Synopsis:- A leading brokerage has set a target of ₹4,810, implying 29% upside from ₹3,732. Backed by a decade-long partnership with a global fuel cell major and 60–70% wallet share, every 1 GW capacity addition could generate ₹900–1,100 crore in potential orders amid 100 GW expansion.
India’s Aerospace & Defence sector is booming with the FY 2026-27 Union Budget allocating ₹7.85 lakh crore to defence (up 15% YoY), including ₹2.19 lakh crore capex (22% rise). Aircraft and aero engines get ₹63,734 crore (29% of capex), while 75% of acquisitions target the domestic industry. Exports hit ₹26,673 crore last FY, fueling self-reliance.
With a market capitalisation of Rs 11,475.02 crore, the shares of MTAR Technologies Ltd were trading at Rs 3,730.55 per share, increasing around 1.34 percent as compared to the previous closing price of Rs 3,683.55 apiece.
Brokerage Recommendation
Motilal Oswal has maintained a bullish stance on the defence stock, assigning a ‘Buy’ rating with a target price of ₹4,810. From the current level of ₹3,732.05, this implies a potential upside of around 29%. The recommendation reflects confidence in the company’s strong order pipeline, sector tailwinds, and long-term growth visibility.
Motilal Oswal believes MTAR Technologies is emerging as an indirect beneficiary of the global AI infrastructure boom. With nearly 100 GW of new data centre capacity expected between 2026 and 2030, growing at a 14–18% CAGR, the real bottleneck is reliable power, not capital. Lengthy grid connection timelines of 2–5 years are accelerating demand for alternative energy solutions.
In this context, Bloom Energy plays a critical role by offering fuel cell-based distributed power solutions, and MTAR is deeply integrated into this ecosystem. Through its decade-long partnership with Bloom Energy, MTAR has steadily increased its exposure to global fuel cell technology, positioning itself at the centre of the fast-expanding clean and reliable power value chain.
As Bloom Energy’s sole supplier of critical hot box assemblies, with a commanding 60–70% wallet share, MTAR enjoys a strong competitive moat. The brokerage estimates that every 1 GW of Bloom’s installed capacity could translate into ₹900–1,100 crore in potential order inflows for MTAR, underlining significant operating leverage.
Given this structural advantage, Motilal Oswal remains optimistic about MTAR’s long-term prospects. The brokerage highlights strong earnings visibility, exponential order growth potential, and a deeply entrenched customer relationship that is difficult to replicate, reinforcing confidence in the company’s sustained growth trajectory.
MTAR Technologies is a precision engineering company serving critical sectors such as defence, aerospace, nuclear, and clean energy. Known for manufacturing complex, mission-critical components, the company has built long-standing relationships with global clients. Its growing presence in fuel cell and space segments positions it well for emerging technology-driven opportunities.
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