Archive · 3 Sep 2026
Genset Market Growth Draws Powerica and Kirloskar Oil Engines
India needs more backup generators because some businesses cannot stop when the electricity grid has problems.
Data centers are especially dependent on continuous power because they run digital services all day and night.
This is creating a growing market for large generator sets.
Powerica already has ₹1,100 crore of data-center orders.
Kirloskar Oil Engines has won a much larger 192-megawatt hyperscaler project.
Powerica grew sales and profit faster in Q1FY27.
Kirloskar is larger and is moving into bigger data-center projects.
Both companies are dealing with higher material costs that have reduced their profit margins.
The article says investors should watch how the companies execute their projects rather than treating the discussion as investment advice.
India’s genset market is projected to grow from about ₹13,500 crore in FY25 to nearly ₹22,000 crore by FY30.
Data-center applications are expected to expand at roughly 20.5% annually as cloud, digital-service and artificial-intelligence workloads increase.
Powerica’s data-center order book rose from ₹900 crore in July 2026 to ₹1,100 crore by August 7, including a ₹200 crore hyperscaler or colocation order.
Kirloskar Oil Engines secured a 192-megawatt hyperscaler order that includes genset supply and five to six years of operations and maintenance.
Both companies faced margin pressure from higher commodity and raw-material costs, although Powerica reported faster Q1FY27 revenue and profit growth.
- Who
- Powerica and Kirloskar Oil Engines are the two companies discussed.
- What
- They are pursuing growth in India’s genset market through data-center and hyperscaler power projects.
- When
- The article cites FY25, Q1FY27, July and August 2026, and a market outlook through FY30.
- Where
- The opportunity is in India’s expanding data-center infrastructure; Powerica’s manufacturing capacity and Kirloskar Oil Engines’ Kagal site are also discussed.
- Why
- Cloud usage, digital services and artificial-intelligence workloads are increasing data-center demand, while these facilities require reliable backup power.
Powerica’s Near-Term Order Visibility
Kirloskar’s Larger Hyperscaler Ambition
Growth position
Powerica’s Near-Term Order Visibility
Powerica has a ₹1,100 crore data-center order book and reported faster Q1FY27 revenue and net-profit growth, with a 13.6% blended EBITDA margin.
Kirloskar’s Larger Hyperscaler Ambition
Kirloskar Oil Engines has a larger business and is entering higher-value hyperscaler and high-horsepower projects through a 192 MW order.
Execution model
Powerica’s Near-Term Order Visibility
Powerica directly manages customer engagement and on-site mechanical and electrical installation, while its plant was operating at 75% to 80% utilization on a single-shift basis.
Kirloskar’s Larger Hyperscaler Ambition
Kirloskar’s hyperscaler contract includes operations and maintenance for five to six years, potentially extending the project relationship beyond equipment delivery.
Investment profile
Powerica’s Near-Term Order Visibility
Powerica was described as trading at a discount to the industry multiple and had a lower cited price-to-earnings multiple of 22.4.
Kirloskar’s Larger Hyperscaler Ambition
Kirloskar Oil Engines had gained 137% over the prior year and was trading at a premium to the industry median and its five-year median, with a cited price-to-earnings multiple of 54.3.
- Projected genset market
- Nearly ₹22,000 crore by FY30, compared with around ₹13,500 crore in FY25.
- Data-center application growth
- Expected CAGR of approximately 20.5% from FY25 to FY30.
- Powerica data-center order book
- ₹1,100 crore as of August 7, 2026, including a ₹200 crore hyperscaler or colocation order.
- Powerica Q1FY27 results
- Revenue of ₹780.1 crore, up 26.7%; EBITDA of ₹106.3 crore; net profit of ₹64.3 crore, up 27.3%.
- Kirloskar hyperscaler order
- A 192 MW order including gensets and a five- to six-year operations and maintenance agreement.
- Kirloskar Oil Engines Q1FY27 results
- Standalone revenue of ₹1,461.4 crore, up 16%; EBITDA of ₹165.5 crore; net profit of ₹99.3 crore, down 9%.
- Valuation cited
- Kirloskar Oil Engines traded at a price-to-earnings multiple of 54.3, while Powerica’s was 22.4, based on data dated September 2, 2026.