Synopsis: A
data centre stock surged 35 percent in 20 days, driven by aggressive capacity expansion, government incentives, and strong financial growth.
India’s data centre industry is witnessing unprecedented growth, driven by surging data consumption, rapid cloud adoption, and supportive government policies. Emerging technologies such as 5G, Internet of Things (IoT), and Artificial Intelligence (AI) are reshaping business infrastructure needs, prompting demand for advanced data solutions. The Digital India initiative has further accelerated the creation of large-scale data centres and cloud infrastructure.
Recent policy updates are expected to incentivise investments through a 20-year tax holiday, GST input tax credits on capital expenditure, and favorable conditions for foreign players building high-capacity facilities, particularly in Tier-II and Tier-III cities. Measures addressing land availability, power supply, and renewable energy adoption are expected to enhance operational efficiency and attract further investments.
About the Company
Anant Raj Limited, with a market capitalization of Rs. 24,129.51 crore and trading at Rs. 702.20, is a prominent real estate developer with a diversified presence across Delhi, Haryana, Andhra Pradesh, Rajasthan, and NCR.
The company has delivered landmark projects across residential, commercial, hospitality, industrial, and IT park segments over decades. Notably, from 9th September 2025, the stock has surged 34.73 percent, reflecting strong investor confidence in its business and growth initiatives.
Expanding beyond real estate, Anant Raj has ventured into high-tech infrastructure through its 100 percent subsidiary, Anant Raj Cloud, establishing state-of-the-art data centre facilities and digital cloud services. This strategic expansion positions the company at the forefront of India’s growing digital economy and urban infrastructure landscape.
Rapid Expansion of Data Centre Operations
Anant Raj has aggressively scaled its data centre vertical. Data centre capacity in Manesar doubled from 3MW in fiscal 2024 to 6MW in fiscal 2025 and has already been fully leased. The company also launched its cloud platform, “Ashok Cloud,” utilizing 0.5MW of this capacity.
According to a report from CRISIL, while rental income for fiscal 2025 was lower due to delayed leasing and 3–4 month rent-free periods for tenants, full-year rentals are expected to normalize from fiscal 2026 for the 6MW capacity.
In August 2025, the company operationalized an additional 22MW (15MW in Manesar and 7MW in Panchkula), taking total capacity to 28MW, with 3MW already tied up with a private party.
According to the report, these expansions have been funded through cash flows from the residential business without incurring additional debt, helping maintain a healthy debt service coverage ratio (DSCR).
The medium-term plan targets 63MW capacity by fiscal 2027, scaled gradually according to rental demand, with management projections suggesting data centre and cloud services revenue could reach Rs. 1,200 crore by FY27 and scale to nearly Rs. 9,000 crore by FY32. By that time, the company aims for a 307MW IT load capacity across its data centres.
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Financial Performance: Strong Quarterly and Annual Growth
On a quarter-on-quarter basis, Anant Raj reported a rise in sales from Rs. 541 crore to Rs. 592 crore, up 9.4 percent, while operating profit increased from Rs. 142 crore to Rs. 151 crore, a growth of 6.3 percent. Profit before tax rose from Rs. 141 crore to Rs. 150 crore, up 6.4 percent, and net profit climbed from Rs. 119 crore to Rs. 126 crore, an increase of 5.9 percent.
Year-on-year, the company demonstrated robust growth across all metrics. Sales surged from Rs. 472 crore to Rs. 592 crore, a jump of 25.4 percent. Operating profit grew from Rs. 103 crore to Rs. 151 crore, up 46.6 percent. PBT increased from Rs. 104 crore to Rs. 150 crore, a growth of 44.2 percent, while net profit rose from Rs. 91 crore to Rs. 126 crore, up 38.5 percent.
This strong financial performance, combined with the aggressive data centre expansion, favorable government incentives, including the 20-year tax holiday and the expected revenue trajectory, has likely fueled the 35 percent stock surge in just 20 days.
Strategic Outlook: Why the Stock Jumped 35 Percent
The sharp 35 percent surge in Anant Raj’s stock over the past 20 days is largely driven by investor optimism surrounding its data centre business. The company’s aggressive expansion in IT infrastructure, coupled with the government’s new incentives for data centre developers, has significantly boosted market sentiment.
The revised policies, including a 20-year tax holiday, GST input tax credits on capital expenditure, and attractive conditions for high-capacity projects have positioned data centres as a high-growth, highly profitable segment.
Investors are recognizing that Anant Raj’s 28MW operational capacity, planned scale-up to 63MW by FY27, and long-term revenue projections of Rs. 1,200 crore by FY27 provide a strong growth runway, making the stock a key beneficiary of India’s booming digital infrastructure wave. The market is pricing in these favorable policy tailwinds, sustainable cash flow funding strategy, and long-term scalability, which together underpin the rapid stock appreciation.
Written By Manan Gangwar
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