Target: ₹263

CMP: ₹162.10 

Indiqube Spaces Ltd (Indiqube) delivered a strong FY26 result on the back of operational area rising to 7.8 msf as of Mar’26, along with FY26 mature centre occupancy at 88 per cent. FY26 IGAAP EBITDA (cash EBIT) doubled y-o-y to ₹250 crore at an IGAAP EBITDA margin of 17.4 per cent (up 490 bps y-o-y).

We build in same-store pricing growth of about 5 per cent for operational seats over FY26–28E. The balance revenue contribution will likely come from new seats, which are expected to grow at a 20 per cent CAGR over the same period. Meanwhile, VAS revenue will likely remain at 15 per cent of pure seat revenue, matching FY26 levels.

We estimate the operational area to rise from 7.8 msf in FY26 to 11.3 msf in FY28E, with portfolio occupancy hovering at about 82 per cent. While we build in a 26 per cent revenue CAGR over FY26–28E, we estimate a 31 per cent IGAAP EBITDA CAGR (post all lease rental payments) over the same period. Consequently, IGAAP EBITDA margins should expand 143 bps to 18.7 per cent in FY28E (vs. 17.2 per cent in FY26) as rental expenses on upcoming assets reduce as a percentage of operating revenue.

Additionally, annual utility cost savings of over ₹20 crore from the Karnataka solar power plant will likely contribute to this margin expansion.

We maintain Buy with a revised TP of ₹263 (earlier ₹283) at an unchanged 15x Sep’27E EV/EBITDA, factoring in higher capex spend.

Key risks: Office leasing slowdown and pricing pressures.

Published on May 22, 2026