Defence stock in focus after receiving additional order worth ₹310 Cr for nuclear reactors

Synopsis: The shares of this clean energy company were in the news following an additional order it bagged worth Rs 310 crore from Megha Engineering & Infrastructures Ltd for the Kaiga 5 and Kaiga 6 civil nuclear reactors; this marks an addition to the previous order received on 6 December. 

The shares of this company, which develops and manufactures components and equipment for the defence, aerospace, nuclear, and clean energy sectors, were in focus following the company’s announcement of bagging additional orders for a previously bagged project worth Rs 310 crore. 

With the market cap of Rs 6,916 crore, the shares of MTAR Technologies Ltd had hit their intraday high at Rs 2333 , gaining about 0.5 per cent compared to their previous day’s closing price of Rs 2320.70. The shares are trading at a PE of 150, whereas their industry PE is at 57.3, and have given a return of 121% since their listing in March 2021. 

About the order

MTAR Technologies has received additional orders worth Rs 310 crore from Megha Engineering & Infrastructures to supply key equipment for the Kaiga 5 and Kaiga 6 civil nuclear reactors. This comes on top of an earlier Rs 194 crore order announced earlier in the month, taking the total value of orders for these two reactors to Rs 504 crore. The back-to-back wins highlight MTAR’s growing role in India’s clean energy and nuclear power ecosystem.

The order covers highly specialized equipment used in nuclear reactors, where precision, safety, and reliability are critical. Deliveries will be made in phases up to February 2030, giving the company long-term revenue visibility and a steady flow of work over several years. The contract is domestic and has been awarded at arm’s length, reflecting transparent and standard business terms.

From a bigger-picture perspective, this order further cements MTAR’s position in the civil nuclear power segment, an important part of India’s clean energy transition. The fact that customers continue to place repeat orders suggests strong confidence in MTAR’s execution capabilities. With a healthy order book and supportive industry trends, the company appears well positioned to benefit from sustained investments in nuclear and clean energy infrastructure.

Financials and more

The revenue from operations for the company stands at Rs 135.59 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 190.19 crores, falling by about 29 per cent YoY. Similarly, the net profit stood at Rs 4.25 crore in Q2 FY26, down from Rs 18.77 crore in Q2 FY25, giving a fall of about 77 percent. 

The company shows a strongly diversified order book of Rs 1,296.6 crore as of 30 September 2025, led by Clean Energy and Civil Nuclear Power, which accounts for about 55.5% of the total. This highlights the company’s deep focus on clean and nuclear energy, sectors that typically offer long execution timelines, higher entry barriers, and steady revenue visibility.

The remaining order book is well spread across other key segments, with Aerospace & Defence contributing around 25.2%, Clean Energy–Fuel Cell, Hydel & Others making up about 11.6%, and Products & Others accounting for roughly 7.7%. This healthy mix reduces reliance on any single business line and adds stability, as defence and industrial orders help balance the long-cycle nature of clean energy projects.

MTAR Technologies is a company built on decades of hands-on engineering experience, starting from a small setup in Hyderabad and growing into a trusted name in precision manufacturing. Known for working at extremely fine tolerances of 5–10 microns, it supplies complex components for some of India’s most critical sectors, including space, civil nuclear, aerospace, and clean energy. With a strong focus on quality, innovation, and nation-building, MTAR continues to quietly power many of the systems that support India’s long-term strategic and energy ambitions.

Written by Leon Mendonca. 

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