IndiQube Spaces Reports Record Revenue and Strong Profitability in H1 FY26 Amidst Expansion

IndiQube Spaces Ltd. has demonstrated robust financial and operational growth in the first half of FY26. For the second quarter ending September 30, 2025, the company posted a consolidated profit after tax of ₹28 crore, supported by a significant 38% year-on-year rise in revenue to ₹354 crore. The first half of FY26 proved to be the company's best ever, achieving ₹668 crore in revenue, with a remarkable 96% of this income being recurring. Operating cash flows saw a substantial increase of 138%, reaching ₹151 crore. The Co-founder and CEO, Rishi Das, highlighted the strong momentum and positioning for continued growth, noting a 21% EBITDA margin in Q2.

The company's physical presence has also expanded considerably. Its area under management grew by nearly 1.3 million sq ft year-on-year to 9.14 million sq ft, and seat capacity increased by 30,000 to 203,000 seats. IndiQube entered three new cities—Indore, Kolkata, and Mohali—and established 22 new centres over the past year. It now operates 125 properties across 16 cities, maintaining a healthy portfolio occupancy rate of 87%. Notable client wins include a 1.4 lakh sq ft lease in Bengaluru with a major asset manager and a 68,000 sq ft project in Hyderabad for an Indian automaker, solidifying its role as a key workspace provider.

While the operating results are strong, IndiQube recorded a notional loss of ₹30 crore under Ind AS reporting standards. This is attributed to non-cash accounting adjustments, primarily related to Ind AS 116, which includes depreciation on right-of-use assets and interest on lease liabilities. The company clarified that these adjustments do not impact its actual operational performance or cash generation, which remain strong. EBITDA under Ind AS was reported at ₹208 crore, reflecting a 59% margin.

The company's financial health is further underscored by its reaffirmed credit rating of CRISIL A+ (Stable).

Impact This news is positive for IndiQube Spaces Ltd. and its stakeholders. Strong revenue growth, expanding operational capacity, and securing large client deals indicate solid business fundamentals and market demand for flexible workspaces. The company's continued expansion into new cities and its ability to attract major clients suggest a positive outlook for its business segment. For investors, this signifies potential growth and stability in the company's stock performance. The segment of flexible workspaces and commercial real estate is seeing a resurgence, making companies like IndiQube well-positioned. Rating: 7/10

Difficult Terms Consolidated Profit After Tax (PAT): The total profit of a company after deducting all expenses, taxes, and interest from its total income, including that of its subsidiaries. Year-on-year (YoY): A comparison of financial data from one period to the same period in the previous year. Recurring Revenue: Revenue that is predictable and expected to continue in the future, such as subscription fees or long-term leases. Operating Cashflows: The cash a company generates from its normal business operations, excluding its financing and investing activities. EBITDA Margin: Earnings Before Interest, Taxes, Depreciation, and Amortization, expressed as a percentage of revenue, indicating operational profitability. Area Under Management: The total rentable or operational space that the company manages for clients or its own portfolio. Portfolio Occupancy: The percentage of the company's total available space that is currently leased out to tenants. Ind AS: Indian Accounting Standards, a set of accounting rules notified by the Ministry of Corporate Affairs, aligned with International Financial Reporting Standards (IFRS). Ind AS 116: A specific Indian Accounting Standard dealing with lease accounting, requiring lessees to recognize most leases on their balance sheets. Depreciation: The systematic allocation of the cost of a tangible asset over its useful life. Right-of-use assets: Assets recognized by lessees under Ind AS 116, representing their right to use an underlying asset for a specified period. Lease Liabilities: The obligation of a lessee to make lease payments over the lease term, recognized under Ind AS 116.