Key Financial Figures - Q1 FY27

Consolidated Performance:

  • Revenue: INR 53.8 crores
  • EBITDA (Ind AS): INR 30.3 crores, up 14.7% YoY
  • EBITDA Margin (Ind AS): 56.3% vs 47.4% in Q1 FY26
  • EBITDA (IGAAP): INR 12.5 crores, up 24% YoY
  • EBITDA Margin (IGAAP): 23.2% vs 18.1% in Q1 FY26
  • Profit Before Tax (IGAAP): INR 7.1 crores, up 64.9% YoY

Standalone Performance (Core Workspace Operations):

  • Revenue: INR 42 crores, up 7.8% YoY (from INR 38.9 crores)
  • EBITDA (Ind AS): INR 27.7 crores
  • EBITDA Margin (Ind AS): 66%
  • EBITDA (IGAAP): INR 9.9 crores, up 9.8% YoY
  • PBT (IGAAP): INR 6.6 crores, up 59.1% YoY

Operational Highlights - Q1 FY27

  • Operational Portfolio: 1.13 million square feet (vs 0.86 million sq ft in Q1 FY26)
  • Operational Centers: 27 centers across 12 cities
  • Total Seats: 17,294 seats
  • Occupied Seats: 15,899 (vs 12,534 in Q1 FY26)
  • Occupancy Rate: 91.93% (vs 88.6% in Q1 FY26)
  • Enterprise Client Revenue Contribution: 70% of operational revenue (vs 52% in Q1 FY26)
  • Revenue to Rent Ratio: 2.63x
  • Tier 2 Cities Contribution: 80% of operational SBA, contributing 74% of standalone revenue

Portfolio Pipeline and Expansion

  • Under Fit-out: 0.19 million square feet
  • Signed Future Capacity: 2.31 million square feet
  • Total Identified Portfolio: 3.63 million square feet across 40 centers
  • Future Operational Seats: More than 52,000 seats

Ahmedabad Expansion Specifics

  • Capital One Center: 3.15 lakh square feet operational with 95% pre-leased
  • Development Management Project: Signed pipeline for 8.6 lakh square feet on Ambli Bopal Road
  • Estimated Fit-out Investment: ~INR 100 crores
  • Future Capacity: ~8,500 seats
  • Potential Revenue: ~INR 120 crores

Strategic Initiatives

GCC Platform Expansion:

  • Building capabilities beyond workspace provision to include facility management, payroll services, talent sourcing, and other GCC services
  • Design and build unit (Needle & Thread) provides execution capabilities
  • Subsidiary SaaSJoy adds technology solutions layer

Technology Initiatives:

  • Building AI infrastructure launchpad for PropTech innovators
  • Partnering with pan-India media organization for innovation scouting
  • Investment in Eezily Networks provides broker networks and real estate intelligence

Global Tokenization Platform:

  • Process initiated for building tokenization platform outside India
  • Law firms onboarded with signed engagement letters
  • Entity incorporation process commenced by participating investors

Capital Structure Update

Debt Raising:

  • Raised INR 100 crores through senior, listed, secured, redeemable, non-convertible debt instruments
  • Coupon: 11.75% per annum
  • Tenure: 36 months
  • Security: 1.85 crores shares (19.65% of equity) encumbered

Promoter Holdings:

  • Current Promoter Shareholding: 36.81%
  • Minimum Covenant Requirement: 19.65%
  • Preferential Warrants: 33,33,330 equity shares approved for issuance upon conversion
  • Expected Promoter Shareholding Post Conversion: ~37.29%

Leverage Position (End Q1 FY27):

  • Gross Debt: INR 135 crores (vs INR 145 crores at FY26 end)
  • Cash & Equivalents: INR 54 crores
  • Net Debt: INR 81 crores (vs INR 89 crores at FY26 end)
  • Net Debt to Equity: 0.4x (vs 0.48x at FY26 end)
  • Net Debt to EBITDA (IGAAP): 1.04x (vs 2.10x at FY26 end)

Accounting Clarification

Under Ind AS, future rental commitments are recognized as lease liabilities today. This represents rent to be paid from operational revenue, not borrowed money with repayment schedules.

Business Models

  • Straight Lease Model
  • Landlord-Funded Center
  • Development Management Arrangements (1.4 million square feet planned across Ahmedabad and Jaipur)

Subsidiary Update - Scalex Advisory Limited

  • Joint venture with Savvy (developer) and Talati & Talati (CA firm)
  • Ownership: ~12%
  • Focus: Full-spectrum GCC solutions specifically for GIFT City
  • Operations: Recently onboarded senior leader, GTM strategy formed

Q&A Session Highlights

  • Addressed revenue dip from Mumbai center closure
  • Clarified Capital One revenue calculations (INR 87/sq ft/month due to rent-free and fit-out periods)
  • Explained capex investment of ~INR 118 crores for 1.13 million sq ft portfolio
  • Discussed ROCE/ROE metrics considering lease liabilities and expansion timing
  • Confirmed ongoing GCC business under DevX beyond Scalex JV