Indiqube Spaces Limited

IndiQube reported its highest-ever quarterly revenue of ₹395 crores in Q3 FY26, marking a robust 45% year-on-year growth. For the nine-month period ending December 2025, revenue stood at ₹1,063 crores, reflecting a 37% YoY increase. Profit after tax (PAT) for Q3 FY26 was ₹40 crores, more than doubling compared to the previous year, while 9-month PAT reached ₹95 crores, a significant 284% YoY growth. The company's Return on Capital Employed (ROCE) also improved to 23% in Q3 FY26 from 15% in the same quarter last year, demonstrating enhanced capital efficiency.

Since Q3 last year, IndiQube expanded its area under management by 1.5 million square feet, adding 33,000 seats and launching 21 new centers across three new cities, including Bhubaneswar. Portfolio occupancy improved to 84% from 81%. However, management noted potential temporary quarter-on-quarter volatility in occupancy and EBITDA due to the timing of^📎 new rent-paying area additions, such as the 7.8 lakh square feet added this quarter. The company guides for corporate-level occupancy to remain in the 80-85% range and mature centers to operate consistently between 85-90%.

IndiQube has made significant strides in sustainability, with 20-megawatt open access solar farms now fully operational in Yadgir, Karnataka, providing green power to a large percentage of its Bangalore buildings. A 4-megawatt solar farm in Latur is also in process. These initiatives are key milestones in the company's transition towards green power across its portfolio, with plans to add approximately 10-megawatts annually to meet its growing requirements.

Value-Added Services (VAS) contributed 13% to total revenue in the first nine months of FY26, up from 12% last year. Management expects this contribution to increase to 15% in the next financial year, with a net margin of approximately 15% for these services. While acknowledging the volatility of one-time^📎 VAS projects, such as a ₹19 crore design-and-build project for a large client, IndiQube differentiates between recurring and non-recurring^📎 VAS to manage expectations. The company's PAT remains positive and it consistently pays income taxes, with accounting losses under Ind AS primarily due to non-cash depreciation on right-of-use assets.

IndiQube's capex for H1 FY26 was approximately ₹180 crores, with similar spending expected in H2, totaling around ₹360 crores for the full year. Over ₹400 crores from IPO proceeds have been allocated towards capex, primarily for interior additions in managed offices and design-and-build projects to support a projected 30% annual topline growth. The company maintains a strong client retention rate exceeding 95% and benefits from client stickiness, with 300-plus seat clients forming over 60% of its portfolio and the top five clients contributing only 12% of revenue, mitigating concentration risk.

IndiQube's growth is largely driven by Tier 1 cities, though Tier 2 cities currently constitute 8% of its portfolio. The company continues to expand selectively into new and emerging Tier 1 and Tier 2 markets, with recent additions like Bhubaneswar and strengthening presence in micro-markets. Bangalore remains the largest market, absorbing 20-22% of India's total real estate, more than major global cities. IndiQube also holds a market leadership position in Chennai (1.2 million sq ft) and has significantly grown its presence in Hyderabad (from 70,000 to 280,000 sq ft) and Mumbai (from <50,000 to 175,000 sq ft).