ANANTRAJ - Anant Raj

📊 NSE: ANANTRAJ 🏢 Construction 📅 Last Updated: 12/13/2025 18:18

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 23% YoY to INR 630.79 Cr in Q2 FY26. The Data Center infrastructure and allied services segment contributed INR 35.47 Cr in Q2 FY26 and INR 58.42 Cr in H1 FY26, representing a significant scaling of this new vertical. Overall H1 FY26 revenue grew 24.22% YoY to INR 1,223.2 Cr.

Geographic Revenue Split

The company has a high geographic concentration with the majority of revenue derived from the National Capital Region (NCR), specifically Haryana. Major projects are located in Sector 63A Gurgaon, Neemrana (Rajasthan), and a new project in Tirupati. Specific percentage splits per region are not disclosed, but NCR remains the primary revenue driver.

Profitability Margins

Profitability showed strong upward trends; PAT grew 30.79% YoY to INR 138.18 Cr in Q2 FY26. PAT margin improved to 21.56% from 20.17% YoY. For H1 FY26, PAT grew 34.28% YoY to INR 264.08 Cr with a margin of 21.24%, up from 19.56% YoY, driven by higher-margin data center services and efficient residential sales.

EBITDA Margin

EBITDA margin for Q2 FY26 stood at 27.76%, a significant increase from 23.62% in the previous year. EBITDA for the quarter was INR 177.94 Cr, up 43.85% YoY. H1 FY26 EBITDA margin was 27.23% (up from 23.52%), reflecting improved operational efficiency and a shift toward higher-margin infrastructure leasing.

Capital Expenditure

The company successfully completed a QIP of INR 1,100 Cr in Q2 FY26 to fund its expansion. It is investing heavily in its Data Center vertical, with the first phase of the project scheduled for completion by FY28. Debt for the residential business was reduced from INR 152 Cr to INR 47 Cr as of March 31, 2025.

Credit Rating & Borrowing

The company holds an IVR A/Stable and IVR A3+ rating. It has transitioned to a net zero-debt and surplus cash position as of Q2 FY26, having prepaid INR 125 Cr of debt during the quarter. Debt to CFO ratio was a very healthy ~0.1 as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include steel, cement, and electrical components for data center infrastructure. While specific percentage costs for each are not disclosed, they constitute the bulk of the project development cost for the residential and data center segments.

Import Sources

Not specifically disclosed, but materials are primarily sourced domestically within India to support NCR-based projects.

Capacity Expansion

The company is scaling its Data Center vertical under Anant Raj Cloud Private Limited. The first phase of the Data Center project is on track for completion by FY28. Residential projects continue in Sector 63A Gurgaon and affordable housing in Tirupati.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company manages costs through its long-standing presence in the NCR market and established procurement networks.

Manufacturing Efficiency

Efficiency is reflected in the EBITDA margin expansion to 27.76%. The company focuses on high-demand areas like Sector 63A Gurgaon to ensure rapid inventory turnover.

Logistics & Distribution

Not applicable as a primary metric for real estate and data center leasing, though project site logistics are managed internally.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth is driven by the aggressive expansion of the Data Center vertical, where rentals are expected to rise from INR 50 Cr in FY26 to over INR 100 Cr in the medium term. This is complemented by the completion of high-end residential projects in Gurgaon and the utilization of INR 1,100 Cr raised via QIP for debt reduction and project acceleration.

Products & Services

Residential apartments (Sector 63A Gurgaon), affordable housing units (Neemrana and Tirupati), commercial office spaces (Sector 44 Gurugram), leased hotel properties, and Data Center infrastructure/allied services.

Brand Portfolio

Anant Raj, Anant Raj Cloud.

New Products/Services

Expansion into Data Center infrastructure is the primary new service, expected to contribute over INR 100 Cr in annual rentals in the medium term.

Market Expansion

Expanding beyond NCR with an affordable housing project in Tirupati and scaling the cloud/data center business to serve global tech players and BFSI clients.

Market Share & Ranking

The company is one of the oldest development groups in the NCR, having completed over 280 lakh square feet of area.

Strategic Alliances

The company operates various subsidiaries and joint ventures, including Grandstar Realty Private Limited and Anant Raj Cloud Private Limited.

🌍 External Factors

Industry Trends

The industry is seeing a massive shift toward data localization and secure hosting. Anant Raj is pivoting from pure-play real estate to a hybrid model including digital infrastructure to capture this growing demand from hyperscalers.

Competitive Landscape

Faces intense competition from other large-scale developers in the NCR region and specialized global data center operators.

Competitive Moat

Moat is built on a massive land bank in prime NCR locations and a 40-year execution track record. The high entry barriers of the Data Center business (capital intensity and technical compliance) provide a sustainable competitive advantage.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and urban housing demand in India. The shift toward digital sovereignty in India is a major tailwind for the Data Center business.

Consumer Behavior

Increasing preference for premium residential units in Gurgaon and a shift by corporate clients toward secure, compliant third-party data hosting.

Geopolitical Risks

Minimal direct exposure, though global tech player investments in Indian data centers are influenced by international trade and data localization policies.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA (Real Estate Regulatory Authority) for residential projects and specific IT/Data Center policies for the cloud vertical. Compliance with the Companies Act 2013 and Ind-AS is maintained.

Environmental Compliance

The company publishes a Business Responsibility and Sustainability Report (BRSR) as per SEBI regulations to track ESG compliance.

Taxation Policy Impact

Dividend income is now taxable in the hands of shareholders effective April 1, 2020, per the Finance Act 2020. The company complies with Ind-AS standards.

Legal Contingencies

A Corporate Insolvency Resolution Process is pending against the subsidiary Grandstar Realty Private Limited. No other material orders from regulators impact the company's status as a going concern.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the occupancy ramp-up for the Data Center business; failing to reach 30% occupancy would significantly lower projected cash accruals.

Geographic Concentration Risk

High risk with nearly all major projects concentrated in the Haryana/NCR real estate market.

Third Party Dependencies

Dependency on hyperscalers and BFSI clients for the success of the Data Center vertical.

Technology Obsolescence Risk

Data center infrastructure requires constant upgrading to meet the needs of global tech players; the company is addressing this through its dedicated Anant Raj Cloud vertical.