ICICI Securities issued a buy rating for Indiqube Spaces with a target price of Rs 271. The company delivered strong Q2FY27 results as mature centre occupancy rose to 91 percent. Revenue grew 12 percent, and management said growth momentum would sustain as new office space becomes operational later this year.
ICICI Securities's research report on Indiqube Spaces Indiqube Spaces Ltd. (Indiqube) delivered a strong Q2FY27 result on the back of mature centre occupancy rising 100bps QoQ to 91%. Hence, Q2FY27 revenue was up 12% QoQ with IGAAP EBITDA (cash EBIT) up 39% QoQ to INR 1bn at an IGAAP EBITDA margin of 22% (up 430bps QoQ) owing to higher VAS margins of 20%. For the remainder of FY27, management is confident that growth momentum would sustain, with 1-1.5msf of new area becoming operational. We build in a 26% revenue CAGR and 32% IGAAP EBITDA CAGR over FY26-28E. We retain BUY with a revised TP of INR 271 (earlier INR 263) at 15x Sep'27E EV/EBITDA, as we raise our FY27-28E EBITDA by 2%, factoring in higher IGAAP EBITDA margin.
Key risks: Office leasing slowdown and pricing pressures. Outlook We retain BUY with a revised TP of INR 271 (earlier INR 263) at 15x Sep'27E EV/EBITDA as we raise our FY27-28E EBITDA estimate by 2% factoring in higher IGAAP EBITDA margin. Key risks: Office leasing slowdown and pricing pressures. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.