India’s digital infrastructure is expanding very fast, and to capitalise on it, companies are steadily moving towards primary markets. Hyderabad-based CtrlS Datacenters, one of Asia’s largest rated data centre operators, has initiated discussions with merchant bankers to raise nearly INR 2,500–2,800 crore (USD 300 million) through an initial IPO. CtrlS Datacenters IPO, likely targeted by the end of FY27. This announcement comes at a time when data centre and AI-linked infrastructure assets are booming.

A Timely Entry into a High-Growth Cycle

CtrlS Datacenters IPO deliberations are not happening in isolation. The broader ecosystem is witnessing aggressive capital deployment. Recent investments into Bharti Airtel’s Nxtra, alongside upcoming listings from Sify’s data centre arm and Yotta Data Services, indicate that the sector is entering a capital-intensive expansion phase.

India’s data centre capacity is expected to cross 2 GW by 2026 and scale up to over 8 GW by 2030, implying a multi-fold expansion backed by more than USD 30 billion (~INR 2.78 lakh crore) in investments. This structural demand is being driven by data localisation norms, hyperscaler expansion, cloud adoption, and the rapid emergence of AI workloads.

CtrlS Datacenters IPO: Business Overview

Founded by Sridhar Pinnapureddy, CtrlS operates a diversified digital infrastructure platform spanning colocation, managed services, and hyperscale solutions. The company operates 17 data centres across Mumbai, Hyderabad, Chennai, Noida, and Bengaluru. The company caters to hyperscalers, BFSI institutions, telecom operators, and government entities.

CtrlS key strength lies in its pre-leased capacity model. As of August 2025, the company had an operational capacity of around 130 MW, with planned annual additions of 40–45 MW over the next three years, largely backed by contracted demand. This provides strong revenue visibility and mitigates occupancy risks typically associated with infrastructure assets.

Financial Performance

CtrlS reported operating income of INR 1,567 crore in FY25, marking a 17% year-on-year growth, largely driven by improved capacity utilisation. However, profitability remained relatively flat, with net profit slightly declining to INR 251 crore, reflecting the ongoing investment cycle.

The revenue growth is expected to accelerate to 20–25% annually over FY26–FY27, supported by existing contracts and incremental capacity additions.

That said, the business remains capital-intensive. The company is expected to incur capex of INR 4,500–4,600 crore between FY26 and FY28, primarily towards new data centres and associated infrastructure. A significant portion of this is likely to be debt-funded (INR 3,000–3,500 crore), increasing balance sheet leverage and reinforcing the need for equity capital through IPO.

Strategic Push Towards AI and Sustainable Infrastructure

CtrlS is aligning its growth strategy with two defining themes—AI infrastructure and sustainability. The company has been investing in AI-ready data centres and engineering capabilities to cater to high-density computing requirements.

Simultaneously, it has entered into a strategic partnership with NTPC Green Energy to develop over 2 GW of renewable energy capacity. This move is aimed at ensuring long-term energy security while aligning with global sustainability expectations, a critical factor for hyperscaler clients.

Competitive Intensity and Execution Risks

While the industry tailwinds are strong, competition is intensifying. Large incumbents and new entrants, backed by global capital, are aggressively expanding capacity. Players with deeper balance sheets may exert pricing pressure or accelerate project execution timelines.

Moreover, the sector’s heavy reliance on continuous capital infusion makes timing of fundraising crucial. CtrlS management has previously indicated that IPO timing would depend on AI demand visibility and broader geopolitical stability—both of which now appear to be gradually aligning.

Bottomline: CtrlS Datacenters IPO more about funding a long-duration infrastructure opportunity. With predictable cash flows, contracted revenues, and strong sectoral tailwinds, the company fits well within the emerging theme of digital infrastructure as a quasi-utility play.

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.