The workspace provider’s quarterly revenue rose 45% to ₹395 crore, supported by robust demand for managed office solutions and a significant reduction in debt-to-equity ratios. Management anticipates continued margin stability as the company expands its footprint into 17 cities.
Indiqube Spaces Limited (NSE: INDIQUBE) announced its financial results for the third quarter and nine months ended December 31, 2025, on February 10, 2026. The company reported a record quarterly revenue of ₹395 crore for Q3 FY26, representing a 45% increase compared to the same period in the previous year. This performance was accompanied by a significant strengthening of profitability, with nine-month Profit After Tax (PAT) rising 284% year-on-year to ₹95 crore on an IGAAP-equivalent basis. The stock is listed on both the BSE and NSE.
Key Development: Expansion into New Markets and Segments
A primary driver for recent growth is the company’s expansion into new geographic regions and service segments. During Q3 FY26, Indiqube entered Bhubaneswar with a 45,000 sq. ft. property, bringing its total presence to 17 cities across India. The company also reported strong traction in its Bespoke Design & Build offering, signing approximately 66,000 sq. ft. across projects in Guwahati—its first in the Northeast—and Chennai. Furthermore, the company leased 38,000 sq. ft. in Bangalore to one of the country’s oldest law firms, signaling continued penetration into the large enterprise segment.
Financial Performance and Margin Trends
For the nine months ended December 31, 2025 (9M FY26), Indiqube reported a total revenue of ₹1,063 crore, a 37% increase from ₹776 crore in 9M FY25. Profitability metrics showed consistent improvement:
• EBITDA Margin: Reached 21% in Q3 FY26, up from 17% in the prior year’s quarter.
• ROCE: The annualized Return on Capital Employed grew to 23% in Q3 FY26 compared to 15% in Q3 FY25.
• Debt-to-Equity: The ratio improved significantly to 0.15, down from 0.80 year-on-year, reflecting a strengthened balance sheet.
Management noted that while the company reported a current tax expense of ₹13 crore for 9M FY26, it recognized a notional loss under Ind AS reporting. This variance is attributed primarily to Ind AS 116 non-cash adjustments, including depreciation on Right-of-Use (ROU) assets and interest on lease liabilities, which do not impact underlying operating strength.
Business Outlook & Strategy
The company’s strategy focuses on maintaining high earnings visibility through an annuity-led revenue mix, with recurring revenues contributing 94% of total turnover. Leadership indicated that the current EBITDA margins are expected to remain stable, with a focus on a strong closure for the financial year in Q4. The operational model is designed for rapid payback of interior and renovation fit-out capex within 36 months, aligning client and landlord lock-in periods to eliminate asset-liability mismatches.
Segment Updates and Regulatory Milestones
Indiqube maintains a diverse service stack, including IndiQube Grow (plug-and-play spaces), IndiQube Bespoke (custom interiors), and IndiQube One (workplace management). Regulatory and credit milestones include:
• Credit Rating: Reaffirmation of CRISIL ‘A+’ with a Stable outlook.
• Tech Integration: The MiQube technology stack saw a 32% increase in transaction volume for 9M FY26, with the MiQube app surpassing 107,000 downloads.
Sector and Macro Context
The company operates within a broader Indian commercial real estate market characterized by a significant supply opportunity in aging assets. Data indicates that 52% of completed office stock in Tier I cities is over 10 years old, and 132 million sq. ft. is classified as Grade B. Indiqube’s strategy involves asset transformation of these properties, with 26% of its current portfolio consisting of renovated assets. There is also a distinct occupier preference for green-certified spaces and proximity to metro stations, areas where the company has focused its recent investments.
Where Does Indiqube Spaces Ltd Stand Today?
As of Q3 FY26, Indiqube stands as a PAN India workspace platform with 9.55 million sq. ft. of Area Under Management (AUM). The company manages 129 centers providing over 212,000 seats to approximately 830 clients. Its portfolio occupancy remains healthy at 84%, with steady-state occupancy in mature centers reaching 90%.
Market Situation and Business Model
The company utilizes a managed office solutions model tailored for startups, Global Capability Centers (GCCs), and large enterprises. Approximately 40% of its client base consists of GCCs, while 60% comprises Indian MNCs and startups. The business model emphasizes stability, reporting a monthly average net churn rate of negative 0.60% for 9M FY26.
Analyst Interpretations and Investment Strengths
Key reasons analysts may view the equity positively include:
• High Revenue Visibility: Supported by a 94% recurring revenue base.
• Efficient Capital Allocation: Demonstrated by the 23% annualized ROCE.
• De-leveraged Balance Sheet: The 0.15 debt-to-equity ratio provides significant headroom for future growth. • Operational Breakeven: New centers typically reach operational breakeven within 6 months, minimizing the impact of ramp-up periods on long-term profitability.