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MTAR Tech Plunges 34% Amid Client Woes
21 Jul
Summary
- MTAR Technologies shares fell 34% from a record high.
- Bloom Energy's 38% stock drop impacts MTAR significantly.
- ICRA upgraded MTAR's ratings despite client concentration risks.
MTAR Technologies' share price has experienced considerable pressure, locking at a 5% lower circuit for three consecutive trading days, marking a 34% decrease from its June 19, 2026, peak. This downturn is largely attributed to the substantial 38% decline in Bloom Energy's stock price over the past month. Bloom Energy is MTAR's single largest client, contributing over 55% of its revenue.
Despite market anxieties, MTAR's management has confirmed no communication regarding cancellations or reductions from its key customer. The company maintains a healthy order book and is proceeding with capacity expansion plans as scheduled. This resilience is underscored by ICRA's recent upgrade of MTAR's long-term ratings to A+(Stable), citing steady operational growth and a robust order book. The upgrade, however, still acknowledges the significant customer concentration risk posed by Bloom Energy.
Further financial insights reveal that domestic mutual funds reduced their stake in MTAR to 20.36% in the June 2026 quarter, while foreign portfolio investors increased their holding to 24.79%. MTAR reported revenue of ₹876 crore in FY26, with projections for healthy growth in FY27, supported by an order book of ₹2,582 crore as of March 31, 2026, and additional recent orders. The company maintains established relationships with key clients including ISRO and NPCIL.
