MTAR Technologies Share Price Registers Sharpest Fall Since May; Here’s Why

MTAR Technologies, a leading precision engineering firm serving the defence, space, nuclear, and clean energy sectors, saw its share price hit a fresh 52-week high of ₹1,226.20 on the NSE on February 17, 2025. However, by 2:19 PM, the stock had dropped 7%, registering its steepest single-day fall since May 2024.

Promoter Share Pledge Raises Concerns

The decline in MTAR Technologies’ share price coincides with a disclosure to the stock exchanges regarding an encumbrance of 60,000 equity shares by Mrs. Kavitha Reddy Gangapatnam, a member of the company’s promoter group. While pledging shares does not necessarily indicate financial distress, it can sometimes be perceived as a sign of liquidity pressure, leading to negative investor sentiment.

Q3FY25 Performance 

MTAR Technologies reported financial results for the December quarter of FY25, with net profit surging 52.9% year-on-year to ₹15.9 crore, compared to ₹10.4 crore in Q3FY24. The growth in profitability was driven by strong revenue expansion and efficient order execution.

• Revenue Growth: The company’s revenue jumped 47.3% YoY to ₹174.4 crore, up from ₹118.4 crore in the same period last year.
• Operational Performance: EBITDA rose 38.5% to ₹33.1 crore, compared to ₹23.9 crore a year ago.
• Margins Under Pressure: Despite higher revenue, EBITDA margin slipped to 19% from 20.2%, impacted by rising input costs and changes in the product mix.

Stock Price Performance of MTAR Technologies 

On a year-to-date (YTD) basis, MTAR Technologies’ stock has declined by 24.33% as of February 17, 2025. 

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