Ladies and gentlemen, good day and welcome to the Anant Raj Limited Q2 and H1 FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prathumesh Parak from MUFG Int ime India Private Limited. Thank you, and over to you, sir.
Thank you, Ashi. Good afternoon, everyone, and welcome to the Q2 and H1 FY 2026 earnings call of Anant Raj Limited. From the management, today we have with us Mr. Amit Sarin, Managing Director; Mr. Pankaj Gupta, Chief Financial Officer; Mr. Manoj Goyal, Chief Business Officer; Mr. Ashim Sarin, Whole Time Director and Chief Operating Officer. Before we proceed with this call, I would like to give a small disclaimer that this conference call may contain a certain forward-looking statement, which are based on beliefs, opinions, and expectations of the company as of date. A detailed disclaimer has also been given on the company's investor presentation, which has been uploaded on the stock exchanges. I hope you all had a chance to go through the same. Now, I would like to hand over the call to Mr. Amit Sarin for his opening remarks. Over to you, sir.
Yeah, thank you very much. Namaskar, everyone. We would like to welcome everybody and thank everybody for joining us for this earnings call. We are very happy to inform you that we've been able to deliver yet another very robust quarter. One main highlight, which we are very proud of, fifth quarter in a row, even prior to the QIP, which the company has successfully done. Fifth quarter in a row, the net debt of the company has been below INR 50 crore, so we almost call ourselves a zero-debt company, and we maintain that for the future also. Now, just to give you our main highlights of the year which has gone past by and the first quarter, and the first and the second quarter, our estimates for the top line for last year were about INR 1,800 crore-INR 1,900 crore and a PAT of INR 370 crore-INR 390 crore.
We are very proud to share that we have been able to do INR 2,100 crore of top line and a PAT of INR 425 crore for the year ending 31st March 2025. In this year, the first two quarters, the company has already done INR 1,243 crore of revenue and a PAT of INR 264 crore. The main highlight for us today has been that we have been able to deliver the 28 MW, which the company was working on in the second quarter. On the 1st and the 2nd of August this year, the company did a showcase of the 28 MW, which we delivered. We call it Bharat Built from Soil to Server, where we showcased to a lot of investors and analysts. We invited them for two days to come, and we showcased this.
We are thankful to everybody who was able to come in, and it was very encouraging for the company. That is done. Now, the company, as you must be all aware, that the company in October last year started with its own Cloud called Ashok Cloud, which was named after our Founder Chairman Shri Ashok Sarin. We are a sovereign Cloud of the country. Initially, we started with B2B, and that is successfully being launched and is getting very good response in the market. Other than that, prior to doing the Bharat Built from Soil to Server, the company, at that time, the promoters were issued warrants of INR 100 crore, for which the promoters were supposed to convert by September 26. The promoters put in the money in March 2025 itself, and that additional cash flow of INR 100 crore really helped the company.
We converted our share warrants at a price of INR 730. Done, the money came into the company, and that got used in the data center business, and we successfully did our Soil to Server day. Data center-wise, we are now on track, and we are now fully funded, and we are taking this to the next level, which is 63 MW, and which will be now operational by December 2026. That is the data center. Real estate-wise, we've been done. We are fully on track with the launches which we had planned. For this year, we had planned almost 2.6 million sq ft of launches, and we are fully on track with that. Today, we have, yeah, today, the company, in fact, we informed the stock exchanges also, and most of you would have read it there, 6.075 acres.
The company has already received its layer for the floor which is going to be launching, which is 5 lakh sq ft. For 5.8 acres, we have got our group housing LOI, we've already got, and we've got the advanced set of approvals, which is for 1.1 million sq ft. We have already filed a group housing application of 5.21 acres, which is going to be, again, 1.1 million sq ft, which we expect the license to come in Q4. Vis-à-vis this also, the company is fully on track. The company also successfully completed its QIP of INR 1,100 crore, which is done. Other than that, in commercial, the company has started working on two major projects. The first one is in 63A, which is Ashok Towers. The work has already started. The second one is our first endeavor in Delhi now.
Since we, prior to that, we were always focusing in Haryana. Now in Delhi, we have already started with our first development, which is 7 lakh sq ft. The first phase of this development is a combination of commercial, service apartments, and hotels. The first phase will be completed by FY 2028. Vis-à-vis the projects, vis-à-vis the data centers, we are fully on track. Funding-wise, the company is now a zero-debt company, a surplus cash company, and we are fully on track. Now, I'll request the CFO to take you through the results, please. Mr. Pankaj.
Thank you, sir. Good afternoon, everyone. Thank you for your precious time you have spared for us to attend the call. We are delighted to report that our performance this quarter and our staff has again demonstrated our commitment for strong financial growth. Moving to our financial highlight for Q2 FY 2026, revenue from operation is stood to INR 630.79 crore, up 23% year-on-year. This includes revenue from data center infrastructure and allied services stood at INR 35.47 crore. EBITDA is stood at INR 177.94 crore, up 43.85% year-on-year, and EBITDA margin for quarter is stood at 27.76%, up year-on-year from 23.62%. PAT grew by 30.79% year-on-year to INR 138.18 crore, and PAT margin for quarter is stood at 21.56%, up year-on-year from 20.17%. Now, update for H1 FY 2026. Revenue from operations grew by 24.22% year-on-year to INR 1,223.2 crore. This includes revenue from data centers at INR 58.42 crore.
EBITDA stood at INR 338.58 crore, which is up 43.17% year-on-year, and EBITDA margin stood at 27.23%, up year-on-year from 23.52%. PAT grew by 34.28% year-on-year to INR 264.08 crore, and PAT margin stood at 21.24%, up year-on-year from 19.56%. On the balance sheet side, we have made significant progress in the strengthening of our financial position. During the quarter, we successfully completed a QIP of INR 1,100 crore. Additionally, the company is now net cash positive, and we have prepaid INR 125 crore of debt. We did data center expansion and added a second data center facility at Panchkula with the capacity of 7 MW IT load, and managed facility enhanced from 6 MW IT load to 21 MW IT load capacity. The company has commenced the development of additional 35 MW capacity of data center. We have commenced the development of data center at Rai, Sonipat also.
Initially, we are developing 20 MW IT load at this location. The total planned capacity at Rai is 200 MW IT load. In real estate, we have planned to launch another group housing project in this financial year in Q4. Company has received further approval and is currently in advanced stage of launching the luxury high-rise project named Estate 1 in Sector 63A, Gurugram. The Estate 1 will be developed on 5.1 acres of land area, having approximately 1.1 million sq ft of sellable area. Company has commenced phase 4 of Anant Raj Estate also in this quarter and having an additional project area of 6.075 acres with the potential development of approximately 5 lakh sq ft. This will add value to the estate apartment and estate floor.
The approval of another group housing project over 5.21 acres is in progress as per the schedule and is expected to receive permissions by the end of this financial year. Company planned to launch the third luxury group housing residential project in 2027. Anant Raj Limited stands at an important inflection point. Our legacy real estate business continues to deliver a consistent growth and strengthen our leadership in high-demanding markets. At the same time, our data center and Cloud initiatives are shaping up the future-ready platform that positions us as a diversified resilient enterprise. The progress we have made this quarter, both operationally and financially, reflects the disciplined execution, strategic investment, and a clear vision of sustainable growth. With the strong balance sheet, reverse cash flow, and healthy pipeline of projects, we are confident in our ability to create our long-term value for all stakeholders. Thank you.
Now, we are opening the floor for Q&A.
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Akash Gupta from Nomura. Please go ahead.
Sorry, am I audible?
Yes, Akash, you're audible. How are you?
I'm great. Congrats on a good set of results. Sir, my first question is with respect to your data center targets. I wanted to understand what is our Cloud target for FY 2027 and FY 2028? My second question is, how are we looking at the data center revenue scale-up in FY 2027 and FY 2028?
Akash, like we just said, vis-à-vis the data center, by December 2026, we are going to be 63 MW. This 28 MW will go to 63 MW. Now, the break in this 63 MW will be that 49 MW is going to be purely Co-location, and 6 MW as of now will be Cloud. 8 MW, we are going to keep vacant. As and when we are able to scale up, we will scale up this 8 MW and take the Cloud to 14 MW, one four. The breakup with 63 MW will be 49 MW and 14 MW. Till December, we are committing that we are going to have about 6 MW up and running.
Okay. What about FY 2028?
FY 2028, this will jump to 117 MW. In this 117 MW, 87 MW is going to be Co-location, and 36 MW is going to be Cloud. Out of 36 MW, 14 MW will be up and running, and 16 MW, we are going to one six. We are keeping a provision to increase the Cloud.
Got it. Got it, sir. How are we looking at the scale-up in the data center revenues?
The data center revenues are fully on track as we have now started reporting the numbers. You must have noticed yourself. We are now at INR 58 crore , and we are fully on track vis-à-vis the targets we had set for ourselves for this year and next year. Data center revenues will really start to pitch in. It is going to be something very similar to what you saw in Anant Raj four and a half years back when the complete turnover of Anant Raj was INR 200 crore. From there, you have seen up to Q2, we have already done INR 1,200 crore and something. We are fully on track with that, sir.
Understood, sir. Sir, my second question is with respect to your demand for Cloud. I mean, we have probably been doing roughly 2 MW of Cloud by this year's end. How confident are we that we will be able to utilize this additional 4 MW of Cloud? Do we have any demand visibility, or are we looking at any new contracts with any government or something if you could give some visibility on that, particularly for the Cloud segment?
Sir, we have enough demand right now, sir. There is no problem vis-à-vis the demand. The bottleneck till we had done the QIP was the funds. Fortunately, we have that now. Demand as of now is not a challenge. As you must have noticed in the call when we mentioned, we are a sovereign Cloud of the country. Ashok Cloud is a sovereign Cloud. Today, sovereign Cloud has a very niche demand for itself. This demand is only growing, sir. With the laws coming in place, as we know that Data Protection Act, we are all talking about data protection and other laws and all which are going to be coming in. Rightly so, all major countries today have their Data Protection Act and all, and very soon, India will also have it. These things will only multiply, sir.
We have enough demand, sir. Demand, we do not see as a challenge at all, sir. Today, we have a lot of e-commerce companies and all which are coming to us, which are already there, sir.
Got it, sir. That's all the question I have.
We are cost-effective also, sir. Today, compared to the market, we are almost at 50% cost, and even then, our margins are pretty good. We are on track, sir.
Got it, sir. Thanks a lot.
Thank you.
Thank you. The next question is from the line of Ashwini Sharma from Emkay Global. Please go ahead.
Yes. Thank you very much for the opportunity, and congratulations for a great set of numbers.
Hi, Ashwini. Thank you. Thank you very much.
Hi. Hi. Thank you very much, sir. Sir, just a bookkeeping question before I jump on the other questions. What was the absolute EBITDA and PAT from data center for Q2 and H1?
EBITDA for H1 is 75%, and PAT is 43.23%.
43%. Okay. So this one for H1, right?
Yes, sir.
Okay. Thank you very much. Also, if you can help me with the kind of occupancy rate for co-lo and Cloud both for H1?
In H1, we have given 8 MW of Co-location. They are completely handover. The rest is on the handing-over process. In Cloud, it is around 70%.
You said co-lo is 80% and Cloud is 70%. Am I right?
No, sir. Co-lo is 8 MW, which is fully handed over. Cloud is 0.5 MW, which is fully handed over. That is the numbers which we are now, which include the revenue which we have achieved.
Okay. Cloud is 8 MW. Perfectly fine. Also, sir, lastly, if you can just talk about what is the mix in terms of clients as of now, private and public? So initially, we had three clients: RailTel, TCIL, CSC, and you have added one more which is a private client. Is there any addition to that, or?
There is a lot of addition in clients, sir. We are sorry, we cannot disclose the name of the clients as there is an NDA and all which are in place. The mix, if you see, as of now, vis-à-vis the Co-location, we are about 75% government and 25% private. In Cloud, we are 50/50.
Okay. Okay. Just one more question. What is the current capital employed in the data center business as of now?
As of now, in this half, sir, INR 187 crore we have added.
INR 187 crore we have added in the. That takes us to how much?
Sorry? Seven. It takes it to about INR 700 crore, sir.
INR 700 crore. All right. Thank you very much, sir. Thank you. I'll come back for more questions.
Sure. Sure.
Thank you.
Thank you.
The next question is from the line of Mr. Abhishek from Motilal Oswal. Please go ahead.
Yeah. Good evening, sir.
Namaskar, Abhishek ji. Good evening.
Thank you, sir. Just one question. We have heard about the taxation benefit on DC business, right? I just want to understand how is it accredited to Co-location as well as Cloud business? Any change in CapEx strategy, I mean, pertaining to that?
It's a very welcome step, sir. It's going to be really encouraging. It is applicable to both, sir, Co-location as well as Cloud. As and when it comes, we are very hopeful that it is going to come because this is an initiative which the government has taken on its own, which is really encouraging for the data center segment in the country. As it is, the segment really has to grow. This is really encouraging. To answer your specific question, we have both key aspects, Co-location as well as Cloud, because they are both directly data centers is covered, sir.
Okay. So basically, we are not changing that 75%-25% mix of Co-location to Cloud strategy, CapEx strategy?
As of now, let's grow with this, sir. Tomorrow, once the Co-location is already there and we see enough demand and, touchwood, the cash flows from next year will really start improving and contributing. We can always increase the Cloud part. As it is, there is very good demand, sir. As of now, we maintain this ratio, sir. This ratio, actually, Cloud can also increase, will increase, in fact.
Currently, basically, it is just proposed, not in the issued Cloud?
Proposed, and that is how it is getting implemented also, sir, if you really see. Abhi, 28 MW where 4 MW is going to be Cloud, 24 MW is Co-location. Then 63 MW where 14 MW is Cloud, balance is Co-location. This is how it's going. Once you have the Co-location in place, sir, you can always convert your Co-location and take it to Cloud.
No, no. I'm just talking about the taxation part, which is just proposed, not in effect right now.
No, not in effect. No, sir. Abhi, so the government, sir, this is something which the government initiated, and we all read about it. This was a statement made by the government that they are thinking on these lines. Let's hope, and if the government is saying it, they will definitely do it, sir.
Okay. Got it. Thanks, sir.
Thank you, sir.
Thank you. The next question is from the line of Mr. Harsh from Emkay Global. Please go ahead.
Hi, sir. Good evening, and thanks for the opportunity.
Thank you.
Namaskar, sir. Sir, my question is on the real estate front. It is encouraging to see that we have moved very ahead in terms of approvals. We have received RERA for the estate floors and group housing. We are in advanced stage. Since all these three will be coming in the same quarter, how are we ensuring that there is no cannibalization? How are we differentiating with the products? If you can throw some light on that, please.
Yeah. Hi, yes. This is Manoj Goyal. See, we have informed that we'll be doing three projects. One is the independent floor for which we already have the RERA. One group housing for which we have already advanced set of approvals, which we are planning to launch. The third project for which we'll have received substantial approvals by quarter four. We do not have a plan to launch all projects together at first. For which RERA we have received, we have planned to launch that, and then followed by a group housing. In this financial, we have a plan to launch only the two projects. One is independent floor, one is in a group housing. Both have a different segment, different market, and different kind of a buyers. It will not cannibalize each other.
Sure. The third one will be coming up in the next financial year, around the first half, are we targeting?
Yes, that's right.
Okay. My next question is on the hospitality asset. The 7 lakh sq ft, this is the Stellar Resorts, right?
No. So we have a property called Bel-La Monde.
Okay.
That's in the South Delhi.
Okay. So this is Bel-La Monde. What's the update on Stellar Resorts, sir?
Stellar Resorts, as of now, is eligible for approval for about 7.5 lakh sq ft. As of now, it is up and running. In fact, it is no longer Stellar. It is a different chain. That is all right. We are getting, in fact, more rent than what we were getting from the previous person. Right now, the land is fully, it is freehold land. It is fully owned by the company. As of now, our focus is on the Mehrauli project and the 63A and the data center. As and when we want, we are going to take up Stellar. It is eligible for 7.5 million sq ft. It is going to be, again, a mix of commercial, hotel, and service apartments. As of now, the work is going on in the Mehrauli project.
Got it, sir. And in this Bel-La Monde, the completion target is 2028, right?
Yes. The first phase will be done by 2028, sir. Yes.
Okay, sir. Yeah. That's it from my side. Thanks a lot.
Thank you.
Thank you. The next question is from the line of Mr. Prateek from DAM Capital. Please go ahead.
Hi, sir. Thanks for the opportunity.
Namaskar, Prateek ji. [Foreign language] ?
Namaskar, sir. All good, sir. Thanks for asking. Sir, the first question is largely on my empanelment of Cloud service providers. Are we looking to do that? If yes, how does it work? How long does it take to get empaneled with MeitY?
Mr. Ashim Sarin, we are actually almost done, almost there, but he'll just clarify.
We have already applied for MeitY empanelment, sir. The last phase of audit is also completed successfully. We expect to get the approval within November, within this month only.
Oh, great. That's great to hear, sir.
We'll be empaneled as a MeitY-approved Cloud service provider.
Great. Great. Sir, there is 22 MW that we have added now. How soon can we start receiving rentals? I guess that we have already started getting rentals for 2 MW, which you have handed over, because now 8 MW is totally handed. For the rest of the capacity, a quarter more before we start?
Prateek ji, Prateek, some will come in the Q3, and all of it will come in the Q4. It's in the handing-over stage.
Okay. So the revenues of all 28 MW will come in Q4, is that what you're saying?
Definitely, sir. Yes, sir.
Understood.
The handing-over will be completed within Q3, and you will see the full revenue potential coming in, realizing in Q4.
Understood. Sir, for your Rai project, where you have a significant greenfield opportunity, are we looking at build-to-suit data centers as well? Any talks which we are having on that front, or too early for that?
Prateek, initially, we are focusing on the 100 MW for which the building is already ready. The centering work has already started. In the 63 MW, 20 MW is going to be coming in in Rai. Next time when we do Soil to Server or Bharat Built, we are going to showcase Rai also. That is going to be 20 MW, sir, to start with. That 100 MW will be built already, is already there, which will get operational. The balance 100 MW is going to be build-to-suite. The build-to-suite work, we will start in 2028.
Understood, sir. I have two more bookkeeping questions, but I'll join back the queue for that. Thanks.
Sure. Sure.
Thank you. The next question is from the line of Mr. Vignesh Iyer from Sequent Investments. Please go ahead.
Hello. Am I audible, sir?
Hello.
Yes.
Yes. Namaskar, Vignesh ji. Yes.
Namaskar, sir. Sir, I remember reading the press release where we targeted around INR 1,200 crore of revenue by FY 2027 in data centers. Is it correct to assume that this is from the mix of 36 MW Cloud and 81 MW Co-location, right?
Yes, sir. Definitely. We are on track, sir. We are fully on track.
Right. I mean, it will be 117 MW out of which we are expecting to generate a revenue of INR 1,200 crore, right?
No, sir. This will be 63 MW. Once we achieve 63, sir, which is by December 2026, [Foreign language] . That is when we'll start achieving this, sir.
Okay. So this is from 63 MW. Okay.
This is from 63 MW, sir. This projection is from 63 MW.
Right. Right. Got it. What is the question, sir? Could you give any guidance for FY 2026 when it comes to sales and?
The future numbers, as you know, sir, future numbers, we cannot give like this. But we are fully on track, sir. You can see the past record, sir. Whatever the company has discussed has always delivered, sir.
Right, sir. That's all from my side, sir. All the best.
Sure, sir. Thank you, sir.
Thank you. The next question is from the line of Mr. Manan from Wallfort PMS . Please go ahead.
Yes. Thank you so much for the opportunity.
Hi, Mr. Manan.
Yes. Hello. Hello. Hello. My question was that I was looking at your Q2 FY 2025 report. In that, sir, you have written that our full 307 MW would come in the next four or five years. That would be around 2030. In current.
2032, sir.
2032, sir.
Yes. That's what I'm trying to ask you. Q2 FY 2025 report, when I had seen, that time, it was next five years. I'm assuming 2025, so five, that is 2030. Now we are seeing that in current reports, you are saying that by 2032. What would be the factor which is delaying it by the next two years, taking it to 2032?
It's not actually a delay, sir. It's not actually a delay. We are actually fully on track. It was always okay, we said maybe five years. If you really see, it is five to six years. When we say 2032, it is financial year 2031-2032. That is when we will be fully operational with 307 MW, sir. Frankly, that is what was from day one, that is what we had in mind. Maybe we said five to six years, but that is what we meant, sir. Financial year 2031-2032, we will be able to unlock 307 MW.
Okay. Understood. That was my only concern. Thank you so much.
Thank you, sir.
Thank you. The next question is from the line of Mr. Gaurav Agarwal from VA Capital. Please go ahead.
Good evening.
Good evening, Manoj ji.
Sir, I'm very disappointed that we have not kept any [con calls] in the last three to four quarters because I was very looking forward to the information in the last four quarters. There has been no [con call].
Gaurav ji, we will just put you based out of Mumbai, sir?
Sir, we did two earning meetings, and we had almost about 90-100 people in each meeting. Yes, we guess the [con call] have a far more reach. We will definitely do it every two quarters, sir.
Okay.
We've been interacting regularly, sir. If you see, you will see the notifications which we had made regarding the earning meetings which we did. For the past two quarters, we've been doing earning meetings rather than calls. Every two quarters, we will continue to do our meetings, but we will also do a call every two quarters, sir.
Okay. The guidance you just given for the last quarter from data centers, you have said that the remaining 20 MW will also be priced in. It will come in the revenue. That means that you're expecting INR 75 crore of revenue from data centers in the last quarter?
Yes, sir. We can't give future projections, as you know, but we are fully on track, sir. This 28 MW, we had showcased to everyone when we did the Technology Day on the first and second of August. It is in the handing-over stage. The handing-over will be completed by this quarter, sir. The complete revenue will get captured in Q4.
The revenue, the rental income per megawatt of data center is still at INR 90 lakh crore per month?
That is about bilkut. See, it is almost if you see, it is close to about INR 90 lakh crore per month per megawatt for Co-location. And it will get fully captured in Q4, sir.
Okay. The margins, I believe in earlier calls, I think someone has said that it is INR 75 lakh crore of savings on a INR 90 lakh crore rental income. This is approximately 80% EBITDA margins. Now.
Yes, it's 75% EBITDA.
I think it's 75%-80%, is it?
[Foreign language]. To be exact, 75%. [Foreign language].
Okay. Okay. That's it from my side. Thank you.
Right, sir. Thank you.
The next question is from the line of Mr. Hardik from HPMG Shares and Securities Limited. Please go ahead.
Hello, sir. Am I audible?
Yes, Namaskar. You are audible.
Namaste, sir. Just two or three questions from my end. First, on the real estate side, when we last spoke, we were discussing whether the circle rates will be revised by the Delhi government. What is an update on that?
Circle rate with Delhi, as of now, wait. Mr. Manoj will answer that.
See, can you repeat your question because you are not clear? You are not audible.
Yeah. I was asking regarding the circle rates in Delhi where we mentioned that the real estate prices might go up because of the revised circle rates in Delhi. The government was planning to implement the new rates, but they were still in the planning stage. Is there any significant update on that?
See, the revision in the circle rate is a routine process by the government. They keep aligning the market value versus the notified rates. In case there is a major deviation happened between the real market price and the government notified rate, it does not impact the pricing of the real estate at all. In fact, if there is a balance between the circle rate and the prices that the property is sold, it's always better for the people and for the organized market who do an organized real estate development. I do not see there is an impact on the pricing because of the changes in the circle rate.
For organized sales, there should not be an impact, sir. I mean, for now, as you know, our focus is Haryana and data center business. We are good.
Actually, organized sales never get affected with these things, sir.
Understood. Understood. Sir, then coming on the data center business part of it, sir, right now, we are nearly debt-free, right? We do not have any significant debt there.
We are debt-free.
We are seeing such a big traction in our data center business. All the multinational companies are planning to open up data centers. Do you think it is the right time for us to get aggressive, take some debt on our books, ramp up? I know we have already raised some funds in the recent QIP, but to capture the market at the right time as well as get the capacities ready early, would not that be a proactive approach?
We are on track, sir. See, there is no limit to how much one can do. With our plans, we are fully on track, and we are capturing the market in the right way. If you really see, sir, we started with Co-location, and we got such fantastic response on Co-location. This is thanks to the product which we delivered, which we showcased also, and which is one of the best in the world. Once we did that, we got a chance to come into the Cloud business also, which is not very long ago. We started our Ashok Cloud in October 2024, sir. We got very good response, and now we are multiplying that. We are on track, sir, and we do not see that we need to take debt.
As it is, sir, we feel that our backbone is still real estate, which will always be. We feel that real estate should be as low on debt as possible, sir. We are comfortable, sir. We are not missing any opportunity because of that.
Understood. When are we planning to launch the other products related to Cloud? I think we did it. We spoke about SaaS, PaaS, and other services related to data center.
Ashim will answer that. Ashim is here. He'll just answer that.
Basically, sir, we started with infrastructure as a service for our Cloud services, and gradually, we are increasing the number of services. In fact, we've already moved on and started offering a few services which qualify as platform as a service also, be it containerized services and all. We've already started offering these to our customers.
Have we factored that in the revenue projection which we mentioned in the future numbers, or are we not including them at all for now?
That is not included at present.
We'll only increase the revenues now.
Yeah, yeah. I was just wondering, what kind of a market size or opportunity is there? At least on a rough per megawatt basis, if you can just share with us.
Basically, I mean, once you move on to platform as a service, from infrastructure as a service, the revenues can double.
Okay. Okay. And this is just for the co-lo? This is not for the, sorry, this is for the Cloud?
Yes. Co-location is basically the infrastructure that we give to the customers. We give them racks with the complete infrastructure connected. Cloud services, you have got infrastructure as a service and platform, and then finally, software as a service, and then managed services. Sky is the limit as far as Cloud services are concerned.
Understood. Understood. That's it from mine. Thank you so much. All the best.
Thank you. The next question is from the line of Mr. Harish from Nirmal Bang. Please go ahead.
Hello, sir.
Namaskar, Harish.
Namaskar, sir. Many years on that, I think INR 1,200 crore revenue from data center will come in financial year 2027. Is it correct, or I have misunderstood?
Sir, we will develop the data center to the extent which we will be able to generate INR 1,200 crore in next financial year on co-lo occupancy. That has been given there.
[Foreign language] .
[Foreign language].
[Foreign language] financial year 2028 [Foreign language] ?
[Foreign language], partly is substantial amount [Foreign language] in 2026-2027, [Foreign language] 2027-2028 .
Out of [Foreign language] megawatt [Foreign language] total?
63 [Foreign language] , sir. 63 [Foreign language] .
[Foreign language] Cloud [Foreign language] target [Foreign language] ?
[Foreign language] sir. Cloud [Foreign language] Cloud [Foreign language] 6 MW [Foreign language] Cloud, [Foreign language] Co-location [Foreign language] sir.
[Foreign language] sufficient capital or we need to raise?
We have sufficient capital, sir. Bilkul. We have the capital, sir.
Sir, [Foreign language] request [Foreign language] call [Foreign language] quarter manage [Foreign language] .
Sir, definitely. [Foreign language] second quarter definitely [Foreign language], sir. [Foreign language] earning meetings [Foreign language] , sir. [Foreign language] quarter [Foreign language] earning meetings [Foreign language] response [Foreign language]. We were meeting almost 90+ people. [Foreign language] we thought call [Foreign language] , sir, [Foreign language] . We just thought, but [Foreign language] , call is also required, sir, and every second quarter definitely [Foreign language], sir.
Earning meetings [Foreign language] join [Foreign language] ?
[Foreign language] publicize [Foreign language] , sir. [Foreign language] , we will let you know. [Foreign language] Bombay-based [Foreign language] it is much [Foreign language] Bombay [Foreign language] .
[Foreign language] physically present [Foreign language] ?
[Foreign language], sir. [Foreign language] , sir [Foreign language] , sir. Every second quarter, [Foreign language] definitely call [Foreign language] , sir. Done.
[Foreign language]. Okay. Thank you.
Thank you, sir.
Thank you. The next question is from the line of Mr. Prateek from DAM Capital. Please go ahead.
Hi. Thanks for the opportunity again, sir.
Hi again.
Bookkeeping answers. Thanks, sir. Out of the INR 35 crore revenue in data centers, how much of it came from Co-location and how much from Cloud?
Sir, Co-location is INR 21.6 crore, and from Cloud is INR 13.87 crore.
Okay. The way we are accounting for Co-location is we have net revenues, right? Net of power pass-through?
Yes, sir.
Is that how we are going to account going ahead as well? Because usually, our peers account by adding power pass-through to the revenue. I'm not sure how the accounting principles are, but is that how you'll be accounting going ahead as well? Net of power pass-through?
Sir, for Co-location, we will always do the netting of electricity passing through it, sir. For Cloud, we charge the charger.
Understood.
Sir, Co-location [Foreign language] pass-through [Foreign language] , sir? [Foreign language] we don't have to do it. [Foreign language] Cloud [Foreign language] expense [Foreign language] end product [Foreign language] .
Correct. Correct. Understood. On the real estate side from group housing one, if you can help us, [Foreign language] collection [Foreign language] booking value [Foreign language] collect [Foreign language] ? How much of it is pending to be received? How much of the cost is pending to be spent on group housing one?
Sir, for group housing, we have already collected INR 428 crore out of INR 1,850 crore.
Okay. And cost [Foreign language] , sir, spend [Foreign language]?
Cost, sir, it is INR 322 crore.
Has been spent.
To be spent. Already spent is INR 168 crore.
INR 168 crore. Understood. Understood, sir. [Foreign language] . That's all from my side. Thanks.
Thank you.
Thank you. The next question is from the line of Mr. Srigopal from Stockhifi.com. Please go ahead.
Namaskar, Srigopal .
Namaskar, sir. Am I audible?
[Foreign language] , sir. Please.
Yeah. Sir, I have one question. [Foreign language] results are segmental breakup [Foreign language] , sir. Why don't you give segmental breakup in your results?
[Foreign language], sir. Question, please.
The results, quarterly results [Foreign language] , why don't you give segmental breakup, sir?
Sir, you are not audible. Your voice is cracking.
Mr. Srigopal .
Segmental breakup of what, sir?
Of your revenue and profit, segmental breakup.
[Foreign language].
Hello? Am I audible now?
Yes, sir. Could you please repeat your question, sir?
Sir, the results which you release, why do not you give segmental breakup, real estate separately and data center separately?
[Foreign language], sir, sir, [Foreign language] . [Foreign language] presentation [Foreign language] . [Foreign language], sir, segmental breakup [Foreign language] , once you do 10% [Foreign language] numbers [Foreign language] , when you do 10%, sir. [Foreign language] . As you know, it is INR 58 crore, sir. [Foreign language] total [Foreign language] revenue [Foreign language] Q2 [Foreign language] , that is INR 1,200 crore and something. [Foreign language] 10% mark [Foreign language] , sir. [Foreign language] step [Foreign language] presentation [Foreign language] , sir.
In presentation [Foreign language] revenue breakup [Foreign language] ?
Sorry, sir?
Yeah. No, in presentation you have given revenue breakup, but not EBITDA breakup, sir.
[Foreign language], EBITDA breakup [Foreign language] , sir. EBITDA breakup [Foreign language] number [Foreign language] , please.
Sir, we have generated the revenue from data center business in this quarter is INR 35.47 crore, and the EBITDA margin is 75%.
Okay.
Right.
Fine, fine. Okay, sir. One more question. Earlier, you had given the cost of building per megawatt is around INR 50 crore. Does it remain the same or [Foreign language] change is?
[Foreign language] , sir, it is, in our case, our additional spend, because [Foreign language] existing buildings qualify [Foreign language] strengthen [Foreign language] ready [Foreign language] . So [Foreign language] additional spend is INR 26 crore, 2 and 6.
Okay. Thank you.
For Co-location.
Thank you.
Thank you.
Thank you.
Thank you.
The next question is from the line of Ms. Vidisha from C.R. Kothari & Sons. Please go ahead, ma'am. Ms. Vidisha, are you on the line? Yeah. Please go ahead.
Sir, could you please repeat what you said for the revenue by FY 2028? How much will come from data center and how much will come from Cloud?
Ma'am, we cannot give future numbers, but like we just told you, that as of now, the differential is 75% is data center Co-location, and 25% is coming in from Cloud, sir.
Okay. So data center.
Future numbers we cannot give like this. [Foreign language] ?
Okay.
If you see the.
Right.
Thank you.
You said data center gives INR 90 lakh crore per month per megawatt. Could you just.
For Co-location now, Co-location.
Sir, yes, Co-location. So could you share for Cloud?
Ma'am, Cloud is about, per month is approximately INR 12 crore, ma'am. One, two, 12 .
INR 12 crore per month per megawatt.
[Foreign language], ma'am.
The EBITDA margin for both of these is 75%?
Yes, ma'am.
Will there be any scope of improvement in further years, or will it remain in this?
It will, ma'am, there is, because as we add on, ma'am, Co-location should remain stable. As we add on services, like Ashim just told us when we were discussing previously in the call on a previous question, as we go on adding services, hopefully these margins will further go on improving now.
Okay. This EBITDA that you mentioned, does it exclude power cost, or is it included in that?
Ma'am, in the case of Co-location, there is no power cost because it is a pass-through. Yes, in the case of Cloud, it includes the power cost.
All right. Thank you, sir. All the best.
Right. Thank you.
Thank you. The next question is from the line of Mr. Viral from SMG. Please go ahead.
Yeah. Thank you for the opportunity.
Yeah. Hi. Namaskar, Viral.
Yeah. Hi. So a few quick questions from my side. First of all, the residential sale has been continued to gain the traction. Could you provide, could you share the contribution from the Anant Raj Estate and other key project on it?
See, hi, Viral. The major revenue that comes to our balance sheet is from three, four segments. One is the Residential, one is the Rental Income, and another is the Data Center business. The majority of revenue contribution, because if you book the revenue on a percentage completion basis, is from the Anant Raj Estate, which is the residential component. I think majority is coming from the Anant Raj Estate and the projects like infrastructure estate and all these things in the Sector 63.
Okay. What is the percentage of the total residential inventories being sold, and what is the expected timeline for monetization of the remaining units?
I think these are like kind of on a detailed business plan detailing. I think we can have a separate call on that.
Okay. That will work, sir. Are there any upcoming residential launches planned for FY 2026 or 2027? If yes, what could be the expected size or the ticket range?
Yeah. So if you look at the presentation and the board update that we have given, we have three projects which are in a very advanced stage around the preparation of the launch. One is the phase IV of Anant Raj Estate over six acres having a 5 lakh sq ft of a development potential, for which we already received the RERA registration. RERA registrations are permitted to sell in the market now. The another high-rise over a million sq ft, 1.09 million sq ft, for which we have received an advanced stage of approval for the launch. The launch preparation is in advanced stage. And the third project, again over five and a half acres, having a million sq ft of a potential. We are targeting to have a majority of approval to launch by Q4 2026.
These are the three major events or launch which is under preparation to the launch.
Okay. Thank you, sir, for sharing a clear picture on that. My last question was, how are you seeing the demand trends in the luxury versus the mid-income segment, especially across Gurugram and Delhi market?
See, Gurugram has a, you can slice it into four parts. We operate on a slice which is the most luxurious market, which is the Golf Course Extension Road. Golf Course Extension Road is known for the market development. There are a lot of projects that are going which are valued from a ticket size of INR 50 crore- INR 100 crore as well. In this micro market, the supply is very limited. The pocket development and concentration is there. The demand in this micro market is always high as compared to the rest of the part of the Gurugram. This is the Gurugram. In Delhi, there is no supply. There is very limited supply. There is a huge demand for the luxury projects.
Yes, sir. Got it. Thank you. All the best.
Thank you.
Thank you. The next question is from the line of Mr. Manan from Wallfort Portfolio Management Services. Please go ahead, sir.
Yes. Thank you for the opportunity again.
Namaskar, Mananji.
Yes, sir. Namaskar. Sir, my question is related to what is actually giving you so much confidence that we will be able to lease out or rent out all of our capacities? Because we can see that in our South India side, South Bombay side, there are many other MNCs also like Brookfield. They are struggling to get all of their capacities online. What is giving you such confidence that you will be able to successfully get all of the 307 MW online with the?
See, Mananji, sorry. You can finish your question, then we'll answer. What else?
[Foreign language] you can supply all of the 307 MW and people will, companies will be using it. It will be online.
See, Mananji, we are doing this business in two segments. We are doing Co-location where we provide up to the rack with complete infrastructure. Like we told you, we've been able to establish a good world-class facility. We are doing Cloud. As of now, we are doing infrastructure as a service. Slowly, slowly, we are adding more services to it. Actually, sir, we cannot comment on South India, but today in North India, there is no dearth of demand. As you know, today India generates, this is a factual point, sir, which you can verify. India today generates 28% of the data in the world. India houses today only 1%. Today, all countries today are realizing and they want to get their data back and keep it in their own country. Unfortunately, even our country is doing it.
With this happening, this data eventually has to come back to the country. We do not see any dearth of demand here. Our Prime Minister, as we very proudly say, was the first leader in the world who in 2019 started talking about data localization. Today, everybody wants to do it. As of now, there is no dearth of demand, sir. This demand is actually going to go multifold, sir. I do not know what product they have launched. The people you are talking about, we do not know about the project product they are launching into the market. These two segments have good demand, sir. Very good demand.
Okay. Okay. Understood. That's it from my side. Thank you.
Thank you.
The next question is from the line of Ashwani Sharma from Emkay Global. Please go ahead.
Yeah. Just to follow up, and thank you very much for that.
Yeah. Hi, Ashwani. Hi again.
Yeah. So these are 35 MW [Foreign language] . This is at which location? This is at Panchkula.
It's where Ashwani. It's where 20 MW is in Rai. 20 MW is in Rai, sir. And the balance is in Manesar, sir. And [Foreign language].
Okay. Okay. Got it. Sir, the second question I had was that since the power cost which you mentioned earlier that is passed through in Co-location, but it is not passed through in the Cloud, so margin [Foreign language] how that works, sir? Or mathematically how that works?
Yeah. Ashwani will answer that. So basically, the revenues that you get in Cloud are much higher here, sir. So more electricity costs [Foreign language] .
That takes care of the electricity cost and all?
Yes.
So [Foreign language] it's around 75% for both Cloud and the colo?
Yes, sir. The basic principle behind Cloud is the customer is coming to you because he does not want to invest in hardware or software, and he only wants to concentrate on his core business. That is why he's availing Cloud services from you, so that you are handling everything for him. He does not want to be bothered with the electricity cost also.
Right. So what should you do?
You give them a turnkey solution.
Yeah. When you look at Cloud, obviously, these are like sometimes the demand of the power is very, very high. It also depends on the client's usage. As an infrastructure provider, can you charge more on availing the power, which certainly client is asking? Is there probability in that? You can charge more?
Basically, they are going to actually use more. That means they'll be taking more storage, more virtual machines from you. Your revenue depends on whatever capacity they are taking from you. In case their power is increasing, that means they are taking more capacity for which they are paying you.
Right. Right. All right, sir. Yeah. Thank you very much for that, sir.
Thank you.
Best wishes. Yeah.
Thank you.
Thank you. Thank you very much.
The next question is from the line of Mr. Akash Gupta from Nomura. Please go ahead.
Hi sir. Thank you for taking up my follow-up question. Just to understand on the electricity cost thing, so for instance, if the electricity prices go up, will it be a downside risk to our Cloud EBITDA margins, or do we have any contract in place that safeguards us from any rise in electricity prices?
Basically, sir, we have clauses which say that the prices are based on the current market cost. If the electricity cost is going to go up, we charge more to the customer. If they go down, then of course the benefit can be passed on to the customer.
Understood. Just my last question, I just wanted to understand on the economics of this Cloud business. The payback period is roughly two years. I think that we are getting roughly INR 150 crore per megawatt. And our CapEx is roughly INR 126 crore per megawatt. The question is that why shouldn't a customer just do the CapEx himself instead of going to you for Cloud? That's my question. Just wanted to understand, what's the thought process for the customer?
Basically, when we set up the Cloud, there are many customers, or within a customer, they've got various departments who don't need the complete hardware. They don't need to use the complete server. Also, because we buy licenses in bulk from all the OEMs and the equipment, we are able to offer them better pricing. Also, we give them managed services. Whoever is available of our Cloud services, they get 24-hour service also from our end. They don't need to have their own separate IT team to manage their business.
Ultimately, sir, all businesses are like that. If you really see, this is somebody doesn't want to have the headache. There is somebody, if you start doing it yourself, there is somewhere you will keep the primary data center, then you'll have the secondary, then you'll have the DR.
What we've been in this business for almost three and a half, four years now, up and running it, and we realize that a lot of people, in fact, 99% people do not want the headaches of doing all this. Because if you start putting your own servers, then you are a hyperscaler, sir. Everybody does not want to become a hyperscaler. They want to focus on their own business line.
Got it. Got it, sir. Makes sense. Thank you so much, sir.
Thank you.
Thank you. Ladies and gentlemen, in the interest of time, this was the last question for the day. I would now like to hand the conference over to the management for closing comments. Please go ahead, Amit sir.
Yeah. We thank everybody for joining us and taking out the time to listen to our learning calls. We will keep up the good work. We'll be disciplined, and like we've been in the last four and a half, five years, and we will keep delivering. Thank you very much for the faith, and all the best to everyone. Thank you.
Thank you, sir. On behalf of Anant Raj Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.