Financial Performance Highlights

Full Year FY26 (Consolidated):

  • Revenue: ₹226 crores, representing 42% year-on-year growth (FY25: ₹159 crores)
  • EBITDA: ₹109 crores
  • EBITDA Margin: 48.4%

Full Year FY26 (Standalone - Core Managed Workspace):

  • Revenue: ₹171 crores, representing 34% year-on-year growth
  • EBITDA Margin: 60.5% (FY25: 59.8%)
  • Normalized Cash EBIT: ₹36.55 crores (21.38% margin)
  • Normalized PBT: ₹20 crores (second consecutive year of positive PBT)

Q4 FY26 (Consolidated):

  • Revenue: ₹59 crores

Operational Highlights & Key Developments

Capital One Campus Launch:

  • Location: Ambli Bopal Road, Ahmedabad
  • Size: 19-story building with 3.15 lakh square feet
  • Occupancy: 95% pre-leased before going live
  • Expected Revenue: ₹2.65-2.75 crores per month
  • Timeline: Revenue to reflect from Q1 FY27
  • Status: EBITDA positive from day one of operations

Portfolio Expansion Strategy:

  • Current operational area: 1.2 million square feet
  • Target: 3 million square feet by FY28
  • Investment Plan: ₹200-225 crores over next two years
  • Focus: Tier 2 cities (Ahmedabad, Indore, Jaipur, Surat, Baroda)

Ambli Bopal Micro-market Dominance:

  • Total contracted space: 15.75 lakh square feet in one micro-market
  • Breakdown:
  • Capital One: 3.15 lakh sq. ft. (delivered, 95% occupied)
  • Development management asset: 8.1 lakh sq. ft. (planned)
  • Straight lease asset: 4.5 lakh sq. ft. (signed in Q4)
  • Investment Commitment: ₹100 crores over four years for development management project
  • Expected Revenue: ₹120 crores annually at 80% occupancy

Client Metrics:

  • Enterprise Client Contribution: 65% of revenue
  • Client Retention: 99.7% in FY26
  • Average Contract Lock-in: 34 months
  • Multi-city Clients: 100+ clients present in multiple cities
  • Rent-to-Revenue Ratio: 2.4x (industry average: 2.2x)

Subsidiary Performance:

  • Needle & Thread (Design & Build): Revenue ₹52.3 crores, EBITDA margin 7.2%
  • SaaSjoy Solutions (HRMS/Recruitment): Scaling to provide full-stack offerings to GCC clients

Capital Structure & Financing

Recent Fundraising:

  • Preferential Issue: ₹35 crores approved by board
  • Breakdown: ₹15 crores from promoters via convertible warrants, ₹20 crores from non-promoter investors
  • Purpose: Fund growth and 4.5 lakh sq. ft. asset acquisition

Future Capital Plans:

  • Q1 FY27: Expected liquidity event of ₹110-120 crores through subsidiary monetization (0.5 million sq. ft. project)
  • NCD Issuance: Board approved non-convertible debenture issuance at project level
  • Expected Interest Rate: 11-12% for debentures

Fund Utilization Priority:

1. Accelerate growth across country

2. Build similar corridors like Ambli Bopal in 4-5 cities

3. Establish development management partnerships with land owners

4. Strengthen balance sheet

Business Model & Strategy

Development Management Model:

  • Asset-light approach: No construction or land risk on balance sheet
  • Partnership with non-institutional land owners
  • Revenue Model: ₹300-500 per square feet fee spanning 2-4 years
  • Land Owner Benefit: 30% higher returns vs traditional leasing
  • Company Provides: Execution capabilities, technical specifications, construction discipline, client relationships

Market Opportunity:

  • India hosts 1,800 Global Capability Centers (GCCs) employing 1.6M professionals
  • Expected to cross 2M professionals in current calendar year
  • Tier 2 city hiring growing at 21% YoY
  • Cost arbitrage: 35% over Tier 1 cities
  • Digital skilled talent pool: 800,000 professionals in Tier 2 cities

Management Commentary & Outlook

FY27 Revenue Guidance:

  • Expected Range: ₹330-350 crores

Growth Drivers:

  • Multiple assets going live in coming quarters:
  • Million Minds, Vaishnodevi: 84,000 sq. ft.
  • Pune asset: 40,000+ sq. ft.
  • Ahmedabad asset: 0.5 million sq. ft. (Q4 FY27)
  • Prestige partnership, Bangalore: 1,10,000 sq. ft. (fit-outs starting June 1, revenue expected August)
  • Pune expansion: 2,00,000 sq. ft. (possession Sept-Oct, revenue January)

Management Priorities for FY27:

1. Build senior leadership team at city level for autonomous growth

2. Become AI-native organization

3. Identify 5-7 lakh sq. ft. projects under development management model in next 12 months

Industry Context & Challenges

Market Position:

  • Recognized as Co-working Startup of the Year at Economic Times Entrepreneur Awards 2026 (second consecutive year)
  • Needle & Thread recognized as India's most futuristic interior design and build firm 2026

Operational Challenges:

  • Closed Noida asset due to poor maintenance by land owner (elevator issues, AC system problems)
  • Temporary supply chain constraints (tile availability due to gas shortage) now resolved

AI Impact Assessment:

  • Management believes AI will increase IT company margins and productivity
  • Expects continued demand for office space as companies retrain workforce
  • No significant churn observed among existing clients