MTAR Stock Up 230% In 2026: What's Behind The Street's New Favourite?

Shares of MTAR Technologies continued their sharp upward march on 21 May 2026, surging around 7% to ₹8,025 and hitting a fresh 52-week as well as all-time high. The stock outperformed its sector by 2.82% and extended a strong two-day rally, during which it gained more than 14%, reflecting sustained buying interest and bullish investor sentiment.

The stock has emerged as a major outperformer at a time when broader equity markets have remained volatile. MTAR significantly outpaced benchmark indices, with the Sensex rising only 0.25% on the day. Over the past month alone, MTAR shares have jumped more than 54%, while the Sensex declined 4.75%.

The momentum has been even stronger over longer periods. The stock has gained nearly 9% in the last five trading sessions, more than 56% over the past month, nearly 204% in six months and over 230% on a year-to-date basis. Over the last 12 months, MTAR shares have skyrocketed roughly 382%.

Strong Earnings And Higher Guidance

The rally has been supported by strong operational performance and an upbeat outlook from management. For FY26, MTAR reported revenue growth of 29.6% year-on-year to ₹876.2 crore, while EBITDA increased 41.7% to ₹171.2 crore. Profit before tax rose 75.1% to ₹126.1 crore and profit after tax climbed 76.2% to ₹94 crore.

The March quarter remained particularly strong. Revenue increased 67.2% year-on-year to ₹306.1 crore, EBITDA rose 80.9% to ₹61.8 crore and net profit surged 222.3% to ₹44.3 crore. Sequentially, revenue grew 10.1% while profit increased 27.7%.

Managing Director P Srinivas Reddy said the company has raised its FY27 revenue growth guidance from 50% to over 80%, with a possible variation of 5%. Management also expects EBITDA margins to remain around 24%.

The company said capacity expansion across clean energy and other verticals has already been commissioned and would support future growth.

AI Data Centre Opportunity

A major factor behind MTAR's recent re-rating is its growing exposure to Al-linked infrastructure demand.

Technology companies globally are rapidly increasing investments in Al data centres, with global capital spending for Al infrastructure projected to reach nearly $6 trillion between 2025 and 2030, according to the BlackRock Q2 2026 Global Outlook report. The surge in spending is expected to benefit companies linked to data centre supply chains and power infrastructure.

MTAR is closely linked to this theme through its relationship with Bloom Energy. The company manufactures hot boxes and critical assemblies used in Bloom's fuel cell systems, which are increasingly being deployed to power AI data centres facing energy shortages.

Bloom recently reported strong earnings and raised guidance, benefiting from growing demand for on-site power solutions. MTAR, as a key supplier, has also emerged as a beneficiary of this trend.

To meet rising demand, MTAR plans to expand fuel cell manufacturing capacity by 2.5 times to 20,000 units by March 2027 and invest ₹250-300 crore over the next two years.

Risks Remain On Execution Front

Despite the optimism, risks remain. MTAR derives over 70% of revenue from exports and remains exposed to fluctuations in global demand. Any slowdown in AI infrastructure spending or delays in customer projects could affect growth assumptions.

The company's debt-to-equity ratio has also risen to 0.45 times in FY26 from 0.24 times in FY25 as it continues investing for expansion. Analysts also note that fixed costs account for a significant portion of spending, which may pressure profitability if execution timelines are delayed.

Still, with a strong order pipeline and management projecting a closing order book of nearly ₹5,000 crore by FY27-end, investor confidence in MTAR's long-term growth story remains strong.