INDIQUBE - Indiqube Spaces

📊 NSE: INDIQUBE 🏢 Diversified Commercial Services 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 38% YoY to INR 668 Cr in H1 FY26. Recurring revenue, primarily from rental and managed services, contributed 96% (INR 643 Cr), while One-Time Revenue from Design & Build projects grew 78.5% to INR 25 Cr.

Geographic Revenue Split

Operations are spread across 15-16 cities including Bengaluru, Hyderabad, and Tier II cities. While specific % splits per city are not disclosed, the company maintains a large dominance in Bengaluru and is expanding into Tier II markets to diversify revenue.

Profitability Margins

PAT margins improved significantly from 2% in H1 FY25 to 7% in H1 FY26 (IGAAP equivalent). Operating margins (IGAAP) improved from 14% in FY23 to 18% in FY25, driven by higher occupancy and cost optimization.

EBITDA Margin

EBITDA margin reached 21% in Q2 FY26, up from 17-18% in the previous year. This 3% improvement is attributed to a 1% reduction in salary costs as a % of revenue, 1% savings from solar power commissioning, and a 1% delta between client rental increases and landlord inflation.

Capital Expenditure

Historical capex for H1 FY26 was INR 180 Cr. Management has guided for a total capex of approximately INR 350 Cr for the full fiscal year 2026 to fund the build-out of the 3.34 million sq. ft. headroom.

Credit Rating & Borrowing

CRISIL A+/Stable rating affirmed. The company maintains a healthy financial risk profile with a comfortable DSCR; however, it reported an Ind AS accounting loss of INR 139.62 Cr in FY25 due to Ind AS 116 lease accounting adjustments.

⚙️ Operational Drivers

Raw Materials

Not a manufacturing entity; key operational costs include Purchase of Traded Goods (5.4% of H1 FY26 revenue), Employee Benefits (6.7% of revenue), and Other Expenses including rent and facility management (67% of revenue).

Import Sources

Sourcing is domestic, primarily involving real estate leases from local landlords and procurement of office fit-out materials and furniture from Indian vendors.

Key Suppliers

Suppliers include various property landlords across 15 cities and vendors for 'IndiQube One' services such as catering, transportation, and facility management.

Capacity Expansion

Current area under management is 9.14 million sq. ft. across 125 centers. Rent-yielding area is 5.8 million sq. ft., with a planned expansion of 3.34 million sq. ft. (approx. 75,000 seats) to be operational within 18-24 months.

Raw Material Costs

Operating expenses (IGAAP) were INR 528 Cr in H1 FY26. Procurement strategies focus on 'Bespoke' design-and-build models where costs are often passed through or factored into long-term enterprise contracts.

Manufacturing Efficiency

Occupancy levels improved from 85% to 87% in Q2 FY26. Steady-state occupancy is maintained above 85% to ensure healthy center-level margins.

Logistics & Distribution

Distribution costs are minimal, primarily related to 'IndiQube One' B2B/B2C services like employee transportation and catering.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved by operationalizing the 3.34 million sq. ft. headroom over 18-24 months, expanding into Tier II cities, and scaling the 'Bespoke' (Design & Build) and 'IndiQube One' (VAS) segments which offer healthy margins.

Products & Services

Managed office spaces, co-working desks, 'Bespoke' design and build offices, facility management, catering, and employee transportation.

Brand Portfolio

IndiQube, IndiQube Grow, IndiQube One, MiQube (Technology Stack).

New Products/Services

Expansion of 'IndiQube One' value-added services and 'Bespoke' design projects, which contributed to the INR 25 Cr one-time revenue in H1 FY26.

Market Expansion

Targeting increased presence in Tier II cities and deepening dominance in existing 15 cities like Bengaluru and Hyderabad.

Market Share & Ranking

One of the largest flexible workspace platforms in India with 9.14 million sq. ft. under management.

Strategic Alliances

Partnerships with landlords for 'Bespoke' models and enterprise clients like the 'world’s largest asset manager' for a 1.4 lakh sq. ft. signup in Bangalore.

🌍 External Factors

Industry Trends

The flexible workspace industry is growing as enterprises decouple real estate from services. IndiQube is positioned as a 'workspace and service solution' provider rather than just a landlord.

Competitive Landscape

Competes with traditional office space providers and other co-working players; differentiates through 'value pricing' and 'zero capex' for clients.

Competitive Moat

Moat is built on a 96% recurring revenue model, high renewal rates (80-85%), and a proprietary tech stack (MiQube) that enables consistent facility management across 125 centers.

Macro Economic Sensitivity

Sensitive to corporate hiring trends and GDP growth; however, the shift toward 'zero capex' flexible offices by enterprises acts as a hedge during economic uncertainty.