MTAR Technologies shares slip despite 3x Q4 profit jump, still up 138% in 6 months — What's weighing on sentiment?

Shares of MTAR Technologies Ltd declined in Wednesday's early trade even after the Hyderabad-based precision engineering company reported more than a three-fold jump in its net profit for the March 2026 quarter (Q4 FY26).

The stock was last seen trading 1.78 per cent lower at Rs 6,139.05. Despite the day's fall, the counter has seen a sharp rally in recent months, gaining 39.52 per cent in the past one month and delivering multibagger returns of 138.22 per cent over the last six months.

According to Motilal Oswal Financial Services Ltd (MOFSL), MTAR's operating performance came in below estimates, even as earnings were largely in line with expectations.

"Consolidated revenue grew 67 per cent YoY (year-on-year) to Rs 310 crore (in line with estimates). EBITDA increased 81 per cent YoY to Rs 61.8 crore versus our estimate of Rs 77 crore. EBITDA margins expanded 150 basis points (bps) YoY to 20.2 per cent, below the estimated 24 per cent. Gross margins stood at 44.2 per cent, down 800 bps YoY, while employee expenses and other expenses as a percentage of sales stood at 14.1 per cent and 10 per cent, respectively, down 480 bps each YoY," MOFSL said.

The brokerage highlighted that adjusted profit after tax (PAT) rose 3.2 times YoY to Rs 44.3 crore, broadly in line with estimates.

"MTAR's revenue, EBITDA and PAT grew 30 per cent, 42 per cent and 83 per cent to Rs 880 crore, Rs 170 crore and Rs 96.9 crore for FY26, respectively. During FY26, the company's operating cash flow (CFO) rose 94 per cent YoY to Rs 200 crore, while net debt stood at Rs 120 crore as of March 2026 versus Rs 160 crore in March 2025," the brokerage added.

From a technical standpoint, AR Ramachandran, a Sebi-registered research analyst at Tips2trades, said, "MTAR's stock is bearish on daily charts with strong resistance at Rs 6,622. A daily close below the support of Rs 6,000 could trigger a fall towards Rs 5,310 in the near term."

MTAR Technologies operates across clean energy, civil nuclear power, aerospace and defence, and precision engineering manufacturing segments. The company has been strengthening execution capabilities and expanding its order pipeline, supported by growing opportunities in strategic manufacturing and energy-transition-linked businesses.