MTAR Stock Falters as Key Client Faces Major Project Setback in US AI Infrastructure Push

MTAR Stock Falters as Key Client Faces Major Project Setback in US AI Infrastructure Push​

Shares of MTAR Technologies experienced a decline on June 11 following reports that its critical client, Bloom Energy, encountered a significant setback in the US market. The stock fell by 4% during trading hours after Bloom announced that a major data-centre project linked to its fuel-cell deployment pipeline had been put on hold.

At 10:16 am, MTAR Technologies was trading at Rs 6,836 apiece, registering a 3.8% drop. Despite this immediate weakness, it is important to note that the company has seen a substantial surge of 185% so far in FY2026.

Setback Reported as AI Data Centre Project Pauses​

The difficulty faced by Bloom Energy stems from news regarding a Crusoe energy data-centre project which was put on hold. This project is specifically associated with the buildout of infrastructure for Artificial Intelligence (AI). The pause has generated investor concern regarding the pace and execution timeline of Bloom Energy’s commercial fuel-cell pipeline.

As MTAR Technologies operates as a key manufacturing partner to Bloom, this setback directly impacts expectations surrounding the Indian technology firm. MTAR is integral to supplying the necessary components for Bloom’s operations.

MTAR's Vital Role in the Clean Tech Ecosystem​

MTAR has rapidly established itself as a primary beneficiary of Bloom Energy’s expansion into solid oxide fuel cell (SOFC) deployments. These technologies are aimed at meeting the increasing clean-energy demands posed by hyperscale AI data centres.

The company specializes in manufacturing hot box assemblies and SOFC systems tailored for Bloom. This partnership is so fundamental that it contributes approximately 55 to 65% of MTAR’s overall revenue stream. Despite the recent stock weakness, Bloom Energy remains a significant player in the clean-tech space, with its stationary SOFCs widely adopted by major AI operators.

Growth Trajectory Driven by Capacity Expansion and Oracle Deal​

To effectively manage and support growing demand, MTAR is currently underway with a phased capacity expansion program. The company has ambitious targets to boost hot box production capability from 8,000 units to 20,000 units by December 2026. Further growth is slated as the firm plans to reach 30,000 units by FY28.

Crucially, Bloom Energy recently solidified its relationship with Oracle, announcing a substantial expansion of their fuel-cell capacity commitment. This deal increased the commitment from 1.2 GW to 2.8 GW. Oracle is utilizing Bloom's solid oxide fuel-cell technology to provide essential on-site power solutions for AI focused data centres.

Analyst Perspective on Future Revenue Potential​

Analysts at Motilal Oswal Financial Services have provided a strong counterpoint to the current market jitters regarding MTAR. They estimate that the expanded partnership with Oracle could generate additional orders valued between Rs 1,400 crore and Rs 1,700 crore for MTAR. This potential revenue influx is equivalent to about 1.6 to 1.8 times of MTAR's estimated FY26 revenue.