High operating margin did not prevent IndiQube from reporting a loss
Interest and depreciation outweighed operating profit, while management said VAS is becoming a recurring part of the revenue mix.
Filed 12 Aug 2026, 17:23 IST · after market close · Indiqube Spaces Ltd (INDIQUBE)
Key takeaways
- IndiQube reported a standalone net loss of Rs 23.88 cr in Q1FY27 despite an operating margin of 61.15%.
- Interest of Rs 127.22 cr and depreciation of Rs 187.89 cr more than offset operating profit of Rs 258.47 cr, leaving profit before tax at a loss of Rs 30.51 cr.
- Management said VAS revenue reached Rs 72 cr and its contribution to operating revenue rose to 17%, while steady-state occupancy reached 90%.
Price around the results
Operating margin led peers, but the quarter remained loss-making
IndiQube's standalone operating margin of 61.15% was 37.47 percentage points above the 23.68% median for 22 Services peers that had reported the quarter. That operating performance did not translate into profit because interest and depreciation exceeded operating profit. Other income of Rs 26.13 cr was not enough to reverse the pre-tax loss.
Interest and depreciation drove the gap between operating profit and net loss
Interest of Rs 127.22 cr and depreciation of Rs 187.89 cr together outweighed operating profit of Rs 258.47 cr, producing a pre-tax loss of Rs 30.51 cr. A tax benefit of Rs 6.63 cr reduced the reported net loss to Rs 23.88 cr, with the tax rate at 21.72%.
VAS and mature-centre occupancy were the quarter's operating supports
Management said project-led VAS revenue lifted its contribution to operating revenue from 11% to 17%, with VAS revenue reaching Rs 72 cr. The company said such project revenue is expected to remain a recurring feature because of ongoing engagements and its pipeline. Management also reported steady-state occupancy of 90% and overall occupancy of 86%.
North India expansion adds supply and project visibility
Management said IndiQube accelerated its North India expansion with 3.9 lakh sq. ft. of office supply on Noida Expressway and is using a hub-and-spoke model to reach nearby micromarkets. The company said letters of intent with landlords are expected to become operational within 12 to 18 months. It also reported a 39K sq. ft. Design & Build project in Bengaluru and a Rs 52 cr workspace deal with a consulting and management services company. The standalone results were filed after market close on 12 Aug 2026.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹423 cr |
| Other income | ₹26 cr |
| Expenses | ₹164 cr |
| Operating profit | ₹258 cr |
| Operating margin (%) | 61.15% |
| Interest | ₹127 cr |
| Depreciation | ₹188 cr |
| Profit before tax | ₹-31 cr |
| Tax | ₹-7 cr |
| Net profit | ₹-24 cr |
| EPS (₹) | ₹-238.83 |
Operating margin of 61.15% compares with a Services sector median of 23.68% across 22 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Steady-state center occupancy rose to 90% and overall occupancy reached 86% in Q1 FY27.
- VAS revenue reached ₹72 crore and its contribution to operating revenue increased from 11% to 17%.
Guidance & outlook
- One-time VAS revenues are expected to remain a recurring feature of the revenue mix because of ongoing project engagements and their pipeline.
Expansion
- IndiQube accelerated its North India expansion with 3.9 lakh sq. ft. of office supply on Noida Expressway.
- Letters of intent signed with landlords are expected to become operational within the next 12 to 18 months.
New orders
- IndiQube signed a 39K sq. ft. Design & Build project in Bengaluru for a leading Canadian visual effects and animation company.
- IndiQube signed a ₹52 crore workspace deal with a leading consulting and management services company in Bangalore.
New initiatives
- The company uses a hub-and-spoke approach to expand reach and capture demand across nearby micromarkets.
What to watch
- Whether operating margin remains above 61.15% while interest and depreciation stay below Rs 127.22 cr and Rs 187.89 cr.
- Whether VAS contribution holds at 17% and steady-state occupancy at 90%.
- Progress on the 3.9 lakh sq. ft. Noida supply and the landlord pipeline expected to become operational within 12 to 18 months.