Lesser-Known AI-Linked Indian Firms Add $48 Billion In Market Value

Indian companies linked to the data centre ecosystem have emerged as some of the biggest beneficiaries of the global artificial intelligence (AI) boom.

An equal-weighted Bloomberg index of 28 Indian companies involved in supplying equipment and services to data centres has added around $48 billion in market value in 2026. This represents a gain of almost 45%.

In contrast, the broader NSE Nifty 500 has lost more than $300 billion in market value this year.

Who Have Been The Top Performers?

The biggest winner has been Sterlite Technologies, the Vedanta Group-owned optical fibre manufacturer, whose stock has surged 500% this year. The company recently secured a $1.1 billion multi-year contract from a US-based hyperscaler.

Other beneficiaries include HFCL, which has climbed 176%, and MTAR Technologies, whose shares have more than tripled. These companies supply critical infrastructure used in data centres, including fibre networks, cooling systems, power components and industrial equipment.

What Is The Driver For This Rise?

The opportunity is being driven by big investments from global technology giants. For example, Amazon plans to invest $12.7 billion in cloud infrastructure in India through 2030. Alphabet too is spending approximately $15 billion on an AI infrastructure hub in Visakhapatnam. A Reliance Industries joint venture had also signed an $11 billion agreement to build local data centres last year.

Analysts estimate global investments in hyperscale data centres could exceed $1.2 trillion between 2025 and 2027, creating a large and sustained demand pipeline for suppliers.

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However, valuation concerns are beginning to emerge. Sterlite currently trades at around 66 times forward earnings, compared with about 20 times for the broader NSE 500. Analysts warn that future execution will need to justify these elevated valuations.

Source:

The Economic Times