Anant Raj’s Surge: A Closer Look at the Data Centre Boom
Shares of Anant Raj emerged as the top gainer on the NSE Smallcap Index, surging an impressive 13.3% to a day’s high of Rs 604. This growth follows reports from Business Standard that the Indian government is contemplating a tax exemption for data centre developers, which could last up to 20 years if they meet certain criteria involving capacity addition, energy efficiency, and job creation.
Government Initiatives and Land Distribution
According to the report, the government may also encourage states to allocate land close to industrial corridors, IT hubs, or manufacturing zones. Additionally, proposals suggest granting permanent establishment status to foreign firms that either operate or lease at least 100 MW of data centre capacity from Indian companies.
Creating Jobs and Strengthening Domestic Capacity
Business Standard indicates that these initiatives aim to bolster domestic capacity in advanced technologies such as artificial intelligence (AI), cloud computing, and cybersecurity. The focus is not just on metropolitan areas but also on promoting growth in Tier-II and Tier-III towns.
Anant Raj’s Diversification Efforts
Anant Raj Ltd. is primarily known as a real estate developer engaged in various projects, including residential townships, commercial properties, IT parks, and hospitality ventures. Recently, the company has diversified into the rapidly growing data centre and cloud services sector in India.
Insights from a Recent Nomura Report
A recent report by Nomura highlighted that India’s data centre industry is poised for significant growth. This surge is driven by increasing data storage needs, propelled by rapid digitalization, a growing internet user base, and the heightened adoption of technologies such as AI and the Internet of Things (IoT).
The Growing Demand for Data Processing
The escalation in AI and IoT usage is expected to intensify the need for real-time processing of vast amounts of data. This growing demand presents substantial opportunities for companies like Anant Raj to expand their services in this lucrative market.
Q1 Performance Snapshot
Anant Raj Ltd. reported a robust 38.3% year-on-year (YoY) rise in net profit for Q1 FY26, amounting to Rs 125.90 crore. In comparison, the net profit was Rs 91.01 crore in the same quarter the previous year. Furthermore, the consolidated revenue from operations grew by 25.5% YoY to reach Rs 592.41 crore, up from Rs 471.83 crore in Q1 FY25.
Sequential Revenue Growth
On a sequential basis, the revenue also saw an increase from Rs 540.65 crore recorded in Q4 FY25, indicating consistent growth momentum.
Current Trading Status
As of approximately 2:30 PM, shares of Anant Raj were trading at Rs 603.50 on the NSE, reflecting a 13.2% increase from the previous close. Despite this positive movement, it’s important to note that the stock remains down 30% on a year-to-date basis.
Disclaimer
Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of The Economic Times.
Conclusion
The growing emphasis on data centres in India reflects a significant shift towards advanced digital infrastructure. Anant Raj’s strategic positioning in this emerging market, buoyed by government initiatives, points to promising growth opportunities in the near future.
Questions and Answers
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What is the main reason for the recent surge in Anant Raj’s shares?
The surge is attributed to reports of potential tax exemptions for data centre developers, which could stimulate significant growth in this sector. -
What are the government’s plans regarding land allocation for data centres?
The government may encourage states to allocate land near industrial corridors or IT hubs for data centre development. -
What was Anant Raj’s net profit in Q1 FY26?
Anant Raj reported a net profit of Rs 125.90 crore, marking a 38.3% increase year-on-year. -
How much has Anant Raj’s revenue grown compared to the previous year?
The revenue from operations grew by 25.5% year-on-year to Rs 592.41 crore. -
What does the Nomura report indicate about India’s data centre industry?
The report indicates that India’s data centre industry is set for robust growth, driven by rising data storage needs amid increasing digitalization and technology adoption.
