Target: ₹263
CMP: ₹162.10
Indiqube Spaces Ltd. (Indiqube) reported robust financial results for FY26, driven by an increase in operational area, which reached 7.8 million square feet (msf) by March 2026. The occupancy rate of mature centers stood at 88% for FY26. The company’s IGAAP EBITDA (cash EBIT) for the year doubled year-on-year, totaling ₹250 crore, with an IGAAP EBITDA margin of 17.4%, reflecting a rise of 490 basis points year-on-year.
Looking forward, the company anticipates same-store pricing growth of around 5% for operational seats from FY26 to FY28E. The remainder of revenue is expected to originate from new seat additions, projected to grow at a compound annual growth rate (CAGR) of 20% over the same timeframe. Additionally, revenue from value-added services (VAS) is expected to maintain its level at 15% of pure seat revenue, consistent with FY26 figures.
Indiqube estimates an increase in operational area from 7.8 msf in FY26 to 11.3 msf by FY28E, with portfolio occupancy anticipated to stabilize at approximately 82%. The company projects a revenue CAGR of 26% through FY26–28E, alongside an IGAAP EBITDA CAGR of 31%, which accounts for all lease rental payments. This is expected to result in IGAAP EBITDA margins expanding by 143 basis points to 18.7% in FY28E, compared to 17.2% in FY26, as rental expenses for new assets decrease relative to operating revenue.
Moreover, the company anticipates annual utility cost savings exceeding ₹20 crore from its solar power plant in Karnataka, which should further support margin expansion.
Indiqube maintains a Buy rating with a revised target price of ₹263, down from the previous ₹283, based on a consistent 15x EV/EBITDA for September 2027E, reflecting an increase in capital expenditure.
Key risks: Potential slowdown in office leasing and pricing pressures.
Published on May 22, 2026
