3 Data Center Stocks to Watch as Union Budget 2026 Accelerates India's Digital Infra Plans

This editorial is not a stock recommendation.

#1 Anant Raj

First on our list is the stock of Anant Raj.

Anant Raj is a diversified real estate developer, primarily focused on constructing IT parks, commercial complexes, hospitality projects, SEZs, shopping malls, and residential developments.

While the core operations span housing, commercial real estate, IT parks, and affordable housing, the company has diversified into data centers via Anant Raj Cloud.

Recently, the company established its second data center facility at Panchkula, which was operationalised with a capacity of 7 MW IT load. Besides, the Manesar facility was enhanced to 21 MW IT load capacity.

In a recent investor presentation post the Q3 FY26 results, the company said that expansion of Cloud services at Manesar & Panchkula is in advanced stage for operationalisation in Q4 FY26.

Financial Highlights

On the financial front, the company has been doing well. For Q3 FY26 , revenue from operations stood at Rs 6,415.9 m, up 20% YoY. Revenue from data center, infrastructure and allied services stood at Rs 435.7 m during Q3 FY26.

The net profits of the company grew 30.68% YoY to Rs 1,442.3 m.

Moving ahead, on the real estate front, at the start of the year, the company had planned almost 2.6 m square feet of launches. The management is optimistic that it's fully on track to achieve the same.

On the date center front, the company has signed an MoU with the Government of Andhra Pradesh for setting up additional data center capacity of 50 MW IT Load, strengthening the company's footprint in South of India.

With this plan, the total planned Data Center capacity will reach to 357 MW IT Load, mix of Colocation and Cloud Services, out of which 117 MW IT Load will commence by FY 2028.

Anant Raj sees good growth potential amid low debt, a solid land bank and expanding potential for its data center business.

To know more check the Anant Raj fact sheet and latest quarterly results.

#2 RailTel Corporation of India

Second on our list is RailTel Corporation of India.

RailTel Corporation of India is a Navratna public sector undertaking under the Ministry of Railways, specialising in telecom infrastructure and ICT services across India.

The company is rapidly expanding into data centers. The one edge data centers is already operational in Gurgaon, while construction is underway for another in Mumbai.

As for other developments, work has commenced on a 10 MW data center project. Initially, the capacity will be 5 MW, with plans to later expand it to 10 MW. Civil work for this project is already in progress in Noida.

Financial Highlights

On the financial front, the company reported revenues of Rs 9,514 m in Q2 FY26, an increase from Rs 8,435 m in the same quarter last year. RailTel Corporation's net profits stood at Rs 761 m compared to Rs 726 m during the corresponding period of the previous year.

In terms of revenues contribution, the telecom segment contributed Rs 3,670 m and project segment contributed Rs 5,840 m in company's operating income.

RailTel Corporation has been achieving substantial growth in its order book. By 30 September 2025, the company's total order book has reached Rs 82.51 billion (bn).

During the ongoing financial year, it has secured orders worth Rs 33.17 bn up to the same date. In conference call following the Q2 results, the management projected an EBIT margin of 11-12%.

RailTel's prospects look positive as it moves beyond traditional rail telecom into digital infrastructure. Its biggest growth drivers are the new Noida data center, plans for 100+ edge data centers, and rising demand for secure government and enterprise connectivity.

To know more check the RailTel Corporation fact sheet and latest quarterly results.

#3 Netweb Technologies India

Netweb Technologies India designs and produces data-center servers, HPC/supercomputing systems, private cloud appliances, and AI workstations from its Faridabad facility, partnering with NVIDIA, AMD, and Intel under "Make in India."

These products support data center infrastructure but do not include owning or managing facilities themselves.

Financial Highlights

In Q3 FY26, revenue stood at Rs 8,049 m, a strong growth of 141% YoY.

The company reported an operating EBITDA of Rs 979 m in Q3 FY26, a YoY growth of 127.1%, while profit after tax reached Rs 733 m, a 146.7% YoY growth. During the quarter, Netweb successfully executed a large strategic order valued at Rs 4,504 m.

Post the Q3 results, the management indicated the organic order book is Rs 5,258 m and the strategic order book is Rs 17,336 m. This order book along with strong pipeline positions the company for strong sustained growth over the next few years.

Netweb's continued focus on its three strategic growth pillars, HPC, Private Cloud, and AI systems is enabling it to capitalise on strong industry tailwinds.

To know more check the Netweb Technologies fact sheet and latest quarterly results.

Should You Consider Stocks Associated with the Data Center Space?

India's data center sector is likely to experience strong growth, fuelled by increasing digital demand, the adoption of artificial intelligence, and favourable government policies.

Nevertheless, investors are urged to approach this sector with caution. The anticipated surge in demand and attractive growth opportunities are often already reflected in current valuations. It's crucial to carefully evaluate the value attributed to such growth.

While some opportunities may offer substantial potential, exercising prudence and conducting thorough, independent research is essential before making any investment decisions.

Additionally, for most companies involved in data centers, this segment typically contributes only a small fraction to their overall revenue.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...