Indiqube Spaces Q2 FY27 Results (NSE: INDIQUBE)
Signal: Margin expansion
The read
The operating trajectory remains strong: consolidated Ind AS revenue rose 35% YoY to ₹472 Cr, EBITDA grew 43% to ₹297 Cr and EBIT grew 81% to ₹123 Cr, but the business still reported a ₹6 Cr loss because depreciation of ₹195 Cr and finance costs of ₹129 Cr absorbed operating profit; the key inflection is scale translating into higher operating margins while lease-accounting drag remains substantial.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹472 Cr | +35% | N/A |
| EBIT | ₹123 Cr | +81% | |
| Net profit | ₹-6 Cr | 80% loss narrowing | |
| EBIT margin | 25% |
P&L walk
Consolidated Ind AS revenue was ₹472 Cr, up 35% YoY, while EBITDA rose 43% to ₹297 Cr and EBIT rose 81% to ₹123 Cr; depreciation of ₹195 Cr and finance costs of ₹129 Cr converted operating profit into a ₹6 Cr PAT loss.
Key positives
- Consolidated Ind AS revenue reached ₹472 Cr, up 35% YoY, while H1 revenue reached ₹904 Cr, also up 35% YoY.
- EBITDA rose 43% YoY to ₹297 Cr and EBITDA margin expanded to 63% from 59%, showing stronger operating profitability before lease-related accounting charges.
- The platform expanded to 10.86 Mn sq. ft., 241 K seats, 138 centres and 17 cities, with steady-state occupancy at 91%.
- Value Added Services revenue grew 74% to ₹154 Cr in H1FY27 and contributed 17% of operating revenue, improving the quality and breadth of the revenue mix.
- Enterprise demand remains meaningful, with GCCs contributing 54% of revenue and multicenter clients contributing 41%.
Key concerns
- Reported consolidated PAT was still a ₹6 Cr loss despite ₹297 Cr of EBITDA, as depreciation of ₹195 Cr and finance costs of ₹129 Cr outweighed operating profit.
- Finance costs rose 21% YoY from ₹107 Cr to ₹129 Cr, indicating that lease liabilities remain a major drag on reported earnings.
- The filing presents a wide accounting gap: consolidated Ind AS EBITDA was ₹297 Cr and PAT was ₹-6 Cr versus IGAAP-equivalent EBITDA of ₹105 Cr and PAT of ₹57 Cr, making reported earnings difficult to assess without the reconciliation.
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