MTAR Technologies shares have declined 34% from their June record high amid weakness in Bloom Energy, the company's largest client. While management has confirmed no changes to existing orders, investors are monitoring the risks associated with high customer concentration and working capital requirements.
MTAR Technologies has seen its share price drop significantly, hitting a 5% lower circuit for three straight trading sessions. As of Monday, the stock is trading at ₹5,741.50, marking a 34% decline from its all-time high of ₹8,714.95, which was recorded on June 19, 2026. This recent price movement has been accompanied by regulatory changes, as the stock was moved to the 'T' group on the BSE starting June 25, 2026. This classification limits intraday trading and requires all transactions to be settled through actual delivery of shares.
Dependency on Bloom Energy
A primary factor contributing to this downward pressure is the market performance of Bloom Energy Corporation. As MTAR’s largest client, Bloom Energy accounts for more than 55% of the company's total revenue. The stock price of Bloom Energy has dropped roughly 38% over the past month, which has triggered concerns among investors about the potential impact on MTAR’s future business. In response, Managing Director Parvat Srinivas Reddy clarified on June 12, 2026, that the company has received no official notice regarding cancellations, delays, or reductions in orders from any of its major clients.
Financial Health and Credit Rating
Despite the recent volatility, the company’s credit profile shows signs of stability. On July 7, 2026, ICRA upgraded the company’s long-term bank facilities rating to [ICRA]A+(Stable) from [ICRA]A(Stable). This rating action follows the company's performance in the 2026 fiscal year, where it reported revenue of ₹876 crore, representing a 30% increase compared to the previous year. As of March 31, 2026, the company maintained an order book worth ₹2,582 crore, which was further supplemented by international orders worth approximately ₹2,279 crore and ₹467 crore announced in May 2026.
Risks and Institutional Holding
Investors are also tracking changes in shareholding patterns. During the June 2026 quarter, domestic mutual funds reduced their stake in the company to 20.36% from 23.49%. Conversely, foreign portfolio investors increased their interest, raising their stake to 24.79% from 17.31%.
While the company works with major organizations like ISRO, NPCIL, and DRDL, analysts and credit rating agencies continue to highlight specific business risks. These include a high dependence on a single client, which creates significant revenue concentration risk. Additionally, the nature of the business requires high working capital to manage long production and payment cycles. Potential fluctuations in profit margins due to foreign exchange volatility on unhedged exports remain an area for investors to monitor as the company continues its expansion efforts.