Kirloskar Oil Engines shares surge 18% to record high after cracking Cummins-dominated data centre market

Kirloskar Oil Engines (KOEL) shares surged 18% to a record high after winning a 96-unit data centre order for its 2,500kVA Optiprime Dual Core Systems from a global hyperscaler, marking its first major breakthrough in a segment where Cummins India holds an 80%+ market share. JM Financial upgraded the stock to BUY with a price target of Rs 2,430 (42x FY28 EPS), while Motilal Oswal raised its target to Rs 2,350 from Rs 1,900, projecting a 23% revenue CAGR through FY29 with EBITDA and PAT growth of 29% and 32% respectively. The company has announced capex of Rs 7bn in FY25 and an additional Rs 14bn in May 2026 to scale up capacity for surging data centre and industrial demand.