IndiQube Spaces - H2 FY26 Outlook & Growth Strategy Analysis

Executive Summary: IndiQube Spaces management has signaled a strong H2 FY26, expressing high confidence in sustaining its 30%+ revenue growth trajectory. The company is well-positioned to defend its 21% EBITDA margin while executing a self-funded capex plan. Revenue: ₹354 crore Net Profit: ₹28 crore EBITDA Margin: 21% Occupancy (Portfolio): 87% Management confirms that the 30-35% revenue growth rate is "very sustainable" through FY26 and anticipates similar momentum into FY27. The 21% EBITDA margin is considered defensible, with occupancy expected to remain stable in the 85-90% range for mature centers. The company maintains a consistent expansion rate, adding 100,000 to 125,000 sq ft (approx. 2,500 seats) per month. IndiQube holds a significant competitive advantage with 9.1 million sq ft of total AUM. Of this, 3.1 million sq ft is signed but not yet rent-yielding, providing a clear and substantial pipeline for future revenue growth. A 3-year, ₹460 crore capex plan (primarily for interior fit-outs) is on track. Approx. ₹120-130 crore was deployed in H1 FY26. This capex is comfortably supported by strong internal accruals. The company generated robust cash flows of ~₹150 crore in H1 VAS contribution has expanded from 11% to 13% of total revenue over the past year. Management is targeting a 15% contribution from VAS in the next year. Growth is driven by cross-selling B2B/B2C services (IT, transport, food, green power) and expanding to manage facilities for clients beyond IndiQube's own centers. Management acknowledges an emerging supply crunch in key markets like Mumbai and Bangalore. IndiQube is uniquely insulated from this risk due to two factors: The 3.1 million sq ft of secured space. A proven strategy of renovating older buildings. 3 million sq ft of the current portfolio consists of such assets, allowing IndiQube to tap into the 500 million sq ft of aging commercial stock in India, a market segment less dependent on new construction.