Anant Raj — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Anant Raj delivered a robust Q2 FY26 performance, characterized by strong double-digit growth in revenue and profitability alongside a significant strengthening of the balance sheet. The company has successfully transitioned to a net zero-debt position following a ₹1,100 crore QIP. Management is aggressively scaling its Data Center vertical, targeting ₹1,200 crore in revenue from this segment by FY27, while maintaining a steady execution pace in its core residential real estate business in Gurugram and Delhi.

Highlights

  • Revenue from operations reached ₹630.79 crore in Q2 FY26, a 23% YoY increase.

  • EBITDA grew 43.85% YoY to ₹177.94 crore, with margins expanding to 27.76%.

  • PAT for the quarter stood at ₹138.18 crore, up 30.79% YoY.

  • Data Center segment contributed ₹35.47 crore to Q2 revenue with a robust 75% EBITDA margin.

  • Company is effectively net zero-debt, with net debt remaining below ₹50 crore for the fifth consecutive quarter.

  • Successfully completed a QIP of ₹1,100 crore and prepaid ₹125 crore of debt during the quarter.

  • Data Center capacity reached 28 MW; targeting 63 MW by December 2026 and 117 MW by FY28.

  • Real estate launch pipeline remains on track with 2.6 million sq ft planned for the current year.

Key financials

  1. Revenue ₹630.79 Cr +23%YoY
  2. EBITDA Margin 27.8%
  3. PAT ₹138.18 Cr +30.8%YoY
  4. Net Debt ₹50 Cr

What they filed

Q1 FY27: revenue up 12.5%, net profit up 12.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue298 328 337 352 371 +24%374 +14%394 +17%396 +13%
EBITDA51 55 65 69 79 +55%74 +35%90 +38%92 +33%
Net profit53 58 65 70 74 +40%78 +34%77 +18%79 +13%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Data Centers
    ₹35.47 Cr Revenue (Q2)₹58.42 Cr Revenue (H1)75% EBITDA Margin43.2% PAT Margin (H1)
  • Real Estate
    ₹1,164.78 Cr H1 Revenue Contribution

Guidance & targets

Capacity

  • Data Center Operational Capacity Capacity · by December 2026 · High confidence 63 MW
    So, this 28 megawatt will go to 63 megawatts... which will be now operational by December ‘26.

    — Amit Sarin, Managing Director

  • Data Center Total Capacity Capacity · FY32 · Medium confidence 307 MW
    Financial Year ‘31-32, we will be able to unlock 307 megawatts.

    — Amit Sarin, Managing Director

Revenue

  • Data Center Revenue Revenue · FY27 · High confidence ₹1,200 crores
    Once we achieve 63 megawatts, sir, which is by December ’26. Take additional two to three months of handing over. And that is when we will start achieving this [INR 1,200 crores revenue].

    — Amit Sarin, Managing Director

Volume

  • Real Estate Launch Pipeline Volume · FY26 · High confidence 2.6 million sq ft
    For this year, we had planned almost 2.6 million square feet of launches and we are fully on track with that.

    — Amit Sarin, Managing Director

Margin

  • Data Center EBITDA Margin Margin · Ongoing · High confidence 75%
    To be exact, 75%. It will go up only, sir. It will not go down.

    — Amit Sarin, Managing Director

Risks & concerns

  • Data Center Demand Absorption

    medium

    Analysts questioned the ability to lease 307 MW; management cited massive data localization trends and a supply-demand gap in North India.

    Analyst downplayed

  • Electricity Cost Inflation in Cloud Business

    low

    Management clarified that Cloud contracts include clauses to pass through electricity price increases to customers.

    Analyst acknowledged

  • Project Approval Delays

    low

    Management noted that while they are on track, some licenses (like the 5.21-acre housing project) are expected only in Q4.

    Management acknowledged

Areas of evasion (2)

  • Specific names of private Data Center clients due to NDAs.
  • Detailed business plan for residential inventory monetization.

Q&A highlights

3 direct
Data Center Revenue and Capacity Mix Direct
The breakup in the 63 megawatts will be that 49 megawatts is going to be purely Colocation and 6 megawatts as of now will be Cloud and 8 megawatts we are going to keep vacant.

Clarifies the revenue mix between lower-margin colocation and higher-margin cloud services as the company scales.

Asked by Akash Gupta, Nomura

Cloud Business Economics and Payback Direct
Cloud is about per month is approximately INR 12 crores [per MW]... the payback period is roughly 2 years.

Reveals the superior unit economics of the Cloud business compared to Colocation (₹90 lakhs/month/MW).

Asked by Akash Gupta, Nomura

Real Estate Cannibalization Risk Direct
One is Independent Floor, one is Group Housing. Both are the different segment, different market and different kind of a buyer. So, it will not cannibalize each other.

Management addresses concerns about launching multiple projects in the same quarter by highlighting product differentiation.

Asked by Harsh, Emkay Global

2 min read 5 chapters

Detailed narrative

Data Center Vertical Emerges as Growth Engine

The Data Center business is rapidly scaling, contributing ₹58.42 crore in H1 FY26. Management has set a clear roadmap to reach 63 MW of operational capacity by December 2026, which is expected to generate an annual revenue run-rate of ₹1,200 crore. The segment boasts high profitability with a 75% EBITDA margin. The company is diversifying its offering with 'Ashok Cloud,' which yields significantly higher realizations of approximately ₹12 crore per MW per month compared to ₹90 lakhs for colocation.

Balance Sheet Transformation to Zero-Debt

Anant Raj has achieved a significant milestone by becoming a net zero-debt company. Following a successful ₹1,100 crore QIP and a ₹100 crore warrant conversion by promoters, the company has prepaid ₹125 crore of debt. Net debt has remained below ₹50 crore for five consecutive quarters. This strong liquidity position allows the company to fund its aggressive Data Center expansion and real estate launches through internal accruals and surplus cash.

Real Estate Execution and Launch Pipeline

The core residential business remains robust with a planned launch pipeline of 2.6 million sq ft for the current year. Key projects include 'The Estate One' in Sector 63A, Gurugram (1.1 million sq ft) and Phase-IV of Anant Raj Estate (5 lakh sq ft), for which RERA approvals have been received. Management expects another 1.1 million sq ft project license in Q4 FY26. The company is also expanding into the Delhi market with a 7 lakh sq ft mixed-use development in Mehrauli, targeted for completion by FY28.

Strategic Pivot to Cloud Services

Beyond basic infrastructure, Anant Raj is moving up the value chain into Cloud services (SaaS and PaaS). Management noted that moving from Infrastructure-as-a-Service to Platform-as-a-Service can potentially double revenues per MW. They have already applied for MeitY empanelment and expect approval within November 2025, which will open doors to government contracts. The current mix for Cloud services is 50% government and 50% private clients.

Long-term Capacity Roadmap to 307 MW

The company reiterated its long-term vision of reaching 307 MW of total Data Center capacity by FY32. While the immediate focus is on the 63 MW and 117 MW milestones, the infrastructure for the full 307 MW is being developed across locations in Manesar, Rai, and Panchkula. Management expressed high confidence in demand absorption, citing that India currently houses only 1% of the world's data despite generating 28% of it, creating a massive tailwind for data localization.

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