MTAR Technologies Hits Sixth Lower Circuit In Seven Sessions; Stock Down 35% In A Month

Shares of MTAR Technologies remained under intense selling pressure on Tuesday, hitting another 5% lower circuit and falling 287 points to ₹5,457. The stock has now hit the lower circuit in six of the last seven trading sessions, extending a sharp correction from the record highs it touched only last month.

During this seven-session decline, the stock has lost around 23%, while its one-month decline has widened to 35%.

The latest correction has also pushed the stock below both its 50-day and 100-day moving averages. This marks the first time in 2026 that MTAR Technologies has fallen below its 50-DMA, and its first breach of the 100-DMA since September last year, highlighting the deterioration in technical momentum.

The stock was recently moved to Stage 4 of the long-term Additional Surveillance Measure (ASM) framework following heightened price volatility.

Bloom Energy Selloff Triggers Fresh Pressure

The latest bout of selling was triggered by weakness in Bloom Energy, MTAR Technologies' largest customer.

Bloom Energy's shares fell another 8% overnight in the US, extending their decline to nearly 38% over the past month. The company is estimated to contribute 55-65% of MTAR Technologies' revenue, making its performance a key driver of investor sentiment towards the Indian engineering firm.

Investor concerns intensified after reports that regulatory hurdles have delayed an Oracle-linked data centre project expected to use Bloom Energy's fuel-cell technology. Any delay in the project could postpone revenue recognition for Bloom Energy, raising concerns over future order visibility for MTAR Technologies.

Multiple Overhangs Weigh On Sentiment

Apart from concerns surrounding Bloom Energy, investors continue to factor in the overhang of promoter stake sales.

Domestic mutual funds also reduced their holding in the company during the June quarter to 20.36%, down from 23.49% in March, although foreign portfolio investors increased their stake during the period.

Since June 25, MTAR Technologies has also been placed in the Trade-to-Trade (T2T) segment, restricting intraday trading and reducing liquidity, which has added to the pressure on the stock.

The correction also comes amid continued weakness in AI-linked stocks globally. Investors have become increasingly cautious towards companies linked to artificial intelligence infrastructure as the sector undergoes a valuation reset across markets including the US, South Korea and Taiwan.

Fundamentals Remain Intact

Despite the sharp decline in its share price, the company's fundamentals have remained largely unchanged.

Earlier this month, ICRA upgraded MTAR Technologies' long-term credit rating to A+ from A, citing its stronger order book, improving scale of operations and favourable demand outlook across both export and domestic markets.

The company's management has also said it has not received any communication from Bloom Energy regarding any cancellation, deferment or reduction of orders, adding that its order book remains healthy and committed business continues to be intact.

Even after the recent correction, MTAR Technologies remains a multibagger, having delivered returns of around 128% over the past six months. Much of that rally had been driven by expectations that the company would benefit from the rapid expansion of AI data centre infrastructure through its relationship with Bloom Energy, whose fuel-cell technology is expected to power a proposed 1.8 GW data centre project in Cheyenne, Wyoming.