Anant Raj Q2 FY27 Results (NSE: ANANTRAJ)
Signal: Margin expansion
The read
The key inflection is a 494bps YoY gross-margin expansion lifting EBITDA margin to 29.9% even as revenue growth decelerated to 4.9% from 6.6% in Q1FY27; however, ₹449.77 crore of H1 cash was absorbed by inventory, depreciation rose 149.1%, and the company is committing capital to a cloud build-out that has yet to show separately reported earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹661.53 Cr | +4.9% | +4.8% |
| EBIT | ₹171.45 Cr | +11.4% | |
| Net profit | ₹156.49 Cr | +13.3% | |
| EPS | ₹4.36 | +8.5% | |
| EBIT margin | 29.9% |
P&L walk
Revenue grew 4.9% YoY to ₹661.53 crore, but gross margin expanded 494bps to 35.4% as cost of sales fell to 64.6% of revenue; EBITDA margin consequently rose to 29.9%, while PAT grew 13.3% to ₹156.49 crore despite a 149.1% increase in depreciation.
Segments
The filing reports a single segment, Real Estate Development; the material consolidated-versus-standalone gap, with consolidated PAT of ₹156.49 crore versus standalone PAT of ₹80.96 crore, indicates subsidiaries and associates contributed substantially to group earnings.
Key positives
- Gross margin expanded 494bps YoY to 35.4% as cost of sales declined to 64.6% of revenue from 69.6%, lifting derived EBITDA margin 331bps to 29.9%.
- PAT rose 13.3% YoY to ₹156.49 crore despite revenue growth moderating to 4.9%, while finance cost declined 62.0% to ₹1.09 crore.
- The Estate One received RERA registration with approximately 1.22 million square feet of built-up area potential, creating a new launch pipeline.
- Operational data-centre capacity is 28 MW, with management targeting 63 MW by FY27 and 357 MW by FY32.
Key concerns
- Revenue growth slowed to 4.9% YoY from 6.6% in Q1FY27, continuing the deceleration from 19.6% in Q4FY26 and 20.0% in Q3FY26.
- H1 operating cash flow fell to ₹31.82 crore from ₹115.48 crore as inventories increased by ₹449.77 crore, raising execution and cash-conversion risk.
- Depreciation rose 149.1% YoY to ₹26.50 crore while the cloud and data-centre capex cycle is expanding, increasing the burden of future utilisation and monetisation.
- EPS growth of 8.5% lagged owner PAT growth of 13.6% following the QIP-related increase in paid-up capital to ₹71.98 crore from ₹68.65 crore.
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