Synopsis:
Anant Raj jumped sharply after reports that India may grant a 20-year tax exemption and GST credit to help data centres achieve their target sooner than expected.
The shares of this leading realty major, which is now aggressively pushing to increase its widespread presence in the ever-growing data centre industry, are in focus after a key proposal in its favor. In this article, we will dive more into the details.
With a market capitalization of Rs 20,251 crore, the shares of Anant Raj Ltd made a day high of Rs 596.05 per share, up by 12 percent from its previous day closing price of Rs 533.35 per share. Over the past five years, the stock has delivered a multibagger return of 2,001 percent.
About the news
According to reports, the government will likely provide data center builders with large incentives to boost the sector. The revised policy changes feature a 20-year tax holiday, GST input tax credits for capital-expenditure items (like cooling systems, electrical gear, etc.), and friendly conditions for foreign players who build big capacity (100 MW or more).
The policy intends to draw investments in cloud infrastructure, AI, and digital services, largely in Tier-II and Tier-III cities. Besides, the government is also aiming at removing other obstacles like land availability and power supply, supporting renewable energy use (including standard rules for energy storage), and assisting states in allocating land near industrial corridors or IT hubs for data center parks.
Data centers in India have grown rapidly, with a 24 percent annual growth rate since 2019. There is enormous demand for new capacity; more than 795 MW of new capacity is expected to be put to use by 2027. The occupancy of existing centers is already at a high level (75-80%), which is an indication that supply is lagging behind demand.
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So, how can this benefit Anant Raj?
In August 2025, Anant Raj announced that it had raised its data center capability to 28 MW by the addition of 22 MW at Manesar and Panchkula, Haryana.
With this step, the company has strengthened its presence in the rapidly growing digital infrastructure area, where it has also made contributions in the cloud sector. The firm outlined a revenue target of Rs 1,200 crore from this segment by FY27 and Rs 9,000 crore by FY32, with the intention of capacity scaling to 63 MW by FY27 and 307 MW by FY32 across Manesar, Panchkula, and Rai.
Emkay Global has noted that a new Panchkula (7 MW) and Manesar (21 MW) facility is expected to be fully operational in 2-3 months, starting with ~70% occupancy and a capacity rise from 6 MW currently to 28 MW, including 0.5 MW cloud load.
The brokerage also cited that this capex will be mostly funded by real estate cash flows. Although management is forecasting revenues of Rs 12 billion by FY27, Emkay is more conservative with an estimate of Rs 7 billion. They are also expecting a ~20% IRR by FY45 and are of the opinion that debt will remain low, going up slightly from Rs 1.2 billion now to Rs 2.1 billion by FY27.
A few days ago, Oracle signed a $300 billion deal with one of the world’s most significant AI players, OpenAI, which is the main brain behind the invention of ChatGPT.
This deal involves the supply of 4.5 gigawatts’ worth of data center capacity — enough energy to power millions of American homes. However, it is to be noted that OpenAI is still not profitable and a large deal like this highlights the growing demand for data centres in the future.
Financial Highlights
The company reported revenue of Rs 592 crore in Q1 FY26, a 25.4 percent increase from its Q1 FY25 revenue of Rs 472 crore. Coming to its profitability, the company reported a net profit growth of 38.4 percent to Rs 126 crore in Q1 FY26 from Rs 91 crore in Q1 FY25.
The stock delivered an ROE and ROCE of 10.89 percent and 11.17 percent respectively, and is currently trading at a P/E of 44.42x as compared to its industry average of 39.63x.
Anant Raj Limited stands out as a prominent real estate developer, making its mark in Delhi, Haryana, Andhra Pradesh, Rajasthan, and the NCR. With years of experience under its belt, the company has completed iconic projects in various sectors, including residential, commercial, hospitality, industrial, and IT parks.
Additionally, it has expanded into the realm of digital infrastructure through its fully-owned subsidiary, Anant Raj Cloud, which provides cutting-edge data center and cloud services.
Written by Satyajeet Mukherjee
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