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IndiQube FY26: Record Revenue, Rising Margins, and a Clear Playbook on Scale

IndiQube Spaces Limited closed FY26 with its strongest operating and financial year yet, at least in the company’s preferred “IGAAP equivalent” view of performance. For FY26, IndiQube reported revenue of ₹1,469 crore, up 37% over FY25, EBITDA of ₹301 crore, up 60%, and PAT of ₹125 crore, up 145%. Margins expanded meaningfully as well, with EBITDA margin at 21% (vs 18% in FY25) and PAT margin at 9% (vs 5% in FY25).

The company’s leadership framed FY26 as a year defined by execution consistency amid external uncertainty. Management pointed to geopolitical volatility and questions around the long-term impact of AI on work as part of the backdrop. Yet, the company ended the year with stronger profitability, a sharp improvement in operating cash flows, and a materially healthier balance sheet.

A quick read on the business model and platform

IndiQube presents itself as more than a coworking operator. Its platform is described across multiple layers: IndiQube Grow for plug-and-play managed workspaces, IndiQube One for workplace management services, IndiQube Bespoke for design and build offerings, MiQube as a technology stack, and IndiQube Cornerstone for green workspace solutions.

Operationally, as of March 2026, the platform scaled to 17 cities and 130 centers, with area under management of 9.66 million sq. ft. and a capacity of about 215,000 seats. Mature center performance remained steady, with “steady state occupancy” at 88% compared with 87% in March 2025.

The company also highlighted an internal growth runway through its area stack. As of March 2026, occupied area (rent yielding area) was 6.33 million sq. ft., operational area (rent paying area) was 1.51 million sq. ft., and LOIs signed were 1.82 million sq. ft., within the total AUM of 9.66 million sq. ft.

FY26 and Q4 FY26 financials (IGAAP equivalent)

IndiQube’s investor presentation emphasises IGAAP equivalent metrics, which exclude certain Ind AS 116 lease accounting impacts. Under this view, FY26 performance was a clear step up in scale and profitability.

Q4 FY26 also delivered the company’s best quarterly revenue at ₹407 crore (up 36% year on year). EBITDA was ₹80 crore and PAT was ₹30 crore for the quarter.

A notable feature of the P&L is the predominance of recurring revenue: in FY26, recurring revenue was ₹1,385 crore, with one-time revenue at ₹85 crore.

Ind AS versus IGAAP equivalent: why the company insists on the bridge

The company devoted multiple slides and a dedicated investor Q&A section to explain why Ind AS numbers can appear loss-making even when cash generation and tax payments continue.

Management attributed the gap primarily to Ind AS 116 lease accounting, under which the company recognises right-of-use (ROU) depreciation and interest on lease liabilities. For FY26, the presentation quantified Ind AS 116 impact as interest on lease liabilities of ₹411 crore and depreciation on ROU assets of ₹506 crore, and contrasted it with actual payment of lease liabilities of ₹647 crore.

IndiQube also argued that lease liabilities should be considered operational in nature, not financial debt, and noted that while lease tenures with landlords may span 10 to 20 years, the company’s practical contractual commitment is anchored around lock-in periods, described as typically about 3.5 years.

This accounting explanation matters for investors because the company’s narrative, guidance, and internal decision-making appear anchored to the IGAAP equivalent view, while statutory reporting under Ind AS can show losses.

Cash flows and balance sheet: stronger liquidity, lower net leverage

One of the most material improvements in FY26 was operating cash flow. The company reported cash flow from operations of ₹304 crore in FY26 versus ₹123 crore in FY25.

Balance sheet indicators also improved sharply. Net worth increased to ₹1,160 crore in FY26 from ₹374 crore in FY25. Net debt moved to negative ₹95 crore (from ₹338 crore in FY25), supported by higher bank balances and cash. Gross debt declined to ₹290 crore from ₹344 crore.

The presentation also reported an improvement in RoE from 14% in FY25 to 16% in FY26.

Operational scale with a focus on mature-center occupancy

IndiQube’s operating metrics show continued expansion without a meaningful deterioration in mature asset performance.

As of March 2026, the company reported:

• 9.66 million sq. ft. AUM (up 15% year on year)
• 130 centers (up 13%)
• 215,000 seats (up 15%)
• steady state occupancy of 88%

The Q4 conference call addressed an investor question on portfolio occupancy, with management stating that end-of-month occupancy for March 2026 was 81%, but average occupancy for the year was about 84%. Management repeatedly emphasised that quarter-to-quarter movements should not be read in isolation due to the ramp-up cycles of newly operational buildings.

Value-added services and MiQube: moving beyond “rent only”

A recurring strategic lever in both the presentation and call was the rising contribution from value-added services (VAS). The company reported VAS contribution at 15% of revenue in FY26, up from 12% in FY25. Management said it expects VAS contribution to increase further to about 17% to 18%.

On the technology side, MiQube reported 119,000+ app downloads and 1.4 million transactions in FY26, compared with 1.0 million in FY25. The company positioned MiQube as part of the broader workplace experience layer across clients and employee services.

Sustainability and solar: cost lever plus client pull

A key theme in management commentary was energy cost control through solar investments.

On the call, the CEO said a 4 MW solar plant in Latur (Maharashtra) is operational, alongside an operational 20 MW solar farm in Yadgir (Karnataka). A 2.7 MW solar farm in Virudhunagar (Tamil Nadu) was described as expected to be operational soon. The CEO linked green power to structural cost reduction and insulation against rising energy costs.

Management also highlighted client demand as a driver, noting that some clients want micro or mini data centers and consume high power. IndiQube positioned its green power capability as a differentiator for such requirements.

In terms of forward plans, management stated it intends to add about 30 to 35 MW of solar in the coming year, focused on Karnataka, Tamil Nadu, and Maharashtra, with an indicative capex of ₹125 to ₹150 crore.

Management guidance: growth with margins, not growth at any cost

For FY27, management provided relatively clear directional guidance on the call:

• revenue growth of 25% to 30%
• EBITDA margin in the range of 18% to 21%
• PAT margin in the range of 8% to 10%

Operationally, the company reiterated its annual expansion cadence of adding about 1.5 to 2.0 million sq. ft. of rent paying area per year, equivalent to roughly 33,000 to 44,000 seats.

Management also offered a philosophical rationale for not pursuing “growth at any cost”, citing a preference for defensible micro markets and long-term quality of landlord relationships.

Takeaways for investors

IndiQube’s FY26 performance, in its IGAAP equivalent framing, shows a company scaling with improving profitability and stronger operating cash flows. The balance sheet improvement is particularly notable, with net debt turning negative and net worth rising sharply.

The questions investors will likely keep tracking are execution through the ramp-up cycle of new supply, sustained steady state occupancy, and whether VAS and green energy initiatives continue to lift unit economics. Management’s FY27 guidance sets expectations for continued expansion with margins maintained, while solar and VAS appear positioned as structural levers rather than one-off initiatives.