Nukleus Office Solutions FY26: Growth Continues as Expansion Spending Rises

Nukleus Office Solutions Limited operates co-working and managed office spaces, with a portfolio concentrated in Delhi NCR and a presence in Bengaluru. In FY26, the company reported Total Income of ₹36.19 crore, up 25.49% year on year. EBITDA grew faster than revenue, rising 38.12% to ₹9.17 crore, while profit after tax stood at ₹2.14 crore. In H2 FY26, Total Income was ₹18.88 crore and EBITDA was ₹5.08 crore, showing continued momentum in the second half.

Management attributed the performance to steady occupancy trends, demand for managed office solutions, and expanding scale across flexible workspace formats. The company reported around 25 centres with roughly 85% occupancy. It also highlighted continued investments in workspace infrastructure and technology, which management believes is improving lead conversion, seat utilization and operational efficiency.

Business mix and what changed in FY26

The revenue mix remains co-working led. In FY26, co-working space on rent and allied services contributed 76.38% of Total Income. Managed offices contributed 21.65%, and other income streams made up 1.98%.

Notably, the investor presentation’s segment table shows managed office revenue declining in FY26 compared with FY25. During the earnings call, management also acknowledged that a revenue-mix slide had an issue and said it would be corrected, which is important context for investors relying on segment-level trends.

Expansion is visible in the balance sheet and cash flow

FY26 was also a year of heavy investment. Fixed assets rose to ₹35.25 crore from ₹13.52 crore in FY25, which management linked to investments in workspace infrastructure, technology platforms and managed office expansion initiatives.

This expansion is also visible in cash flows. Operating cash flow was positive at ₹3.63 crore in FY26, but investing cash outflows were ₹26.41 crore. As a result, cash and cash equivalents declined to ₹7.57 crore at the end of FY26 from ₹23.96 crore at the end of FY25.

Borrowings increased as the company scaled. Non-current borrowings stood at ₹15.73 crore and short-term borrowings at ₹2.29 crore as of FY26. Management addressed questions on leverage by noting that finance costs rose modestly and that debt was being used to support growth.

Strategy focus: managed offices, technology and a larger footprint

Management’s strategic narrative is centered on scaling enterprise-led managed offices and using technology to improve execution. The company described several tools including AI-powered voice assistance for lead handling, a client mobile application for bookings and service requests, and operational systems such as inventory monitoring, asset tracking and executive dashboards.

On the earnings call, management also explained why it wants to increase the mix of managed offices over time. The key point was scalability and visibility: enterprise deals are larger and managed office agreements were described as typically spanning 4 to 9 years. The longer contract structure is positioned as a way to reduce vacancy risk compared with filling large co-working inventories through many smaller customers.

The company also highlighted its upcoming growth pipeline. The investor deck lists planned additions including C3 in Noida (1,15,000 sq. ft.), Wave One in Noida (57,455 sq. ft.) and a site at Shivaji Stadium Metro Station in Connaught Place (23,169 sq. ft.). Management described these projects as strengthening presence in strategic commercial locations and improving the ability to serve large enterprise requirements.

Takeaways for investors

Nukleus delivered strong FY26 growth, with EBITDA expanding faster than Total Income, suggesting improving operating leverage. At the same time, the business is consuming capital to expand, reflected in high investing cash outflows and a sharp decline in cash balances.

For the next phase, the key questions are operational: how quickly new centres stabilize, whether managed office growth becomes more consistent in reported segment data, and how leverage and liquidity are managed as the company scales its footprint. Management also indicated it plans to convert accounts to Ind AS in FY27, which could improve comparability with peers but may also change the way certain metrics are presented.