Data Centre Stock Hits 10% Upper Circuit After Securing Rs 10.71 Crore Power Grid Order; Share Price Crosses Rs 1,000 Mark

On Wednesday, Indian equity benchmark indices traded largely flat, with the benchmark Nifty 50 index edging up 0.40 points to 24,615.30. Amid the market movement, Valiant Communications share price hit the 10 per cent upper circuit at Rs 1,040.75 after the company announced a breakthrough order for supplying equipment to data centres. The stock also witnessed strong trading activity, with volume rising to 17.57 thousand shares, compared with an average volume of 15.03 thousand shares.

Valiant Communications Secures Rs 10.71 Crore Data Centre Order

Valiant Communications announced that it has received purchase orders worth Rs 10.71 crore (inclusive of taxes) from a large system integrator for the supply of Data Storage Servers and Time Synchronisation Equipment, along with related services. The company said the end user for the project is Power Grid Corporation of India Limited (PGCIL), a Maharatna public sector enterprise, making it the company's first major breakthrough into India's rapidly expanding data centre infrastructure segment. The order is scheduled to be executed by March 31, 2027, and the company also stated that a separate Annual Maintenance Contract (AMC) purchase order is expected to follow.

Entry into AI and Data Centre Infrastructure

According to the company, the strategic significance of the order extends far beyond its commercial value, as it establishes Valiant's presence in the data centre ecosystem, which forms the backbone of artificial intelligence (AI) infrastructure and digital services. The company noted that it has already successfully commissioned key data centre equipment at THDC Limited, a Mini Ratna enterprise and subsidiary of NTPC Limited, and expects the latest order to strengthen its position in sovereign data infrastructure.

Valiant also said its indigenous Data Storage Equipment has successfully qualified under the Category-1 criteria, including the technical evaluation process, reinforcing its position as a Class-1 domestic manufacturer under the Government of India's Atmanirbhar Bharat initiative.
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Will Supply NavIC-Based Time Synchronisation Equipment

Apart from Data Storage Servers, the company will also supply its Time Synchronisation Equipment based on GPS and NavIC (Indian Regional Navigation Satellite System) technology. According to the company, NavIC provides an additional sovereign layer of redundancy for India's critical infrastructure and national security. It added that the government's increasing focus on commercial deployment of NavIC across strategic infrastructure is expected to reduce dependence on foreign satellite navigation systems while creating new opportunities for domestic manufacturers.

Management Commentary

Commenting on the development, Inder Mohan Sood, Chief Executive Officer, said, "The strategic value of this order cannot be stressed enough and extends well beyond its commercial value, as it opens up our entry into Data Centers, which forms the basis of all AI infrastructure and AI services. This is a major commercial breakthrough to supply Data Storage equipment to the rapidly growing business vertical of Data Centers."

He further added that the company is in its strongest position since inception to benefit from the Government of India's Atmanirbhar Bharat policy, supported by continuous innovation, technology investments and the development of advanced products for both domestic and international markets.

About Valiant Communications

Valiant Communications Ltd is engaged in the manufacturing and export of communication, transmission, protection, synchronisation, NAS/SAN data storage and cybersecurity products. The company supplies equipment to major power utilities, including Power Grid Corporation of India, and has successfully installed its products in more than 6,000 power substations across the world.

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Disclaimer: The article is for informational purposes only and not investment advice