Indiqube Spaces Q1 FY27 Earnings Call — Analysis (NSE: INDIQUBE)
Indiqube delivered its highest-ever quarterly revenue of ₹428 Cr (+37% YoY) with EBITDA ₹87 Cr (+34% YoY) and PAT ₹35 Cr (+91% YoY), while reiterating ~2 mn sq ft annual area addition and VAS mix expansion.
Result quality: poor — Loss widened. Management sentiment: neutral.
The take
Q1FY27 Revenue ₹428 Cr ( +37% YoY ) .
Results
Q1FY27 revenue was ₹428 Cr (+37% YoY), EBITDA ₹87 Cr (+34% YoY), EBIT ₹55 Cr (+59% YoY), and PAT ₹35 Cr (+91% YoY), with EBIT margin improving to 13% from 11% and PAT margin to 8% from 6%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹428 Cr | +37% | yoy · Q1FY27 · Q1FY26 |
| EBITDA | ₹87 Cr | +34% | yoy · Q1FY27 · Q1FY26 |
| EBIT | ₹55 Cr | +59% | yoy · Q1FY27 · Q1FY26 |
| PAT | ₹35 Cr | +91% | yoy · Q1FY27 · Q1FY26 |
| EBIT margin | 13% | +2pp | yoy · Q1FY27 · from 11% in Q1FY26 |
| PAT margin | 8% | +2pp | yoy · Q1FY27 · from 6% in Q1FY26 |
| EBITDA margin | 20% | none · Q1FY27 · reported as healthy; no YoY comparison stated |
Guidance
Reiterated close to 2 mn sq ft annual area addition and guided VAS mix to rise 2–4pp from 17%, with FY27 solar capacity addition of 25–30 MW requiring ₹100–120 Cr capex.
What management committed to
- Indiqube intends to add close to 2 million square feet [rent paying/rentable area] every year and remains committed to that growth trajectory.
Key themes
Managed workspace scaling with VAS mix expansion
Operational commentary
- AUM stood at 10.61 mn sq ft with 7.8 mn sq ft rent-paying and 6.74 mn sq ft rent-yielding; signed LOI pipeline/headroom was 3.9 mn sq ft (~97,000 seats), with conversion to operations expected in 12–16 months.
- Added 1.91 mn sq ft to AUM; Q1 rent-paying area was relatively flat sequentially because H2 FY26 added ~1.14 mn sq ft and delivery is annual rather than quarterly; management sees no slowdown and claims the area guidance is fully covered by the signed pipeline.
- VAS contribution reached ~17% of total revenue, up from 12% to 15% earlier; VAS is driven by DesignQube, IndiCare and Eco, and IndiCare is being extended to retail store/branch management.
- Client mix remained enterprise-focused: 855 clients, GCCs at 53% of revenue, multi-center clients at 41% of revenue, and ~90% of occupants from clients taking more than 100 seats; top five clients contributed only 12% of revenue.
- New centers reach operating breakeven in 5–6 months at ~52–57% occupancy and ramp to ~90% occupancy in 9–12 months; full capex recovery is ~36 months.
- Signed a large Noida center expected to go live by Q2/Q3 FY28; tech park presence is ~20% of portfolio, and institutional supply share has risen from ~12% to ~20%.
- Solar capacity at 30 MW operational; FY27 plan is to add another 25–30 MW with ₹100–120 Cr capex and solar IRR of 18–22%.
- Geographic diversification is increasing: Bangalore share is declining from ~60–64%, Chennai is ~10%, and larger signings in Hyderabad and Mumbai are expected during FY27.
Analyst Q&A
Q. Why was there no change in operational/rent-paying area addition in Q1FY27 and how will remaining additions be distributed across Q2–Q4 to meet the 2 mn sq ft guidance?
Meghna said area addition is annual rather than quarterly; H2 FY26 added ~1.14 mn sq ft so Q1 rent-paying area was relatively flat. No slowdown was seen, with 3.9 mn sq ft/97,000 seats already signed and conversion to operations in 12–16 months.
Q. What drove the ₹39 Cr jump in one-time VAS revenue and how should VAS be viewed for the rest of FY27?
Meghna said VAS is tracked on a consolidated basis across DesignQube, IndiCare and Eco; the one-time element should be considered recurring in nature, and VAS contribution is expected to increase from 17% by 2–4 percentage points.
Q. How much solar capex has been earmarked and what IRR is expected?
Rishi said 30 MW is operational, 25–30 MW addition is planned in FY27 requiring ₹100–120 Cr capex, with solar IRR at 18–22%.
Q. What drove the increase in interest expense?
Vikas clarified debt increased for solar plant investment, not the core leasing business.
Q. Can you provide Q1 operating cash flow and capex guidance for the balance year?
Meghna said capex and cash flow are internally calculated but declined to give provisional unaudited numbers, deferring detail to the H1 audit and review.
Q. Can you give a city-wise revenue-to-rent ratio breakdown?
Meghna said the ratio is calculated only at corporate level and city/building-wise analysis is not done.
Q. Are Hyderabad and Mumbai still expansion priorities over the next couple of quarters?
Rishi said the company is hopeful of signing larger spaces in both cities during FY27.
Q. How are Tier-2 centers performing and what is the plan to reduce Bangalore concentration?
Rishi said Tier-2 unit economics are similar to Tier-1 despite lower real estate and seat pricing; Bangalore share is declining as Chennai, NCR, Hyderabad and Mumbai growth accelerates.
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