The revenue from operations of Bharti Airtel\u2019s data center arm, Nxtra, increased by nearly 17% year-on-year to \u20b92,430 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. <\/p>\n
\u201cNxtra delivered a robust performance in FY26 with revenue from operations growing by 17.1% year-on-year to \u20b924.3bn and EBITDA by a strong 24.8% year-on-year to \u20b99.8bn, aided by a 250bps improvement in EBITDA margin to 40.3%, from 37.8% in FY25,\u201d JM Financial said in a research note. <\/p>\n
Nxtra accounted for an 11% share in Airtel Business in FY26. <\/p>\n
\u201cWithin Airtel Business, Nxtra\u2019s data centre business accounted for an 11% share and posted 17-25% year-on-year growth in FY26 revenue\/EBITDA and profit of \u20b92.4 billion,\u201d said CLSA in a research note separately. <\/p>\n
\u201cNxtra\u2019s 12M revenue growth accelerated by 3ppt while the EBITDA growth nearly doubled to 25% with margins expanding to 40%,\u201d it added. <\/p>\n
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. <\/p>\n
The data center company has come onto the centrestage following the Sunil Mittal-led telco\u2019s ambitions to double down on cloud, cloud communications, finance & money, and payments bank.
\nNxtra aims to double its capacity to 1GW over the next few years, and capture a 25% share of the market. <\/p>\n
\u201cThese expansion plans are expected to be further supported by anticipated industry-wide tailwinds from upcoming sovereign cloud regulations,\u201d JM Financial said. <\/p>\n
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. <\/p>\n
According to JM Financial, Nxtra\u2019s valuation of $3.1 billion post-closing of the transaction implies a high FY26 EV\/EBITDA of ~32x, as its EBITDA was \u20b9980 crore in FY26 and net debt stood at \u20b92,040 crore, \u201creflecting a growth premium for its 1GW expansion plans\u201d. <\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
The revenue from operations of Bharti Airtel\u2019s data center arm, Nxtra, increased by nearly 17% year-on-year to \u20b92,430 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. \u201cNxtra delivered a robust performance in FY26 with revenue from operations growing by 17.1% year-on-year to \u20b924.3bn and EBITDA by a strong 24.8% year-on-year to \u20b99.8bn, aided by a 250bps improvement in EBITDA margin to 40.3%, from 37.8% in FY25,\u201d JM Financial said in a research note. Nxtra accounted for an 11% share in Airtel […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1022411","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1022411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=1022411"}],"version-history":[{"count":1,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1022411\/revisions"}],"predecessor-version":[{"id":1022412,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1022411\/revisions\/1022412"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=1022411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=1022411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=1022411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}