IndiQube Q2 FY26: Scaling Workspace Portfolio as Core Metrics Improve

IndiQube Q2 FY26: Scaling Workspace Portfolio as Core Metrics Improve

IndiQube delivered a strong Q2 FY26, showing that its workspace business is not just growing in size but also becoming financially stronger. The company added more centres, improved occupancy and reported higher revenue and profit, backed by steady recurring income from long-term clients. This quarter clearly shows IndiQube moving from rapid expansion to a more stable, scalable and cash-generating phase of its business.

*Headline numbers*
* Revenue (Q2 FY26): ₹354 Cr, +38% YoY
* EBITDA (Q2 FY26): ₹75 Cr, EBITDA margin 21%
* PAT (Q2 FY26): ₹28 Cr, PAT margin 8%
* H1 FY26 Revenue: ₹668 Cr (highest-ever half-year)
* H1 EBITDA: ₹139 Cr, H1 PAT: ₹47 Cr
* Operating cash flow (H1 FY26): ₹151 Cr, +138% YoY

*Key operational metrics*
* Area under management (AUM): 9.14 Mn sq.ft., increase of ~1.3 Mn sq.ft. YoY
* Seat capacity: ~203k seats (added ~30k seats YoY)
* Portfolio: 125 properties across 16 cities, 22 new centres added YoY
* New cities added this quarter: Indore, Kolkata, Mohali
* Portfolio occupancy: 87% (portfolio-level)

*Understanding the quarter at a glance*
1. Top-line growth is real and recurring: Revenue jumped 38% year-on-year to ₹354 Cr, and management stresses that ~96% of H1 revenue is recurring. It isn’t just one-off leasing but it’s regular cash flow from customers.
2. Margins Strengthen as the Business Scales: EBITDA rose sharply to ₹75 Cr, delivering a 21% margin in Q2, a meaningful step-up from prior periods. Improved utilization (87% occupancy) and larger enterprise deals are feeding both topline and margin expansion.
3. Profits becoming consistent: PAT is ₹28 Cr (8% margin) for the quarter. The company reports PAT growth of more than 3x vs prior year quarter in its presentation, reflecting the benefits of scaling up and managing costs more efficiently.
4. Cash flow is catching up: Operating cash flow for H1 FY26 rose to ₹151 Cr (+138% YoY). For a capital-light, recurring-revenue business, improving cash generation reduces financing risk and supports measured expansion.

*Key wins this quarter*
* Large enterprise leases closed this quarter include a 1.4 lakh sq.ft. lease in Bengaluru to a global asset manager and a 68,000 sq.ft. Design & Build project in Hyderabad for a large automaker, both mark IndiQube’s product fit with big, stable corporate customers.
* Company now has a CRISIL ‘A+’ (Stable) credit rating, useful signal for institutional counterparties and lenders.

*Future Outlook*
* Lower execution risk, higher predictability: With nearly all revenues recurring and strong occupancy, growth becomes more visible. Management’s emphasis on large enterprise customers improves stickiness and reduces churn risk.
* Room to scale profitability: The combination of rising occupancy, higher ticket enterprise deals and leverage in fixed costs suggests margins can improve further as the portfolio grows.
* Capital & credit profile improving: Operating cash generation and an A+ rating reduce the need for dilutive capital and make balance-sheet financing easier. It is also helpful if IndiQube wants to expand to more Tier-II/ III cities.

*Risk factors*
* Execution in new cities: Entering Indore, Kolkata and Mohali expands reach, but new-city economics (leasing speed, local demand) must be scrutinised.
* Customer concentration: While securing large enterprise clients is beneficial, dependence on a concentrated customer base introduces risk if any major client exits.

*Conclusion*
Q2 FY26 looks like a milestone quarter for IndiQube: strong double-digit top-line growth (₹354 Cr, +38% YoY), healthier margins (21% EBITDA) and positive PAT (₹28 Cr), supported by rising occupancy (87%), large enterprise wins and materially better operating cashflow (H1 CFO ₹151 Cr). The company is shifting from rapid expansion to focusing on scaling and earning more from its existing portfolio. If this sustains, it should lead steadier earnings and healthier balance sheet.

The image added is for representation purposes only