Indiqube Spaces Ltd (NSE: INDIQUBE) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Rishi Das — Chairman, Executive. Director and Chief Executive Officer
Meghna Agarwal — Co-Founder and Chief Operating Officer
Analysts:
Vikrant Kashyap — Analyst
Adhidev Chattopadhyay — Analyst
Mohit Agrawal — Analyst
Shamit Ashar — Analyst
Yashas Gilganchi — Analyst
Siva — Analyst
Dhairya Trivedi — Analyst
Sourabh Gilda — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q3FY26 earnings conference call of Indicube Spaces Limited hosted by Asian Market Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikrant Kashyap from Asian Market Securities. Thank you. And over to you sir.
Vikrant Kashyap — Analyst
Good afternoon everyone. I welcome you to Q3 of our 26 earning conference call of Indicative Limited. Today we have with us on the call Mr. Rishi Das Chairman Executive Director and CEO Mr. Meghana Agrawal CEO and Executive Director Mr. Pawan Jain Chief Financial Officer Mr. Vikash Maharagrawal Head of Investor Relations and Mr. Vamsi Chadhar S AVP Marketing. Without much ado, I now hand over the call to Mr. Rishidas for his opening remarks. Thank you. And over to you sir.
Rishi Das — Chairman, Executive. Director and Chief Executive Officer
Yeah, thank you Vikrant. Good afternoon everyone and thank you for joining AndyCube Spaces Limited Q3 FY26 earnings fall. This is our first discussion with the analyst community this year. On behalf of the entire management I would like to wish a very happy new year to all of you and extend a warm welcome to all our shareholders, analysts and the participants joining us today. Our earning presentation has been uploaded on the stock exchanges as well as on our website and we trust you had the opportunity to review it. This quarter marked another important milestone in our journey.
I will start with the financial performance in IJRP equivalent terms. We recorded our highest ever quarterly revenue of 395 crores in Q3FY26 and this represents a year on year growth of 45%. If we consider the nine month period ending December of 25 our revenues stood at 1063 crores reflecting a robust year on year growth of 37%. Profit after tax for Q3FY26 has been INR 40 crores and this has more than doubled on a year on year basis. For the nine month period our pad has reached 95 crores. Our shared lower than 100 crores and this is a growth of 284% year on year.
Our return on capital employed improved to 23% in Q3 FY26 compared to 15%. In the same quarter last year. We have also taken major strides into sustainability as we have mentioned earlier we. Were in the process of setting up a solar farm in Karnataka. This has become fully operational and we now have 20 megawatt open access solar farms running there. This is taking care of a very. Large percentage of our building in Bangalore which is the largest part of our portfolio on green power. Additionally, we are in the process of. Going live with a 4 megawatt solar farm in Lahore and these initiatives is a key milestone in our transition toward green power. Across our portfolio. Some bits we will share on the market perspective South India has been the clear frontrunner when it. Comes to commercial real estate absorption. Bangalore, Hyderabad and Chennai constituted more than 50% of India’s commercial real estate absorption in Q3. Also another interesting fact is 80% of. The total GCC absorption that happened in Q3 across India happened in these three cities. So it is as lopsided as that if we talk about Indicube, 80% of. Our pan India portfolio is down south and we have emerged as a clear. Market leader in the region and as a preferred workspace partner for global Capability Centers. We view our dominance in South India not as a concentration risk but as a strategic positioning that reinforces our leadership and our status as a preferred workspace partner for the Global Capability Centers. Our strong financial performance along with our crisil a stable ratings highlights the resilience of our business model, the discipline underlying our growth strategy and the depth of our long term enterprise relationships. With that, I will now hand over to my co founder Meghna Garwan to take you through the operational highlight for the quarter.
Meghna Agarwal — Co-Founder and Chief Operating Officer
Thank you, thank you. Moving on to our operation metrics, since quarter three last year we have expanded our area under management by 1.5 million square feet, added 33,000 seats, launched 21 new centers and added entered three new cities. Our entry into Bhubaneswar in this quarter strengthens MBQ footprint in the tier 2 cities reinforcing our position as a Pan India workspace platform. Our indicure bespoke offering for enterprises continues to gain attraction. With approximately 66,000 square feet signed across two projects in Guwahati and Chennai, our portfolio occupancy improved to 84% from 81%. However, the quarter on quarter metrics such as occupancy and EBITDA may witness temporary volatility primarily driven by the scale and timing of a new rent paying area addition in a given quarter.
For example, in the coming current quarter the occupancy declined to 84%. It was largely due to the addition of 7.8 lakh square feet. However, from a steady state perspective, we expect the corporate level occupancy to remain in the 80 to 85% range and the mature centers to consistently operate between 85 to 90% occupancy range on an annual basis. Our operating metrics remain aligned with our guidance. Further, I would like to underscore that technology remains a fundamental pillar of our workspace experience. During this quarter we have upgraded our Space Management module which enables enterprises to seamlessly configure their workspace into dedicated desks and hot desks.
Employees can view real time desk availability and instantly book desk, improving utilization, flexibility and overall workspace efficiency. Our workspace app MyCube has surpassed 100,000 downloads and over nine months the MyCube ecosystem has been close to about 1 million traffic transactions. The value added services continues to be an integral part to our growth VAS contribution. Overall revenue has gone up to 13% in nine months compared to the 12% last year and as these value added streams scale we see the VAS contribution increasing further. I would also like to proactively clarify few reoccurring questions which keep coming.
The first is what is lease liability in our context now under nds they arise solely from our accounting requirement to recognize future lease rentals for long term operating leases and not from any borrowing or financing activities. They are purely non cash and notional in nature. In our case, while the balance sheet may reflect a lease liability towards a tenure of 10 to 15 years, our actual contractual commitment to the landlord is limited to the lock in period which is only typically around about 3.5 years. Hence, these liabilities should not be included in the net debt or a ROC computation as they are not financial in nature.
The second is the company is pat positive as per applicable income tax rules and has been consistently paying income taxes reflecting the underlying strength in profitability of our core operation. The accounting loss which is reported in NDS arise primarily due to the application of NDS which requires recognition of depreciation on right of use of assets and interest on lease of liabilities. Both of these are non cash accounting adjustments driven by accounting standards rather than operating performance. A detailed reconciliation and explanation have been provided in the investor presentation. Also, we remain deeply confident about the road ahead supported by strong client demand, a resilient business model and a continuous focus on profitability, sustainability and innovation.
With that, we look forward to addressing your questions during the Q and A session. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the Question and answer session. Anyone who wishes to ask a question May press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Okay. Our first question comes from the line of Adidev Chattopadhyay from ICICI Securities. Please go ahead.
Adhidev Chattopadhyay
Yeah. Good afternoon everyone. Congratulations Srisha and Meghna for delivering another strong quarter. So first I’d like to ask more a strategic question on our expansion plans. Now they have gone to almost 10 million square feet of AUM. So it’s based on the pipeline and the business development activities. So you’re down the line where do you expect this AUM number and also your operational area to be in the next four, five quarters? That is the first. First question. Yeah.
Meghna Agarwal
So thank you Adide. The thing is, as you rightly said historically we have added 1.5 to 2 million square feet annually which translates to approximately 33,000 to 44,000 seats per year. And we intend to continue to operate within a similar range going forward. So if you see currently the total sign portfolio stands at 9.55 million square feet which is approximately about 2 12,000 seats and of this about 6.3 million square feet which is a rent yielding area approximately about 1 40,000 seats there. So this leaves already a pipeline of 3.26 million square feet which is about approximately 72,000 seats which is already signed and which is expected to become operational over the next 18 to 24 months.
If we take this headroom, inbuilt headroom it already provides a strong visibility of growth and should Support the approximate 30% annual top line growth subject to ramp up timelines. And from an occupancy perspective we continue to guide for 80 to 85.5% for the corporate level occupancy and 85 to 90% in a mature center. Thank you.
Adhidev Chattopadhyay
Sure. Yeah sure. And so the second question is just trying to reconcile the cash flows right for the quarter our net cash seems to have reduced by I think 40 odd crores quarter on quarter. Could you just help us reconcile the capex working capital and any taxes we may have paid? Yeah, from the event of 70 crores we have done the cash a bit. Yeah, that’s the second question.
Meghna Agarwal
Both ADIT we assessed the reporting operating cash flow and even the capex on a half yearly basis aligned with the balance sheet closures. So although we would wanted to because of the auditor reasons we did not Accordingly we did not Provide a standalone OCF or a capex split for quarter three. However for H2 our operating cash flow has been broadly in line with the H1 both for OCF and the CapEx. If you look at the balance sheet like the cash flow was around about 151. You know we in about H2 we would have similar and even the capex would be also similar.
So you know, so in balance sheet at the end of the year you would see both the terms coming.
Adhidev Chattopadhyay
Okay, okay. If you just help us with the overall capex for the year means which you are planning this for this year just for 26 the overall budgeted capex which we are expecting.
Meghna Agarwal
So either it was H1 was around about I would say about 180 crore. The H2 adita would be something in the similar range. Yeah, it would be almost similar of H2. So both. Yeah.
Adhidev Chattopadhyay
Okay. Okay. Okay, fine. Okay. Yeah, yeah, that’s it for myself. I’ll come back in the few five more questions. Thank you. All the best.
operator
Thank you. Our next question comes from the line of Mohit Agrawal from iifl. Please go ahead.
Mohit Agrawal
Yeah. Hi, good afternoon everyone and congratulations for a great set of numbers. My first question is on your revenue growth of 45%. While your occupied seats have the volume has gone up by about 27%. The revenue from co working business has gone up by 45%. So one would kind of generally understand about a 5, 7% bump up to volume. What would explain this? Is there like a meaningful reset in pricing or is it premiumization? If you could explain that.
Meghna Agarwal
So the question Mohit, you are asking is why do we see much more change in the revenue versus the number of seats? Is that correct?
Mohit Agrawal
Yes. So year on year the occupied area has gone up from 5 million to 6.3 or the number of occupied seats would be 110,000 to 140k approximately that is 27% growth versus that the revenue growth is about 45%.
Meghna Agarwal
So there are two, three reasons to it. So one is the occupancy, if you see our occupancy has improved from 81 to 84%. So that itself, you know gives you that from the existing building and the renovated building which we talked about last time there, the occupancy has also improved, has come to realization 90% because they come into the steady state level which is more than 12 months. And this also comprises of one time revenue. So we have one time revenue for example coming from either the design and build or any other sale of assets.
So these are the three components which is added to that kind of a revenue growth Visa Visas compared to the fee growth, which is.
Mohit Agrawal
Okay, this one time revenue that you’re talking about, would that be a part of the co working space revenue that be any somewhere in the other or VAS or that kind of component.
Meghna Agarwal
It could be vast revenue. It is not. Obviously we do not pay a co working revenue. We do not. Yeah. So we do not divide that into. That is as a space leasing revenue only. All our one time revenue would be a services revenue which we call it a VAX revenue. So and if you see we have also do did the demarcation of the vast revenues one time reoccurring and non reoccurring. You know, because one time can change, you know, but reoccurring is something which is there. So that is why the division is there.
Mohit Agrawal
Okay, okay. I maybe take this offline. Just trying to reconcile the numbers a little more detail. Moving on to my next question is actually on VAs. So you know, you just mentioned about one time and recurring. If you could explain. Because I think again the numbers in especially the one time has seen quite a bit of volatility especially on a year on year basis. So if you kind of explain how to kind of forecast or how to look at the future in terms of the recurring which is growing at about 17% year on year. But the one time is more volatile.
So if you could explain the outlook on both and then how do look at the margins on Both recurring and one time VAs income?
Meghna Agarwal
I would say like the income from value Added service currently contributes almost about 13% total revenue which is already up from 12% last year. And as mentioned earlier, the VAS remains an integral part of our business model. So whether it is design build or food or beverages or transport, these are not tracked separately, but they are, you know, but it all is seen in totality, alright. And the growth of each service is different. So every service would either have sometimes a reoccurring and sometimes would have the non reoccurring. So the one time volatility, if you’re saying reoccurring and that is why we divided it into it because of one of our bigger clients.
So they took interior. You know, the design and building here was a one time cost of a very big company. So that is why you see it is a big, big volatility in that number. That kind of a volatility you would keep seeing because it all depends on the companies which would say, hey, I would want to buy XYZ of a service and I want to pay upfront over and leasing above. So that is why that division is being given, so that the volatility in vast revenue would remain. However, the value added stream scale, we see the contribution increasing to 15% in next financial year.
So rather than growth of the VAs, you would, you should see in percentage of terms of revenue that would be around about, we’re hoping to come to about 15% next financial year. And a net margin of these services would be around about 15%.
Mohit Agrawal
Okay, just one clarification. So one time VAS revenue would be essentially your DNB. So 19 crores is largely DNB. The remaining, let’s say FNB mobility, solar, all that would go into the recurring VAS. Is that understanding correct?
Meghna Agarwal
Yeah, DNB also, also product and services like we do have a lot of services like it product and services. So we also have these laptops, projectors on screens, you know, which we do do it on rental basis. Right. On a capex basis also. So it is all about products like, you know, so DNB and other services which can be one time. So it could, it would be a combination. But as of now the number what they’re looking at is largely as if now is a DNB thing driven.
Mohit Agrawal
Okay, understood. Thanks a lot. All the best.
operator
Yeah, thank you. Our next question comes from the line of Shamit Ashar from Ambit Capital. Please go ahead.
Shamit Ashar
Yeah, hi, thanks for the opportunity and congrats on a good set of numbers. So firstly with the recent openings in tier 2 cities, how do you view the supply outlook in Tier 1 versus the Tier 2 cities? And are there any plans to expand your footprint further in tier one cities or will growth largely be led by new centers in tier two cities?
Rishi Das
Thank you. So if you look at our growth, if I talk about the area by area, our growth will be largely driven by the tier one cities. Because tier two cities still just constitute about 8% if you look at of the overall portfolio. But we are growing fast there. So if you see the city additions, year on year basis, we have added three cities and the last quarter Q3, FY26, we added Bhuvaneshwar. So that was a recent addition. So we will continue on our journey to add more cities because what is happening is today the way the work is going there, people are, that’s a big shift.
And our philosophy of follow the talent. Wherever talent is going, we are going there. So we definitely see that our city list will continue to expand. However, most of these cities are just starting and these cities do have a supply problem. Most of these cities have been caught completely off guard. So for example if you see Coimbatore we are now almost three and a half lakh square feet and there is no supply in that. So in these locations we are now looking at a lot of build to suit or other options to see that how more supply can be added and our tier one city expansion will continue.
And tier one expansion again will be a combination of one will be strengthening our presence in the micro market which we are already there. Where we have faced success we are doubling down on those micro markets. At the same time we are expanding our footprint to other micro markets. Like for example we started last quarter Navi Mumbai. So within Bombay that’s an addition that we have done. So those kind of things will happen where we start making presence and where we already have presence we will start trying to build more dominance and scale in those locations.
Shamit Ashar
Yeah, got it. And secondly, could you highlight the cash conversion number for the quarter? I’m looking for the CFO ebitda number for 3Q and 9 month FY26. That would be helpful.
Rishi Das
Can you just repeat the question Shamik once again?
Shamit Ashar
Yeah, so could you just highlight the cash conversion number for the quarter? I’m looking for the CFO to EBITDA number for the third quarter as well as the nine month FY26.
Meghna Agarwal
That is exactly what I mentioned earlier that both the operating cash flows and the CapEx, you know, I mean as per suggestion it’s all aligned with the balance sheet closure. So they said we would be doing at the end of the year. So in the quarter four you would see both the numbers coming up but the OCF and everything is almost in align kind of aligned with H1 numbers. So my H1 numbers of the CAPEX was about 180 and my H1 numbers of OCF was also about 150 around approximately that number. My H2 you would see the similar numbers in both but we will be disclosing everything by end of the year.
Shamit Ashar
Got it, Got it. Thank you.
Meghna Agarwal
Yeah, but if you are looking at OCF oblique ebitda, that kind of a ratio if you’re looking at it would be more than in one, you know, kind of the number you could see but the actual numbers we would be disclosing as I mentioned by the end of the year.
Shamit Ashar
Understood, thanks.
operator
Thank you. Our next question comes from the line of Yashes Gilganji from Bob Capital Markets Ltd. Please go ahead.
Yashas Gilganchi
Good afternoon. Thank you. For taking my question, I understand that the dip in occupancy was caused by the outsized increase to rentable seats over the quarter. But how long do you think the lease up of these seats is likely to take? And where do you see Occupancy reaching over 4? Q26.
Meghna Agarwal
The thing is, as you rightly said it is not right to look at this business quarter on quarter because any quarter can get affected with the rent paying, significant addition of the renting area. But to your question, we would be maintaining at a corporate level the occupation in the range of 80 to 85% and my steady state center in the range of 85 to 90. So by FY26 number FY26 you would see the similar range. So we would be aligned as per our guidance.
Yashas Gilganchi
Okay, understood. Also when do you expect the approximately 1.8 million square feet of area under NOI to be included in active stock? And how long do fit outs usually take?
Meghna Agarwal
So it would take about. Because these the balance areas right now is in different stages, you know something is under construction, you know or the oc the compliance is coming in place. So it would be operational in about 18 to 24 months. And what was the second question?
Yashas Gilganchi
Yes, how long to fit out usually take like.
Meghna Agarwal
Yeah, without usually takes after the post approval of the layout it takes about 60 to 90 days depending on the complexity of the interiors.
Yashas Gilganchi
Understood. Thank you very much.
Meghna Agarwal
Yeah, thank you.
operator
Thank you. Our next question comes from the line of Vikrant Kashyap from Asian Market Securities. Please go ahead.
Vikrant Kashyap
Thank you. My first question is on your capital allocation and extension. With this net debt now being in the negative and ROC is trending of 20% plus. So how you are prioritizing incremental capex in faster sheet edition or design and build scaling or balance sheet strengthening what annual AUM seat addition guidance would industry assume going forward?
Rishi Das
Can you repeat the question? Vikrant once again please. Yeah, sorry.
Vikrant Kashyap
Okay. Am I clear?
Meghna Agarwal
Yeah, but you have not been able to understand. Yes.
Vikrant Kashyap
Also my question is on capital allocation strategy. I mean with your net debt is non in the negative zone and ROC is trending about 20% plus. So how are you prioritizing incremental capital like faster central edition design and build, scaling or strengthening your balance sheet what kind of annual M or seat addition guidance should investors issue going forward?
Rishi Das
Yeah, thank you. Very clear. Now so if you look at as suggested earlier that our capex has been to a tune of 180 crores in H1 and we see a similar kind of addition this year. So bulk of the capex will go towards the interior addition and that is where you see from the IPO proceeds that we raised we have allocated more than 400 crores towards the capex and we are on track and using those funds. So predominantly most of the funds will go into interiors. Whether it is for our managed office plug and play or whether it is for design and build it will be a combination of that where most capital allocation will happen.
And as you can imagine when we are looking at a 30% kind of a growth rate. So bulk of this will go into funding the growth. Yeah.
Vikrant Kashyap
Okay, my second question is on GT since this is now around 40% of your client mix and Chance is also ineligible. So how is the deal pipeline shaping up for 27 particularly for large enterprise mandates and are you seeing change in decision timelines or ticket size anything means are you looking more of the large deal of 6,000 plus cohorts or any color you can provide on that?
Meghna Agarwal
Yes Vikrant, the thing is so we do not define or track individually which all clients are large or not our client mix would be almost similar as you could see the last three quarters and even now it’s going to be similar and the larger deal definitely the time, you know deal time definitely takes a little bit bigger or longer time than your the smaller clients which is about 100 to 500 seats. But everything to say like I would say we have one third of expansion is coming from existing client and one third is sourced from our in house sales and business development team and one third of our expansion is going to come from the IPCs and brokers and all this put together would put up us into as we write as you mentioned earlier about 30% of the top line growth.
That is what we kind of giving the guidance for.
Vikrant Kashyap
Okay and the last question is on the margin front since we have seen strong extension in margins. So how much of this is improvement. Is structural, say pricing versus balance or operating with this against the cyclicality and what margin band should be under right on a steady state basis.
Meghna Agarwal
Look if you see already our nine month FY26 corporate EBITDA margin are up to about 21% which is from 16% to nine months of FY25. So there’s been a margin expansion there and we’re already reflecting the operating leverage which we have already captured. And over the next two quarters as we continue the idea is to we continue to prioritize growth and scale and we do not foresee any kind of major margin expansion. The Expansion would be in a similar range, I would put it. And also we believe that the market opportunity is extremely large and at this stage our focus is on capturing demand and scaling the platform rather than optimizing on this incremental margin.
So yes, the focus is on growth if I would say, but the margin would be certain in the range of 20, 21% which we have already achieved by the operating leverage as we mentioned before.
Vikrant Kashyap
Thank you.
operator
Thank you. Our next question comes from the line of Siva from I thought pms. Please go ahead.
Siva
Hi, good afternoon and thank you for the opportunity. So my first question is around the client lease and lock in period in case the client is not able to serve the lock in and decides to vacate the space. Do we get any compensation for that? And if so, how much would that be?
Rishi Das
Okay, yeah. So basically our typical client lock in is about three years. That is what we have with them. And what it means is that if the client is locating within the lock in period, they have to pay for the balance lock in period. By and large if you see our collections have been very, very high. Like we have been collecting more than I would say 97, 98% of the expected or projected revenue. Having said that, there have been instances where clients have defaulted. Like typically they abruptly moved out and all of that. And in those cases we have to basically taken the legal reports and most of the places we have been able to reach a settlement or agree on a recovery of the balance tenure.
And why I’m saying this because if you notice our typical clients are large size long stay, our 300 plus seat clients constitute typically more than 60%, almost 64% of our portfolio. And as our lot of clients are global capability centers, well funded startups and all that. So defaulting is very, very rare. And definitely the 0 to 100 seats. Luckily for us that number is just 11% of our portfolio. Sometimes we have seen those kind of situations, but it’s a very manageable thing and we do a fair amount of kyc. When we add any new customer, we do a credit check also on the company’s finances before we provide them any substantial space.
Siva
Understood sir, thank you for that. So my second question is on the lease duration side. So our average lease duration is around three and a half to four years. Right. And when is most of these lease coming up for renewal? So is it kind of spread out or do we have like a major chunk coming up ahead?
Rishi Das
It is quite spread out typically because clients keep coming on regular intervals. And another thing I will highlight Is if you look at the top five. Clients they constitute about 12%, 12% of our revenue. And we do not have concentration of typically one client taking the full building. We in fact don’t like giving one client the full building. So most of the buildings are multi tenancy and our client revenues are also quite spread out. So as a result of that there is no major concentration risk it in terms of suddenly a client is leaving the space and all that. Yeah. So that has held in good form on this widely.
Siva
Got it sir. And one last question. So if you could, you know, give us a rough figure on what our client retention is like a percentage figure would help.
Rishi Das
Client retention has been in excess of 95% typically. And as Meghna mentioned, if you look at like 1/3 of our business growth I’m talking about comes from the same clients taking up more space. Plus another metric to look at is that more than 40% of the space that we have is multi center. Meaning by that a client came to us for looking for space for one center, they liked us and then they have taken space in second center, third center, maybe the same city or different cities. So invariably we have seen that once the client comes in they have been very comfortable and retention rates as I mentioned have been upwards of 95%.
Siva
Understood. Yeah, that’s all from my side. Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask questions you may press Star and one at this time. Next we have a follow up question from Adidev Chattopadhiye from ICICI Securities. Please go ahead.
Adhidev Chattopadhyay
Yeah, thank you for the opportunity. Rishi, just a question on the now that solar power plant is fully operational, could you quantify in terms of a percentage of revenue or in absolute terms what is the cost savings which you are expecting going ahead on that? Yeah, that’s the first question.
Rishi Das
Yeah. So Aditya, as I mentioned that we have already commissioned 20 megawatt now in Karnataka and the 4 megawatt is going live in Maharashtra. We also plan to put up small plants in states like Tamil Nadu and like that. So we see that every year for our own requirement about I will say about 10 megawatts is what we will be requiring to fulfill that. So most of the plants that we are put up or are exploring to put up, we have planned for expansion capacity in these places. So annually between 5 and 10 megawatt is going to be our incremental requirement for green power and that will be met through our plants.
Adhidev Chattopadhyay
Yeah, yeah. So Rishi, I was just asking on the Cost savings from the operationally how much would this be because of the capex?
Rishi Das
Yeah. So I can give you some idea on the unit metric. Like for example if you look at today in Karnataka a unit of power cost about 7.5 rupees. And when we are generating this power because it’s a captive so I’m not able to quantify the saving saving per se but broadly you can take 50%. Power savings if you were to look. At the interest payout, depreciation and all of that 50% power savings we are able to achieve here.
Adhidev Chattopadhyay
Okay, okay. And just a follow up on that capex. So sir, when we are doing the obviously capex for our fit outs right and the capitalist plants could you segregate the percentage breakup means let’s say between 350 crores of capex. Right. For the full year. So how much of this would be for these power plant or solar things on an ongoing basis annually?
Rishi Das
Sure. I, I, I, I don’t have it offhand but if you look at the, when we were, when we raised the funds from IPO there we have carved out 20 megawatt for solar power that carve out basically like on the green power. The capex that we will do basically has been budgeted in that. But yeah, but good idea. We will be happy to carve out the capex breakup also what goes under solar.
Adhidev Chattopadhyay
Yeah, yeah it just, yeah it just helps us to understand the poor business capex and because yeah that is the. Only thing I was getting at. Yeah, fine, fine. Anyways, I’ll again take it offline if required. Yeah, thank you. All the best.
operator
Thank you. Participants who wish to ask questions may press star and one at this time. Our next question comes from the line of Dhairya Trivedi from DJT Investments. Please go ahead.
Dhairya Trivedi
Hi sir, thanks for taking my question and congratulations on a great set of numbers. So my first question is that once the lease tenure expires from the client sense what would stop the client from say leasing space in a newer center which may possibly have newer or better infrastructure.
Rishi Das
So basically see we have a, we have a. And what the job of the CRM team is to be in continuous touch with the client. So even before the client lock in is getting over our teams are in touch with them and so that is a good thing that if they are planning to locate or whatever are they planning to expand and all that we are able to understand their requirement. And so two situations mostly happen because most of the clients who typically stay for three years invariably are expanding so either we are able to give them continuous space in the same building or in the same micro market to expand, or we are able to help them consolidate and move to a bigger space in the same micro market.
So see what happens. The biggest stickiness for clients is that once they become comfortable with the building and their employees are comfortable coming over there, they don’t want to change the address. So there is a fair amount of stickiness. Now having said that, if suppose the client had taken 200 seats and the client is now going to 400 seats, if we don’t have space, then we have to displace them. But our philosophy has been always that If I have 10 buildings in a micro market, then the idea is to add one or two buildings every year in that micro market.
So we always plan for growth. And more or less we see that the same clients typically move to the other places and all that. If the client decides to stay after the expiry, then we definitely basically upgrade or provide them. Like suppose for example, if the carpets or some chairs have worn out, those are definitely renovated so that the place gives a feel of a new kind of place. So those investments are proactively made depending upon what kind of lock in coming commitment and all the client is willing to provide for the further period.
Dhairya Trivedi
Got it. And so what would be, you know, our oldest center for example, at the moment and could you give a sense on, you know, what the churn would. Be in, you know, some of those older centers?
Rishi Das
So we have not basically specifically that data immediately is not available. But as Meghna highlighted that if you look at like our steady state center which are more than 12 months old, we have 90% plus occupancy over there. So yeah, So I will say more or less the occupancy. Even if you look at even the center which are five years, seven year old, I don’t think that that occupancy will be very, very different from this 90% number that I am talking about. Overall, I can tell you that consistently older centers have maintained 90% plus occupancy which are more than one year old.
Dhairya Trivedi
Okay. And so centers which are five, seven year old, would this still have an occupancy of more than say 75, 80%?
Rishi Das
Yeah, yeah, we will have that. Yeah.
Meghna Agarwal
So if you see a slide, also to add to the point, if you see a slide in investor Deck, it is written very clearly the steady occupancy and the corporate level occupancy. So that would also give you a clear picture. Plus the churn is also we kind of track it overall on a corporate basis which is also mentioned in our investor tech. So that is why the building wise, what you asked is a little tough for us.
Dhairya Trivedi
Okay, okay. One last question on the GCC. While I understand 40% of our clients are GCC, what will be the revenue. Contribution from them in terms of percentage?
Rishi Das
56% revenue comes from global capabilities.
Dhairya Trivedi
56.
Rishi Das
Yeah. 5, 6.
Dhairya Trivedi
Yeah. Okay. All right, got it. Thank you. Thank you. All the best.
operator
Thank you. Next we have a follow up question from Vikrant Kashyap from Asian Market Securities. Please go ahead.
Vikrant Kashyap
Yeah, thank you. My question is since we are very heavy and strong for cold in Bangalore. So after this micro market, which of these key micro market where you are trying to or maybe like to replicate the same similar business model and what are the economic factors that will drive that expansion? If you could highlight some colors on that.
Rishi Das
Yeah. Thank you, Ikran. So as you rightly highlighted that Bangalore continues to be the largest market. But if you look at our presence in Chennai, we are typically like 1.2 million square feet in Chennai. And we have a like if you. Go by the IPC data, we have a market leadership position in Chennai as well. And then so clearly a lot of expansion happened like Hyderabad, if you compare two years back and today from almost 70,000 square feet we have moved to more than 280,000 square feet. Very similarly Bombay where you are less than 50, we are now at 175 thousand square foot. So clearly these locations like we are doubling down, adding more and more real estate over there. So that will continue. And other thing which I will highlight is that when people talk about Bangalore we have to appreciate the fact that 20 to 22% of the total real estate absorption in India happens in Bangalore.
And Bangalore absorbed more real estate than a city like Shanghai or New York or Tokyo or any city you become. So maximum amount of real estate as a city anywhere in the world is absorbed in Bangalore. So I think in all humility I must say that we are the largest and the largest or the fastest growing market in the world. So I think that’s a good position to be. We don’t see it as a basically concentration risk, but so is the of nature nature of this business that once the real estate is absorbed in Bangalore, So we see that and also as we mentioned earlier in our talk that south India, if you look at it is almost 50% of the thing. And there again we are very, very dominant. So we are seeing a lot of cross pollination happening between clients across Bangalore, Hyderabad, Chennai, Coimbatore, like that. So good strong boat you can say we have built in the south India.
Vikrant Kashyap
Okay. And another question is on the client mix. So in terms of client concentration, so whether whether it continue to absorb more seats in the flex space or banking has taken up or maybe you can highlight some colors on that. Which of the sector start taking board seats and where do you see more taxes coming?
Rishi Das
So our client mix, if you see, I will say the core of our business is large size, long stage. So from that point of view, as. You see space is occupied by clients who have taken 300 plus seats. So you can imagine people have taken 300 seats, are normally mid sized to large companies. And if you talk about the vertical, of course global capability centers cut across, across different industry segments. But about like 56% of our revenue is coming from the global capability center. In addition to this we have a very healthy, I will say client mix of a lot of large Indian companies. If you look at a company like Mahindra Logistics you talk about or Ashok Leyland, TBS Motors, so the old typical, so called, the old so food, Indian economy companies, they are also in a very, very substantial number.
Then we have a lot of late stage startups. When I say late stage, these are series G funded or even listed kind of companies. So basically overall I would say the client base is quite diverse. Plus I will say that this varies depending upon city to city. For example, if you look at Chennai, Chennai is a lot more diverse than Bangalore. Chennai, we have a lot of companies which are into shipping, logistics, coal, engineering. Even from a nationality point of view, Chennai is more diverse than Bangalore. We have companies not only of American origin but a lot of companies of say European origin, Scandinavian countries, German like that, Finnish company, Danish company, those kind of companies also are in our portfolio.
So I think that is a fairly diverse and it varies as I said, location to location.
Vikrant Kashyap
Thank you sir, quite helpful. My last question is on your sourcing side, if you could highlight given the pipeline that you have built, how much of that would be your older buildings? So that comes in this I think corner restaurants. Can you give some colors on that?
Rishi Das
Yes. So what we have done is like if you look at our renovations, we typically have more than 3 million square feet, about 3 million square feet of portfolio we have which is basically across 20 properties. And these are buildings which are from 20 years going up to 50 year old properties. And we have upgraded these buildings mostly to a level of a platinum green platform, platinum or a gold rated. IGBC building and another highlight I will say is that India has the total stock of commercial real estate in India is about 1 billion square feet and 50% of these properties are more than 10 years old and almost 52% of the properties are non green. So as part of our cornerstone initiative we are continuously looking at basically a lot of older properties in the central districts to pick up, renovate them, upgrade them so that is there. Plus now we are also going to a lot of buildings Indicube is not leased where we are going to the landlords and offering them renovation and a service or basically or looking at managing those services including offering them green power because we see that energy transition is a very very big challenge and opportunity in India.
So lot of our landlords or commercial buildings still are not on green power and they want to move to green power. So that is also part of our cornerstone solutions that is being offered to clients. So there is a good acceptance and traction on that side which is happening.
Vikrant Kashyap
Thank you for the clarification and wish you all the best.
Rishi Das
Thank you.
operator
Thank you. Our next question comes from the line of Saurabh Gilda from JM Financial. Please go ahead.
Sourabh Gilda
Yeah hi, thanks for the opportunity and congratulations on good set. Just wanted to discuss bit more on the. On your strategy on for the tire two markets except for Coimbatore and Kochi. Of the all nine markets we have probably except for these two we have just one centers. So from an expansion strategy perspective do you see that that would. That should be the strategy going ahead wherein, wherein you add one or two centers and expand your breadth across multiple markets or do you see opportunity in you know, doubling down in the. In the other markets where you don’t have much presence and secondly what, what share of your demand in this tier 2 cities is driven by your existing clients in Tire 1 if you can quantify.
Meghna Agarwal
So the first thing is the expansion strategy. So when you said one or two or the more the expansion strategy Saurabh is built around three key One is the deeper penetration than the wider presence and the service diversification. So deeper penetration we mean that we focus on dominating the existing market like HSR Bindi. The idea is to keep growing in those markets and do the dominance there because the clients prefer to stay within the specific micro market when they’re expanding they do not want to change the micro market and thus market dominant is very, very critical to leverage and brand leadership.
The second is your wider presence. Now wider presence to your question comes in your tier 2. So we continue to expand selectively into the new and emerging tier one and tier two markets. Because for example the way we added book two because we are constantly looking and evaluating other tier two markets, the idea is to start small and when we see potential then we grow big, you know, test the waters and then grow big. These new cities are first tested for client demand and scalability and once they prove we’ve scaled rapidly and that is what exactly happened in Coimbatore and in the other markets like Dubanesha just started off.
We’ll test the waters and if we see a lot of potential then we’ll grow rapidly. So it is testing the water strategy which is working on and the Third is additional B2 and BTV continuously broadening portfolio like FNB, facility management, solar solution and even the recent addition of the solar has helped also to adopt the client, you know, the renewable energy solutions. So these are sectors, are these services sector agnostic. And they do not just help us to serve the client in indicube but also in the non indicative. So all these pillars, you know, we put together and that’s how the idea is to grow.
So there’s no one particular strategy in growth, whether it will be just Tier 2 or Tier 1, but it is the combination of multiple strategies to grow.
Sourabh Gilda
That’s quite clear. Just if you can quantify what percentage of demand in these cities is driven by your existing.
Meghna Agarwal
90% as mentioned earlier, also 85 to 90 still tier one, you know, if I have to really put it only about, you know, the balance is coming from the tier two, tier three things. You know, this is, this is where we are currently.
Sourabh Gilda
Sure. That’s all from my side. Thanks.
operator
Thank you. Our next question comes from the line of SIVA from I thought pms. Please go ahead.
Siva
Hi, just had a follow up question regarding the client sourcing strategy. How dependent are we on IPCs and why should brokers prefer us over other players? Is it like we need to be paying higher brokerage or any other factor is involved here?
Rishi Das
So 40% of our clients are. Sorry, yeah. So 40% of our clients are coming from brokers, to be precise, 39% and 61% of the clients are sourced directly by us. And within this 39%, I will say about 70% will be IPCs and then there will be a lot of individual or smaller broking firms and we follow a three pronged strategy by which clients come to us. Like if you have to very broadly put it, one third of our client acquisitions happen directly where the same clients basically are growing and another 1/3 is through our business development efforts either by our inside sales dedicated sales team, our social media handles our campaigns is what which our teams are doing all the time.
And the third is through the brokers over there. And our total brokerage payout is about 2.1% of our revenue and that has been fairly consistent and we don’t see that very significantly changing also in the future.
Siva
Understood. But again, so like I mentioned, they do have a significant upper hand in giving out clients to operators. Right. So why should one broker choose us over other players?
Rishi Das
So basically, of course like there are again two, three factors. One, a lot of times clients are very specific about the location where they want and not every operator may have a ready supply in that location. So one factor tends to be the location. Second is basically the services. Now what is happening, A lot of larger clients typically are using more than one operator across India. So they have comparable data. They know that what quality of service which operator is providing. So clients are also becoming discerning where when they are floating rfp, they know what operator is offering, reference ability and all that has happened.
So that is also playing a role. And then the comfort that we have built with the IPCs, like for example the transparency ensuring that their payments are happening on time, there are incentives that we have created for them depending upon suppose our rebirth incentives are there over there. So I think it’s a combination of all of these things. And yeah, so I think we work with all the leading IPCs across the country over there. So that typically I think is in a steady state now. There are no major surprises that we see every quarter and all that.
Siva
Understood, sir. Thanks for explaining. Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask questions, you may press star and one at this time, As there are no further questions, I would now like to hand the conference over to management for closing comments.
Rishi Das
Yeah. Thank you to all of you for taking out time and giving us a patient listening and we are very happy with the quality of questions that came in and I hope we have been able to answer these questions and clarify things to your satisfaction and look forward to your continued support. Thank you all again. Thank you.
Meghna Agarwal
Thank you all. Thank you for the time and the patience. Thank you.
operator
Thank you on behalf of Asian Market Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Yeah.