The defence sector stocks continue to be in focus, and the spotlight is on MTAR Technologies today. The share price of MTAR Tech has risen 45% in the last 1 month. But leading brokerage house Motilal Oswal expects the party to continue for this defence sector play. They have reiterated the ‘Buy’ rating on the stock with a target price of Rs 4,810 per share. This implies 31% upside from current levels.
This precision engineering company is serving niche, high-barrier industries across defence, aerospace, nuclear energy, and clean energy. Its decade-long partnership with Bloom Energy (BE) is seen as a key catalyst, given how BE has uniquely positioned itself as the fastest and most reliable solution to address power availability issues for the global AI infrastructure buildout.
Motilal Oswal on MTAR Tech: The big BE factor
Motilal Oswal pointed out how MTAR Tech is firmly positioning itself as the indirect beneficiary of the global AI infrastructure wave. The world is building data centres at an unforeseen pace, with 100 GW of new capacity expected between 2026-2030, power supply is set to be a key factor to monitor.
The report highlighted how grid connections now take 2-5 years and AI cannot wait that long. “This is precisely where BE steps in. Its solid oxide fuel cell (SOFC) technology deploys 50-100 MW of power in just 90-120 days with five-nines reliability — a speed advantage that has made it the preferred power partner for some of the world’s largest hyperscalers and utilities,” Motilal Oswal pointed out.
According to the brokerage house, this is good news for MTAR Tech. What makes MTAR Tech interesting “is its structural position within BE’s supply chain.” They believe that “as the sole supplier of critical hot box assemblies (meeting 60-70% of BE’s requirements), built over a decade of collaboration,” the company’s relationship with BE is both “deep-rooted and difficult to displace.”
Motilal Oswal on MTAR Tech: Strong order inflow from BE’s rising growth trajectory
Motilal Oswal pointed out that the $20 billion order backlog and partnerships with Brookfield, AEP, Oracle, and Equinix reflect the growing confidence in BE’s proposition. “With manufacturing capacity set to double to 2 GW by CY26 from 1 GW in CY25 and further to 4 GW by CY28, BE’s growth trajectory appears well-supported,” they added.
They see this already reflecting in the company’s financials. The company’s Q3FY26 order inflows reached a record Rs 1,370 crore, up 5.1x YoY. As per the analysis by Motilal Oswal, nearly half of them are sourced from BE.
Motilal Oswal suggests that for “every 1 GW of orders BE secures, MTAR Tech stands to receive Rs 900-1,100 crore, translating to Rs 2,700-5,300 crore in potential cumulative inflows over the next 3-5 years.” This is on the back of 3-5 GW of order inflow for BE.
MTAR Tech’s capacity expansion
Considering the acceleration in demand for AI-led data center, BE is doubling its capacity to 2 GW in CY26 with further plans to double to 4 GW by CY28. Consequently, MTAR Tech has also initiated measures to build capacity.
The company plans to expand capacity to 30,000 units by FY28 from 8,000 units currently in three phases. The company’s capex outlay for each phase would be starting from 35-40 crore and going up to 40-50 crore in the final phase.
According to Motilal Oswal’s estimates, for every 1 GW order secured by BE, they expect MTAR Tech to receive Rs 900-1,100 crore orders (considering 60-70% wallet share with BE). “Consequently, BE tie-ups with hyperscalers and power utilities with potential order books of 3-5 GW over the next three to five years could translate into 2,700-5,300 crore of order flows. This is nearly 4-8x the expected FY26 revenue from BE, as per Motilal Oswal’s calculation.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.