MTAR Technologies reported a sharp increase in its September-quarter earnings, with net profit and revenue rising several-fold year-on-year, while the Hyderabad bench of the National Company Law Tribunal (NCLT) approved the merger of two wholly owned subsidiaries with the company.
The aerospace and defence components maker reported a net profit of Rs 59.83 crore for the second quarter of fiscal 2027, compared with Rs 4.25 crore in the year-ago period. Revenue from operations rose to Rs 406.77 crore from Rs 135.59 crore a year earlier, according to the company’s unaudited financial results filed with the stock exchanges on Thursday.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to Rs 99 crore in the July-September quarter, compared with Rs 17 crore in the corresponding period last year. The EBITDA margin expanded to 24.3% from 12.5% a year ago, indicating an improvement in operating profitability.
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Total income for the quarter, including other income, stood at Rs 415.28 crore, against Rs 139.27 crore in the year-ago period.
MTAR Technologies’ total expenses increased to Rs 335 crore in the September quarter from Rs 133.60 crore a year earlier. The cost of materials consumed rose to Rs 228.31 crore from Rs 81.77 crore, while employee benefit expenses increased to Rs 49.70 crore from Rs 33.33 crore.
Finance costs stood at Rs 16.24 crore, compared with Rs 6.21 crore in the corresponding quarter last year. Depreciation and amortisation expenses rose to Rs 11.15 crore from Rs 8.79 crore.
Profit before tax increased to Rs 80.28 crore from Rs 5.68 crore in the year-ago quarter. Earnings per share rose to Rs 19.45 from Rs 1.38.
For the six months ended September 30, 2026, MTAR Technologies reported revenue from operations of Rs 767.49 crore, compared with Rs 292.18 crore in the corresponding period last year. Net profit for the half year stood at Rs 110.06 crore, against Rs 9.37 crore a year earlier.
Separately, MTAR Technologies said the Hyderabad bench-II of the NCLT approved the scheme of amalgamation of Gee Pee Aerospace and Defence Private Limited and Magnatar Aero Systems Private Limited with the company on October 28.
Both entities were wholly owned subsidiaries of MTAR Technologies. The merger will be effective from April 1, 2025, according to the company’s regulatory filing.
MTAR Technologies said it had accounted for the amalgamation under the pooling-of-interests method applicable to common-control business combinations, in accordance with Indian Accounting Standard 103 (Ind AS 103). The company has also restated figures for previous periods presented in its financial results, although it said the impact of the restatement was not material.
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Following the merger, the company said it would not be required to prepare consolidated financial statements, as both subsidiaries had been merged with MTAR Technologies under the approved scheme.
The company’s board approved the unaudited financial results for the quarter and half year ended September 30, 2026, at a meeting held on October 29. Auditor S.R. Batliboi & Associates LLP’s limited review report said nothing had come to its attention to suggest that the financial results contained a material misstatement or failed to meet applicable disclosure requirements.
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