Anant Raj Limited: Building a Dual-Engine Growth Story in Q2 & H1 FY26

Anant Raj Limited, a prominent player in India's real estate and increasingly, its digital infrastructure, has delivered a strong financial performance for the second quarter and first half of fiscal year 2026. The company's strategic pivot towards data centers, while maintaining its robust real estate operations, appears to be yielding significant results. This period showcases Anant Raj's disciplined execution and its commitment to sustainable growth, underpinned by a remarkably healthy balance sheet.

For Q2 FY26, Anant Raj Limited reported a revenue from operations of ₹630.79 crore, marking a commendable 23% year-on-year increase. The company's EBITDA surged by 43.85% YoY to ₹177.94 crore, achieving an impressive margin of 27.76%. Profit After Tax (PAT) also saw a substantial rise of 30.79% YoY, reaching ₹138.18 crore. The first half of FY26 continued this positive trajectory, with revenue growing by 24.22% YoY to ₹1,223.2 crore and PAT increasing by 34.28% YoY to ₹264.08 crore. A standout achievement highlighted by management is the company's net debt remaining below ₹50 crore for the fifth consecutive quarter, effectively positioning Anant Raj as a near zero-debt entity.

Strategic Expansion: Data Centers and Cloud Services

The data center and cloud services segment is rapidly emerging as a core growth engine for Anant Raj Limited. The company successfully delivered 28 MW of IT load in Q2 FY26, a milestone showcased through its 'Bharat Built' event. This includes the operationalization of a second data center facility in Panchkula with 7 MW IT load and the enhancement of the Manesar facility to 21 MW IT load capacity. The company has also commenced development for an additional 35 MW capacity, including a new data center at Rai, Sonipat, which will initially host 20 MW IT load, with a total planned capacity of 200 MW. The strategic goal is to expand the total IT load to 117 MW by FY28 across Manesar, Rai, and Panchkula, with a long-term vision of 307 MW by 2032.

Anant Raj's 'Ashok Cloud' initiative is making significant strides in the cloud services domain. The company is in an advanced stage of operationalizing Infrastructure as a Service (IaaS) at Manesar and Panchkula and has already begun offering Platform as a Service (PaaS) solutions. Plans are underway to expand into Software as a Service (SaaS), aiming to become a MeitY-approved Cloud service provider. Management highlighted that the data center revenues are on track, with ₹58.42 crore generated in H1 FY26. The company anticipates generating ₹1,200 crore in revenue from its 63 MW data center capacity by FY27, assuming full occupancy, with substantial contributions expected in FY27 and full realization by FY28.

Real Estate Momentum and Future Projects

While the data center business scales, Anant Raj's legacy real estate segment continues to show strong momentum. The company is poised for significant launches, with approximately 2.6 million square feet of projects planned for the current fiscal year. Key residential initiatives include the advanced-stage launch of 'The Estate One,' a luxury high-rise development in Sector 63A, Gurugram, with an approximate area of 1.09 million sq. ft. Additionally, RERA registration has been secured for Phase IV of the Anant Raj Estate, which will add around 5 lakh sq. ft. of potential development. Another group housing project spanning 5.21 acres is expected to receive permissions in Q4 FY26.

In the commercial segment, the company has initiated 'Ashok Towers' in Sector 63A, Gurugram, a 1.6 lakh sq. ft. project featuring branded outlets and a multiplex, slated for completion by FY29. A new 7 lakh sq. ft. mixed-use development in Delhi, comprising commercial spaces, service apartments, and hotels, has also commenced, with its first phase expected by FY28. These projects underscore Anant Raj's strategy to diversify its real estate portfolio and strengthen its presence in key micro-markets.

Financial Prudence and Outlook

Anant Raj Limited's financial strategy is marked by prudence and a focus on long-term value creation. The successful Qualified Institutional Placement (QIP) of ₹1,100 crore, with strong participation from institutional investors, has provided ample capital for the data center expansion. This funding, coupled with the prepayment of ₹125 crore of debt, has made the company net cash positive, reinforcing its commitment to a zero-debt philosophy. Management emphasized that this strong financial position allows them to pursue ambitious growth plans without external debt, ensuring disciplined capital allocation.

The company's outlook remains confident, driven by the robust demand for data localization and digital services in India, as well as sustained traction in the luxury real estate market. Anant Raj Limited is strategically positioned to leverage these trends, with a clear roadmap for capacity expansion and service diversification. The management's focus on execution, financial resilience, and strategic partnerships positions the company for continued growth and value creation for its stakeholders.