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Delhi realty and data centre player Anant Raj Limited is grabbing headlines with its aggressive ₹10,000 crore investment proposal to build 300 MW of data centre capacity within the next five years. Already a biggie in the National Capital Region realty space, the company is now fast diversifying into the digital infrastructure arena with the hope of capitalizing on India's data boom and AI revolution.
Real Estate Momentum
Anant Raj has ridden the post-pandemic real estate boom, recording strong growth in residential and commercial segments. In the last three years, the revenue and profits of the company have increased at a compounded annual growth rate of 81% and 213%, respectively. The strong sales helped reduce net debt from ₹1,146 crore in FY22 to ₹290 crore in FY24, bolstering its balance sheet.
The firm continues to introduce new initiatives, such as a 700,000 sq ft mixed-used complex in South Delhi and lower-cost housing in Hyderabad. Newly introduced government subsidies-including larger tax-free salaries and favorable policies on home loans-are projected to further encourage demand for dwelling properties.
Ambitions in the Data Centre Sector
The real game-changer for Anant Raj has been its aggressive incursion into the data centre segment. The company now has 6 MW of IT load at Manesar, scaling up to 28 MW by FY25 and eventually reaching 307 MW in Manesar, Rai, and Panchkula in five years. Its data centre business is augmented by a low-cost land bank, providing Anant Raj with a cost advantage-construction at ₹24–₹25 crore per MW versus industry average of ₹55–₹60 crore.
Strategic alliances, like the recent deal with Orange S.A. for cloud and colocation services, make Anant Raj ready to provide Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) offerings. The data centre segment is expected to contribute more than 10% of revenues by FY26, with the potential to grow to 25–30% as additional capacity goes live. EBITDA margins in this segment are extremely high, typically above 75%.
Stock Performance and Valuation
Anant Raj's stock rallied 1,581% from July 2022 to January 2025, making it a multibagger. Nevertheless, market corrections recently triggered by global and fears about new AI models (such as DeepSeek) possibly cutting future data centre demand-have caused a sharp correction, with the stock falling more than 50% from its peak in January. Still, the stock is available at a relatively low 25x FY26 earnings compared with the BSE Realty index at 48x.
Analysts continue to be optimistic in the medium to long term, attributing this to the company's healthy land bank, consistent performance, and industry tailwinds. 2025 estimates placed the price at ₹130–₹170, with scope for further growth if the company manages to execute its data centre expansion and the real estate continues to be strong.
Risks and Considerations
Market Volatility: The stock reacts to global technology trends and policy shifts, like the DeepSeek AI news.
Execution Risk: Expanding data centre capacity and bringing in new tech alliances depend on perfect execution.
Competition: Bigger real estate and data centre competitors may heighten competition.
Occupancy & Demand: Data centre revenue estimates hinge on high occupancy and continued demand for cloud.
Verdict: Is Anant Raj a Worthwhile Investment?
For a two-to-three-year time frame with moderate risk tolerance, Anant Raj offers a good bet. Its rare combination of real estate and data centre growth, sound financials, and relative undervaluation to peers provide the attractiveness. Nevertheless, investors must keep a close eye on quarterly performances, execution of projects, and industry trends, particularly in the rapidly changing data centre space.
Sources The Hindu Business Line, The Indian Express, Investing.com, AnytimeInvest.com, Anant Raj Limited Investor Blog, Anant Raj Limited Investor News, Moneycontrol
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