MTAR Technologies Shares Rise After Securing 10-Year Deal with Weatherford

Stock Gains 3% as Company Inks Long-Term Export Agreement for Oilfield Equipment

Shares of MTAR Technologies climbed 3% on June 19 after the company announced a significant 10-year supply agreement with Switzerland-based Weatherford Products GMBH. The deal pertains to the supply of Whipstock assemblies and other critical oilfield components, further strengthening MTAR’s presence in the global energy equipment market.

₹10 Crore Execution to Begin in FY26, Scaling to ₹90 Crore Annually from FY27

The contract will kick off with an initial execution worth ₹10 crore in FY26. However, the deal is expected to scale significantly, with annual deliveries ramping up to approximately ₹90 crore from FY27 onward. MTAR plans to fulfill this order through a new manufacturing facility currently under development in Adibatla, Telangana. The facility is targeted to become operational by June 2026.

Management Eyes Further Long-Term Contracts

Calling the Weatherford agreement a pivotal move, Managing Director and Promoter Parvat Srinivas Reddy said it marks a significant step in expanding both the company’s product portfolio and customer base. He also noted that discussions are in progress with other potential clients for additional long-term deals, which could further boost MTAR’s growth trajectory.

FY25 Misses Guidance, But Q4 Performance Strong

While MTAR’s full-year FY25 revenue rose 16.4% year-on-year to ₹676 crore, it fell short of its own guidance of ₹725 crore. EBITDA for the year stood at ₹120.9 crore, up 7.2%, though margins contracted by 150 basis points to 17.9%, below the expected 21%. However, the March 2025 quarter delivered strong results, with revenue up 28%, EBITDA nearly doubling, and net profit almost tripling. Margins expanded sharply by 600 basis points during the quarter.

Exports Drive Growth

Export orders now contribute nearly 80% of MTAR Technologies’ revenue, underscoring the company’s shift towards international markets. The Weatherford contract further solidifies MTAR’s strategy to build a robust export-focused business model supported by long-term partnerships.

At 2:45 PM on June 19, the company’s shares were trading at ₹1,701, up 0.5% on the NSE. The stock has gained nearly 29% over the past three months.

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