Indiqube narrows loss as revenue growth outpaces expenses
Operating margin rose 1.67 percentage points sequentially, but depreciation and lease interest kept the company in the red.
Filed 03 Nov 2026, 19:05 IST · after market close · Indiqube Spaces Ltd (INDIQUBE)
Key takeaways
- Standalone revenue grew 11.64% quarter on quarter to Rs 471.9 cr, while expenses rose 6.85%, lifting operating margin by 1.67 percentage points.
- The company remained loss-making, but standalone net loss narrowed to Rs 5.87 cr from Rs 23.88 cr as depreciation and interest continued to outweigh operating profit.
- Management said steady-state occupancy reached 91% and rent-yielding area grew 22% year on year in Q2 FY27.
Price around the results
Revenue growth improved operating leverage
Indiqube's standalone revenue rose 11.64% quarter on quarter, while expenses increased 6.85%. That gap lifted operating profit 14.69% and expanded operating margin to 62.82%, up 1.67 percentage points from Q1FY27. The results were filed after market close on 3 Nov 2026, so this note covers the reported performance rather than a same-session market reaction.
Lease-related charges kept profit below zero
Interest increased 1.50% sequentially and depreciation rose 3.76%, limiting the benefit from higher operating profit. Management said the Ind AS loss is largely caused by noncash depreciation on right-of-use assets and interest on lease liabilities. Other income fell 22.46% quarter on quarter and represented -274.9% of pre-tax profit, while the tax rate declined 1.35 percentage points; neither changed the loss-making result.
Margin sits well above the reported Services peer median
The available quarter-on-quarter direction was positive: operating margin increased from 61.15% in Q1FY27 to 62.82% in Q2FY27, while net loss narrowed from Rs 23.88 cr to Rs 5.87 cr. Indiqube's margin was 41.32 percentage points above the 21.5% median for the 37 Services peers that had reported the same quarter. There is no year-on-year financial comparison in the reported results.
Management points to occupancy and added supply
Management said steady-state occupancy rose to 91% from 89% a year earlier, while rent-yielding area grew 22% year on year. The company said it added about 5,000 seats in Chennai and 3,000 in Hyderabad, and had 203,000 operational seats alongside 59,000 future-supply seats. Management also said LOI-signed future supply is expected to become operational over the next 12–18 months and described a hub-and-spoke approach for expansion.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹472 cr | ₹423 cr | +11.64% |
| Other income | ₹20 cr | ₹26 cr | -22.46% |
| Expenses | ₹175 cr | ₹164 cr | +6.85% |
| Operating profit | ₹296 cr | ₹258 cr | +14.69% |
| Operating margin (%) | 62.82% | 61.15% | — |
| Interest | ₹129 cr | ₹127 cr | +1.50% |
| Depreciation | ₹195 cr | ₹188 cr | +3.76% |
| Profit before tax | ₹-7 cr | ₹-31 cr | +75.84% |
| Tax | ₹-2 cr | ₹-7 cr | +77.38% |
| Net profit | ₹-6 cr | ₹-24 cr | +75.42% |
| EPS (₹) | ₹-0.28 | ₹-1.13 | +75.22% |
Operating margin of 62.82% compares with a Services sector median of 21.50% across 37 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Rent-yielding area grew 22% year on year in Q2 FY27.
- Steady-state occupancy rose to 91% from 89% in the prior year.
Guidance & outlook
- The company expects LOI-signed future supply to become operational in the next 12–18 months.
Expansion
- The company added about 5,000 seats in Chennai and 3,000 seats in Hyderabad through new office-supply sign-ups.
- The company reported 203,000 operational seats and 59,000 future-supply seats.
New orders
- The company signed a multi-city workspace deal covering about 700 seats with a global staffing solutions company.
New initiatives
- The company is pursuing a hub-and-spoke approach to expand reach and capture demand across nearby micromarkets.
- The company has 0.96 million sq. ft. across seven centers under green certification.
- The company signed design-and-build projects covering about 2,000 seats for multiple clients across several metros.
Problems & risks
- The company says its Ind AS accounting loss is largely due to noncash depreciation on right-of-use assets and interest on lease liabilities.
What to watch
- Whether standalone operating margin holds above 62.82%.
- Whether the net loss narrows further from Rs 5.87 cr as interest and depreciation continue to be tracked.
- Progress in converting the reported 59,000 future-supply seats into operational seats over the stated 12–18 month period.