Shares of MTAR Technologies Ltd fell over 4% on June 11 amid investor concerns following reports highlighting potential operational issues at another major data center project linked to Bloom Energy, the company's largest customer.
The stock declined despite the broader optimism surrounding the AI-driven data center boom, with market participants focusing on the possibility that execution challenges at Bloom Energy projects could impact future order visibility for MTAR.
Bloom Energy, a leading provider of solid oxide fuel cell (SOFC) systems, has emerged as a major beneficiary of rising power demand from artificial intelligence and hyperscale data centers. MTAR Technologies is a key supplier of critical components for Bloom's fuel cell systems and derives an estimated 55-65% of its revenue from the US-based company.
Investor sentiment appears to have been affected by reports circulating in market circles that a second major Bloom Energy-linked data center project may be facing operational challenges. While detailed information regarding the nature of these issues remains limited, the development has raised concerns about a potential overhang on MTAR's near-term business outlook due to its significant customer concentration.
The market reaction reflects worries that any delays, project modifications, or slower deployment schedules at Bloom Energy's large data center projects could affect component demand and execution timelines for MTAR.
The concern comes at a time when Bloom Energy has secured several large AI and data center-related contracts, including expanded power supply agreements for hyperscale customers. These opportunities have been a key driver behind MTAR's strong order inflows and growth expectations in recent quarters.
However, analysts note that the broader data center industry continues to face challenges related to power infrastructure availability, grid connectivity, permitting delays, and project execution timelines, factors that can occasionally impact deployment schedules even when long-term demand remains robust.
At around 9:50 AM, MTAR Technologies shares were trading 4.02% lower at ₹6,821, making the stock one of the notable losers in the mid-cap engineering and defence-linked space.