Summary
IndiQube Spaces Limited - Q3 FY26 Earnings Call Summary Wednesday, February 11, 2026 2:00 PM IST
Event Participants
Executives 5 Meghna Agarwal (Co-Founder & COO), Pawan Jain (CFO), Rishi Das (Chairman & CEO), Vamsi Chatrathi (AVP-Marketing), Vikas Agrawal (Head-IR)
Analysts 5 Adhidev Chattopadhyay (ICICI Securities), Dhairya Trivedi (DJT Investments), Mohit Agarwal (IIFL), Shamit Ashar (Ambit Capital), Siva (Ithought PMS), Yashas Gilganchi (BOB Capital Markets)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹395 crores | +45% YoY; highest-ever quarterly revenue driven by occupancy gains and VAS. |
| Profit After Tax (PAT) | ₹40 crores | +100% YoY; reflects underlying operational strength and scale. |
| EBITDA Margin | 21% | +500 bps YoY from 16%; improvement attributed to captured operating leverage. |
| ROCE | 23% | +800 bps YoY vs 15%; shows improved capital efficiency post-listing. |
| Area Under Management | 9.55 million sq. ft. | +1.5 million sq. ft. YoY; includes 6.3 million sq. ft. of rent-yielding area. |
| Total Seats | 2,12,000 count | +33,000 seats YoY; portfolio consists of signed and operational inventory. |
| Portfolio Occupancy | 84% | +300 bps YoY; momentary decrease from Q2 due to 7.8 lakh sq. ft. fresh additions. |
| VAS Revenue Share | 13% | +100 bps YoY; growth driven by design-and-build (D&B) and IT services. |
Geographic & Segment Commentary
- South India: This region remains the primary growth engine, accounting for 80% of the pan-India portfolio and 80% of total GCC absorption in Q3. The company maintains market leadership in Bangalore, Chennai, and Hyderabad, effectively positioning itself as the preferred partner for Global Capability Centers.
- Tier 2 Cities: Footprint expanded with a new entry into Bhubaneswar, bringing total Tier 2 presence to approximately 8% of the portfolio. Management observes supply shortages in markets like Coimbatore (3.5 lakh sq. ft.) and is exploring build-to-suit options to meet localized demand.
- Global Capability Centers (GCC): This segment contributes 56% of total revenue and reflects high stickiness with negligible churn. GCCs often utilize multi-city presence, with 40% of clients operating across more than one IndiQube center.
Company-Specific & Strategic Commentary
- Sustainability Leadership: Fully commissioned a 20-megawatt solar farm in Yadgir, Karnataka, and is going live with a 4-megawatt farm in Latur. These captive units provide approximately 50% power cost savings and support the transition to green power for the Bangalore portfolio.
- Asset Refurbishment (Cornerstone): Focused on upgrading older buildings (some 20-50 years old) in Central Business Districts to gold/platinum green ratings. Management is also offering “renovation-as-a-service” and green power solutions to third-party landlords.
- Technology Integration: The MiQube ecosystem surpassed 100,000 downloads and 1 million transactions over 9 months. Upgraded space management modules allow enterprises to toggle between dedicated and hot-desking, optimizing real-time workspace efficiency.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Annual Revenue Growth | ~30% Growth (FY27) | Supported by a 3.26 million sq. ft. signed pipeline becoming operational. |
| Portfolio Occupancy | 82% - 85% (Steady State) | Mature centers expected to consistently operate between 85% - 90%. |
| VAS Revenue Share | 15% (FY27) | Expansion driven by scaling F&B, mobility, and IT product rentals. |
| Capital Expenditure | ~₹350 - ₹360 crores (FY26) | Split between interior fit-outs (growth) and solar farm capacity. |
Risks & Constraints
| Risk | Context |
|---|---|
| Concentration Risk | While 80% of the portfolio is in South India, management views this as a strategic moat rather than a risk due to the region’s high absorption levels. |
| Revenue Volatility | Quarterly EBITDA and occupancy may fluctuate based on the timing of adding large, new rent-paying areas. |
| Accounting vs. Cash PAT | Ind AS requirements for lease liabilities create non-cash accounting losses; however, the company is tax-PAT positive. |
Q&A Highlights
Expansion Pipeline
- Question: What is the visibility on AUM growth over the next 18-24 months? (Adhidev Chattopadhyay)
- Answer: There is a signed pipeline of 3.26 million sq. ft. (72,000 seats) already in place. This provides strong visibility to maintain a 30% annual topline growth rate (Meghna Agarwal).
Lease Liabilities Clarification
- Question: How should investors interpret the lease liabilities on the balance sheet? (Analyst Community)
- Answer: These are non-cash accounting entries under Ind AS representing future rentals. Contractual lock-ins with landlords average only 3.5 years, so these should not be treated as financial debt (Meghna Agarwal).
Client Retentions & Churn
- Question: What are the current retention rates and how do you manage older centers? (Dhairya Trivedi)
- Answer: Client retention is upwards of 95%. Older centers (5-7 years) maintain 90%+ occupancy. Management proactively renovates aging fit-outs to maintain premium positioning (Rishi Das).
Solar Capex & Savings
- Question: What is the financial impact of the solar farm initiatives? (Adhidev Chattopadhyay)
- Answer: The units generate power at roughly 50% of the cost of grid power (₹7.5/unit in Karnataka). We aim to add 5-10 MW of incremental capacity annually to match portfolio growth (Rishi Das).
Key Takeaway
IndiQube delivered a robust Q3 FY26 with record revenues of ₹395 crores and a 100% YoY increase in PAT, underpinned by a 21% EBITDA margin. The company has successfully leveraged its dominance in South India, which accounts for 80% of its portfolio and the majority of national GCC absorption. Strategically, the firm is transitioning toward a sustainable model with 24 MW of operational solar capacity and a focus on “Cornerstone” refurbishments. With a 3.26 million sq. ft. pipeline already signed and a net-cash balance sheet, the management is well-positioned to maintain its 30% revenue growth guidance while targeting 15% revenue contribution from value-added services. Investors should monitor the timely conversion of the signed pipeline into rent-yielding area to sustain current momentum.
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