Data center boom sparks 'Buy' call on MTAR Tech; MOSL sees 31% upside

MTAR Technologies share price target: Motilal Oswal has reiterated its 'Buy' rating on MTAR Technologies, calling it a proxy for compounding global data center demand. The brokerage has set a target price of ₹4,810, implying an upside of more than ₹1,100 per share or 31 per cent from the previous close of ₹3,683.40.

  Meanwhile, MTAR Technologies shares traded 1.5 per cent higher at ₹3,738 in early morning deals today on the National Stock Exchange (NSE). 

According to Motilal Oswal, MTAR Technologies is firmly positioning itself as the indirect beneficiary of the global AI infrastructure wave. The world is building data centers at an unforeseen pace with 100 GW of new capacity expected during 2026-2030 (14-18 per cent CAGR).  

It said that the singular challenge holding the expansion back is not capital but reliable power. Grid connections take 2-5 years but AI cannot wait that long and this is precisely where Bloom Energy (BE)  steps in.  READ | Apar Industries hits 52-week high; ICICI Sec initiates 'Buy' on trifecta drivers

Sole supplier of critical hot box assemblies

Hyderabad-based MTAR Technologies has been growing exposure to global fuel cell technology through its decade-long partnership with BE. Its structural position within BE's supply chain makes it an interesting play. The company is the sole supplier of critical hot box assemblies, commanding 60-70 per cent of BE's requirements. 

MTAR Technologies' leadership position is the segment also reflected in its third quarter (3QFY26) financials. The Q3 order inflows reached a record ₹13.7 billion, up 5.1x Y-o-Y, with nearly half of them sourced alone from BE. 

As per MOSL's analysis, 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. It expects the company to receive 3-5GW of order inflow for BE. 

"MTARTECH, as BE's sole supplier of critical hot box assemblies commanding 60-70 per cent wallet share, is not merely a beneficiary of this theme but an irreplaceable enabler of it. Every GW of BE's capacity generates ₹9-11 billion in MTARTECH order flows," it said. 

Motilal Oswal said it remains bullish on the company's long-term growth trajectory, which presents a rare combination of structural positioning, earnings visibility, and exponential order growth. 

It expects the company to post a CAGR of 40 per cent/ 55 per cent/ 78 per cent in revenue/EBITDA/ adj. PAT over FY25-28, led by strong order inflows.  READ | RMIL deal, policy support keep Gravita India in Mirae Asset's bullish lens

MTAR order book 

MTAR Technologies has witnessed a spurt in its order flows over the last six to eight months. In 3QFY26, as reported by the company, it posted ₹13.7 billion in order inflow (highest ever). Of the total inflow, 48 per cent (₹6.6 billion) came from clean energy fuel cells (primarily from BE). 

The brokerage, however, said that client concentration risk still looms, but near-term robust growth visibility of BE provides confidence of continued growth for MTAR Technologies. 

MTAR Technologies shares have outperformed the markets by more than doubling investors' money in just six months. The stock has appreciated more than 150 per cent in just 180 days versus nearly 3.5 per cent northward move in the benchmark Nifty 50.  ========================================  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.