Kirloskar Oil Engines Ltd's shares jumped 20% on Monday and rose another 3% on Tuesday, hitting a new 52-week high of ₹2,720 after securing a significant order award. According to latest exchange data, the stock locked at its 20% upper circuit after the announcement, demonstrating strong investor confidence. The stock has delivered exceptional returns with 43-44% gains in one month, 73% in three months, 183% over one year, 488% over three years, and 879% over five years, making it a multibagger across all time periods. As per Lemonn, capital goods stocks benefited from positive risk sentiment in the broader market, with multiple BSE Capital Goods constituents printing new 52-week highs alongside Kirloskar Oil Engines.
The stock surge was triggered by a ₹192MW order from HyperNext involving the supply of 96 units of 2,500 KVA power generators for data centres. As reported by Stock Market News, this marks a significant breakthrough as the data centre segment is dominated by Cummins with over 80% market share. The latest order specifically involves 96 units of Kirloskar's 2500 kVA Optiprime Dual Core power systems for hyperscale data centre infrastructure, positioning the company's solutions for AI-enabled, hyperscale-ready applications. JM Financial Institutional Securities noted that this news flow represents a key breakthrough highlighting reduced technology gap for Kirloskar Oil Engines. The deal represents one of the biggest standby power deployments in India's data center sector and is expected to strengthen the company's position in the fast-growing digital infrastructure segment.
The Optiprime platform is designed for hyperscale and mission-critical environments, combining multiple high-performance cores into a single power system to improve efficiency and reduce infrastructure footprint. As per the latest reports, the systems are Uptime-certified under the Data Centre Continuous Power (DCCP) category, a key standard for reliability. HyperNext is developing an advanced data center based on an 800VDC power architecture, which the company says will be the first of its kind in India. This infrastructure is aimed at supporting next-generation AI workloads, cloud computing, and enterprise operations that require high resilience. The 192 MW capacity represents a significant scale-up in India's data center ecosystem as AI-driven computing demand continues to surge.
The company delivered robust FY26 results with standalone revenue increasing by 25% to ₹5,650 crore and Ebitda growing 24% to ₹737 crore. According to Stock Market News, this compares favorably to FY25 performance where revenue fell 7% while Ebitda grew just 5%. The company's enhanced focus on product innovation, particularly in the high-horsepower segment introducing engines up to 3,000/3,300 KVA, has helped its share in the HHP segment reach double digits in FY26 from negligible in FY22. As per Lemonn, the sustained rally in powergen and capital goods theme has been driven by data centre and AI-related infrastructure spending, with hyperscale and colocation data centres emerging as key customers for large power deployments.
India's data centre market is expected to grow sharply over the next five years, from 1,500MW in 2025, driven by rising adoption of artificial intelligence. As reported by Stock Market News, Motilal Oswal Financial Services observed that Kirloskar's entry into hyperscalers and fast-growing powergen and industrial business is resulting in a further reduction in the valuation discount versus Cummins. The stock now trades at approximately 53 times FY27 estimated earnings versus Cummins India's 57.5 times, according to Bloomberg data. With over 75 years of operations, Kirloskar Oil Engines continues to expand its presence across infrastructure, defense, marine, and increasingly AI-linked data center projects. According to Lemonn, investors may track further order inflows from data centre and hyperscale clients, with sustained volume expansion and order visibility remaining key variables for the stock's continued performance.
