MTAR Technologies hits 3rd straight 5% lower limit; down 34% from June high

In the recently concluded June 2026 quarter, domestic mutual funds reduced their stake in MTAR Technologies to 20.36 per cent from 23.49 per cent at the end of March 2026 quarter.

MTAR Technologies share price movement

 

Share price of MTAR Technologies continued to remain under pressure, locked at the 5 per cent lower circuit at ₹5,741.50 on the BSE in Monday’s intra-day deals. 

 

The stock was down 5 per cent for the third straight trading day, declining 34 per cent from its record high of ₹8,714.95 touched on June 19, 2026.

 

Since June 25, 2026, shares of MTAR Technologies have been trading under the ‘T’ group on the BSE. T group shares are securities placed in the Trade to Trade (T2T) segment by the BSE and the ‘BE’ segment by the NSE. These stocks are not allowed for intraday trading. T2T stocks can only be delivery-based; the buyer must take delivery of these shares.

 

 

Domestic mutual funds reduces stake, FPIs hike holding in MTAR in June quarter

 

Domestic mutual funds (MFs) reduced their stake in MTAR Technologies to 20.36 per cent at the end of the June 2026 quarter. MFs held 23.49 per cent holding in the company at the end of March 2026 quarter, the shareholding pattern data shows.

 

Meanwhile, foreign portfolio investors' holding in MTAR Technologies increased to 24.79 per cent from 17.31 per cent in previous quarter.

 

Why is MTAR Technologies share price under pressure?

 

MTAR Technologies shares traded under pressure following a decline in stock price of Bloom Energy. In the past month, the market price of Bloom Energy declined 38 per cent, data shows. Bloom Energy is the single largest client for MTAR Technologies, contributing more than 55 per cent of the company's total revenue.

 M

However, managing director of MTAR Technologies, Parvat Srinivas Reddy, during his interaction with a news channel on June 12, 2026, stated that the company has not received any communication from its customer regarding any cancellation. Accordingly, there are no negotiations or discussions with its customer in relation to any such cancellation, reduction, deferment, or pause that would warrant disclosure, the company said.

 

Reddy further stated that the company's order book remains healthy and that no communication has been received from any customer indicating a reduction in committed business. The company's capacity expansion plans remain on track, and it continues to work closely with its customers to meet the agreed delivery schedules, the management said.  Check - TOP GAINERS NSE | TOP LOSERS NSE 

MTAR Technologies – ICRA Rationale

 

ICRA on July 7, 2026, upgraded the long-term ratings of MTAR Technologies’ instruments to [ICRA]A+(Stable) from [ICRA]A (Stable); short-term ratings were reaffirmed.

 

The rating upgrade factors in a steady increase in MTAR Technologies’ scale of operations over the years and an expected, sustainable growth, going forward, supported by its strong order book position owing to favourable export and domestic demand prospects.

 

MTAR Technologies reported revenue of ₹876 crore in FY26, 30 per cent year-on-year (YoY) growth and the top line was projected to grow at a healthy pace in FY27, backed by continued execution and robust demand across segments. The company has an outstanding order book of ₹2,582 crore as on March 31, 2026. Further, in May 2026, MTAR Technologies received additional orders worth about ₹2,279 crore and ₹467 crore from its international customer(s). 

 

MTAR Technologies enjoys established relationships with its renowned clients—who include the Indian Space Research Organisation (ISRO), Bloom Energy Corporation (BEC), Nuclear Power Corporation of India (NPCIL) and Defence Research and Development Laboratory (DRDL), among others—ensuring repeat orders from its customers over the years.

 

The ratings, however, are constrained by high customer concentration risk as the company derives a major share of its revenue from one client, i.e., BEC, US. Further, the ratings consider the company’s working capital intensive operations owing to the long production and receivable cycle inherent to the industry. The ratings also consider the vulnerability of its margins to fluctuations in forex rates to the extent of the unhedged position, and the margins vary, depending on the sector and customer mix, ICRA said in the rating rationale.  =======================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.