Artificial Intelligence (AI) is changing the economics of data centers. The challenge is no longer just storing data but also managing the massive heat generated by AI servers. As rack densities increase, efficient cooling systems, reliable power distribution, and precision-engineered piping are becoming just as important as the computing hardware itself.
This shift comes as India’s data center industry enters a new phase of expansion. According to JLL India’s Data Center Market Dynamics report, the country’s operational data center capacity crossed 1 GW in 2024 and is expected to reach 1.8 GW by 2027, requiring nearly ₹47,500 crore (US$ 5 billion) of infrastructure investments.
AI-led workloads are expected to be one of the biggest drivers of this growth. As operators build larger AI-ready facilities, demand is rising for companies that enable these data centers to run efficiently. This has prompted companies to expand their existing expertise into the fast-growing data center ecosystem.
Accordingly, we have selected these three companies, each leveraging its existing expertise to address a different bottleneck in the data center value chain. One is leveraging its fluorochemical expertise to develop advanced liquid-cooling solutions for AI data centers.
Another is expanding its electrical and automation capabilities to serve the growing data center ecosystem. The third is building on its piping expertise to enter the high-value pipe spooling market for data center cooling applications. Let’s dig deeper.
Here is a snapshot of how they are connected to the value-chain:-
| Company | Core Business | AI/Data Center Opportunity | Why It Matters | Key Monitor |
| Navin Fluorine | Fluorochemicals and high-performance specialty chemicals | Liquid cooling fluids | New high-value application for existing chemistry expertise | Product adoption and capacity expansion |
| Marine Electricals | Electrical infrastructure | Data center power distribution | Strong execution track record and repeat customer orders | Order inflows and margin expansion |
| Venus Pipes & Tubes | Stainless steel pipes | Pipe spooling for cooling systems | Moving up the value chain with higher-margin solutions | Facility commissioning and order execution |
| Source: Investor Presentation, Management Commentary | ||||
#1 Navin Fluorine International: Targets AI sector with ₹120-Cr liquid cooling project
Navin Fluorine International Limited is a prominent integrated fluorine provider and a diverse provider of fluorochemical solutions worldwide. It has three verticals: Higher Performance Products (48.4% of FY26 revenue), Specialty Chemicals (35.3%), and Contract Development Manufacturing Organisation (16.3%).
The Liquid Cooling Breakthrough
Navin possesses deep and comprehensive expertise in complex fluorochemicals. Traditionally, the company has used this foundation to support the air-conditioning and refrigeration markets.
It is now actively applying this knowledge to develop an innovative liquid-cooling product. This move is a strategic effort to expand their footprint into the newly emerging Advanced Materials segment. This product offers unique benefits and is considered essential to support the expanding global AI sector.
Navin is developing this product in collaboration with a major global customer, Chemours. Navin Fluorine expects to be the exclusive manufacturing site for this specific product for Chemours, given the material’s unique nature.
Capital Allocations: Co-Funding Frameworks for Risk Mitigation
The company is currently establishing its initial commercial manufacturing capacity. The total capital expenditure allocated for this project is ₹120 crore. This investment utilizes a co-funding model to mitigate risk. Under this arrangement, Chemours will provide 35% of the capital, while Navin will provide the remaining funds from its internal sources.
The Chemours project is currently on track for completion and is targeted for commissioning in Q1FY27. Revenue is expected to follow from Q2FY27 onwards. While the exact peak revenue potential is not disclosed, the initial capacity aims to accelerate the product’s adoption in the broader market.
Over the next 18 months following its launch, Navin’s management plans to closely monitor customer uptake to better understand the total addressable market size. Accordingly, this initial manufacturing phase could serve as a catalyst, potentially triggering further capital expenditure and capacity expansion.
Financial Performance: FY26 Earnings Outperform Across Verticals
Regarding FY26 performance, Navin’s revenue grew 41% year-on-year to ₹3,313.9 crore. This was supported by strong momentum in the specialty chemicals (up 44% YoY), CDMO (+59%), and HPP segments (+34%). Operating EBITDA more than doubled (+103%) to ₹1,081.7 crore, while margins expanded 992 bps to 32.6%. Net profit increased 130% to ₹664 crore.
Navin Share Price
#2 Marine Electricals: The Primary Vendor for India’s Data Center Boom
Marine Electricals provides integrated technical services across electrical, automation, power electronics, and information and communication technology. The company offers Electrical Equipment, Automation Solutions, Data Centers, and Electric Vehicle Infrastructure.
Core Verticals: Power Infrastructure and Key Clientele
In the data center market, the company has achieved a leadership position. It is recognized as a reliable brand capable of delivering the complex electrical and automation solutions necessary for environments where uninterrupted power is crucial. The company serves major data center clients like Adani Connex, STT, Bridge Data Centers, and Netmagic.
Beyond domestic clients, Marine also serves major global companies that are entering the Indian market, such as Equinix and BAM-DLR. To these customers, Marine Electricals supplies a suite of hardware and software solutions for powering and monitoring data centers.
In power distribution and switchgear, it supplies low-voltage and medium-voltage switchboards (such as its MEcube+, MEpower+, and Blokset lines) that safely distribute electricity throughout the facility. In the busduct solutions, the company replaces conventional cables.
Turnkey Solutions: End-to-End Lifecycle Management
It also uses automation systems to improve energy efficiency. It also uses smart connectivity solutions such as MEconnect+ to enable facility operators to remotely monitor and control infrastructure. But Marine Electricals doesn’t sell these as standalone pieces. Instead, it offers a complete turnkey solution.
The company is actively expanding its products to serve as an end-to-end integrated solutions provider for data centers. Its strategy includes managing the entire project lifecycle, from the initial order placed by its sales team to the complete electrical package. This offers repeat business.
Breaking Down the ₹151.6-Crore Wins
Marine Electricals has continued to strengthen its presence in India’s rapidly expanding data center sector. It has received two orders till 27 June 2026. STT and Princeton Digital awarded it a ₹75.2 crore order on 23 June 2026. This order came after Marine received another ₹76.4 crore order from STT and Deepak Chem Tech.
These orders are for the supply of Power Distribution Systems and are expected to be executed over the next 12-18 months. The latest wins also highlight its growing relationships with leading data center operators. Going forward, as data center expansion accelerates in India, Marine could be a key beneficiary.
Moving to its financials, the company reported strong growth in FY26. Revenue from operations grew by 14.3% year-on-year to ₹876.9 crore. Operating profit grew 36% to ₹94 crore while margins expanded by 170 bps to 10.7%. As a result, net profit surged 55.3% to ₹59 crore.
Marine Electricals Share Price
#3 Venus Pipes and Tubes: Just Won a ₹185 crore Data Center Cooling Contract
Venus Pipes and Tubes manufactures stainless-steel tubes and pipes. It is actively expanding into the data center segment. To manage the high heat loads and temperatures, data centers require advanced thermal management systems.
De-Risking Construction via Pipe Spooling
These thermal systems circulate cooling fluids through a closed-loop network to protect servers and critical equipment. Venus is capitalizing on the demand for cooling and chiller applications by forward-integrating into pipe spooling solutions. These spools are pre-fabricated piping assemblies that combine pipes, fittings, flanges, and valves.
The spools can be assembled at the project site, eliminating the need for on-site construction. This is important for pre-construction data centers because their operations are highly sensitive; Even a single particle of dust can destroy the CPU system. Thus, data center operators prefer a reputable assembler of this product.
Backlog Velocity: Securing the ₹185-Crore LOI Ahead of Commissioning
The company has received immediate success. Venus has secured a Letter of Intent (LOI) valued at ₹185 crore from a leading data center operator for the supply of stainless steel spools. Venus secured this major contract despite not yet having an operational spooling setup. Venus’s strong market reputation, established pipe capacities, technical expertise, and a firm commitment to fast execution helped secure the order.
The ₹70-Crore Capex: Target Matrices for 3x Asset Turnover
Moreover, it has integrated in-house manufacturing capabilities for both pipes and fittings, giving it a competitive edge over traditional fabricators that do not manufacture their own core materials. That said, Venus is investing ₹70 crores to set up a dedicated spooling and fabrication facility. This plant is expected to generate around 3x asset turnover.
Venus expects the spooling facility to be fully operational by the end of 2026. Trial runs are projected to conclude in Q2FY27, with commercial production beginning by the mid-third quarter. Once started, the ₹185 crore order is expected to take about 15 months to execute.
Strategically, Venus foray into data centers allows it to move up the value chain from just a standalone product supplier to a comprehensive provider of engineered solutions. Spooling solutions provide greater value-add, translating into better value realization, improved capacity utilisation of existing capacity, and stronger profit margins compared to standard piping.
Financial Matrix: Volume Momentum Informs Management’s 20% FY27 Guidance
From a financial perspective, Venus revenue in FY26 grew by 21.7% year-on-year to ₹1,166.8 crore, driven by 15% volume growth. EBITDA surged by 13.7% to ₹190.6 crore with margins at 16.3%. Net profit surged by 9.7% to ₹101.9 crore. The company expects at least 20% growth in volume and revenue in FY27.
Venus Pipes Share Price
Valuation Matrix: Pricing Efficiency Against Historic Multiples
Venus has a higher Return on Capital Employed (ROCE), followed by Navin and Marine. On the other hand, Navin’s Return on Equity (ROE) is relatively better, followed by Venus and Marine.
From a valuation perspective, all three players are trading at a premium to their respective industry median multiple. Relative to the 3-year historical median multiple, Navin is trading at a discount, while Marine and Venus are trading close to their median.
| Peer Comparison (X) | |||||
| Company | Price-to-Earnings Multiple | Return Ratios | |||
| Company | 3Y Median | Industry | ROCE (%) | ROE (%) | |
| Navin | 58.4 | 67.0 | 26.6 | 21.4 | 20.3 |
| Marine | 63.4 | 64.0 | 32.9 | 18.2 | 13.2 |
| Venus | 34.4 | 33.3 | 22.4 | 22.5 | 17.0 |
| Source: Screener.in (Data as of 25 June 2026) | |||||
To conclude, AI data centers’ economics increasingly depend on cooling, power reliability, and thermal efficiency. Companies that already possess these capabilities could enjoy a structural demand tailwind. But the opportunity is still unfolding, and each of these companies is at a different stage of monetising it.
Navin is awaiting the commercial rollout of its cooling fluid. Marine is already embedded in the data center ecosystem, and Venus Pipes is preparing to execute its first large spooling contract following the commissioning of its new facility.
Their progress over the next few quarters will reveal whether these early initiatives can evolve into meaningful growth drivers. Nonetheless, these names could be kept in your watchlist to track their execution.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was unavailable have we used an alternative, widely used, and accepted source of information.
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, you are strongly advised 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.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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