ANANTRAJ - Anant Raj Limited Share Price

During the Q2 & H1 FY '26 earnings call, management at Anant Raj Limited provided an optimistic outlook, emphasizing strong financial performance and strategic progress in their Data Center and real estate businesses. The Managing Director, Amit Sarin, highlighted that the company has maintained a net debt below INR 50 crores for five consecutive quarters, effectively positioning itself as a near-zero debt firm.

Key financial figures include a revenue of INR 2,100 crores and a Profit After Tax (PAT) of INR 425 crores for the fiscal year ending March 31, 2025. In the current half-year, the company reported revenues of INR 1,243 crores and a PAT of INR 264 crores. For Q2 FY '26, revenue from operations stood at INR 630.79 crore, up 23% year-on-year, with an EBITDA margin of 27.76% and a PAT margin of 21.56%.

Forward-looking highlights include plans for 63 megawatt capacity in Data Centers by December 2026, with approximately 49 megawatts dedicated to Colocation and 14 megawatts to Cloud services. Expected revenue from Data Centers is projected to reach INR 1,200 crores by FY '27, supported by a healthy demand outlook in North India. The company is also progressing with substantial real estate projects, targeting 2.6 million square feet of launches and various luxury developments in 2026.

Management reiterated their commitment to sustainable growth, leveraging their strong financial position and expanding their cloud offerings while continuing to meet the needs of an evolving market landscape. The emphasis on timely project execution and maintaining a strategic mix of services showcases their focus on capturing market opportunities effectively.

Question 1: "So, I wanted to understand what is our Cloud target for FY '27 and FY '28?"

Answer: We aim to reach 63 megawatts by December "˜26, with 49 megawatts in Colocation, 6 megawatts in Cloud, and 8 megawatts kept vacant for future growth, potentially increasing Cloud to 14 megawatts. By FY '28, we expect to scale to 117 megawatts: 87 megawatts in Colocation and 36 megawatts in Cloud, with 14 megawatts operational and 16 megawatts reserved for further Cloud enhancements.

Question 2: "How are we looking at the scale-up in the Data Center revenues?"

Answer: Our Data Center revenues are on track, currently reporting INR 58 crores. We anticipate them to grow significantly, similar to how Anant Raj scaled from INR 200 crores turnover to a substantial figure over 4-4.5 years. The progression aligns with our operational targets.

Question 3: "What was the absolute EBITDA and PAT from Data Center for Q2 and H1?"

Answer: For H1, Data Center EBITDA stood at 75%, with a PAT of 43.23%. This showcases our ongoing profitability and effective expense management within the Data Center segment.

Question 4: "What is the current capital employed in the Data Center business?"

Answer: We've added INR 187 crores during this half, leading to a total of approximately INR 700 crores currently employed in the Data Center business, reflecting our commitment to growth and expansion.

Question 5: "What is the occupancy rate for Colocation and Cloud both for H1?"

Answer: For H1, we handed over 8 megawatts for Colocation and have finalized around 70% occupancy for Cloud. This demonstrates strong demand and client onboarding across both services.

Question 6: "How is the taxation benefit on DC business accretive to Colocation and Cloud?"

Answer: The proposed taxation benefits positively affect both segments. We expect it to enhance profitability, allowing us to optimize our offerings in both Colocation and Cloud services, thus supporting sector growth.

Question 7: "What is the mix in terms of clients for Cloud and Colocation?"

Answer: Currently, our client mix for Colocation is approximately 75% government and 25% private. For Cloud, the ratio is about 50-50. We've seen significant client additions, although we cannot disclose specific names due to NDAs.

Question 8: "Will there be any scope of improvement in EBITDA margins in the coming years?"

Answer: Yes, while we expect Colocation margins to stabilize, Cloud margins could improve as we introduce more services, like PaaS and SaaS. This evolution in offerings is anticipated to boost our overall profitability.

Question 9: "Have we considered any built-to-suit Data Centers for the Rai project?"

Answer: Initially, we're focusing on 20 megawatts at Rai with plans for a total of 100 megawatts operational. Built-to-suit opportunities will commence around 2028, allowing us to tailor our approach based on client requirements and market demand.

Question 10: "What will be our revenue from Data Centers in FY '27?"

Answer: While we cannot provide exact figures, we expect significant revenue generation from 63 megawatts in Data Centers as we increase occupancy. The significant rise in demand is projected to contribute substantially, spanning over two fiscal years.

(Note: The original responses have been summarized for clarity and conciseness within the character limit specified, while retaining critical numerical data.)