Strong revenue, crushed profit — major guidance miss undermines bull case

Guided 8–10% PAT margin; delivered -5.3%. 13.3pp miss is structural, not one-off (loss despite revenue beat).

36.7% YoY vs 25–30% prior guidance; beats organic expectation by 11pp. Offset by profitability miss.

17% of revenue (vs 12% prior); expects 19–21% by year-end. Driver of margin expansion plan, but Q1 anomaly clouds recurring base.

86% overall occupancy maintained in guidance range; 90% renewal rate, negative attrition, low top-5 concentration (12%). No deterioration vs prior calls.

RPA expands on annual basis, not quarterly. H2 FY26 added 1.14M sq ft; delivery timing varies. 3.9M sq ft signed pipeline to operationalize 12–18mo. Occupancy 80–85% corporate, 85–90% mature. No slowdown seen.

DesignQube, IndiCare, Eco driving 12%→17% VAS mix. Reframed as recurring, not one-off; expect 2–4% uplift to 19–21% by year-end. Margin 15%, prioritize scale over profitability near-term.

30 MW operational; plan 25–30 MW addition at ₹100–120 Cr capex. IRR 18–22%, strong paybacks. Clients expect 100% green solution; will fund own transition.

GCCs 52% revenue. IT services companies (Indian origin) ~10–12% of 28% enterprises. No exact breakup; bulk is GCCs and startups/unicorns.

Debt increased for solar plant, not core leasing business. Solar debt-funded separately.

Q2–Q3 FY28 operational. Proactive play, not back-to-back. Market tailwinds (Jewar airport, law & order) + follow-the-talent strategy + high-quality product showcase for occupiers.

Noida is HNI (ultra-large family group). Institutional supply: listed REITs, large funds. Higher quality, pricings higher, higher CAM. GCC clients pay premium for institutional. Margins consistent either way.

Capex not proportional to area addition (interiors, Design & Build, solar, vendor cycles). Numbers internally calculated but not disclosed; subject to H1 audit. Will detail in H1 numbers.

Unit economics similar (profitability, occupancy range). Real estate cheaper (₹50–70/sq ft vs metro); seat pricing also lower (₹6,500–7,500 vs higher metros). No margin deterioration.

Bangalore absorption 28% of national total; Indiqube exposure proportional. Chennai 10% now; NCR and West also growing. Noida, Mumbai, Hyderabad being added. Bangalore will remain dominant but share declining.

Attrition negative (customers expand more than leave). 90% renewal rate on multi-center clients (41% of revenue). Top 5 customers 12% revenue. Multi-tenanted properties; one tenant exit doesn't empty building. 60–90 day notice period; find replacements within timeframe.

Signed 3.9M sq ft pipeline covers ~2 years. No slowdown indicated. Delivery 12–18mo.

Q1 delivered 20%; within range. Sustainable given VAS uplift & scale.

Q1 delivered ~13%; at upper bound. Pressure from depreciation & interest on solar debt.

Q1 delivered -5.3%; massive miss. No path to 8–10% disclosed; management reaffirmed range despite loss.

Exact Q1 capex and full-year capex deferred to H1 audit. Capex variable, not tied to area addition.

Filed -₹23.9 Cr loss (NPM -5.3%) vs management's ₹35 Cr profit claim (8% margin). 59 Cr swing unexplained; accounting discrepancy or operational deterioration unclear.

Q1 -5.3% NPM vs 8–10% guided range. Management reaffirmed range but offered no path to recovery. VAS uplift (15% margin) insufficient to offset core margin compression.

3.9M sq ft (97K seats) signed; 12–18mo delivery window. Seasonal bunching (Jan–Feb ramp-up) means Q1–Q2 flat RPA despite AUM growth. Delays cascade to profitability.

GCC sector driving growth (49%→54–55% expected). Macro slowdown in IT/BPO hiring, especially post-COVID, could deflate demand. TAM growth secular (6–7%) but subject to cyclicality.

New centers (Noida, Hyderabad, Mumbai) take 5–6mo to operating break-even at 52–57% occupancy, 9–12mo to 90%. If macro weakens, ramp extends; margin pressure spreads portfolio-wide.

Solar investments funded via debt; IRR 18–22% assumed. Rising rates could compress IRR. Interest expense already increased Q1 (debt for solar). Capex timeline opaque (deferred to H1 audit).