Indiqube Spaces Ltd

Yes, so I am getting Vikas, our IR head to give the answer to this.

Yes, hi. So, our free cash flow for this quarter is around Rs. 35 crores. So, on the basis of cash EBITDA of Rs. 52 crores, we have subtracted our interest cost and tax amount. And we have added back our non-cash item. On the basis of that, our free cash flow for this quarter is Rs. 35 crores.

Okay. And are there any working capital adjustments and--

After adjustment, all working capital and all, this Rs. 35 crores is coming to the top.

Okay. And what is the trend you are seeing in the micro market? So, for example, we have a very large footprint in Bengaluru. Apart from Bengaluru, because when we see the steady state occupancy last year, that was a 91. This year, we see the steady state occupancy at 87. Even

Page 16 of 20 though the occupancy for our portfolio has increased 5 percentage points. So, is there any element of slowdown in the IT sector in Bengaluru which is getting captured?

Very good point that you have highlighted. I am happy about that. But if you look at what happened was, basically, there were three renovated properties that we added in FY ’23 - FY ‘24. And the renovation of these older properties take between 9 months to 12 months to renovate them. Now, as per our definition of steady state centers, these properties got classified as steady state in FY ‘24 - ‘25. However, the active leasing of these properties started only in the last financial year.

And as a result, you see this, the steady state center occupancy has taken a bit of a dip. Now, these properties have picked up leasing traction. Over the next couple of quarters, we should see an improvement in the steady state center occupancy, once the tenant rental starts kicking in, basically, from September - October onwards. So, this was more on account of suddenly three properties totaling about 2.5 lakh square feet getting added, which basically created a temporary blip.

Also, I would like to highlight here that, as Meghna had said earlier also, that when you look at quarter wise occupancy, depending upon, suddenly, suppose some property has become rentable in that quarter, you will see some fluctuations happening into those numbers. And historically, we see that our overall occupancy has ranged between 80% - 85%. And our steady state center occupancy has ranged between 85% - 90%.

The full year is better rather than looking at the quarter wise. So, full year, more than 80% - 85% in a blended level and 85% - 90% in a mature state. That has been the thing with the uptick.

Okay, thank you. We will connect offline for more details. Thank you.

Thank you. We take the next question from the line of Shivkumar Prajapati from Ambit Investment Advices. Please proceed.

Thanks for taking my question again. Thanks for having me again. So, my first question is, if we look at the revenue to rent multiplier, it is close to around 1.8 times in comparison to others who are close to 2x or 2x plus. And as a percentage of co-working revenue, if we see rent expenses, it is higher for us. So, basically, rent to revenue multiplier is the lowest and the rent expenses as a percentage of co-working revenue is highest for us among the peers. So, could you please help me understand why these metrics are a bit away from the industry average? I mean, is there any difference in business model or the market dynamics are different for IndiQube?

Yes. So, Shiv, I am assuming that you are referring to our Slide #32 where you have the revenue to rent ratio?

Page 17 of 20 Let me check once.

Just look at that. So, Slide #32, which is our revenue to rent ratio. So, for Q1 FY ‘26, our revenue to rent ratio has been 2.26.

But, sir, for a full year basis, can you share that data? I mean, this is the quarterly data here.

Yes. So, full year will be again, I think, pretty similar. It will be north of 2 only. See, it was 1.8 almost 3 years back, typically. Okay.

Yes. And then from there on, it has been continuously improving. And if you look at Q4, for example, it was 2.09. And this is on the overall area. So, basically, it is not just the portfolio that got added in that quarter. So, yes. There is an improvement from 2, it has become 2.26. And why we are seeing improvement in this is, like, one, of course, we pick up a good percentage of our properties as renovated properties. So, in renovated properties, the base rents are lower, whereas our revenues are better as a percentage. That is one.

Second thing, a large number of properties we manage. We take full buildings. So, the common area maintenance and all those things come under our scope. And those costs are also significantly lower. If we were to pay the landlords in terms of (Inaudible) 46:33.4 and rent and all that. So, plus third is basically the value added services that we look in our case, continuously is increasing. Typically, like, whatever revenue we are making from our value-added services.

So, these three factors are basically ensuring that our revenue rent ratio is seeing, basically, a continuous improvement.

Okay, sir. And, sir, currently, the income from ancillary activities is about 10% of our overall revenue. Is that correct?

Yes, correct. Basically, it is Rs. 34 crores in the FY ‘26 Q1.

Okay. So, how do we plan to increase this share so that ultimately our realization per se would be higher? Yes, Meghna.

Yes. So, first, we have to look at the same slide. You have to look at the 32 slides. We have divided our value added services into two components. One is your reoccurring and one is your one-time. So, if you see my re-offering, the revenue has been increasing on a year basis 35% and quarter-on-quarter is about 12.5%. But when you see one-time, so one-time revenue, which is not reoccurring is also attributable to, depending on the project specific demands, certain

Page 18 of 20 clients would have a certain source. So, that thing keeps fluctuating. But a reoccurring revenue, there has been a constant growth. And in terms of, like, going forward, we aim to maintain a similar growth trajectory in the reoccurring, at least in the reoccurring segment, which we can talk about.

Because one-time, it is very client dependent and very situation dependent. So, our focus is on the reoccurring. And similar, what we have done so far, 10% to 15% will be doing in the next coming quarters also in the similar range.

All right. No worries. Thank you so much for answering my questions and best of luck. Yes, thank you.

Thank you so much. We take the next question from the line of Karan Khanna from Ambit Capital. Please proceed.

First of all, congrats on the listing. So, I just wanted to understand, like how big is the opportunity for IndiQube and if you could provide a segmented revenue split for the same?

So, currently, Karan, we have not done this segmented listing. The DNB also is a part of, is bundled in the VAS revenue as of now. So, I would say services wise, we have not yet divided into it. But it is growing at a very healthy pace. We have signed up one very big automobile company in the DNB space this quarter. So, all those things are happening. But segment wise, revenue, which we have not done it, we do not have it offhand right now. This is in totality, we usually contribute to the value. It is bundled in the VAs services only.

Okay, it is in VAS, okay. And in the future, you will be open to taking third-party contracts as well in this segment?

Yes. So VAS is nothing but a third-party contract also. So, when we say VAS, the services which we say, whether it is the food or the transport or the DNB, it is also catering to our existing client, but to the non-IndiQube clients also. It is blended revenue, but nothing to do with the, which is already part of the leasing, which is over and above. So, design and build, as I said, this automobile company which I am talking about, they were not a part of IndiQube family. It is like a third-party revenue only we are talking. So, the value added services, it is both IndiQube and non-IndiQube, but it is over and above your leasing revenue.

Understood. Thanks and all the best for the next quarter. Yes, thank you.

Page 19 of 20 Thank you. We take the next question from the line of Anand from MyTemple Capital. Please proceed. Hello. Thank you for the opportunity. Yes, hi Anand.

I just have one question. So, on Slide 24, you have given the impact of IndAS 116. I just wanted to check. So, this is mainly on the cost side. Is there also any benefit that we get on the income side due to IndAS 116? And what would be the impact of that?

No, there is basically only thing is that there we have the other income. -- If you see the slide number, I will tell you what, Karan. If we go to my slide number. Yes, 12th slide. If you see revenue from operation and if you see our IGAAP, the difference in the revenue is hardly few Rs. 2 or Rs. 3 crores. So, revenue wise, there will be income side, there will be hardly any difference. It will be equal. Whether it is IndAS or IGAAP, mostly the impact is on the cost front, which we have explained in the IndAS impact. The revenue, the top line effect is like Rs. 1 crores or 2 crores, which is kind of negligible in the larger thing.

Okay. And that also, I think if you were mentioning, it is coming on the other income side, not in the revenue from operation thing. Yes.

Yes, I mean, yes. Like for example, if you see -- Sorry, the total income is Rs. 324 crores for IndAS, whereas the IGAAP equivalent is Rs. 313.

So, should I be comparing that, the Rs. 11 crore benefit that is flowing in?

No, actually, all our metrics that you see, we have calculated on Rs. 313 crores only. Yes. We have not taken Rs. 324 crores at all.

It is just the reconciliation we have given it. Yes.

Page 20 of 20 Yes, like for example, if you see the quarter for FY ‘25, the IndAS revenue is about Rs. 307 crores and the IGAAP is Rs. 301crores. So, there is only difference of about Rs. 6 crores. So, that is only for the top line.

So, you are right on that, that the revenue that you should take is Rs. 313 crores, not Rs. 324 crores. Rs. 324 crores.

Okay. Got it. That was it. Thank you, thank you so much. Thanks.

Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question and would now like to hand the conference over to the management for closing comments. Over to you, sir.

So, I would like to take this opportunity to thank all of you, all the people who took time to join in. I would also like to thank the ICICI Securities for organizing this call. Thank you all.

Thank you. And for the rest of the balance question, the coordinates will be available. I am more than happy to answer all your questions in detail. Yes. Thank you so much. Thank you.

Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line.