Kirloskar Oil Engines Extends Rally After Winning Major Data Centre Order

Kirloskar Oil Engines Ltd. (KOEL) rose more than 11% on Tuesday to ₹2,644.50, building on Monday’s 20% upper-circuit gain after announcing a sizeable order from digital infrastructure company HyperNext and receiving a rating upgrade from JM Financial.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The stock has gained nearly 31% over the last two trading sessions. Investor sentiment strengthened after JM Financial upgraded the stock to “Buy” from “Add” and increased its target price to ₹2,430 from ₹1,955.

Large Power Systems Contract

In an exchange filing, KOEL said it has secured an order for 192 MW of power generation capacity from HyperNext. The order comprises 96 units of the company’s 2,500 kVA Optiprime Dual Core power systems.
The company said the project represents one of the largest deployments of high-capacity power systems for hyperscale data centres in the country. The systems will support HyperNext’s AI-enabled and hyperscale-ready facilities designed to cater to increasing demand from cloud computing, artificial intelligence applications and enterprise workloads.

Harsh Macwann, Group CEO of HyperNext, said in a company statement that reliability and performance remain central to the company’s digital infrastructure strategy. He added that KOEL’s Optiprime platform provides the scale and engineering capabilities required for mission-critical environments.

AI-Led Demand Drives Opportunity

KOEL said its Optiprime systems are designed for hyperscale applications and offer high power density, reliability and efficient utilisation of data centre space.

Madan Patil, President of Global Powergen Business at KOEL, said in the company’s statement that the order highlights the confidence digital infrastructure companies have placed in the firm’s engineering capabilities and ability to deliver large-scale power solutions.

The company added that rising adoption of artificial intelligence, cloud computing and data-intensive applications is creating greater demand for dependable power infrastructure.

Brokerage Upgrade Adds Momentum

Apart from the order announcement, sentiment around the stock was supported by JM Financial’s upgrade. The brokerage revised its recommendation to “Buy” from “Add” and raised its target price to ₹2,430.

KOEL had hit the upper circuit at ₹2,389.80 on Monday following the announcement. Tuesday’s gains took the stock well above the revised target price, making it one of the strongest performers in the market over the past two sessions.

The latest order comes as investments in data centre infrastructure continue to gather pace, with growing computing requirements from AI and cloud-based services increasing demand for high-capacity and reliable power systems.