MTAR Tech bounces back

MTAR Technologies staged a sharp rebound today, with the stock rising 12.15% to Rs. 7,060.35. The counter opened at Rs. 6,687.35 against the previous close of Rs. 6,295.60 and touched an intraday high of Rs. 7,130.70, with turnover already strong at Rs. 244.84 crore. The move comes a day after the stock had corrected sharply on concerns around its exposure to Bloom Energy-linked projects.

Trigger

• MTAR clarified that it does not expect any impact on its ongoing due diligence process with Bloom Energy.
• The company said it has not received any adverse communication from Bloom Energy, and that the project is expected to continue despite Crusoe Energy stepping away as EPC partner.
• Management reiterated strong clean energy order traction, with around Rs. 2,800 crore of clean energy orders secured in the current financial year and a closing clean energy order book of about Rs. 1,300 crore.
• The company also raised FY27 revenue growth guidance to around 80% plus/minus 5%, from the earlier 50%, with EBITDA margin guidance of around 24%.

The market appears to be treating today’s move as a “damage-control rebound” rather than a fresh standalone breakout. Thursday’s sell-off was driven by fears that Crusoe Energy’s withdrawal from a major project involving Bloom Energy could affect MTAR’s pipeline. The management clarification helped reduce that uncertainty by indicating that the customer relationship with Bloom remains intact and that there has been no direct negative communication from Bloom.

More importantly, investors are focusing on the company’s upgraded FY27 guidance. A move from 50% revenue growth guidance to around 80% suggests management is confident about execution across clean energy, nuclear, aerospace and oil & gas. That matters because MTAR’s valuation is already rich, so the market needs evidence of very strong growth visibility to justify the premium. The clean energy order book and large order inflows provide that near-term support.

For now though, today’s rally is best read as a relief rebound backed by strong guidance, not a complete removal of execution risk.