Anant Raj's margin expands 3.31 points as costs barely rise
Revenue grew 4.87% year on year, while management said two data-centre campuses with 28 MW capacity were operationalised during the quarter.
Filed 28 Oct 2026, 15:05 IST · Anant Raj Ltd (ANANTRAJ)
Key takeaways
- Revenue grew 4.87% year on year, while expenses rose only 0.14%, lifting operating margin by 3.31 percentage points.
- Net profit increased 13.25% to Rs 156.49 cr despite depreciation rising 149.06% and the tax rate increasing 0.84 percentage points.
- Anant Raj's 29.92% operating margin was 16.9 percentage points above the 13.02% median for 84 Consumer Discretionary peers.
Price around the results
Margin expansion outpaced modest revenue growth
This consolidated quarter saw revenue rise 4.87% year on year, but expenses increased only 0.14%, producing a 3.31-percentage-point expansion in operating margin. Operating profit therefore grew 17.94%, well ahead of revenue. The improvement came despite depreciation increasing 149.06% and interest falling 62.02%.
Higher other income supported profit before tax
Other income rose 68.95% and accounted for 10.13% of profit before tax, making it a meaningful contributor to reported earnings. The lower interest bill partly offset the sharp increase in depreciation, while the 0.84-percentage-point rise in the tax rate meant the net-profit growth was not driven by a lower tax burden. Net profit still increased 13.25% year on year.
Operating margin rebounds after FY26 softness
The operating margin had eased from 26.61% in Q2FY26 to 25.88% in Q4FY26, after reaching 26.46% in Q3FY26; it has now rebounded to 29.92%. The margin also sits 16.9 percentage points above the 13.02% median among 84 Consumer Discretionary peers that have reported. After eight recent results, the stock has risen six times and fallen twice, with a median absolute move of 3.11%; the historical pattern is positive but not uniformly so.
Data-centre expansion was the quarter's operating update
Management said the company operationalised two data-centre campuses with combined capacity of 28 MW during the reported period. The company said it expects aggregate IT load capacity to reach 63 MW by the end of FY2026-27, including AI-enabled infrastructure, and that AI-enabled services are planned to commence during the current financial year. Management also said it is targeting 357 MW of aggregate IT load capacity by FY2031-32.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | YoY |
|---|---|---|
| Revenue | ₹662 cr | +4.87% |
| Other income | ₹19 cr | +68.95% |
| Expenses | ₹464 cr | +0.14% |
| Operating profit | ₹198 cr | +17.94% |
| Operating margin (%) | 29.92% | — |
| Interest | ₹1 cr | -62.02% |
| Depreciation | ₹27 cr | +149.06% |
| Profit before tax | ₹190 cr | +14.41% |
| Tax | ₹33 cr | +20.20% |
| Net profit | ₹156 cr | +13.25% |
| EPS (₹) | ₹4.36 | +8.46% |
Operating margin of 29.92% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company operationalized two data center campuses with a combined 28 MW capacity during the reported period.
Guidance & outlook
- The company targets aggregate IT load capacity of 357 MW by FY2031–32 across North and South India.
- The company expects aggregate IT load capacity of 63 MW by the end of FY2026–27, including AI-enabled infrastructure.
- The company plans to commence AI-enabled services during the current financial year.
- The company plans to scale data center capacity to 357 MW IT load by 2032.
Expansion
- The company has operationalized two data center campuses with combined capacity of 28 MW.
- Construction of The Estate Apartments 2 is planned to launch soon.
- Aashray 2 in Tirupati is expected to be completed in June 2027.
New initiatives
- Anant Raj Cloud Singapore and Orange Business Services Singapore signed an MoU with the Government of Haryana to promote cloud and data center services globally.
- The company has filed a composite scheme of arrangement for the proposed strategic demerger.
What to watch
- Whether operating margin holds above 29.92% after the quarter's 3.31-percentage-point expansion.
- Progress toward the 63 MW IT-load capacity stated by management for the end of FY2026-27.
- Whether other income's contribution remains close to 10.13% of profit before tax.