3 Hidden Gems in India's Data Centre Supply Chain

#2 Bajel Projects

Second on the list is Bajel Projects.

This is an EPC and execution play that rarely gets discussed alongside the equipment makers.

Bajel Projects handles total electrification for data centers - GIS/AIS substations, transmission, distribution, DG installations. This means it gets paid regardless of which vendor's transformer or chiller ends up inside the facility.

That gives it a structurally different risk profile than a pure component maker. It marked its entry into the data centre segment with a landmark GIS substation order in Navi Mumbai.

Last year, the company secured its initial data centre order, which involved the design and construction of a 220/33 kV GIS substation along with a transmission line extension for a colocation data centre facility.

As far as its financials are concerned, the past three years have been good for the company with rising sales and profit in each of the subsequent years.

In FY26, it posted the highest ever profit of Rs 200 million (m) on sales of Rs 27.9 bn.

Going forward, the company's strategic roadmap includes expanding its presence in high-growth segments such as data centres.

It has an order book higher than its revenue, of around Rs 33.8 bn, giving it multi-year revenue visibility.

The order book is also geographically diversified, with 93% from the power transmission segment and 7% from the power distribution segment.

In power transmission, majority of the projects are from the Power Grid Corporation of India, which reduces the collection risk.

Moreover, from time to time, its parent Bajaj group has provided support from time to time. This is expected to continue going forward.

For more details, check out Bajel Projects' financial factsheet.

#3 Marine Electricals

Last on the list is Marine Electricals.

Originally an integrated electrical automation player for defence and marine shipbuilding, it has quietly built a real client list in data center segment.

In recent times, it has received repeat orders from AdaniConneX, Web Werks, STT, Bridge Data Centers, Netmagic, and even global names like Equinix and the incoming BAM-DLR entrant.

While its data center revenue is still one slice of a diversified electrical business, the percentage of its order book related to the segment keeps growing.

This is a classic example of how innovation turned a marine company into taking a big leap into the data center industry, and leveraging underwater tech for sustainable, efficient data solutions.

The company has 4 subsidiaries, and its manufacturing facilities are located in Mumbai and Goa.

Apart from data centers, its primary marine segment is also seeing good growth aided by the government's focus on indigenous procurement, modernisation of Indian Navy and capacity expansion by shipyards.

Coming to its financials, in the past 5 years, its sales have grown more than 3x while the net profit has climbed from Rs 140 m to Rs 590 m as of FY26.

The company has averaged an ROE and ROCE of 9% and 16% during the same period.

As part of its growth strategy, the company is focusing more into integrated powering solutions for data centres and also expanding product offerings.

For more details, check out Marine Electricals financial factsheet.

Conclusion

The pattern across these three names is the same: none of them are betting on winning the data center business itself. Marine Electricals doesn't own a single server rack. Aeroflex doesn't operate a facility. Bajel doesn't compete for a colocation contract.

All of them sit one layer removed - supplying the power, the cooling, or the electrification that every operator needs regardless of who eventually wins the AI infrastructure race in India.

That's actually the more durable position to be in right now. Data center operators are fighting over land, power allocation, and hyperscaler contracts. It's a competitive, capital-intensive game where margins can compress fast if too many players chase the same customers.

The supply chain underneath them doesn't have that problem in the same way. As long as capacity keeps getting added, these companies get paid, whether the winning operator is Adani, a global hyperscaler, or someone not yet on anyone's radar.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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