MTAR Q2 FY27: standalone profit surges, OPM expands to 24.4%, revenue doubles YoY

MTAR Technologies reported standalone Q2 FY27 (quarter ended Sep 30, 2026) revenue from operations of ₹406.8 Cr, up ~200% YoY and 12.8% QoQ, with PAT of ₹59.8 Cr versus ₹4.2 Cr in the year-ago quarter and ₹50.2 Cr in Q1 FY27 (+19.1% QoQ). No consensus estimates specific to this quarter could be located — the print lands same-day — so vs-street is unknown; the scale of the YoY jump should be read against an unusually weak Q2 FY26 base rather than treated as a like-for-like acceleration. EBITDA margin (OPM) expanded to 24.4% from 12.5% a year ago and 23.6% last quarter, sitting at the top of management's own FY27 guidance band of 24%±100bps. The expansion is operating leverage: cost of materials consumed fell to 56.1% of revenue from 60.3% YoY, and employee costs fell to 12.2% of revenue from 24.6% YoY as revenue scaled roughly 3x faster than the underlying cost base. Net margin followed, expanding to 14.4% from 3.0% YoY. PBT (₹80.3 Cr) less tax (₹20.4 Cr) reconciles exactly to reported PAT, and there were no exceptional items in either the current or year-ago quarter, so both YoY and QoQ growth sit on a clean, comparable base with nothing to adjust out. Management's FY27 guidance (set on the Aug 2026 call) calls for 80% full-year revenue growth and 24%±100bps EBITDA margin; H1 FY27 revenue of ₹767.5 Cr is already up 162.7% YoY over H1 FY26's ₹292.2 Cr, well ahead of pace on the revenue target, while the 24.4% Q2 OPM print sits at the guided margin ceiling — both reaffirm the confident tone from that call rather than contradict it. The company's last disclosed order book, also from the Aug 2026 call, stood at ₹5,943 Cr after adding ₹800 Cr that day, already above the ₹5,000 Cr FY27 target; this filing carries no updated order-book number. Separately, after the quarter closed, the NCLT approved (Oct 28, 2026) the merger of Gee Pee Aerospace and Magnatar Aero Systems into the company retrospective to April 1, 2025; MTAR accounted for it via pooling-of-interests with prior periods restated (impact stated as not material), and the company now reports standalone-only. No management press release accompanying this result was available to quote; the board-meeting-outcome letter covers only the approval mechanics and the merger order. Capex intensity picked up alongside the growth: capital work-in-progress rose to ₹112.9 Cr from ₹34.4 Cr at FY26-end and gross property/plant/equipment rose to ₹637.8 Cr from ₹497.2 Cr, consistent with the capacity build management has tied to the FY27 guidance. H1 operating cash flow was strongly positive at ₹350.0 Cr versus ₹39.8 Cr in H1 FY26, even as inventories built to ₹678.8 Cr ahead of execution on the larger order book.