerge as significant growth driver for the company. We continue to pursue multiple new inquiries to capture the next leg of growth, our immediate focus remains on completing the critical qualification of existing products and ramping up volumes.
As these programs progress, we will also look to onboard new customers. We expect to double our revenues in the aerospace and defense segment during the current fiscal year, with a significant ramp-up from this base anticipated over the next three, four years. Importantly, this growth outlook is largely driven by our existing programs and product portfolio, with further upside potential as a new inquiry is currently under discussion materialize and additional products are added to our portfolio. The Oil & Gas facility will be operational by this October. We have already delivered the first articles to our customers while the first articles for flagship components for another customer are currently under process. As discussed in the last earnings call, we expect a robust closing order book of INR 5,000 crores by end of this fiscal year, providing a strong revenue visibility.
Our closing order book by end of this quarter already stands at INR 5,143 crores. We have received additional INR 800 crores of orders today. With further order inflows expected across all key sectors over the coming quarters, we remain confident in sustaining the growth momentum going forward. We have a robust five-year roadmap to pursue growth across all sectors, execution remains our key focus in the near term. Our ongoing expansions across all verticals remain a key priority as we continue to build the capacity required to support the next phase of growth. At the same time, as we pursue the long-term strategic opportunities ahead of us, prioritization of projects and prudent allocation of capital will remain equally important for us.
We continue to focus on maintaining healthy working capital, strengthening operating cash flows, and maintaining a healthy balance sheet while ensuring that capital is deployed towards opportunities that can deliver sustainable growth and improve our returns. Timely execution as per customer requirements is another important area of focus. We continue to strengthen our management and technical teams, enhance operational efficiencies, and build the manufacturing capabilities required to deliver on our growing order book and meet our execution targets. Improving EBITDA margins also remains a key priority as we scale our revenues.
With the progress we are seeing across all key verticals and the initiatives underway to strengthen our capacity and execution, I would like to reiterate our confidence in achieving the guidance given earlier at 80% revenue growth for the current fiscal year with an EBITDA margin of 22% ± 100 basis points. We are pretty confident to do better than the guidance given earlier to everyone. We remain focused on building a world-class institution with a diversified and sustainable business for the long term. I would like to thank all our shareholders for their continued trust and confidence in the company. Now our CFO, Mr. Gunneswara Rao, will discuss in detail on the financial performance for Q1 FY 2027. Thank you.
Thank you. Good morning, everyone, and thank you for joining us on the earnings call. We have recorded highest ever revenue of INR 360 crores in Q1 FY 2027, registering a strong growth compared to the corresponding period last year and also last quarter. Overall, the company witnessed a healthy growth on both year-over-year and quarter-over-quarter basis, driven by the strong execution of various products. I would now like to provide an update on our consolidated financial performance for this quarter compared to the previous year first quarter. Revenue from the operation is at INR 360.7 crores in Q1 FY 2027 as against INR 156.6 crores in Q1 FY 2026, which resulted in a 130.4% increase in revenue. EBITDA reported at INR 85.1 crores in Q1 FY 2027 as compared to INR 28.4 crores in Q1 FY 2026. This has translated to 199.7% increase compared to the last year first quarter.
Profit before tax stands at INR 67.4 crores in Q1 FY 2027 as against INR 14.8 crores in Q1 FY 2026, which is 355% increase. Profit after tax was at INR 50.2 crores in Q1 FY 2027 as against INR 10.8 crores in Q1 FY 2026, which is a 364.5% increase compared to the last year first quarter. While we expect strong growth across all sectors in which the company operates, the company also focusing on the customer diversification strategy, increasing wallet share from the existing customers, as informed by our MD. Along with this growth, the company will continue to focus, maintain healthy cash flows from operations, making careful capital investment decisions, managing working capital efficiently to support sustainable long-term growth. When it comes to the working capital days, we have achieved 59 days compared to the 172 days during the FY 2026 for entire year.
Supported by various initiatives undertaken by the company, including better commercial terms with the customers and also monitoring each element of the working capital on daily, weekly basis. We were able to reach to 59 days, whereas our guidance given in this year is 172 days. We have given a guidance, whereas we achieved 60 days. By end of the year, we were expecting to maintain 100 days as compared to the previous guidance of 170 or 150 days in that range. The gross margins we achieved as 45.61% in this quarter as compared to the last year, 47.65%. This is due to revenue mix which has happened in this year. We are continuously monitoring the improvement of the gross margins wherever possible.
EBITDA margins is at INR 85.1 crores in this quarter, which is actually 23.54% we achieved as against yearly guidance of 24% we have given. Last quarter, EBITDA margins was at 20.11%, and this is due to operating leverage we achieved through the higher revenues and also monitoring of the cost. ROCE is at 17.2% versus 11.4%, and we expected to reach 23% next year. Our PAT is at INR 50.22 crores for this quarter, which is 13.92% as against 6.9% in Q1 FY 2026. Last quarter also, we achieved a good set of the PAT numbers because our revenues are growing multifold from now onwards because of the strong order book, what we have, and also whatever sectors we were doing first articles last two, three years, which is now in the production ramp-up stage.
The customers were increasing the orders in this sector. First articles, whatever we completed, we are getting at least 10 to 15 times of the volumes in the aerospace sector. The cash flow from operations is at INR 247.69 crores in this quarter as against INR 191.66 crores in the last year. This is mainly due to the various initiatives undertaken by the company, including working capital and other areas, better commercial terms with customer. Other important metric we are seeing, our debt is at INR 423.6 crores as of 30th June 2026. Also, we have an investment of INR 379 crores as of this month, like July end, we have INR 379 crores of the investments are there. Literally, there is no debt in the company except some INR 20 crores, INR 30 crores after adjusting the cash balances, whatever we have.
As expanded by our MD, we are in a phase of the expansion of the various verticals in the company, and this requires almost INR 500 crores of CapEx for this year and also next year put together, this CapEx required for the existing expansion plans, whatever we have undertaken. Thank you everyone for joining this call, and we appreciate your time and for your trust and confidence reposed on the company. Thank you very much. You can take up the question and answers now.
Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the queue, you may press star 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 Mohit Kumar from ICICI Securities. Please go ahead.
Yeah. Good morning, sir, and congratulations on a very good quarter. My first question is, sir, can you help us with the tentative execution timelines for the order which you announced today, which is INR 31 billion? Is it everything of this will get executed in FY 2028 and FY 2029 and nothing would be executed in FY 2027? Is that a fair expectation?
Yeah. The orders what we received today, the execution timeline is for next year. The demand is a lot more, it all depends on how soon we can implement our expansion plan and then take it forward. The sooner we do, the requirement is obviously for next financial year, we have to see how soon we can implement our expansion plan and ramp-up plan for next year, which we are targeting that, let's see how it goes.
Understood, sir. My second question is, sir, do you expect separate package for nuclear power plant of Mahi Banswara for fuel machining system where we can participate directly, or are we expecting to participate through the EPC vendors?
No, that is through EPC vendor. We are qualified for number of projects as you have seen in Kaiga 5 & 6. We expect a good opportunity from this. Kaiga 5 & 6 is two reactors, and these are four reactors. MTAR's participation in this project will be much higher than what we can expect from Kaiga 5 & 6 as well.
Understood, sir. My last question, sir, can you help with execution timelines for the existing nuclear order for Kaiga 5 & 6, and how big is the refurbishment order which you're expecting in this quarter?
The refurbishment orders overall would be about around INR 200+ crores that we need to do for various reactors. We're expecting another INR 130 crores, INR 140 crores of orders coming in in this quarter. Obviously, we have a lot on our plate in terms of the maximum orders, which will be around close to INR 800 crores in nuclear division itself, which never happened in the history of this company in the past. The kind of order pipeline that we can see moving forward as well with the new projects coming in and the government's plan to move into much higher gigawatt range. We expect this momentum to continue over the years.
There will not be any cyclical issues as compared in the past, earlier, I'm talking about five, 10 years back. We would see the momentum going forward as well.
The execution timelines for the existing orders, sir?
For the refurbishment reactors, it is within two years. For Kaiga 5 & 6, the execution timelines range from one year to three years.
Understood, sir. Thank you and all the best, sir. Thank you.
Thank you. Before we take the next question, a request to all the participants to restrict their questions to two questions per participant. Thank you. We take the next question from the line of Bala subramanian from Arihant Capital. Please go ahead.
Good morning, sir. Thank you so much for the opportunity. Congratulations for good set of numbers. Sir, on the working capital side, we have seen a significant improvement in terms of inventory is also reduced from 208 to 145. Receivables also reduced to 140 to 82. Just want to understand, this dramatic reduction in days is very much impressive. How do you understand in this financial year as well as next year? Given it's a diverse project portfolio, some of them are long cycle, some of them are short cycle. What are the specific initiatives drive this improvement, and how do you understand in the coming years?
Jay, you want to answer?
Yeah, I'll take up this call. We have negotiated better terms with some of our customers as far as commercial terms is consideration. Also, our receivable days are good compared to the last quarter. We were able to negotiate some better terms. One is commercial terms. Also the credit period we negotiated. Some of the credit terms are after reaching the customer premises. We were able to deliver at a faster phase so that we can able to receive the money. Having said that, our target is for this year is around 100 days we are targeting to reach that, including keeping consideration of all long cycle projects into consideration. Apart from this, we also is monitoring every element of the working capital, like current assets. We were able to generate GST refund of almost INR 70 crores per year we are targeting.
That our cash flows will be better, cash flow from operations better and all. We wanted to sustain these levels, constantly negotiating better terms with the both existing customers and also from the new customers. That's how we can able to do. Everything is done organically, and there is a possibility of doing inorganically also, but we don't want to do at the cost of margins. The inorganically also we can reduce, but it will be the costlier. We don't want to affect the margins in the company. As long as it is margins are better and everything is good, then only we can take any of the actions. Whatever we have done is organically we are able to reduce now.
Okay.
I hope I clarified your question.
Yes, sir. Sir, my last question. I think we have an order book of nearly INR 5,000 + crores and today morning around INR 3,100 crores. I think if you want to execute more order book, obviously we need to have kind of facilities and equipment. Earlier you guided that CapEx. Is there any reiteration that CapEx especially for clean energy side? If you could give the update of Oil & Gas and Clean Energy phase two for the CapEx perspective. How much CapEx we have incurred in Q1, sir?
Total INR 80 crores CapEx is capitalized, but it is not spent in this quarter. It is actually in the form of capital work in progress, and it became capitalized now. For quarter one, we might have spent around INR 30 crores, INR 35 crores only CapEx. Overall, INR 80 crores which is capitalized, but earlier it was in capital WIP line item. It's a part of fixed assets only. When it comes to INR 5,000 crores order book, what you mentioned today, we have given an incremental. We received that INR 3,200 crores. It is not a full order. Already communicated earlier. The incremental order is INR 800 crores. It is INR 5,100 + crores, INR 800+ crores is the total order book as of today.
When it comes to the CapEx plans, as we said earlier in our call, in my call, is actually around INR 500 crores we have to incur to take the company into the next level. Next year guidance, we are not giving officially as of today. We are seeing at least four, five times of asset turnover, whatever we do, minimum four to five times of asset turnover we are targeting. If you look at our debt is today around INR 20 crores, INR 25 crores only, after adjusting the investments what we have in the company. We are very strong in the as far as the balance sheet is concerned and working capital also into consideration. Total across all sectors, we are going to spend around INR 500 crores, but everything will not spent in this year.
It will be spillover to next one, two quarters of the next financial year. As communicated by our MD, there are phase one, phase two target, phase two, phase three targets are there. For which we need to spend money to increase the asset turnover ratio at least 6x , whatever we spend in the form of CapEx.
Got it, sir. Thank you.
Thank you. The next question comes from the line of Gaurav Nagori from Avendus Spark. Please go ahead.
Thanks for the opportunity. Continuing the last participant's question, given that you are seeing a very strong demand in the fuel cell segment, are you planning the capacity expansion beyond the 20,000 hot boxes capacity that's already guided? That's question number one. Secondly, if you can elaborate a little bit more on this new product revenue, which has gone to almost INR 100 crores, almost 50% of the clean energy segment revenue run rate.
Yeah. Basically, Gaurav, as I mentioned earlier, we are going into phase two is an expansion that should be ready by September for fuel cells, and phase three is going to be a multifold expansion plan. I can't specify the numbers because of the NDA being signed, but it's going to be a multifold expansion plan, which will be ready by March of 2027 in all probability. There will be a ramp-up, which is being organized. A training program is being done right away to gear up to these. One is the capacity and one is the ramp-up plan. Both are being handled. It's going to be a massive multifold expansion plan which is in place because of a very strong demand, as you have seen that even today, getting orders on a consistent basis.
Moving forward as well, we see a very strong roadmap in all these sectors moving forward. What was your second question now, Gaurav?
Yeah. Sir, on this first question only, when you say March 27 timeline, is it the commissioning by March 27, or you would be starting from March 27? If you can just clarify on that one.
We will be commissioning by March 27, the multifold expansion plan, then we move on to the ramp-up plan afterwards, from April onwards.
Understood.
We'll have the phase two operation. Phase two will be operational by October of this year.
Okay. The next phase will be from October to March 2027.
We've already completed our phase one expansion plan in all aspects. It's done already.
All right. The CapEx for this year would be upgraded because of this new phase expansion from October to March 2027?
Yeah, that's right.
All right. The second question was on the new product, which has seen a sharp growth in this quarter. In fact, the run rate now is almost 50% of the fuel cell segment. Is it just one-off deliveries, or this would be the run rate continuing from here on as well?
No, it's going to continue. It's going to grow. Actually, we've got a major demand in this product division, and it's going to continue to grow more than what it has grown in Q1. Second half would be even stronger than the first half in all these segments that we are talking about, including the product solution.
This new product segment, I'm assuming, are the product which goes into this fuel cell assembly only, other than the hot boxes?
No, not necessarily. We have the other products as well. We are doing pretty well in ball screws. We are receiving a lot of export orders as well. We're seeing a major contract with one of the MNCs for acute supply of ball screws for them for the aerospace. A lot of work has been done over the past couple of years to get qualified for all this, and now you are seeing those results moving forward.
All right. Okay.
It's a combination of everything.
Understood. Just last question, again, on the working capital, where we have seen receivables kind of coming down from 140 to 80. Our understanding is that most of these high receivable days is because of the transit time that you have, and then the recovery from the client is having about 40, 45 days of working capital days. If I understood it correctly, this entire decline is because of a better credit terms once the product is delivered at the client site or any other reason?
No, it's all about better payment terms, credit terms, and various other aspects. That's what it is.
Yeah, not only just the customer makes.
I think we are.
Sir, not only the customer.
Yeah, go ahead.
We also actually got negotiated better terms with other customers also. Weekly monitoring is in place. Various actions, not only that.
Understood.
Everything culminated into this reduction.
Okay.
The end of the day, Gaurav, the idea is to break down the working capital days will be sustaining it. We are at 59, 60 days right now, but we'll be below 100 days for the year. That's what the CFO has mentioned earlier.
Okay. The way to look at it, the receivable inventory days, which used to be about 340 days, which is now down to about 220. You are saying that both the receivable to inventory days would sustain around 200, 220 days, and the working capital at 100 days as well.
That's what our target. Let us see.
Yeah.
Thank you. That's it from my side.
Thank you. The next question comes from the line of Sumant Kumar from Motilal Oswal Financial Services. Please go ahead.
Yeah. Hi. My question is, our key client has increased their revenue guidance by 10%-15%. Assuming that, can we say whatever the guidance we have given to 80% ±5%, there is a higher possibility to upgrade this in the coming quarters?
Sumant, it's like this. I've already said that in my call speech that definitely we have given a certain guidance, which we are very confident of, and we'll definitely do better than that. Probably that's what I would say right now. Probably we'll see by end of next quarter how it goes, and then we'll come back to you on that.
Okay. For this civil nuclear power segment, our order book execution is still not picking. When can we expect this execution is going to happen? Which year?
In this year, Sumant.
Okay.
Second half of this year, the execution will commence, and it will continue to grow from there on. That's why I clearly said that we are doing certain long cycle projects right now, and the executions will start from second half of this year, and it will continue to grow from there on.
Okay. This order book is for how many years? The current order book of nuclear power.
Overall, it's for three and a half years. Some of the orders are within two years. Overall, we have to execute everything. We have roughly around INR 800+ crores , I think, including the one which we're supposed to get where we are declared L1. We're supposed to execute all this within the next three years.
Okay. Thank you so much. Thank you.
Sir, as of today, we have INR 684 crores of orders. What we are expecting is INR 130 crores. With that, it is around INR 815 crores. That was mentioned by our MD, around INR 800 crores in the last question also. I think we are very confident we'll get in this quarter.
Okay. Thank you so much.
Thank you. We have the next question from the line of Vipraw Srivastava from PhillipCapital. Please go ahead.
Hi, sir. Good morning. Just quickly on the CapEx side. You have guided for INR 500 crores of CapEx for next couple of years. Out of this, sir, how much will be for non-clean energy segments out of the INR 500 crores?
So it will be.
I think.
It will be around 70/30 ratio. It will be in the 70%/30%.
30% is for non-clean energy segment, right?
Yes.
Okay. Around INR 150 crores.
Even within the clean energy also, some parts can be fundable in other sectors also, which we will use for other sectors also.
Right, sir. Sir, out of this INR 500, how much we have already incurred in quarter one?
Sir, we incurred around INR 35 crores of CapEx in the quarter one.
Oh, INR 35 crores, right?
Yes.
Sure. Okay. Secondly, on the data center side, where we are obviously working on first approvals, and then we'll be ramping up. Exactly what we'll be doing firstly, and secondly, sir, what's the current size of the order we are working on as far as data centers are concerned?
See, data centers, the order is about INR 45 crores, which we have to do it before March of this year. Right now, we are doing the first article right now. That's the initial first article with a couple of two, three assemblies, and then we go into the major first set of order, which is about INR 45 crores, which we have to execute by March of this year or February, March of this year, that is last quarter of this financial year. The way we are setting up the whole plan is that we have to do eight such major infrastructure requirements, eight sets, year-on-year basis. That's where we stand. The focus is basically to ensure that we have a great dedicated facility for that, moving forward, to execute that eight sets requirement each year onwards.
It's for export, right? It's not for domestic consumption.
No. All this is for export.
All this is for export. Thank you. Thanks a lot, sir. Thank you.
Thank you. We have the next question from the line of Viraj Parekh from Carnelian Asset Management. Please go ahead.
Thank you so much for the opportunity, sir. My question firstly is on the nuclear segment of ours. You mentioned in the earlier questions that, also on your PPT that there are four projects at Mahi Banswara where we'll be bidding. Is it possible for you to address the TAM and the kind of opportunity we can get in terms of revenue from these four projects, which we'll be bidding for over the next three, four, five years as and when they open?
Basically today's situation is the tenders have already been floated for these four projects, four megawatt reactors. Once they are allotted to the contractor who is getting it, then MTAR has an opportunity of much more than what we receive from Kaiga 5 & 3 , because Kaiga 5 is only three reactors. We have four reactors. The timeline, I cannot really say. Probably, it's a process by itself, right? They'll finalize the tenders and then it's a one-year process, I guess. We're already having our plates full in terms of orders, so probably these orders might fit in in the next financial year.
Okay. Sir, the other question is, you had a specific slide on role in India's PFBR program, and the company also contributed for this program. Can you help us understand that, what can be the opportunity size here for us?
The PFBR program was a very long program for us, which we have actually contributed massively for that in terms of the core of the reactors in various major assemblies, which we have done exclusively for IGCAR and BHAVINI projects, that's PFBR. Now, since it's achieved the criticality, now they're looking at setting up, I think what we've heard is they're going to set up another couple of more reactors, which they started sending the details to us. The opportunity is very big in that. Let's see. As and when we have more information on that, we'll update all of you on that. There is a great opportunity coming forward for that one since they have achieved the criticality right now.
Sir, in nuclear, we work with EPC contractors. Here we are directly working with EPC contractors or with the government?
This is directly with the government.
The pace of.
For PFBR, it's directly with the government.
If we have to understand the pace of the nuclear or the PFBR program, either of them scaling up faster, we would, not in terms of revenue, but in terms of the timelines of things happening faster, PFBR would come ahead of nuclear?
I'm not too sure about that. PFBR will definitely come forward because they have achieved criticality, and it's a great achievement by the Government of India to do that. We have contributed a lot for that. It's kind of part of our nuclear cycle to use the thorium deposits that we have. All this is for civil generation power requirements, right? Obviously, the next step is taken right now in terms of move forward with the next reactor. Let's see how soon they come up with that.
Understood. This is the last question. I think the previous participant touched upon it. The products and other sectors where we are supplying certain components which are import substitutes, and we also have certain export orders here. Is it possible to elaborate if certain end usage and the products that we are making, which are critical, and also the end usage of this industry, it mainly comes from the point of view of understanding the sustainability of this vertical for our business, given that it's scaled up so significantly in Q1.
Yeah. The sustainability, it's going to sustain and do better moving forward. It's a combination of aerospace, defense, clean energy. It's a combination of all those products that we have developed over the years, and it's going to sustain and do better actually, quarter-on-quarter basis. That's what we are looking at there.
Sir, like in aerospace, once we get our first articles approved, is that the similar nature of this business that we are getting certain first articles approved and then winning long-term orders?
That's exactly what I've said. As the CFO also mentioned earlier, see, basically what we have seen, we have done a lot of work in the last couple of years in order to establish the first articles, the infrastructure, getting qualified for aerospace and getting the right customers, and our quality getting approved very well by all these customers. We already moved into the volume production for majority of the first articles, and some are in the process. It's an ongoing process. What you're seeing the numbers right now is an effort of which was done over the last one and a half years.
Understood. Thank you so much, sir. All the very best.
Thank you.
Thank you. We have the next question from the line of Jenish Karia from Union Mutual Fund . Please go ahead.
Yes. Thank you for the opportunity and congratulations on a very good set of numbers. Considering.
I can't hear you. Can you come closer to.
Is this better, sir? Hello, is this better?
[inaudible]
Hello.
No, it's not.
Hello. Is this better now? Hello.
Yeah, it's better.
Thanks for the opportunity and congratulations on a very good set of numbers. Considering the INR 5,500 crores of order book that we have currently and a very strong outlook on all our segments, incrementally our revenue will also multifold grow in the coming years. The INR 500 crores of CapEx and the incremental working capital requirement, how do we plan to fund it? Will it be debt funded, internal accruals funded, or will we require some external capital to fund it?
No, it will be a combination of internal funding and the debt. That's what it is.
Understood, sir. The second question is on the U.S. data center side. Considering we have a large customer there, any on ground news that you're hearing from interaction with your customers with regards to delay in the incremental capacity or CapEx which is being spent on the U.S. data centers? Any delays or slippages you expect in the near term or the medium term?
See, all this is unwanted noise. I really wanted to express this very clearly. You have seen how we have progressed as far as MTAR is concerned, and how we are moving forward, and the kind of orders we are receiving even recently as well. Things are going in the right direction. Absolutely, there is no issue at all.
Perfect, sir. That's good to hear. Thank you for addressing the questions, and all the best for the future.
Thank you. We have the next question from the line of Rohit Natarajan from Axis Max Life. Please go ahead.
Yeah. Thank you for this opportunity. My first question is more to do at a very longer-term picture perspective. We are given to understand Bloom Fremont capacity, they're looking to expand it all the way to 5 GW. This would technically mean something like 77,000 odd hot boxes as such. Even if you exclude the Taiwanese player, the capacity for you, it will probably be they will be asking you to do more than 50,000 hot boxes per year as such. Will you be in a position to do that? Even some picture beyond that, probably they may have to increase their capacity as well, given the kind of requirement you have for behind-the-meter solutions globally for all these data centers as such. What is the outlook over there?
I understand there is some NDA, and maybe you don't want to disclose many things, but you could probably give some qualitative indicators as such.
See, as I said to you, phase two and phase three of the market I can't get into the numbers because of the NDA sign, but that's the whole plan, right? To take care of the customer requirements. That's all I can say right now. We are on track with everything that what the customer needs.
Got it. My second question will be more about the content per platform in defense. What exactly are you offering in Tejas? What will be that value per platform for, say, let's assume for one aircraft? Similarly, on the content per platform and content per reactor for, say, nuclear. If you could give us some numbers to understand how big is the opportunity here and how much you can incrementally make an inroad.
See, as I mentioned earlier in defense program, where Tejas into the actuator program, which is about INR 140 crores-INR 150 crores, it's going to grow even further than that, though that's not the only area. We are working on very niche areas in defense, which we don't share any kind of projects. We're working on various projects, including various projects in MTAR as well. We are working on a number of projects which we find there's a lot of value add and the criticality is involved in those projects. These numbers are going to grow for sure. Nuclear, our basket, our wallet share is pretty high in terms of the reactors judging by coming in, like now nine to over five because of orders for reactors recently, right? We're looking at four, six reactors coming in.
There is a massive plan by the Government of India also moving forward to really ramp up the program. We keep talking about clean energy, but we are really pushing ourselves to expand our capabilities for the requirements that we are foreseeing in a huge way in the nuclear program. MTAR is really working towards that. In terms of fulfilling these commitments, we can come in a big way over the next two, three years.
Surely, sir. I appreciate it. I'll get back in touch with you. Thank you. Thanks a lot.
Thank you. The next question comes from the line of Piyush Sevaldasani from Sundaram Alternates. Please go ahead.
Yes. Hi, sir. Thank you for the opportunity, congrats for a great set of results. My first question is on the interest cost of INR 16 crores. If you could help us with the bifurcation of how much of that is non-fund based limit. Given the free up in the working capital, how should we see the interest cost going forward?
The interest cost, basically, I think I don't have the exact breakup of that, but probably CFO [inaudible] can give it little later to you. It's a combination of everything, and probably we're trying to reduce our interest cost also moving forward further. So it would come down moving forward here on a quarter-on-quarter basis, I guess. I think that.
Sure. Sir, just last question on this products and others division. I think we were trying to increase our TAMs with our largest client, where we were trying to get into the enclosures and cable harness. Any other new products which we are trying to expand our opportunity with them?
Yeah. We are definitely doing that. We are very qualified production assemblies as well. As and when it is done, we'll intimate accordingly. We are doing that, and distribution is doing that.
Okay, sure.
The basis of whole MTAR approach No, what I want to say is, the entire position is the innovation. We keep working on developing new products on a consistent basis, and we'll see the results six months, one year down the line in terms of volumes and all that. That's our focus right now. That's a continuous process in the company. That's all I want to say.
Okay. Sure. Thank you, sir. That's it from my side.
Thank you. The next question comes from the line of Vipraw Srivastava from PhillipCapital. Please go ahead.
Sure, sir. Thanks for allowing me to ask one more question. Sir, quickly on the product side, where we have obviously seen a very rapid run-up in the context of this quarter's revenue. Specifically, sir, going ahead, what kind of programs you're working on? What kind of ramp-up you see as far as products is concerned over the next couple of years?
See, the products division is going to grow rapidly because we have done a lot of work in terms of aerospace, clean energy, and various other sectors, and you are seeing the results now in this quarter, and you'll see moving forward as well. As I said earlier, basically, it's a continuous process as we have to develop the products to cater to the existing customers and new customers as well in various sectors. It's a combination of different segments that we're working on in the products division, which we have done over the last couple of years, and you're seeing the results right now. Moving forward as well, this segment is going to do more and more.
Sure, sir. That makes a lot of sense. That's all from my end. Thank you.
Thank you. The next question comes from the line of Pritesh Chheda from Lucky Investments. Please go ahead.
Sir, from your backlog, if you could tell us what is the execution cycle of the products backlog and the clean energy fuel cell backlog?
That's a very good question. We have enough orders. This quarter's demand is so high. [inaudible]
Sir, your sound is not audible. Sorry.
No, I think I'm audible to everyone. I don't know. Can you hear me now?
I think.
Operator, can you hear me now?
We can hear you, sir.
Sorry to interrupt, sir. There's quite a disturbance in your voice.
Yeah. Can you hear me now?
Yes.
Yeah, it's better, sir now.
Okay. See, we have enough orders. Which we are really focusing upon. The more we execute, the better it is for the customers. That's what we are doing right now. That's why we're going with the expansion plans and also improving on the operational efficiencies of the existing capacities. The best part of the order book is it's not like an order book which has to be executed over five years or 10 years. It's all short cycles. Some are within one year, some are within six months, some are within two months, some are within one and a half to two years. It's something that relates to order book as well. It's not an order book which is spread over years. Overall executing majority of them and our.
Sorry, your sound is. Operator, I cannot listen anything. I think.
Sorry, sir. Sir, actually, we are losing your voice.
Sir, we are losing your voice.
It is in audible.
I would request you to do the adjustments.
I've done it.
Sir, we are still losing your voice.
Can you hear me?
My voice is clear.
Your voice is clear, sir.
Okay. Can you ask the question again?
Can you hear me now?
Yes.
Okay.
Sorry to interrupt, sir.
What I was trying.
What I'll do is I'll just disconnect your line and reconnect you back so that we'll not have any issues with your line. Just a moment.
Okay, sure.
We have the management's line connected with us and you may go ahead.
Sir, I was just asking on the execution cycle of the clean fuel cells order backlog, if that's possible to share.
Sir, you.
Can you hear me now?
Yes.
Okay. Basically, what orders you're seeing right now is that we need to execute them over this year and the next year. The sooner we do, we are all looking at the execution cycles and implementation of the capacities. These are all short cycle orders. It's not that we're trying to execute this over the next three years, four years. It's all very short cycle orders which we need to execute as soon as possible.
Okay. Sir, in the total gigawatt issuance of your key customer, what will be the indicative market share that we have?
No, there's nothing like market share. The demand is so high right now in terms of the requirements by the customer, so we hold majority of the share in that, but we can't spell out the exact percentage right now.
Okay. My last question is on the products business, and there's a substantial number this quarter, and on the aerospace and defense business. If I had to ask you three, four years down the line, what should be the size of these businesses? These businesses have been around INR 100 crores size, INR 100 crores, INR 130 crores annual size. If I had to ask you an FY 2030 based on whatever work efforts that you have put in and the platforms or the projects that you're working on, what kind of business sizes they should be three, four years down the line?
I can't say the exact number, but the kind of roadmap we have, it might cross INR 1,000 crores very comfortably.
Both these combined?
No, I'm talking of course the products.
No, we lose individually INR 1,000 crores.
No, no. Aerospace probably looking at INR 600 crores, INR 700 crores and products which would cross in more than INR 1,000 crores.
I see. Products will be INR 1,000 crores and aerospace INR 600 crores, INR 700 crores.
That's right.
Okay. Okay, sir. Thank you.
Thank you. In the interest of time, that was our last question. I would now like to hand the conference over to the management for closing remarks. Thank you and over to you.
Thank you everyone for joining us today and sparing your time to join our earnings call for the Q1 FY 2027. I would like to thank all the employees of MTAR for the contribution they have done, and even moving forward as well. I would like to also thank the shareholders for their trust and faith in MTAR, and continue to support the company moving forward as well. Thank you so much.
Thank you. On behalf of MTAR Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.