Kirloskar Oil Engines gains 10% after securing 192 MW order.
HyperNext contract strengthens KOEL's data centre and AI exposure.
JM Financial upgrade boosts confidence in KOEL growth prospects.
Kirloskar Oil Engines (KOEL) shares surged more than 10% on Tuesday, extending gains from the previous session after the company announced a major data centre power systems contract and received a bullish rating upgrade from JM Financial.
The stock climbed as much as 10.7% to ₹2,644.50 on the NSE after rallying 20% and hitting the upper circuit on Monday. The two-day surge comes amid growing investor optimism over the company's exposure to India's rapidly expanding data centre and artificial intelligence infrastructure segment.
1 June 2026
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HyperNext Order Triggers Rally
The rally was triggered by KOEL's announcement that it had secured an order for 192 MW of power generation capacity from digital infrastructure company HyperNext.
The contract comprises 96 units of KOEL's 2500 kVA Optiprime Dual Core power systems and is among the largest deployments of high-capacity power generation systems for hyperscale data centres in India.
According to the company, the systems will support HyperNext's AI-enabled and hyperscale-ready data centre infrastructure designed to cater to rising demand from cloud computing, artificial intelligence and mission-critical enterprise workloads.
"As we continue to expand our digital infrastructure footprint, reliability and performance remain central to our design philosophy," said Harsh Macwann, Group CEO of HyperNext.
AI, Cloud Demand Driving Opportunity
KOEL said its Optiprime platform has been specifically engineered for hyperscale and mission-critical applications, offering high power density, reliability and operational efficiency while optimising data centre space utilisation.
"This order reflects the growing confidence that digital infrastructure leaders place in KOEL's engineering capabilities and our ability to deliver reliable, high-performance power solutions at scale," said Madan Patil, President - Global Powergen Business, KOEL.
The company added that rapid adoption of artificial intelligence, cloud computing and data-intensive applications is driving unprecedented demand for digital infrastructure, creating significant opportunities for advanced power generation solutions.
Brokerage Upgrade Adds Momentum
Investor sentiment received an additional boost after JM Financial upgraded the stock to "Buy" from "Add" and raised its target price to ₹2,430 from ₹1,955.
The brokerage's upgrade came alongside growing optimism about KOEL's participation in India's expanding data centre ecosystem, which is expected to benefit from rising AI workloads and increasing cloud adoption.
The latest rally has made KOEL one of the standout performers in the capital goods and power equipment space, as investors increasingly focus on companies positioned to benefit from the country's digital infrastructure buildout.
