Financial Performance Highlights

  • Revenue: INR200 crores for Q1 FY27, representing 23% year-on-year growth
  • EBITDA: INR161 crores for Q1 FY27, representing 36% year-on-year growth
  • EBITDA Margin: 80% for the quarter
  • Net Loss: INR12 crores for Q1 FY27 (attributed to non-cash depreciation and interest expense)
  • Pro Forma Cash PAT: INR116 crores (adjusted for non-cash items and interest savings)
  • Contracted Revenue Run Rate: INR967 crores as of end-June 2026

IPO and Capital Structure Update

  • Successfully completed IPO in August 2026, raising INR4,250 crores of fresh primary capital
  • Proceeds deployed for deleveraging, reducing net debt to INR2,500 crores (12.5% of enterprise value)
  • Current debt cost: 8.2%, expected to reduce by 40-50 basis points post-deleveraging

Operational Metrics

  • Total Portfolio: 61 million square feet across 46 assets in 10 markets and 9 states
  • Land Bank: 2,300 acres
  • Customer Base: Over 120 customers including Amazon, Colgate, Unilever, Zara, Schneider, SIG, Lumax, Tatas, Vestas
  • Q1 Leasing: 1.9 million square feet across 13 transactions
  • New Customers: 9 added in Q1
  • Revenue Added: INR65 crores from new leasing
  • Leasing Mix: 75% from industrial customers
  • Occupancy: Maintained in high-90% range

Development Pipeline

  • FY27 Completion Target: 6 million square feet
  • Q1 Deliveries: 1 million square feet completed
  • Operational Area Projection: 35 million square feet by end-FY27
  • In-City Development: First delivery in Pune expected in Q4 FY27

Portfolio Composition

  • Industrial Segment: Represents nearly half of portfolio, serving renewables, EVs, automotive, data centers, semiconductors, aerospace, defense
  • In-City Platform: 17 assets across 7 major cities, providing access to 20+ million consumers within 30-minute driving distance
  • Rental Rates: Industrial buildings leased at ~INR29/sq ft vs. standard warehousing at ~INR24/sq ft
  • Weighted Average Lease Term (WALT): 7.1 years

Growth Strategy

Management outlined a 4-pronged growth strategy:

1. Contractual Rent Escalations: 5% annual escalations with re-leasing spreads of 12-15%

2. Large-Format Park Expansion: 25 million square feet of development pipeline with land fully paid

3. In-City Strategy: 6 million square feet delivery over 3 years with rentals 2.5-3x large-format parks

4. Value-Added Services: Rooftop solar (38 MW capacity), worker accommodations (6,000-7,000 beds), hospitality solutions targeting 5-10% of revenues in 5 years

Lease Expiry Profile

  • Q1 FY27: 300,000 sq ft expired, re-leased at 12% spread
  • Remaining FY27: 1.4 million sq ft due for expiry
  • FY28: 2.2 million sq ft due for expiry
  • Total Next 21 Months: ~4 million sq ft (13% of portfolio)

Development Economics

  • Construction Cycles: 9-12 months
  • Pre-leasing Rate: 20-30% of development cycle
  • Stock-in-Trade: 1.6 million sq ft as of June 30, 2026
  • Yield on Cost: 11-12% for large-format parks, 13-14% for in-city assets
  • In-City Construction Cost: ~INR4,500/sq ft
  • In-City Rental Guidance: INR70-75/sq ft

Future Outlook

  • Capex Requirements: INR1,500-2,000 crores over next 3 years (1/3 internal accruals, 2/3 debt)
  • Volume Growth: Targeting 25-30% revenue growth CAGR over 4 years
  • Profitability Timeline: Expect P&L to turn black in Q2/Q3 FY27

Legal Matter

  • Delhi High Court case challenging tender for 13 in-city warehouses (sub judice)
  • Management remains confident in position and delivery timeline

Capital Allocation

  • Focus on executing existing 61 million sq ft pipeline over 4-5 years
  • Continuously evaluating acquisition opportunities for consolidation and greenfield land parcels
  • Maintaining financial prudence while pursuing growth opportunities