MTAR Technologies expects nuclear orders to reach Rs 800 crore
MTAR Technologies Limited expects its total nuclear orders, including contracts related to reactor refurbishment, to reach approximately Rs 800 crore as its nuclear business moves into a more sustained growth phase. The outlook comes alongside the company’s latest Rs 126.74 crore purchase orders from Nuclear Power Corporation of India Limited (NPCIL) for refurbishment of the RAPS-4 and MAPS-2 reactors.
The company had outlined the expected growth in its nuclear order book during its Q1 FY27 earnings call. Managing Director Mr. Parvat Srinivas Reddy said the nuclear order book stood at Rs 684 crore at the time, with an additional Rs 130 crore in orders expected to be finalised during the current quarter. These included refurbishment orders for existing reactors as well as supply contracts for the Kaiga 5 & 6 reactors.
Following the latest NPCIL orders, the company’s nuclear order book has crossed Rs 775 crore.
Commenting on the development, Mr. Reddy said, “We have secured significant orders in the civil nuclear sector over the past few months. Our closing nuclear order book now stands at more than 775 Crs, the highest in the Company’s history. The sector’s long-term outlook remains promising, and we expect a steady inflow of orders over the coming years”.
Order pipeline
Mr. Reddy had said during the earnings call, “We received our highest-ever order inflows in this segment during the last quarter for Kaiga 5 & 6 reactors, and we are looking forward to more orders from refurbishment of existing reactors during the current quarter as well.”
MTAR has also highlighted its contribution to India’s Prototype Fast Breeder Reactor (PFBR), which recently achieved criticality. The company has supplied a majority of the critical assemblies for the reactor.
Another potential source of orders is the proposed development of four nuclear reactors at Mahi Banswara through the NTPC-NPCIL partnership. Tenders for the four 700 MW reactors have already been floated.
The Government of India has set a target of 100 GW of nuclear power capacity by 2047. Against this backdrop, Mr. Reddy said, “We believe the civil nuclear vertical has transitioned to a more consistent and sustainable growth trajectory with substantially reduced cyclicality compared to the past”.
Execution outlook
MTAR’s existing nuclear order book is scheduled for execution over two to 3.5 years, while refurbishment-related orders are typically completed within two years.
The company has retained its revenue growth guidance of 80% for the current fiscal year and an Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin target of 24% plus or minus 100 basis points.
The featured photograph is for representation only.
