The stock had fallen as much as 13% on Thursday after concerns emerged over a planned 1.8 GW data centre project in Cheyenne, Wyoming, that was expected to deploy Bloom Energy’s fuel cells.
What Triggered The Rebound In MTAR Tech?
Later on Thursday, Black Hills Corp. said that the 1.8 GW project in Cheyenne has not been paused and that development activity is ongoing. The utility company said it is working directly with the potential large-load customer and that the project remains on track, with service expected to begin in early 2028.
MTAR Technologies Managing Director Srinivas Reddy told CNBC-TV18 that the company has not received any communication from Bloom Energy regarding a pause in the data centre project and that reports suggesting a delay remain speculative.
“There are no delays as far as we are concerned. We remain completely on track,” Reddy said. He added that Bloom Energy has provided MTAR with clear visibility on business prospects and that the company continues to execute significantly higher volumes for Bloom on a quarter-on-quarter basis.
Reddy said MTAR has already received more than ₹2,800 crore worth of orders during the current quarter and maintained that its FY27 guidance remains unchanged. He also noted that the company’s other growth verticals continue to perform well and that its expansion plans remain on track.
Why did MTAR Tech shares fall on Thursday?
One of MTAR Tech’s key customers, Crusoe Energy, announced that it had put the data centre component of the project on hold at the request of its customer. This triggered concerns about the impact on Bloom Energy’s future fuel-cell deployment pipeline.
The facility had been expected to be powered by a combination of Bloom Energy fuel cells and grid electricity, including plans for 900 MW of behind-the-meter fuel-cell capacity.
The pause in operations concerned MTAR investors due to the company’s significant exposure to Bloom Energy. MTAR derives an estimated 55%-65% of its revenue from Bloom Energy and serves as a key supplier for its Solid Oxide Fuel Cell (SOFC) and Solid Oxide Electrolyser (SOEC) programmes.
The Hyderabad-based company is also the sole supplier of Bloom Energy’s electrolyser units and currently caters to around 50%-60% of its hotbox requirements.
According to Motilal Oswal Financial Services, every 1 GW of orders secured by Bloom Energy could translate into ₹900 crore-₹1,100 crore of orders for MTAR Technologies. The brokerage had estimated potential cumulative inflows of ₹2,700 crore-₹5,300 crore over the next three to five years, assuming Bloom secures 3 GW-5 GW of orders.
Reports had also indicated that Blackstone-backed Tallgrass Energy would continue construction of the power hub associated with the project, which is expected to provide on-site power through natural gas turbines.
Shares of MTAR Tech were trading 10% higher on Friday at ₹6,933. The stock has gained nearly 190% so far this year and about 312% over the last 12 months.
