As the world races to power artificial intelligence, the constraints of electrical grids are quietly elevating an unlikely beneficiary: MTAR Technologies, a Hyderabad-based precision manufacturer whose decade-long partnership with fuel cell maker Bloom Energy places it at the intersection of two of the era's most consequential forces — the hunger for data and the scarcity of reliable power. Motilal Oswal has set a target price of ₹4,810 per share, seeing 31 percent upside in a company that few investors have yet discovered. In the larger human story of technological transformation, it is often
Data center boom fuels 31% upside call on MTAR Tech via Bloom Energy partnership
The sole supplier of an irreplaceable component in a boom nobody saw coming
Mark
Why does a fuel cell component maker suddenly matter so much to investors?
Mimi
Because data centers need power immediately, and grid connections take years. Bloom Energy fills that gap with fuel cells, and MTAR is the only company making the critical parts Bloom needs.
Mark
So MTAR is riding Bloom's wave?
Mimi
More than that. MTAR controls 60 to 70 percent of Bloom's supply chain for these assemblies. It's not just a vendor—it's irreplaceable.
Mark
What changed recently?
Mimi
Order inflows exploded. In one quarter, MTAR received ₹13.7 billion in orders, more than five times the year before. Nearly half came from Bloom Energy alone.
Mark
That sounds like a concentration risk.
Mimi
It is. If Bloom slows down or finds another supplier, MTAR's growth could collapse. But the brokerage believes the data center boom is sustained enough that this won't happen soon.
Mark
What are they projecting?
Mimi
Revenue growth of 40 percent annually through 2028, with profit growing even faster at 78 percent. That assumes Bloom Energy continues capturing 3 to 5 gigawatts of orders.
Mark
And the stock price?
Mimi
Already up 150 percent in six months. The target is another 31 percent higher from here, but that assumes the fuel cell thesis plays out exactly as planned.
El Pulso
- Data centers need power now, but grid connections take years — fuel cells are filling that gap, and MTAR is the sole supplier of critical components to Bloom Energy, the leading fuel cell manufacturer riding this wave.
- Q3 order inflows reached a record ₹13.7 billion — more than five times the prior year — with nearly half tied directly to Bloom Energy, signaling that demand is not speculative but already arriving.
- MTAR shares have surged 150 percent in six months against a Nifty 50 that has barely moved, suggesting the market is beginning to price in a structural shift rather than a cyclical trade.
- Analysts project revenue, EBITDA, and profit growing at 40–78% CAGR through FY28, but the single-customer concentration in Bloom Energy remains the fault line that could crack this story if expansion slows.
- The central navigation is clear: MTAR must convert its irreplaceable supply chain position into a diversified, durable business before its fortunes become indistinguishable from those of one partner.
As the world races to power artificial intelligence, the constraints of electrical grids are quietly elevating an unlikely beneficiary: MTAR Technologies, a Hyderabad-based precision manufacturer whose decade-long partnership with fuel cell maker Bloom Energy places it at the intersection of two of the era's most consequential forces — the hunger for data and the scarcity of reliable power. Motilal Oswal has set a target price of ₹4,810 per share, seeing 31 percent upside in a company that few investors have yet discovered. In the larger human story of technological transformation, it is often the unseen component-maker, not the celebrated platform, that quietly becomes indispensable.
The global scramble to build artificial intelligence infrastructure is creating an unexpected opening for MTAR Technologies, a Hyderabad-based manufacturer of precision components that most investors have yet to encounter. Motilal Oswal Financial Services maintains a 'Buy' rating on the stock with a target of ₹4,810 per share — a 31 percent premium over recent levels near ₹3,683.
The underlying logic is rooted in a power problem. Data centers are being built at a 14–18 percent annual pace globally, with 100 gigawatts of new capacity expected between 2026 and 2030. Yet grid connections routinely take two to five years to establish. Fuel cells, which can deliver immediate and reliable power, are stepping into that gap — and Bloom Energy is among the leading providers. MTAR supplies 60 to 70 percent of Bloom Energy's critical hot box assembly requirements, a position it has held exclusively for a decade.
The financial signals are striking. In Q3 FY26, MTAR recorded order inflows of ₹13.7 billion — the highest in its history and 5.1 times the prior year's figure — with ₹6.6 billion attributable to Bloom Energy alone. Motilal Oswal estimates that for every gigawatt of orders Bloom Energy secures, MTAR receives ₹9–11 billion in corresponding work. Should Bloom Energy win 3 to 5 gigawatts over the next several years, MTAR's cumulative inflows could reach ₹27–53 billion.
Growth projections are correspondingly bold: 40 percent CAGR in revenue, 55 percent in EBITDA, and 78 percent in adjusted profit through FY28. The stock market has already begun to reflect this confidence, with MTAR shares appreciating 150 percent over six months while the Nifty 50 gained just 3.5 percent.
The risk, however, is structural. Nearly half of MTAR's recent orders flow from a single customer, and any slowdown in Bloom Energy's expansion — or a shift in its supplier strategy — could materially alter MTAR's trajectory. Motilal Oswal acknowledges the concentration but argues that near-term visibility remains strong enough to justify the position. The deeper wager is that the data center boom will sustain long enough for MTAR to cement itself as an irreplaceable node in the global AI infrastructure supply chain.
The global rush to build artificial intelligence infrastructure is creating an unexpected opportunity for a Hyderabad-based manufacturer most investors have never heard of. MTAR Technologies, a company that makes critical components for fuel cell systems, has caught the attention of Motilal Oswal Financial Services, which maintains a 'Buy' rating and has set a target price of ₹4,810 per share—implying 31 percent upside from recent trading levels around ₹3,683.
The logic is straightforward but powerful. Data centers are being constructed at an unprecedented pace globally, with projections calling for 100 gigawatts of new capacity between 2026 and 2030, representing a compound annual growth rate of 14 to 18 percent. But there's a bottleneck. Grid connections typically take two to five years to establish, and artificial intelligence cannot wait that long. This is where fuel cell technology enters the picture. Companies like Bloom Energy manufacture fuel cells that can provide immediate, reliable power to data centers while grid infrastructure catches up. And MTAR Technologies is the sole supplier of critical hot box assemblies to Bloom Energy, controlling 60 to 70 percent of the company's requirements for these components.
The partnership between MTAR and Bloom Energy spans a decade, giving MTAR a structural position within the fuel cell supply chain that is difficult to replicate. The numbers tell the story. In the third quarter of the fiscal year 2026, MTAR reported order inflows of ₹13.7 billion, a 5.1-fold increase year-over-year and the highest in the company's history. Nearly half of this total—₹6.6 billion—came directly from Bloom Energy and the clean energy fuel cell sector. According to Motilal Oswal's analysis, for every gigawatt of orders Bloom Energy secures, MTAR stands to receive between ₹9 billion and ₹11 billion in orders. If Bloom Energy captures 3 to 5 gigawatts of orders over the next three to five years, as the brokerage expects, MTAR could accumulate between ₹27 billion and ₹53 billion in cumulative inflows.
This visibility into future demand is translating into aggressive growth projections. Motilal Oswal expects MTAR to deliver a compound annual growth rate of 40 percent in revenue, 55 percent in EBITDA, and 78 percent in adjusted profit after tax through fiscal year 2028. These are not modest forecasts; they reflect confidence in both the structural demand for fuel cells and MTAR's irreplaceable position within that supply chain. The stock market has already begun to price in this opportunity. MTAR shares have more than doubled in value over the past six months, appreciating 150 percent while the benchmark Nifty 50 index has risen just 3.5 percent.
But there is a risk worth noting. MTAR's growth is heavily concentrated with a single customer. Bloom Energy accounts for nearly half of recent order inflows, creating what analysts call client concentration risk. If Bloom Energy's expansion slows or if the company diversifies its supplier base, MTAR's growth trajectory could be disrupted. Motilal Oswal acknowledges this concern but argues that Bloom Energy's near-term growth visibility is robust enough to provide confidence in MTAR's continued expansion. The bet, in other words, is that the data center boom will be sustained long enough for MTAR to establish itself as an indispensable partner in the global AI infrastructure buildout.
Citas Notables
MTARTECH, as BE's sole supplier of critical hot box assemblies commanding 60-70% wallet share, is not merely a beneficiary of this theme but an irreplaceable enabler of it.— Motilal Oswal Financial Services
For every 1 GW of orders BE secures, MTAR stands to receive ₹9-11 billion, translating to ₹27-53 billion in potential cumulative inflows over the next 3-5 years.— Motilal Oswal Financial Services
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