Anant Raj profit rises, but margin slips for a second straight quarter
Costs grew faster than revenue and other income contributed 15.74% of pre-tax profit, while the stock's post-results fall was unusually sharp.
Filed 11 May 2026, 18:33 IST · after market close · Anant Raj Ltd (ANANTRAJ)
Key takeaways
- Consolidated net profit rose 25.19% year on year to Rs 148.71 cr, helped by a lower 14.62% tax rate and higher other income.
- Operating margin fell 0.58 percentage points sequentially to 25.88% as expenses grew 1.60% against 0.81% revenue growth.
- The stock fell 10.42% five sessions after the results, far beyond its 2.45% median absolute post-results move.
Price around the results
Profit growth outpaced revenue, with non-operating help
Consolidated revenue grew 19.64% year on year, while net profit increased 25.19%; the gap was supported by other income, which rose 151.56%. Other income contributed 15.74% of pre-tax profit, so the quarter's earnings growth was not driven entirely by operations. The tax rate also fell 1.48 percentage points year on year to 14.62%.
Costs pressured the operating margin
Expenses grew 20.37% year on year against 19.64% revenue growth, narrowing operating margin by 0.45 percentage points. Sequentially, revenue rose 0.81% but expenses increased 1.60%, taking margin down 0.58 percentage points. Interest expense rose 27.52% year on year and depreciation increased 93.69%, adding pressure below operating profit.
Margin has declined through the last two quarters
Operating margin fell from 26.61% in Q2FY26 to 26.46% in Q3FY26 and 25.88% in Q4FY26, making this the second consecutive sequential decline. Even after the reduction, Anant Raj's margin was 11.07 percentage points above the 14.81% median for 93 Consumer Discretionary peers that had reported the quarter.
Management outlined a larger data-centre pipeline
Management said it is targeting 357 MW of total data-centre IT-load capacity by FY2032, with 117 MW planned to commence by FY2028. It also said it had signed an Andhra Pradesh government MOU for an additional 50 MW and plans to execute that capacity in two phases. The company said Ashok Cloud at Manesar and Panchkula was operationalised or being operationalised as scheduled, and that Anant Raj Cloud had been empanelled with MeitY and BSNL.
The market reaction was outside the company's usual range
The stock fell 6.70% on the first trading day after the results and was down 10.42% after five sessions. That compares with seven up moves and one down move across the last eight results, and a median absolute move of 2.45%. The five-session decline was also 9.59% worse than the market.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹647 cr | ₹642 cr | +0.81% | +19.64% |
| Other income | ₹27 cr | ₹21 cr | +31.76% | +151.56% |
| Expenses | ₹479 cr | ₹472 cr | +1.60% | +20.37% |
| Operating profit | ₹167 cr | ₹170 cr | -1.38% | +17.59% |
| Operating margin (%) | 25.88% | 26.46% | — | — |
| Interest | ₹4 cr | ₹3 cr | +14.80% | +27.52% |
| Depreciation | ₹17 cr | ₹13 cr | +25.33% | +93.69% |
| Profit before tax | ₹174 cr | ₹174 cr | +0.21% | +23.02% |
| Tax | ₹25 cr | ₹30 cr | -13.90% | +11.72% |
| Net profit | ₹149 cr | ₹144 cr | +3.11% | +25.19% |
| EPS (₹) | ₹4.18 | ₹4.14 | +0.97% | +20.46% |
Operating margin of 25.88% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.70% | -4.87% |
| Next session | -7.53% | — |
| 5 sessions | -10.42% | -9.59% |
| 15 sessions | +1.75% | — |
| 30 sessions | -1.85% | — |
Volume on the results session was 1.47× its 20-day average.
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 Estate Apartments were launched in Q1 FY26 with a total area of 0.40 million square feet.
Guidance & outlook
- The company is targeting total data-center IT-load capacity of 357 MW by FY2032.
- The company plans to commence 117 MW of total planned data-center IT load by FY2028.
- RERA approval for Group Housing 2 is expected by the end of Q1 FY27.
- Approvals for 9.11875 acres for Phase V of Anant Raj Estate are expected in Q2 FY27.
- The company expects to complete Phase III of Birla Navya by the end of FY28.
Expansion
- The company commenced Phase IV of Anant Raj Estate on 6.075 additional acres with potential development of about 500,000 square feet.
- The company plans to develop a 50 MW IT-load data center in Andhra Pradesh in two phases.
New initiatives
- The company signed an MOU with the Andhra Pradesh government to set up 50 MW of additional data-center IT-load capacity.
- Ashok Cloud infrastructure-as-a-service at Manesar and Panchkula has been operationalised or is being operationalised as scheduled.
- Anant Raj Cloud was empanelled with MeitY as a Sovereign Cloud Service Provider and with BSNL as a Data Centre Service Provider.
- The company partnered with Submer to develop AI-ready, liquid-cooled data centers across India.
What to watch
- Whether operating margin holds above 25.88% after two consecutive sequential declines.
- Progress toward the 117 MW of data-centre IT load management said would commence by FY2028.
- Whether RERA approval for Group Housing 2 arrives by the end of Q1 FY27, as management said it expected.