Kirloskar Oil Engines shares zoom 20% to hit record high; here's the reason
"KOEL has committed Rs 1,400 crore capex for expanding the Kagal factory capacity by 20,000 engines/pa. This will further strengthen its HHP (high horsepower) offering, support export growth and at peak (FY30E) support Rs 500–600 crore additional sales. The improved mix also supports margins," JM Financial said.
- Jun 22, 2026,
- Updated Jun 22, 2026 11:01 AM IST
Shares of Kirloskar Oil Engines Ltd (KOEL) extended their gains for the second straight session on Monday, surging 20 per cent to hit an all-time high of Rs 2,390.80. At this level, the stock has rallied 82.35 per cent over the last six months.
The strong upmove came after the company secured a 192MW hyperscalar data centre genset supply order from HyperNext for 2,500KVA Optimprime Dual Core Systems. JM Financial has upgraded the stock from 'Add' to 'Buy' and raised its target price. The domestic brokerage noted that the order win marked a significant inroad for the company into the colo (colocation) and hyperscalar data centre space, which is currently dominated by Cummins India Ltd.
"Our research suggests this is equivalent to QSK65 (2,250-2,500KVA) offering by peer Cummins in the data centre space. Earlier, the 2,500KVA Optiprime was deployed at a Mumbai data centre of a leading bank. The data centre segment is dominated by Cummins (80 per cent-plus market share) and, thus, this news flow represents a key breakthrough highlighting reduced technology gap," JM stated.
"While the 2,500KVA engine is in the limelight, KOEL has developed a 2,750KVA engine as well, which is DCCP (or data centre) grade, essentially offering the equivalent to KKC's QSK78 node. In the last six months, KOEL has also developed up to 3,000/3,300KVA engines. It is on track to develop 6MW marine propulsion engine by FY28 (protype 70 per cent funded by the government). The focus on indigenisation of technology is a key driving factor for growth as well," it added.
"KOEL has committed Rs 1,400 crore capex for expanding the Kagal factory capacity by 20,000 engines/pa. This will further strengthen its HHP (high horsepower) offering, support export growth and at peak (FY30E) support Rs 500–600 crore additional sales. The improved mix also supports margins," the brokerage also said.
JM has raised its target price to Rs 2,430 from Rs 1,955 earlier.
Meanwhile, market expert Avinash Gorakshakar told Business Today, "KOEL's Q4 FY26 numbers were good, and I think the management commentary and the order book both look very impressive. Even in the current year, considering the kind of order inflow run rate, I wouldn't be surprised if FY27 also turns out to be a very strong year."
He added, "Our view is that if investors want to look at this company, it may be better to buy it in a staggered manner, as today's sharp upmove could possibly lead to some profit booking at a later stage. However, the outlook for the next 12 to 15 months definitely looks positive."
KOEL highlighted that HyperNext has emerged as an innovative force in the digital infrastructure sector, developing future-ready data center ecosystems designed to support AI workloads, hyperscale cloud deployments, and enterprise digital transformation initiatives.
FAQs
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Why did Kirloskar Oil Engines Ltd (KOEL) share price jump 20 per cent and hit a record high?
KOEL shares surged after the company won a 192MW hyperscalar data centre genset supply order from HyperNext for its 2,500KVA Optimprime Dual Core Systems. The order is seen as a major breakthrough in the fast-growing data centre power backup segment. Additionally, JM Financial has also upgraded the stock to 'Buy'.
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What is the significance of KOEL’s HyperNext data centre order?
The HyperNext order gives KOEL a strong entry into the colocation and hyperscalar data centre market, where Cummins India has been the dominant player.
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What did JM Financial say about KOEL stock after the latest order win?
JM Financial has raised its target price to Rs 2,430 from Rs 1,955. The brokerage said the order win, product development and capacity expansion could support stronger growth, better margins and higher sales in the coming years.
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How is KOEL expanding its engine and manufacturing capabilities?
KOEL has developed 2,750KVA data centre grade engines and has also built 3,000KVA and 3,300KVA engines in the last six months. It has committed Rs 1,400 crore capex to expand Kagal factory capacity by 20,000 engines per year and is also working on a 6MW marine propulsion engine by FY28.
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What is the outlook for KOEL shares over the next 12 to 15 months?
Market expert Avinash Gorakshakar said KOEL’s order book and management commentary remain impressive, with FY27 also likely to be strong if current order inflows continue. He suggested investors may consider buying in a staggered manner.
Shares of Kirloskar Oil Engines Ltd (KOEL) extended their gains for the second straight session on Monday, surging 20 per cent to hit an all-time high of Rs 2,390.80. At this level, the stock has rallied 82.35 per cent over the last six months.
The strong upmove came after the company secured a 192MW hyperscalar data centre genset supply order from HyperNext for 2,500KVA Optimprime Dual Core Systems. JM Financial has upgraded the stock from 'Add' to 'Buy' and raised its target price. The domestic brokerage noted that the order win marked a significant inroad for the company into the colo (colocation) and hyperscalar data centre space, which is currently dominated by Cummins India Ltd.
"Our research suggests this is equivalent to QSK65 (2,250-2,500KVA) offering by peer Cummins in the data centre space. Earlier, the 2,500KVA Optiprime was deployed at a Mumbai data centre of a leading bank. The data centre segment is dominated by Cummins (80 per cent-plus market share) and, thus, this news flow represents a key breakthrough highlighting reduced technology gap," JM stated.
"While the 2,500KVA engine is in the limelight, KOEL has developed a 2,750KVA engine as well, which is DCCP (or data centre) grade, essentially offering the equivalent to KKC's QSK78 node. In the last six months, KOEL has also developed up to 3,000/3,300KVA engines. It is on track to develop 6MW marine propulsion engine by FY28 (protype 70 per cent funded by the government). The focus on indigenisation of technology is a key driving factor for growth as well," it added.
"KOEL has committed Rs 1,400 crore capex for expanding the Kagal factory capacity by 20,000 engines/pa. This will further strengthen its HHP (high horsepower) offering, support export growth and at peak (FY30E) support Rs 500–600 crore additional sales. The improved mix also supports margins," the brokerage also said.
JM has raised its target price to Rs 2,430 from Rs 1,955 earlier.
Meanwhile, market expert Avinash Gorakshakar told Business Today, "KOEL's Q4 FY26 numbers were good, and I think the management commentary and the order book both look very impressive. Even in the current year, considering the kind of order inflow run rate, I wouldn't be surprised if FY27 also turns out to be a very strong year."
He added, "Our view is that if investors want to look at this company, it may be better to buy it in a staggered manner, as today's sharp upmove could possibly lead to some profit booking at a later stage. However, the outlook for the next 12 to 15 months definitely looks positive."
KOEL highlighted that HyperNext has emerged as an innovative force in the digital infrastructure sector, developing future-ready data center ecosystems designed to support AI workloads, hyperscale cloud deployments, and enterprise digital transformation initiatives.