‘Airtel data center arm Nxtra’s revenue from operations up by 17% to ₹2,430 crore in FY26’
The revenue from operations of Bharti Airtel’s data center arm, Nxtra, increased by nearly 17% year-on-year to ₹2,430 crore in the financial year 2026 (FY26), while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged by 24% year-on-year, according to analysts at JM Financial.
“Nxtra delivered a robust performance in FY26 with revenue from operations growing by 17.1% year-on-year to ₹24.3bn and EBITDA by a strong 24.8% year-on-year to ₹9.8bn, aided by a 250bps improvement in EBITDA margin to 40.3%, from 37.8% in FY25,” JM Financial said in a research note.
Nxtra accounted for an 11% share in Airtel Business in FY26.
“Within Airtel Business, Nxtra’s data centre business accounted for an 11% share and posted 17-25% year-on-year growth in FY26 revenue/EBITDA and profit of ₹2.4 billion,” said CLSA in a research note separately.
“Nxtra’s 12M revenue growth accelerated by 3ppt while the EBITDA growth nearly doubled to 25% with margins expanding to 40%,” it added.
The data center operator has a co-location business model, with a network of 14 hyperscale and more than 120 edge data centers nationwide, with a combined 250MW capacity that caters to enterprises and government.
The data center company has come onto the centrestage following the Sunil Mittal-led telco’s ambitions to double down on cloud, cloud communications, finance & money, and payments bank.
Nxtra aims to double its capacity to 1GW over the next few years, and capture a 25% share of the market.
“These expansion plans are expected to be further supported by anticipated industry-wide tailwinds from upcoming sovereign cloud regulations,” JM Financial said.
Nxtra has recently secured a $1 billion fundraise from marquee investors, including $435 million from Alpha Wave Global, $240 million from Carlyle, $35 million from Anchorage Capital, and the remaining $290 million from Bharti, to expand its network across India and accelerate growth.
According to JM Financial, Nxtra’s valuation of $3.1 billion post-closing of the transaction implies a high FY26 EV/EBITDA of ~32x, as its EBITDA was ₹980 crore in FY26 and net debt stood at ₹2,040 crore, “reflecting a growth premium for its 1GW expansion plans”.
Last year in October, Airtel entered into a strategic partnership with Google to establish a $15 billion gigawatt-scale AI data centre in Visakhapatnam, Andhra Pradesh. It will also involve ecosystem partners, including AdaniConneX.
