200% revenue growth, 14X profit: 2 niche stocks riding the global data centre boom

This shift is creating new opportunities for Indian manufacturers supplying the global data centre industry. This article discusses two companies. Both companies have reported their Q2FY27 results, with strong year-on-year growth in revenue and net profit. One company recorded 200% revenue growth and a nearly 14-fold increase in net profit. The other reported 87% revenue growth and a 156.8% rise in net profit.

FE Stock Insights on WhatsApPGet instant alerts on high-conviction investment themes and fundamental deep dives—direct from Financial Express.Join now One of them manufactures fuel cell components for Bloom Energy and is also collaborating with SLB on data centre infrastructure solutions. The other company supplies liquid cooling systems to a leading American technology firm. Let's take a look. #1 MTAR Technologies: The Primary Vendor for Bloom Energy MTAR Technologies' Data Centre Infrastructure Solutions business vertical sits under its broader Clean Energy segment.

This vertical aims to leverage MTAR's precision engineering capabilities to address the global build-out of data centre infrastructure. MTAR has partnered with the global engineering company SLB (Schlumberger) as its primary client in this segment. It has received an initial 'first-article qualification' order worth ₹45 crore from SLB, which is currently being executed. The order is expected to be delivered within six months.

MTAR Capacity Expansion: Scaling SLB & Bloom Energy Orders To scale production, MTAR is establishing a dedicated production base. The plan is to establish the initial facility and complete preparations for Phase 1 by mid-December 2026. The facility is expected to become fully operational by the end of March 2027. Phase 2 of the facility expansion is expected to be ready by June 2027. After successfully delivering the initial order, SLB reported a demand pipeline 8x the original order value.

Management projects the Data Centre Infrastructure Solutions vertical to clock revenue of ₹350-₹450 crore over the next 2 years by FY29. MTAR Clean Energy Order Book: Solid Oxide Fuel Cell Order Book Growth to ₹5,976.5 crore MTAR is also a long-term partner (15+ years) of Bloom Energy. It develops and supplies core components for Solid Oxide Fuel Cell technology. Fuel cells provide a clean, reliable energy source directly on site.

It is the largest portion of MTAR's Clean Energy vertical. The product accounts for 67.2% of the ₹5,976.5 crore order book as of September 30, 2026. MTAR manufactures and supplies complete 'hot box' assemblies and the related components for Bloom’s Energy. MTAR delivers the hot box as a fully integrated assembly. Over the past few years, MTAR has indigenized a significant portion of the sub-components and motors used within these units.

MTAR is one of two primary global suppliers for Bloom Energy's hot box assemblies (alongside a South Korean manufacturer). To meet growing fuel cell demand, MTAR is expanding its capacity. The Phase 2 expansion will increase existing capacity by 30%. The facility will be operational by the end of November 2026. The third phase is targeted for completion by March 2027. Out of MTAR's total budgeted capex of ₹500 crore over two years, ₹350 crore (70%) is earmarked for its fuel cell business.

The key point is that orders for 'hot box assembly' keep coming in, and currently demand is higher than supply capacity. MTAR Q2FY27 Earnings: EBITDA Margins Hit 24.4% Management has set an 80% year-on-year revenue growth target for FY27 (from ₹876 crore in FY26). MTAR has already achieved 48.7% of the target (₹767.5 crore) in H1FY27. In H1FY27, its revenue grew by 162.7% year-on-year to ₹767.5 crore.

In Q2FY27, revenue increased by 200% year-on-year to ₹406.8 crore. H2FY27 is expected to be stronger than H1, driven by capacity additions and accelerated order execution. In Q2FY27, EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 483.3% to ₹99.2 crore as the margin nearly doubled from 12.5% in Q2FY26 to 24.4%. Net profit grew almost 14X to ₹59.8 crore from a low base of ₹4.4 crore in Q2FY26.

8 lakh cr data centre boom: 2 stocks powering AI without making a single chip The company generated ₹350 crore in operating cash, supported by higher profits and customer advances. Inventory control and improved collections reduced net working capital days from 172 days in March 2026 to 50 days in September 2026. Management aims to bring the full-year number to 100 days by the end of FY27. MTAR Share Price #2 Aeroflex Industries: The Cooling Vendor for US Tech Giants Aeroflex Industries manufactures metallic flexible flow solutions.

The company produces industrial hardware that moves liquids and gases safely under pressure, heat or movement. Aeroflex has built a specialised product segment focused on AI data centres. Modern artificial intelligence chips run dense computing loads that generate extreme heat. Standard air cooling can no longer remove heat from these servers efficiently. Aeroflex builds liquid cooling skid assemblies and secondary fluid networks.

These systems circulate liquid coolants directly to server racks without fluid leaks. Aeroflex supplies these cooling units under an exclusive agreement with a leading American technology firm in India. The company plans to supply liquid cooling products to international markets. Aeroflex AI Data Centre Infrastructure: Liquid Cooling Skid Production Liquid cooling skids generate roughly 25% (about ₹50 crore) of revenue in Q2FY27.

Aeroflex supplies these products across traditional industries and emerging sectors. These include data centres, semiconductor plants, robotics, hydrogen fuel units and electric vehicles. International sales account for 59%-60% of total revenue. Key export markets include the Americas and Europe. Indian domestic customers contribute 40% to 41% of total revenue. Factories currently make 2 crore meters of hose annually.

Aeroflex is expanding this capacity to 3 crore meters per year by March 2028. At peak utilisation, management projects this segment to generate ₹850-₹900 crore in annual revenue. The plant produces 12,000 cooling skids per year. Aeroflex is expanding this line to 15,000 units shortly. On October 14, 2026, Aeroflex also announced capex of ₹202 crore to expand manufacturing capabilities for SS hoses and braiding, assemblies, and liquid cooling skid assemblies.

This expansion would expand Cooling Skid Assemblies capacity to 30,000 units. ₹202 Crore Capex: Expanding Hose and Skid Capacity The expansion is targeted for completion by March 2028. At peak utilisation, management projects incremental revenue generation of ₹500-₹550 crore. Management expects FY27 revenue to grow by roughly 60% to ₹715-₹725 crore. The long-term goal is to reach ₹1,500 crore in revenue with a margin of about 25% by FY30.

Aeroflex Q2FY27 Results: Net Profit Surges 156.8% on Cooling Demand Aeroflex delivered its highest-ever quarterly financial performance in Q2FY27. Revenue grew 87% year-on-year to ₹207.4 crore. Domestic revenue grew 87%. As a result, the domestic market contributed 40% of revenue in Q2FY27, up from 26% in Q2FY26. In contrast, export revenue rose 52%. EBITDA surged 94.1% to ₹50.3 crore, while margin expanded by 93 bps to 24.3%.

Consequently, net profit surged 156.8% to ₹36.6 crore in Q2FY27. Management projects full-year liquid cooling skid sales to reach between ₹ 150 and ₹ 200 crore. Operating cash also improved to ₹38.2 crore in H1FY27, up from ₹25.3 crore in H1FY26. As of September 30, 2026, Aeroflex's net working capital stood at ₹197.2 crore, compared to ₹212.00 crore on March 31, 2026. However, trade receivables rose to ₹203.8 crore as volume increased.

Aeroflex Share Price Return Profiles: Why Execution Outweighs Valuation in FY27 Aeroflex Industries has consistently expanded its return profile over recent fiscal years, driven by increasing profitability and operational scale. As of H1FY27, Return on Capital Employed (ROCE) has increased to 24%, up from 20% in FY23. During the same period, Return on Equity (ROE) rose from 11% to 16%. 1% and 18.1% in FY23 to 12.1% in FY26.

Margin compression and capex pulled down the ratios. Management guides ROCE to rebound to around 23% by the end of FY27. Valuation-wise, Aeroflex trades at a premium to the industry median P/E and its own 3-year median P On the other hand, MTAR now trades at a discount to its historical median multiple. Recent strong earnings growth has brought its valuation multiple down, but it still remains quite high.

ParticularsPrice-to-Earnings Multiple (X)Return RatiosCompany3Y MedianIndustryROE (%)ROCE (%)Aeroflex75.650.620.916.024.0MTAR104.0122.224.912.112.1Source: Screener.in (As of November 02, 2026). The return ratios are taken from the companies' investor presentations. The return ratios for MTAR are as of FY26, while those for Aeroflex are as of H1FY27. Both MTAR Technologies and Aeroflex Industries are benefiting from the growing demand for data centre infrastructure.

MTAR is expanding its fuel cell manufacturing business through its long-standing association with Bloom Energy and its new partnership with SLB. Aeroflex, meanwhile, is tapping into the rising demand for liquid cooling systems used in AI data centres. Their Q2FY27 results reflect strong business momentum. However, the next phase of growth will depend on how efficiently they scale operations. Capacity utilisation for the capacity going live will also be important to watch.

At current valuations, execution will be particularly important. These companies could be worth keeping on your watchlist. Disclaimer Note: Throughout this article, we have relied on data from and the company's investor presentation. We used an alternative, widely accepted source only when the data were unavailable. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions.

It is NOT a recommendation. If you wish to consider an investment, we strongly advise you to consult your advisor. This article is strictly for educational purposes only. About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

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