This multibagger smallcap stock is up 13% as govt mulls big tax breaks for data centers

Shares of Anant Raj emerged as the top gainer on the NSE Smallcap Index, surging 13.3% to the day’s high of Rs 604 after Business Standard reported that the government is considering a tax exemption of up to 20 years for data centre developers, subject to targets on capacity addition, energy efficiency, and job creation.

The Economic Times could not independently verify the report. States may also be nudged to provide land near industrial corridors, IT hubs, or manufacturing bases. The proposals further suggest granting permanent establishment status to foreign firms operating or leasing at least 100 MW of data centre capacity from Indian companies.

“This will help create new jobs as well as strengthen domestic capacity in advanced technologies, such as AI, Cloud computing, and cybersecurity, not just in metro cities but also in Tier-II and Tier-III towns,” Business Standard reported, citing sources.


The company is a real estate developer engaged in building residential townships, commercial properties, IT parks, and hospitality projects. It has recently diversified into the high-growth data centre and cloud services sector in India.

A recent Nomura report noted that India’s data centre industry is set for robust growth, fueled by rising data storage needs amid rapid digitalization, a growing internet user base, and increased adoption of technologies such as artificial intelligence (AI) and the Internet of Things (IoT). The growing use of AI and IoT will also drive the need for real-time processing of vast data volumes.

Q1 performance snapshot
Anant Raj Ltd. reported a 38.3% year-on-year (YoY) rise in net profit to Rs 125.90 crore in Q1 FY26, compared with Rs 91.01 crore in the same quarter last year. Consolidated revenue from operations grew 25.5% YoY to Rs 592.41 crore, up from Rs 471.83 crore in Q1 FY25. Sequentially, revenue was also higher than Rs 540.65 crore recorded in Q4 FY25.

At around 2:30 pm, shares of the company were trading at Rs 603.50 on the NSE, up 13.2% from the previous close. Despite the surge, the stock remains down 30% on a year-to-date basis.

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