IndiQube Spaces Reports Robust H1 FY26 Growth: Revenue Jumps 33%, Profitability Soars

IndiQube Spaces has reported strong financial performance for the first half of the current fiscal year (H1 FY26). Revenue grew by 33%, climbing to Rs 668 crore from Rs 503 crore in the same period of the previous fiscal (H1 FY25). The company's operating profit, measured by EBITDA, saw a substantial increase of 85%, reaching Rs 139 crore. Profit After Tax (PAT) demonstrated remarkable growth, nearly tripling to Rs 47 crore, with the PAT margin expanding significantly to 7% from 2% a year ago. The EBITDA margin also improved, rising from 15% to 21%, attributed to better operational efficiency and cost management.

The second quarter (Q2 FY26) was particularly strong, with revenue growing 38% year-on-year to Rs 354 crore. EBITDA jumped 74% to Rs 75 crore, and PAT surged 260% to Rs 28 crore compared to Rs 8 crore in Q2 FY25. The EBITDA margin remained robust at 21%, and the PAT margin improved to 8% from 3% in the prior year.

This growth was fueled by securing significant client deals, including a 1.4 lakh square foot lease with a major asset manager in Bengaluru and a 68,000 square foot design and build project for an automaker in Hyderabad. The company's managed workspace portfolio expanded to 9.14 million square feet across 16 cities, adding Indore to its network, and occupancy stood at a healthy 87%.

IndiQube's digital platform, MiQube, also saw increased adoption, with over 87,000 app downloads and a 24% rise in transaction volumes, featuring new AI-driven services.

**Impact** This news is highly significant for the managed workspace sector and Indian commercial real estate. The strong financial results and expansion demonstrate robust demand for managed office spaces, especially from large enterprises. It signals operational strength and effective business strategy, potentially boosting investor confidence in companies within this segment. The growth in Tier II cities is also a positive trend.

Rating: 8/10

**Definitions** * **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):** A measure of a company's operating performance, calculated before accounting for interest expenses, taxes, depreciation, and amortization. It reflects the profitability of the core business operations. * **PAT (Profit After Tax):** This is the net profit a company has left after deducting all operating expenses, interest, and taxes. It represents the final profit available to shareholders. * **PAT Margin:** Calculated as PAT divided by revenue, expressed as a percentage. It indicates how much profit a company makes for every rupee of revenue earned. * **EBITDA Margin:** Calculated as EBITDA divided by revenue, expressed as a percentage. It shows the profitability of a company's operations before accounting for interest, taxes, depreciation, and amortization. * **Ind AS 116:** A specific accounting standard for leases. It requires companies to recognize lease assets and liabilities on their balance sheet, leading to non-cash expenses like depreciation and interest, which can affect reported profits. * **IGAAP (Indian Generally Accepted Accounting Principles):** The standardized set of accounting principles and guidelines followed in India for financial reporting.