Nomura Maintains 'Buy' on Anant Raj but Cuts Target Price to ₹650 Citing Data Centre Ramp-Up Delays and Slower Residential Launches

Nomura Trims Anant Raj Valuation on Execution Headwinds in Data Centre and Housing

Nomura cited delays in cloud capacity ramp-up and slower-than-expected residential project launches when revising its price target on Anant Raj Limited to ₹650 from ₹700. Despite the downgrade, the brokerage maintained its Buy rating on the stock, signalling continued confidence in the company's medium-term prospects. The revised target implies an upside of about 24 per cent from the previous close of ₹521.70.

Cloud Monetisation Delays Push Out Revenue Timeline

According to Nomura, the ramp-up of cloud capacity has been slower than expected as customer handovers and testing are taking longer than anticipated, thus delaying revenue contribution from newly installed capacity. Nomura expects an additional 1.5 MW of cloud capacity to start generating rental income from 2QFY27, compared with its earlier expectation of end-FY26.

The delay is not without precedent in infrastructure projects. According to management, testing and handovers for cloud infrastructure typically take 4 to 6 months before rental income starts accruing.

Despite the timing shift, the brokerage expects data centre rental income to continue rising. Anant Raj's data centre rental income stood at ₹0.74 billion in 4QFY26, compared with ₹0.17 billion in 4QFY25 and ₹0.44 billion in 3QFY26—a trajectory that underlines the segment's growing contribution. Nomura said annualising the fourth-quarter rental run rate would take FY27 data centre rental income to ₹2.96 billion, up from ₹1.76 billion in FY26.

EBITDA Growth Recast Downward, Still Respectable

Nomura expects Anant Raj's Ebitda to grow at a CAGR of 30-35 per cent between FY26 and FY29, lower than the Ebitda CAGR of around 50 per cent recorded during FY23-FY26. The slower growth rate reflects both the near-term project delays and the higher base from which the company will grow going forward, as it scales operations across two distinct verticals—real estate and digital infrastructure.

Residential Launches on the Horizon

Nomura expects Anant Raj's luxury housing project, Group Housing-2 (GH2), to be launched in 2QFY27 after receiving key approvals. The company is also progressing with approvals for another residential project, GH3, in Gurugram.

Nomura estimates that the residential segment can generate around ₹25 billion of free cash flow from ongoing projects. For context, The Estate Residencies—Anant Raj's luxury group housing project in Sector 63A, Gurugram—carries an estimated revenue potential of approximately ₹1800 crore, and the project has received all necessary approvals, including registration from the Haryana Real Estate Regulatory Authority (HARERA).

Developer's Dual Playbook: Real Estate and Infrastructure

Anant Raj Limited is rooted in North India's soil, its journey began over a century ago and took form in 1969. The company holds a substantial land bank, including approximately 220 acres on Golf Course Extension Road, Gurugram, and nearly 100 acres in Delhi.

Anant Raj Limited has strategically diversified into high-growth infrastructure sectors, particularly data centers and cloud services, through its wholly owned subsidiary, Anant Raj Cloud Private Limited. With operational data centre capacity already in place and expansion underway, the company is emerging as a strong player in India's rapidly growing digital infrastructure ecosystem.

Anant Raj Ltd signed an MoU with Haryana Govt to develop data centers with plans to invest Rs. 25,000 crore, focusing on digital infrastructure. This announcement, made in early June 2026, underlines the ambition embedded in the company's transformation beyond traditional real estate.

Near-Term vs. Long-Term

Nomura's decision to retain a Buy rating while cutting the price target reflects a distinction between near-term execution challenges and long-term structural opportunity. The brokerage's target cut is not due to any deterioration in the long-term business outlook. Instead, it reflects near-term delays in the ramp-up of the company's cloud infrastructure business and slower-than-expected launches of residential projects.

For investors tracking the stock, the revision signals a recalibration of near-term earnings rather than a loss of faith in the dual business model—both the data centre expansion and the next phase of residential launches remain on Nomura's agenda, albeit on a revised timeline.