IndiQube Spaces Limited: Soaring to New Heights with Record H1 FY26 Performance

IndiQube Spaces Limited, a prominent player in India's flexible workspace sector, has delivered an exceptional performance in the first half of fiscal year 2026 (H1 FY26), marking a significant milestone in its journey. The company reported its highest-ever half-yearly revenue of ₹668 Crores, demonstrating robust growth and operational efficiency. This impressive financial achievement is underpinned by a strong focus on recurring revenue, which constituted a remarkable 96% of the total, signaling a stable and predictable business model. The company's Profit After Tax (PAT) for Q2 FY26 surged to ₹28 Crores, reflecting a consistent commitment to profitability and resilience.

The financial highlights for H1 FY26 reveal a 33% year-on-year increase in revenue, climbing from ₹503 Crores in H1 FY25. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw an impressive 85% growth, reaching ₹139 Crores, with the EBITDA margin expanding to 21% from 15% in the prior year. This margin expansion is attributed to factors such as reduced salary expenses as a percentage of revenue, substantial savings from their 20-megawatt solar power plant, and improved per-seat revenue from clients. The company's cash flow from operations more than doubled to ₹151 Crores, underscoring its strong liquidity and operational health. This robust performance, coupled with a reaffirmed CRISIL A+ / Stable rating, reinforces IndiQube's resilient business model and disciplined growth strategy.

Operational Excellence and Strategic Expansion

IndiQube's operational prowess is evident in its expanding footprint and high occupancy rates. The company's Area Under Management (AUM) reached 9.14 million square feet across 125 centers in 16 cities, including new additions like Indore. Occupancy levels remained strong at 87% at a portfolio level, significantly up from 81% in Q2 FY25. This high occupancy, combined with an exceptionally low monthly churn rate of 0.01%, highlights IndiQube's success in client retention and satisfaction. The client base is well-diversified, comprising 40% Global Capability Centers (GCCs) and 60% Indian enterprises, with a strong focus on large, long-stay clients occupying over 300 seats, accounting for 65% of total occupancy.

Strategically, IndiQube is focused on both Tier 1 and Tier 2 cities, following the talent migration trends. The company employs a hub-and-spoke model in dense micro-markets, offering flexible solutions for various client needs. To ensure cost-effective supply, IndiQube leverages its 'Cornerstone' model, which involves renovating aging properties through technological upgrades and green initiatives. This approach allows them to acquire older assets at a fraction of the cost of new buildings, yielding significant improvements in per-seat revenue and quick payback periods of 18-30 months for renovations.

Digital Leadership and Future Outlook

Digital innovation remains a cornerstone of IndiQube's strategy. The company's MiQube platform powers digital workplaces, and in Q2 FY26, new features were launched, including AI routing for transport management and a cafeteria crowd meter module. These innovations aim to enhance employee experience, optimize operations, and improve productivity. A space management module is also slated for rollout in the coming quarters, offering clients greater flexibility in configuring their workspaces.

Management has provided optimistic guidance for the future. The total signed portfolio of 9.14 million square feet is expected to become operational within the next 18 to 24 months, translating to approximately 30% top-line growth for the next two years. The rent-paying area is projected to reach 7.6 to 7.67 million square feet by March '26. Capital expenditure for FY26 and FY27 is anticipated to remain in a similar range to the H1 FY26 spend, around ₹350-360 Crores annually. Furthermore, the contribution from Value Added Services (VAS) is expected to increase from 13% to at least 15% in the next financial year, and the company aims to achieve free cash flow breakeven or slightly positive status in FY27. IndiQube's proactive approach to market trends, including the impact of AI on office space demand, positions it as a thought leader in the flexible workspace industry.

Conclusion: Sustained Growth and Strategic Clarity

IndiQube Spaces Limited's H1 FY26 performance underscores its strategic clarity and disciplined execution. The company's ability to deliver record revenues, strong profitability, and robust cash flows, while simultaneously expanding its footprint and innovating digitally, paints a picture of sustained growth. With a clear roadmap for operational expansion, a focus on tech-driven solutions, and a resilient business model, IndiQube is well-positioned to capitalize on the growing demand for flexible workspaces in India, reinforcing investor confidence in its long-term trajectory.