Defence stock: MTAR Tech gains 24% this month; price target hints at 15% upside
MTAR Technologies are up 24 per cent in September so far, beating other defence stocks by a wide margin. BEML, Data Patterns, Cochin Shipyard are a few other defence stocks delivering double-digit returns.
- Sep 16, 2025,
- Updated Sep 16, 2025 5:49 PM IST
Defence stock: MTAR Technologies' largest-ever order worth Rs 390 crore from Bloom Energy is expected to bolster the company’s growth prospects in the near term, IIFL Securities said on Tuesday. The development coincides with anticipated wins in the nuclear sector, including projects worth over Rs 1,000 crore from Kaiga 5 and 6 and three refurbishment packages due by end-FY26, which are set to enhance MTAR’s longer-term outlook, the brokerage said while suggesting a target price of Rs 1,928 on MTAR Technologies. The target suggested a 15 per cent upside potential over Monday's closing price.
Thanks to the recent developments, shares of MTAR Technologies are up 24 per cent in September so far, beating other defence stocks by a wide margin. BEML, Data Patterns (India), Mishra Dhatu Nigam Ltd, Cochin Shipyard Ltd and Mazagon Dock Shipbuilders Ltd are a few other defence stocks delivering double-digit returns in September so far.
The brokerage noted that the MTAR management sees 25 per cent-plus growth in BE revenues in FY27 based on a strong order pipeline for 2026. According to IIFL Securities, this order win from Bloom Energy reinforced the management’s optimism for Clean Energy, supporting their guidance of over 25 per cent revenue growth in FY26 with operating profit margins at 21 per cent.
Receipt of nuclear orders and new mandates from Fluence in Clean Energy and IAI in Aerospace are expected to drive a re-rating in the company’s valuation.
While FY26 forecasts remain unchanged, IIFL Securities sees upside potential for FY27–28ii earnings. It maintained Add on MTAR Technologies. The rating signals continued confidence in MTAR’s medium-term earnings trajectory and the possibility of stronger numbers beyond FY26.
MTAR is on track to surpass its 15–20 per cent FY26 growth guidance, buoyed by executable clean energy orders totalling approximately Rs 590 crore for FY26 and ongoing strong inflows despite US tariff pressures. Rising demand from US data centres and the commencement of Fluence revenues from FY27 are expected to underpin long-term growth in Clean Energy.
For FY26, IIFL Securities forecast inflows to grow 90 per cent YoY to Rs 1,370 crore against management guidance of 100 per cent YoY growth. The company is also targeting a substantial rise in inflows during FY26, supported by nuclear reactor refurbishment tenders and new developments in Aerospace & Defence, such as EMAs for ISRO and increasing export opportunities.
Diversifying its order book, MTAR is positioning Aerospace & Defence and Nuclear as growth drivers from FY28 onwards, while Clean Energy remains the key short-term anchor. The brokerage expects a 29 25 per cent revenue CAGR over FY25–28ii, reflecting strong inflows, a broadening customer base, and sectoral momentum.
MTAR continues to focus on strengthening its balance sheet by optimising its net working capital cycle and targeting improved return ratios. The company’s emphasis on new product development and expanding its presence across multiple sectors underpins its multi-year visibility for order inflows, supporting the positive outlook maintained by IIFL Securities.
Defence stock: MTAR Technologies' largest-ever order worth Rs 390 crore from Bloom Energy is expected to bolster the company’s growth prospects in the near term, IIFL Securities said on Tuesday. The development coincides with anticipated wins in the nuclear sector, including projects worth over Rs 1,000 crore from Kaiga 5 and 6 and three refurbishment packages due by end-FY26, which are set to enhance MTAR’s longer-term outlook, the brokerage said while suggesting a target price of Rs 1,928 on MTAR Technologies. The target suggested a 15 per cent upside potential over Monday's closing price.
Thanks to the recent developments, shares of MTAR Technologies are up 24 per cent in September so far, beating other defence stocks by a wide margin. BEML, Data Patterns (India), Mishra Dhatu Nigam Ltd, Cochin Shipyard Ltd and Mazagon Dock Shipbuilders Ltd are a few other defence stocks delivering double-digit returns in September so far.
The brokerage noted that the MTAR management sees 25 per cent-plus growth in BE revenues in FY27 based on a strong order pipeline for 2026. According to IIFL Securities, this order win from Bloom Energy reinforced the management’s optimism for Clean Energy, supporting their guidance of over 25 per cent revenue growth in FY26 with operating profit margins at 21 per cent.
Receipt of nuclear orders and new mandates from Fluence in Clean Energy and IAI in Aerospace are expected to drive a re-rating in the company’s valuation.
While FY26 forecasts remain unchanged, IIFL Securities sees upside potential for FY27–28ii earnings. It maintained Add on MTAR Technologies. The rating signals continued confidence in MTAR’s medium-term earnings trajectory and the possibility of stronger numbers beyond FY26.
MTAR is on track to surpass its 15–20 per cent FY26 growth guidance, buoyed by executable clean energy orders totalling approximately Rs 590 crore for FY26 and ongoing strong inflows despite US tariff pressures. Rising demand from US data centres and the commencement of Fluence revenues from FY27 are expected to underpin long-term growth in Clean Energy.
For FY26, IIFL Securities forecast inflows to grow 90 per cent YoY to Rs 1,370 crore against management guidance of 100 per cent YoY growth. The company is also targeting a substantial rise in inflows during FY26, supported by nuclear reactor refurbishment tenders and new developments in Aerospace & Defence, such as EMAs for ISRO and increasing export opportunities.
Diversifying its order book, MTAR is positioning Aerospace & Defence and Nuclear as growth drivers from FY28 onwards, while Clean Energy remains the key short-term anchor. The brokerage expects a 29 25 per cent revenue CAGR over FY25–28ii, reflecting strong inflows, a broadening customer base, and sectoral momentum.
MTAR continues to focus on strengthening its balance sheet by optimising its net working capital cycle and targeting improved return ratios. The company’s emphasis on new product development and expanding its presence across multiple sectors underpins its multi-year visibility for order inflows, supporting the positive outlook maintained by IIFL Securities.