Anant Raj reported a 19% year-on-year rise in net profit to ₹149.19 crore for the June quarter. The company is currently moving to demerge its data center and cloud business into a separate listed entity to unlock shareholder value. Investors should watch the regulatory process for this demerger and the execution of the company’s long-term digital infrastructure expansion plans.
Real estate developer Anant Raj Limited reported a 19% year-on-year increase in net profit, reaching ₹149.19 crore for the first quarter of the 2026-27 financial year. The company’s total income for the quarter stood at ₹650.75 crore. This performance reflects the company's ongoing efforts to balance its established real estate operations with a growing focus on digital infrastructure.
Strategic Restructuring and Business Focus
The most significant update for investors is the board’s recent approval to demerge the company’s data center and cloud services business from its traditional real estate operations. This plan involves creating a new, independently listed entity named Ashok Cloud Private Limited. The move is designed to allow the data center business to operate with a dedicated strategy, specifically focusing on digital infrastructure, AI workloads, and cloud services, separate from the cyclical nature of the property market.
To support this pivot, the company has been expanding its digital footprint. In June 2026, it incorporated a new subsidiary in Singapore, Anant Raj Cloud Singapore Pte. Ltd., which intends to offer cloud and artificial intelligence services to international clients, leveraging the data center infrastructure currently being developed in India. Furthermore, in April 2026, the company completed the acquisition of the remaining 25% stake in Romano Projects Private Limited for ₹3.58 crore, giving it full control over key land assets located in Gurugram.
Risks and Monitorables
While the company is scaling its operations, there are several factors that investors should keep in mind. The proposed demerger is a complex corporate process that requires various approvals from the National Company Law Tribunal (NCLT), creditors, and shareholders. Any procedural delays in these legal steps could impact the timeline for the restructuring.
Additionally, the company has set an aggressive target to expand its data center capacity to 307 megawatts by the 2032 financial year. This is a capital-intensive plan that brings inherent execution risks, including the potential for construction delays or higher-than-expected spending.
On the governance front, investors should note that the company’s subsidiary, Romano Projects, has previously faced scrutiny from the Enforcement Directorate. While this is a past event, it remains a point of historical context regarding the subsidiary's operations. The primary monitorables for the coming quarters will be the speed of regulatory clearances for the demerger and the operational progress in executing the large-scale data center projects.