Anant Raj Ltd Plans Data Center Demerger, Reports Strong Q1 FY27

Revenue from operations: ₹631.40 Cr
PAT: ₹149.19 Cr

Reader Takeaway: Strong financials and strategic demerger to unlock value for data center business.

What just happened

Anant Raj Ltd announced its financial results for Q1 FY27, reporting revenue from operations at ₹631.40 crore and Profit After Tax (PAT) of ₹149.19 crore. The company's Board also approved a scheme of arrangement to demerge its Data Center and Cloud business into a new listed entity named 'Ashok Cloud'.

Why this matters

The demerger aims to create a pure-play digital infrastructure platform, potentially unlocking shareholder value by allowing the data center business to gain independent market recognition and valuation. The strong financial performance in Q1 FY27 provides a solid foundation for this strategic move.

The backstory

Anant Raj Ltd has been scaling its data center capacity, operationalizing 28 MW and targeting 63 MW by the end of FY27, with a long-term vision to reach 357 MW by FY2032. The company is also focusing on higher value services like 'Infrastructure as a Service' (IaaS) and AI-enabled services.

What changes now

Shareholders of Anant Raj Limited will receive one equity share of 'Ashok Cloud' for every equity share of Anant Raj held, subject to the record date. This separation will allow each business to pursue its growth strategy more effectively.

Risks to watch

The aggressive expansion plans for data centers require significant capital investment. Future growth depends on economic conditions, government policies, and regulatory approvals.

Peer comparison

While specific peer data wasn't provided in the filing, the demerger positions Anant Raj to compete more directly with specialized data center and cloud infrastructure providers in India.

Context metrics (time-bound)

• Revenue from Operations (Q1 FY27): ₹631.40 Cr
• EBITDA (Q1 FY27): ₹202.74 Cr (31.15% margin)
• PAT (Q1 FY27): ₹149.19 Cr (22.93% margin)
• Data Center/Infrastructure Revenue (Q1 FY27): ₹90 Cr
• Net Debt-Free status as of March 31, 2026.
• Credit Rating: 'A- Stable' by Infomerics Valuation and Rating Ltd.

What to track next

Investors should monitor the progress of the demerger process, the expansion of data center capacity towards the 63 MW target for FY27, and the launch of AI-enabled services.