Data Centre — sector analysis & key numbers

Companies

5

Total market cap

₹85,152 Cr

Relative strength

70.9

RRG quadrant

narrowing

Weeks in streak

10

In Stage-2 uptrend

3 of 5

Above 200-DMA

3 of 5

Beating NIFTY 500

3 of 5

Latest-quarter revenue

₹4,218 Cr

Latest-quarter profit

₹406 Cr

Aggregate P/E

41.3×

Valuation percentile

52nd of its own history

Sector wind

strong tailwind

Data as of

1 July 2026

The research read on Data Centre: mid-way through a confirmed up-move.lifecycle_bucket

Curve and qual agree on the substance; social is thin and divided — so mixed, with the disagreement on price/altitude rather than direction. CURVE: a real 9.1x earnings compounder with PAT still accelerating (+57% then +18%) and OPM rebuilt to 14.37%, earnings-led per the deterministic ground (+245.1% earnings vs +47.8% multiple) — froth-shedding into rising earnings, not distress. QUAL: a strong tailwind / moderate high / early recovery, anchored on capacity doubling by FY27, $180bn of 2026 commitments and a 20-year tax-exemption draft policy. SOCIAL: thin and now split — a bearish operator view against a bullish ancillaries view, a 50 composite that cannot independently confirm. The shared warning, not a stream conflict, is the deterministic verdict re rated expensive — trailing PE 75th percentile, normalized PE 88th, margins NOT depressed (OPM 67th percentile) — so you are paying a growth-priced multiple, and a social voice flags PEG>2. Lifecycle is broken out mid-move. Conviction is genuinely supported because the move is earnings-led off accelerating PAT with the strongest RRG in the batch (rrg_score 93.2, rs_3m +41.25) and a capital-flows ideal trough setup read — but capped below a top score for two structural reasons: (1) social is THIN and divided, so it cannot raise conviction; (2) BRONZE confidence on a 5-company sector where the only listed pure-play (Anant Raj) is small and the move is concentrated (Anant Raj + Techno + Black Box = 87% of aggregate ΔPAT). The genuine risk is altitude/durability against an AI proof-of-value test, not direction.synthesis

What would change this view: Forward aggregate EPS fails to grow into the 88th-percentile normalized multiple — DC capacity additions slip on the named memory/GPU/optical-fibre supply shortages and an AI proof-of-value demand test materialises — so PAT growth decelerates while the multiple stays rich; that converts the re rated expensive call into a re-rating that ran ahead of earnings, breaking the earnings-led durability.would_change_my_mind

Among the strongest structural capex booms in India — AI/cloud-driven capacity doubling by FY27 on $180bn of 2026 commitments — but narrow listed proxies trade at full multiples.one_line_thesis

Research view from 2026-06-27

3 of 5 constituents are in Stage-2 price uptrends, 3 trade above their 200-day averages, and 3 are beating the NIFTY 500 on relative strength.stageabove_dma200rs_mansfield

Over the trailing ~20 weeks, the share of constituents above the 200-day line moved from 40% to 60% — participation is widening.breadth_series

Sector relative strength stands at 70.9, in the narrowing quadrant of the rotation map, with relative strength rising over a 10-week streak.current_rsquadrant

Recent stage changes: TECHNOE (stage 1→4).stage

Data as of 2026-07-01

In the latest reported quarter (2026-03), constituents together booked ₹4,218 Cr of revenue (+25.9% year-on-year) and ₹406 Cr of profit (+9.4%).revenuepat

On the annual arc, aggregate profit grew 18% to ₹1,439 Cr in 2026.pat

Data as of 2026-06-27

Sector profit moved from ₹1,215 Cr to ₹1,439 Cr (+18.4% year-on-year) — the decomposition attributes the larger share to the revenue side (demand and volumes).pat

Sector revenue moved from ₹11,609 Cr to ₹14,516 Cr (+25% year-on-year).revenue

The aggregate P/E moved from 27.9× to 41.3× (+47.8%) while sector profits moved +245.1% — earnings led the multiple — the durable pattern.pe

Capital cycle: money is neither decisively entering nor leaving this industry, with constituent capex running -43.6% year-on-year.readcapex_yoy_pct

Research view from 2026-06-27

Ownership: institutional (FII+DII) holdings moved -1.14 percentage points over four quarters; promoter stakes moved -1.57 points over two.fii_dii_delta_4qpromoter_delta_2q

Constituents spent ₹1,636 Cr on capex in the trailing twelve months (-43.6% year-on-year), with gross block growing +61.9%.capex_ttm_sum_crcapex_yoy_pct

On the deterministic capital-flow read, money is neither decisively entering nor leaving this industry.read

Research view from 2026-06-27

The sector trades at an aggregate P/E of 41.31× against a range of 12.75–80.62× over its 40-quarter history.pe

The median constituent sits at the 52nd percentile of its own 10-year valuation range.percentile

Data as of 2026-06-27

5 companies make up this sector, led by Netweb Technologies India Ltd at ₹28,150 Cr of market value.constituents

Data as of 2026-07-01

Tailwind chain: Surge in AI-driven data center capacity and renewable integration requiring massive grid upgrades. Also touches: Capital Goods - Transformers, Cables - Power, Electrical Equipments/HVDC.triggermechanism

Research view from 2026-06-27

Institutional money is NOT yet crowding in: FII+DII holdings moved just +0.24 percentage points across constituents over the last two quarters — the capital-flow read is neutral.fii_dii_delta_2qread

Data as of 2026-07-01

Straight answers from the data