The development follows an announcement by Crusoe Energy that it has put its planned 1.8 GW data centre project on hold at the request of its customer. The facility was expected to be powered by a combination of Bloom Energy’s fuel cells and grid electricity.
The project had planned to deploy 900 MW of behind-the-meter fuel cells from Bloom Energy, raising concerns about the durability of the company’s near-term revenue backlog and its future project pipeline.
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According to reports, the project’s other key partner, Blackstone-backed Tallgrass Energy, will continue construction of the power hub associated with the development. The facility is expected to provide on-site power to the data centre using natural gas turbines.
The data centre project was being developed jointly by Crusoe Energy and Blackstone-backed Tallgrass Energy. While the pause impacts the data centre component, reports suggest work on the power infrastructure is continuing.
MTAR Technologies did not comment on the matter, but said that demand remains stable and unaffected.
Bloom Energy’s shares fell 10% following the announcement, although the stock remains up nearly 11-fold over the last year.
Why Is The Bloom Energy Fall Significant For MTAR Tech?
The development is significant for MTAR Technologies, given its deep business relationship with Bloom Energy. The Hyderabad-based company derives an estimated 55%-65% of its revenue from Bloom Energy and is a key strategic supplier for Bloom’s Solid Oxide Fuel Cell (SOFC) and Solid Oxide Electrolyser (SOEC) programmes.
MTAR is also the sole supplier of Bloom’s electrolyser units and currently caters to around 50%-60% of the company’s hotbox requirements.
According to Motilal Oswal Financial Services, for every 1 GW of orders secured by Bloom Energy, MTAR Technologies could receive ₹900 crore-₹1,100 crore of orders. The brokerage had estimated potential cumulative inflows of ₹2,700 crore-₹5,300 crore for MTAR over the next three to five years, assuming Bloom Energy secures 3 GW-5 GW of order inflows.
The latest development has therefore raised concerns among investors about the pace of order inflows from Bloom Energy, although neither company has disclosed any direct impact on existing contracts.
The decline in MTAR shares comes after the stock had nearly tripled in value, as the company raised its FY27 revenue growth guidance to 80% from 50% earlier. The company has also guided for its FY27 closing order book to double to ₹5,000 crore.
Shares of MTAR Tech are trading 11% lower on Thursday at ₹6,320. The stock has declined in four out of the last five trading sessions. During this period, the stock has declined 20%.
