Anant Raj Limited in Q1 FY27: Strong profitability and the Ashok Cloud demerger plan

Anant Raj Limited is positioning itself at an inflection point. The company’s Q1 FY27 investor presentation shows rising profitability and steady operating momentum, while a July 2026 corporate announcement outlines a board-approved Composite Scheme of Arrangement that aims to separate the group into two independently listed businesses.

For the quarter, the company reported revenue from operations including income from data centers of 631.40 crore. EBITDA for Q1 FY27 was 202.74 crore, and profit after tax was 149.19 crore. The company also reported an EBITDA margin of 31.15 percent and a PAT margin of 22.93 percent for the quarter. Importantly, the quarter included a disclosed 90 crore of revenue from data center, infrastructure and allied services, providing a tangible datapoint for the digital infrastructure platform.

The strategic context is the planned demerger. The board has approved a proposal under which Anant Raj will continue as the real estate and infrastructure business, while Ashok Cloud Private Limited will become the dedicated digital infrastructure and cloud services platform, intended to be listed independently. The press release and presentation state that eligible shareholders are expected to receive one equity share of Ashok Cloud of face value 2 rupees for every one equity share of Anant Raj of face value 2 rupees held on the record date, subject to the scheme becoming effective and receiving approvals.

Q1 FY27 performance: growth with expanding margins

The presentation highlights that revenue from operations including data center income rose 6.58 percent year on year to 631.40 crore. EBITDA increased 26.21 percent year on year to 202.74 crore, with margin improvement of 449 basis points year on year to 31.15 percent. PAT rose 18.50 percent year on year to 149.19 crore.

While the presentation includes multi-year quarterly trend bars, the most useful point for business mix is the explicit line item that revenue from data center, infrastructure and allied services stood at 90 crore in Q1 FY27.

Strategy: two businesses, two operating models

The July 21, 2026 press release is explicit on the logic of separation. Anant Raj’s real estate and infrastructure business and its Data Centre and Cloud Services business are described as having evolved into distinct platforms with different growth trajectories and capital needs. The composite scheme is designed to first consolidate all data centre and cloud operations under one entity, and then carve them out into Ashok Cloud Private Limited.

The stated benefits are typical of such restructurings. The company argues that two focused listed entities can pursue independent strategies, improve operational agility, and unlock shareholder value via independent market recognition. The scheme is also positioned as a governance and transparency improvement, with all digital infrastructure operations housed in a single platform.

However, the documents also make it clear that the process is subject to statutory, regulatory and judicial approvals including NCLT, SEBI, stock exchanges, shareholders and creditors.

Real estate engine: Sector 63A pipeline and project approvals

On the real estate side, the company’s narrative is anchored around its land platform and execution track record. The presentation references about 320 acres of prime, debt-free land in Delhi NCR and highlights about 22.34 million square feet of residential and commercial projects.

The Q1 FY27 section provides the clearest near-term operational triggers. The company states that the license and approvals for Group Housing 2, also described as The Estate One, have been received for 5.09 acres in Sector 63A, Gurugram, including revised FAR, green building FAR, zoning plan, AAI approval, and building plan. The project is stated to be RERA cleared and ready for launch, with 0.90 million square feet of saleable area.

In addition, the company states that the license for GH3 over 6.38 acres in Sector 63A with tentative saleable area of about 1.20 million square feet is in an advanced stage.

The presentation also cites progress on deliveries and construction. It states that Birla Navya Phase I has been delivered, Phase II occupancy certificates have been received and deliveries commenced, and Phase III deliveries are planned by the end of FY28. It adds that Ashok Estate deliveries are almost complete, and that construction of The Estate Residences is progressing to deliver within timelines. For affordable housing, the Ashray-II project at Tirupati is stated to be on track.

Annuity buildout: hotels and commercial expansions tied to approvals

Alongside residential, Anant Raj emphasizes annuity income through commercial, hospitality, and office assets. The presentation describes a commercial leasing portfolio of 1.92 million square feet that is fully leased under long-term agreements.

The most material future annuity expansion described relates to Anant Raj Center 1 and Anant Raj Center 2 in Delhi. For Anant Raj Center 1, the presentation states that approval for increasing FSI from 0.15 to 1.75 has already been received. It also states that an additional developable area of 4.90 lakh square feet is under development with construction ongoing, and that expected additional rental after completion is 55 crore per annum.

For Anant Raj Center 2, the presentation states that an additional developable area of 6.10 lakh square feet is to be developed after receipt of approval for increasing FSI from 0.15 to 1.75, with expected additional rental after completion of 75 crore per annum.

These disclosures are helpful because they quantify potential rental upside, but they also highlight dependency on approvals and project completion, especially for Center 2 where the approval is described as pending.

Ashok Cloud: scaling from colocation to sovereign cloud and AI-ready infrastructure

The digital infrastructure narrative is framed around a capacity roadmap and service expansion. The presentation states that 28 MW of data center capacity is operational, split into 21 MW at Manesar and 7 MW at Panchkula. It also outlines a longer-term plan to scale to 357 MW planned IT load by FY32 across multiple campuses.

The timeline in the deck includes an FY27 targeted incremental 35 MW at Manesar and Rai, 117 MW to commence by FY28, and an end-state of 357 MW by FY32. The site split presented is 50 MW Manesar, 57 MW Panchkula, 200 MW Rai, and 50 MW Andhra Pradesh.

The Q1 FY27 highlights add an operational milestone: the company expects to reach 63 MW IT load capacity by the end of FY27 and expects to commence AI services within the current financial year.

On the go-to-market side, the documents cite empanelment with MeitY as a sovereign cloud service provider and with BSNL as a data center service provider, along with alliances with PSUs such as BSNL, TCIL, CSC and Railtel. The company also references a 100 percent owned Singapore subsidiary, Anant Raj Cloud Singapore Pte Ltd, to source clients from South East Asia and other markets.

A key numerical disclosure is that 25 percent of the 357 MW IT load capacity is expected to be utilized for cloud services, subject to adjustment based on market demand.

What investors can take away

The documents present Anant Raj as a company attempting to separate a mature real estate and annuity platform from an expanding digital infrastructure platform. In the near term, the numbers show improving margins and clear quarterly profitability, with explicit disclosure that data center, infrastructure and allied services contributed 90 crore of revenue in Q1 FY27.

The real estate side has identifiable triggers through approvals and launches, especially The Estate One in Sector 63A, and a stated delivery schedule for Birla Navya Phase III by end of FY28. The annuity story is supported by quantified potential rentals from Center 1 and Center 2, though some expansion depends on approvals.

On the balance sheet, the presentation indicates net debt reduced to zero in FY26 and shows a trend of consistent dividends up to 50 percent of face value in FY26.

The key variable to track from here is execution. The demerger requires approvals, and the data center roadmap is ambitious. Investors will likely look for sharper segmental disclosures as the platform scales and as the composite scheme progresses through its approval process.