Anant Raj Ltd (ANANTRAJ) Q1 FY27 Results Analysis: PAT Jumps 18.5%, Margin Expands to Five-Quarter High

Anant Raj Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 631.40 Cr (+6.58% YoY) and PAT growth of +18.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Margin expansion to a five-quarter high of 31.15%, strong PAT growth of 18.5%, and a clean balance sheet with Rs.690 Cr unutilised QIP proceeds highlight a solid quarter. The scaling data-centre business, now contributing 47% of PAT, and the planned demerger provide a clear growth narrative, though revenue growth deceleration and rising depreciation warrant monitoring.

Key Investment Insights

Key Positives

• EBITDA margin expanded 448 bps YoY to 31.15%, the highest in five quarters.
• PAT grew 18.50% YoY to Rs.149.19 Cr, with EPS rising 13.35% to Rs.4.16.
• Finance costs declined 49.37% YoY to Rs.1.20 Cr due to balance sheet deleveraging.
• Subsidiary contribution (data centre and cloud) grew 24.71% YoY to Rs.70.09 Cr, now 47% of consolidated PAT.
• QIP funds of Rs.689.99 Cr remain unutilised, providing strong liquidity for future growth.
• Standalone real estate revenue grew 12.23% YoY, indicating stable core business.

Risk Factors

• Consolidated revenue growth decelerated to 6.58% YoY from 19.64% in Q4FY26, and sequentially declined 2.38% QoQ.
• Depreciation expense more than doubled YoY to Rs.16.21 Cr due to data-centre capitalisation, pressuring net margins.