Explained: Why Kirloskar Oil Engines shares hit 20% upper circuit today

Shares of Kirloskar Oil Engines Ltd. (KOEL) surged 20% to hit the upper circuit on Monday after the flagship company of the Kirloskar Group announced a major order from digital infrastructure firm HyperNext for the deployment of power systems at hyperscale data centres.

Cheering the development, Kirloskar Oil shares climbed to a record high of ₹2,390.80 on the BSE, up 20% from the previous close of ₹1,992.35. The stock witnessed strong buying interest, with 3.29 lakh shares changing hands compared with its two-week average trading volume of 0.59 lakh shares. The rally propelled the company's market capitalisation to nearly ₹34,757 crore.

Kirloskar Oil has seen significant growth in the past one year, with the share price nearly tripling from their 52-week low of ₹826.50 touched on June 20, 2025. In calendar year 2026 alone, the mid-cap stock has rallied about 92%, while gaining 43% over the past month.

Secures 192 MW order for large-scale data center infra

In an exchange filing dated June 19, KOEL said it secured an order from HyperNext for its Optiprime Power Solutions for large-scale data centre infrastructure projects.

The order comprises 192 MW of power capacity through 96 units of KOEL's 2500 kVA Optiprime Dual Core power systems, making it one of the largest deployments of high-capacity backup power systems for hyperscale data centres in India.

HyperNext is a digital infrastructure company focused on developing next-generation, hyperscale-ready data centre ecosystems that support cloud computing, artificial intelligence (AI) and enterprise digital transformation initiatives.

According to the company, the deployment will support HyperNext's mission of building resilient, scalable and energy-efficient digital infrastructure capable of meeting the rapidly growing demands of cloud computing, AI and mission-critical enterprise workloads.

Harsh Macwann, Group CEO of HyperNext, said reliability and performance remain central to the company's expansion strategy.

"As we continue to expand our digital infrastructure footprint, reliability and performance remain central to our design philosophy. KOEL's Optiprime solution offers the scale, engineering sophistication and proven operational performance required for our mission-critical environments," Macwann said.

He added that HyperNext is developing India's first data centre with an 800VDC power architecture and that the partnership reflects the shared commitment of both companies to enabling next-generation digital infrastructure while maintaining high standards of operational resilience.

The Optiprime platform combines multiple high-performance cores into a single integrated power system and is specifically designed for hyperscale and mission-critical environments. According to KOEL, the Uptime-certified and Data Centre Continuous Power (DCCP)-compliant systems offer high power density, operational efficiency and reliability, enabling operators to optimise data centre footprints while ensuring uninterrupted power availability.

Madan Patil, President – Global Powergen Business at Kirloskar Oil Engines, said the order highlights growing confidence in the company's engineering capabilities and ability to execute large-scale projects.

"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," Patil said.

He noted that the rapid adoption of artificial intelligence and cloud computing is driving a sharp increase in energy requirements across data centres, creating strong demand for robust and resilient backup power infrastructure.