Cut TP to INR650; maintain Buy: Visibility on revenues for cloud segment should improve from 2QFY27F

研报英文原文证据摘录

Cut TP to INR650; maintain Buy: Visibility on revenues for cloud segment should improve from 2QFY27F

Global Markets Research

Anant Raj ANRA.NS ARCP IN 23 June 2026

EQUITY: PROPERTY

RatingCut TP to INR650; maintain Buy Remains Buy

Target priceVisibility on revenues for cloud segment should improve Reduced from INR INR 650from 2QFY27F 700

Action: FY27F/28F EPS cut by 8%/10%; TP cut to INR650 (from INR700) Closing22 June price2026 INR 532

We lower our FY27F/28F EPS on: (1) a slower-than-expected ramp-up of cloud capacity, given

handovers/testing by customers are taking slightly longer than we had anticipated; and (2) a slower- Implied upside +22.2%

than-expected pace of residential project launches (which were expected in FY26 previously). We

cut our SOTP based TP to INR650 as we now factor in a relatively more moderated annual cloud Market Cap (USD mn) 2,023.5

capacity addition of 3MW (vs 4MW previously) and expect cloud mix at 10-11% (vs 13-14% ADT (USD mn) 17.5

previously; and management guidance of 25% cloud mix). ARCP recorded an EBITDA CAGR of

~50% over FY23-26, and we expect it to post an EBITDA CAGR of +30-35% over FY26-29F. Relative performance chart

Cloud rentals for the new 1.5MW capacity to start contributing from 2QFY27F

ARCP’s DC business rentals were at INR0.74bn in 4QFY26 (vs INR0.17bn in 4QFY25 and

INR0.44bn in 3QFY26). Annualizing 4QFY26 rentals would take its FY27F DC business rentals to

INR2.96bn (vs INR1.76bn in FY26). ARCP currently has 0.5MW of cloud capacity in operation and

expects an incremental 1.5MW cloud capacity to begin contributing to revenues from 2QFY27F

onwards (vs end-FY26 previously). According to management, testing/handovers for cloud setup

takes ~4-6 months to start generating rentals.