MTAR Technologies is back in focus after Motilal Oswal significantly upgraded its earnings outlook, citing a sharp ramp-up in orders and strong positioning in the global clean energy and AI-linked power ecosystem.
In its latest report, the brokerage has raised its target price on MTAR Tech to ₹6,000, valuing the company at 50x FY28E earnings, while projecting a robust 90% CAGR in profit after tax (PAT) between FY26 and FY28.
A key trigger behind the bullish stance is the expansion of Bloom Energy’s order from 1.2GW to 2.8GW by Oracle, which is expected to act as a major growth catalyst for MTAR. The report highlights that this translates into an incremental revenue opportunity of ₹14,000–17,000 crore for MTAR over the next few years, equivalent to nearly 1.6–1.8 times its FY26 revenue base.
Motilal Oswal noted that MTAR holds a dominant position in the fuel cell supply chain, manufacturing critical “hot box assemblies” — a core component of Bloom Energy’s fuel cells. The company currently commands a 60–70% wallet share with Bloom, supported by a long-standing relationship of over a decade. This positioning makes MTAR a key enabler of the global shift toward alternative energy solutions, particularly in powering energy-intensive technologies like artificial intelligence.
Reflecting the strong order visibility, the brokerage has sharply revised its estimates upward. Revenue forecasts have been raised by 11% for FY27 and 22% for FY28, while PAT estimates have been increased by 14% and 25% for the respective years.
Over the three-year period from FY25 to FY28, Motilal Oswal expects MTAR to deliver a 49% CAGR in revenue, 65% CAGR in EBITDA, and 90% CAGR in PAT, indicating a steep earnings trajectory. Return on equity is also projected to improve significantly from 7.5% in FY25 to 29.9% by FY28.
However, the report flags working capital as a key risk, noting that rapid order execution could lead to higher cash being tied up in inventory and receivables. The brokerage said effective management of advance payments and supplier credit will be crucial in mitigating this risk.
Overall, the brokerage remains constructive on MTAR Tech, driven by strong order visibility, strategic positioning in the clean energy value chain, and accelerating earnings growth outlook.