Indiqube Spaces Limited (INDIQUBE) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q1 FY27 IndyCube Spaces Conference Call, hosted by JM Financial Services. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Gilda from GM Financial Services. Thank you, and over to you, sir.

Hi, on behalf of GM Financial, I welcome you all to the Q1 FY27 Earnings Call of IndieCube Spaces Ltd. From the management, we have with us Mr. Rishi Das, CEO, Ms. Meghna Agarwal, CEO, Mr. Kavan James, CFO, Mr. Vikash Agarwal, Head IR, and Mr. Vamchit Satrapati, AVP Marketing. We would like to now begin the call with opening remarks from the management, post which we will have the forum open for an interactive question and answer session. Thank you, and over to you, Rishi Elmigna.

Yeah, thank you, Saurabh. Good afternoon, everyone, and thank you for joining us for the NDQ Spaces Limited Q1 FY27 Learnings Call. It is my pleasure to welcome our shareholders, analysts, investors, and all participants joining us today. Our earnings presentation has been uploaded on the stock exchanges and on our website, and we trust you have had the opportunity to go through it. Q127 marks a very strong start for the year, with Indicube delivering its highest ever quarterly revenue of 428 crores, representing growth of 37% year on year. This strong revenue performance was accompanied by healthy growth across profitability metrics. Our EBITDA increased by 34% to 87 crores. EBIT grew from 59% to 55 crores, while FAT increased by 91% to 35 crores. What is equally encouraging is the quality of this growth with profitability strengthening as we scale. EBIT margin improved to 13% in Q1 FY27 from 11% in Q1 FY26, while back margin expanded to 8% from 6% during the same period last year. EBITDA margin remained healthy at 20%. Together, these metrics demonstrate the operating leverage inherent in our platform and our ability to translate growth in scale with stronger profitability. On the operational front, we continue to expand our portfolio at a healthy pace. During the year, we added 1.91 million square feet to our area under management, and we launched 17 new centers. This expansion continues to be guided by our follow-the-talent strategy, under which we build high-density workspace clusters in talent-rich micro-markets, where enterprises are looking to establish and expand their operations. Importantly, the strength of our platform is also reflected in the quality and composition of our customer base. So, as of June 2026, we catered to 855 clients, and this was across a good diverse mix of global capability centers, Indian conglomerates, unicorns, and high-growth GCC's contributed 53% of our Multi-center clients who have taken more than one center, that accounted for about 41% of our revenue. Nearly 90% of our occupants come from clients who have taken more than 100 seats. So these indicators clearly reflect that the large-size, long-stay and enterprise-focused nature of our portfolio. They also demonstrate our ability to grow alongside our customers. As we expand across cities and micro markets in India, alongside growth and profitability, sustainability continues to remain a very important pillar of our strategy. Nearly 30 megawatt of solar capacity is already operational, comprising capacity from our solar farms in Karnataka and Maharashtra, as well as rooftop installations across the country. These initiatives are an important step towards our long-term ambition of transitioning the IndiQ portfolio to 100% green power. So, if you have to reflect back, the last decade was about building and evolving IndiQ. We expanded from Bangalore to multiple cities, our progress from managed workspaces to an integrated managed spaces platform. The next phase for us is about compounding what we have built. We believe the combination of our geographical expansion, deeper customer relationships, a growing contribution from evaluated services, Sustainability initiatives create a solid foundation for the next phase of IndieCube growth. With that, I will now hand over to my co-founder, Legna Agarwal, who will take you through the key business highlights for the quarter.

Thank you, Rishi. I encourage everyone to spend some time going through our annual report, which is available on our website. I believe it provides a much better understanding of how we see IndieCube evolving into an integrated, managed spaces platform. That evolution is reflected in the breadth of our offerings. The first one is Grow, our core managed workspace proposition. Design Queue, which is a rebranded version of Bespoke. It enables us to participate in the design and creation of workplaces, giving us a larger role in the customer's workplace journey. IndyCare, rebranded version of IndyQueue 1, allowing us to address broader operations, employee experience, and facility requirements. Thank you. Extending the Indicare proposition into retail, there is a significant opportunity to manage end-to-end stores and bunches, eco, helping customers build more sustainable and energy-efficient commercial spaces. So when we look at these offerings together, the opportunity becomes much larger than simply adding more squares to this. We have consistently said that we intend to add close to 2 million square feet every year, and we remain committed to that growth trajectory. What is also changing, however, is what we can do with every square feet we add and every customer relationship we build. As DesignCube, IndyCare, and EcoScaleUp, we expect VATS to become an increasingly important component of our revenue mix. A WAAS contribution has grown from 12% to approximately 15% and is currently around 17% of our total revenue. We expect this contribution to increase further over time. For us, the important point is that these opportunities allow us to create more value from the capabilities and platform we are already building. When we look at these offerings together, the opportunity becomes much larger. So, going forward, our growth will come from both expanding our managed workspace footprint and increasing the range of services we provide to each customer. Ultimately, our ambition is to become the total outsourcing solution for commercial spaces. That is the IndiQ platform we all are building. With that, we look forward to addressing your questions during the Q&A session. Thank you.

Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shamit Ashar with Ambit Capital. Please go ahead.

Yeah, hi. Thanks for the opportunity. And a couple of questions from my side. So, you've reiterated your guidance of 2 million square feet of area addition annually. But if we look at quarter 1 of FY27, there is no change in your operational area addition. So, how do you think the remaining supply additions will be distributed across Q2 to Q4 to meet this guidance? Are you seeing some sort of a slowdown in supply or increased competition? That's my first question. Secondly, on VAS, you recognize 39 crores as one-time VAS revenue this quarter. So, what led to jump in the one-time revenue and how do you see this segment on a steady basis for the remaining of FY27? And my last question is on your solar. I think you can take the two and then I'll take the third one. Thank you.

Yes. Okay, thank you. I'll try to answer the first two questions, okay? And it will be a mix, so I'll try to kind of combine everything. So when you said why no rent-paying area increase and what is it, right? So just to give an idea, as you rightly said, that we have added close to 2 million square feet annually, which translates to approximately 44,000 feet per year. And we definitely intend to continue operating within the same range forward. But if you see in the rent-paying area, our expansion is on annual basis rather than on the quarter and quarter because the timing of the new center addition can actually vary significantly from one quarter to another. And in H2FY26, we have added approximately 1.14 million square feet. So, therefore, the sequential movement in this rent-paying area in this quarter, you are seeing the relatively flat. Growing forward in the current year and all, you would see the additions in the rent-paying area increasing and reaching out close to 2 million square feet. The overall annual basis, we would be as per our guidance, and we are seeing no slowing here. We already have a headroom of about 3.9 million square feet, which is about 97,000 seats, which is already signed and is in the city. So, in that way, we are absolutely fully covered, you know, in that area. Quarter-on-quarter, as I said, there would be certain changes which we cannot because of the timings and the ramp-up of the building, okay? And even in the occupancy for those perspectives, we would maintain the 80% to 85% occupancy at the corporate level, 85% to 90% on the mature centers. So, these are the numbers which you would see on an annual basis. A few percentage here and there on a quarter would come. Where this model performs. The second question was about your VAS. Now, the VAS definitely has contributed, and as I mentioned earlier, it's also from 12 to 15 to 17 percent, and it would always remain an integral part of a strategy in client offering. And so, VAS, we try it on a consolidated basis. So, for your first-time revenue, when you mentioned. It is because of all the three other services, which is your design cube, Indicare, and ECHO. So although this would be like a one-time affair, but we have mentioned in our presentation also that you have to consider the reoccurring kind of a nature because this kind of a growth would keep coming. We expect the contribution of VAS revenue, in fact, to increase further from 17% by 2% to 4% approximately. This quarterly percentage may fluctuate, but the structural computation of VAS will increase, and you will see continuing over time. So structurally, you might see one time going up and down, but overall, the contribution of the VAS you would see is increasing. I hope I've been able to answer those questions.

Yeah, yeah, yeah, understood. That was helpful. And second, and lastly on your solar, so can you just lay down how much of capex have you, you know, year marked for solar, till date, and, you know, what kind of IRRs are you expecting from your solar investments? That's it, from my end.

Yeah, thank you, Shamik. So, as mentioned, we have now 30 megawatt of operational capacity, and this year, We intend to add another 25 to 30 megawatts worth of capacity, transmitting into a requirement of about 100 to 120 crores capital expenditure that is there. And our solar IRR has been very healthy. Typically, it has been between 18 going up to 22 percent kind of an IRR. Wherever we have invested in solar, our paybacks have been extremely good. So, we will continue to doubling down because as we are expanding and as our clients, a lot of green transition is happening. And we'll also do a small part for...

Thank you. The next question comes from the line of Yashash Gilganshi with Bob Capital Markets Limited. Please go ahead.

Good afternoon, team. Thank you for taking my questions. I would like to know what proportion of rents was contributed by IT tenants over the quarter and what percentage of these tenants are DCCs?

So, thank you.

Yes. So, if you look at what Thank you very much. And then we have other companies like say Mahindra Logistics or TDS kind of company are also there. So basically, of this 28%. We don't have the exact breakup on this 28, but you can imagine about 10% to 12% will be that, the last percentage in the Global Capability Centers.

Okay, understood.

And I see that interest expense on your outstanding debt seems to have gone up. Please help me understand what drove this increase.

Can you repeat the question, please?

I noticed that interest expense on your outstanding debt seems to have gone up. Just please help me understand what drove the increase.

Hi, Ashish. Vikas here. So our debt has increased because as a resistor told that we have increased the solar plant and all, and for that purpose, we have taken the debt for the solar purpose, not for our normal business, leasing business.

Okay, understood. And just following up on a question my colleague asked a while earlier, just to confirm my understanding, so even growth in rentable area would be close to 2 million square foot each year, although with a lag. Is my understanding correct?

So rentable area, I think we've just kind of simplified the definition. It's a rent-paying area, rentable area, and that is the right matrix to look at, the rent-paying area and the rent-yielding area. The rent-paying area could be the rentable area. As I mentioned, it is about 2 million square feet, close to 2 million every year we would be adding.

Got it. Thank you very much.

The next question comes from the line of Yog Rajani with Omega Portfolio Advisors. Please go ahead.

Hi, thank you for taking my question. My first question was, again, with regards to the difference between the area under management and the rent-paying area. So we have around, say, 2.8 million square feet of area that would come under rent-paying. So could you tell us what to do? I'm late.

So, our current area is 10.61. So, if you go to the slide number in our presentation, 1515, if you go there, you would see the breakup of that 10.61. The 10.61 in that 7.8 is the rent-paying area, and the 6.74 is the rent-yielding area. And the balance is either getting operation, but the LOI has been signed. And this would get to operation about 12 to 16 months.

Okay. Would it be possible to get a more granular breakup in terms of every quarter, how much would be added?

Every quarter? This is the quarterly number, no? So what I've given, what we have provided you 10. Okay, the quarter-wise, yeah, so we have done on the early. So, yeah, we will take a note of it, you know, probably in future, but as if not, we would have just this number.

Okay, fair enough. My next question, yeah. So, our steady-state occupancy is already at 90%. So, going forward with growth coming in, do we see the same level of profitability to be maintained or do we see the profitability to be slightly neutral or lower given that newer centers might take a while to break even?

Yeah, I mean, the thing is, we have always maintained that there would be a certain range quarter and quarter, so the occupancy for the corporate level would be always in the range of between 80 to 85%. Sometimes it goes 81, 82, sometimes it will be 85, 86. And for the mature centers, which is more than 12 months, it would be in the range of 85 to 90, okay, 88 and 90. And even for that matter, even EBITDA margin would range from 19 to 21 percent. My EBITDA margins would be in the range of 11 to 13 percent, and my FAC margin would be in the range of 8 to 10 percent. Annually, you would see this change happening, and whether my occupancy is 1% down here and there, but my margins would remain exactly in the same range, and you would see that in the coming quarters and years.

My point was more with regards to the growth. So, assuming the steady-state occupancy remains what it is, the newer footprint that we plan to add would... It would not break even quite soon. It would take, say, around 36 months to break even. So, wouldn't that have an impact on our overall profitability?

No. So, our break even, oh, so, for you, okay. So, our break even is not, so, first, I'll tell you what, our new centers typically take five to six months to reach operating break even, which is approximately about 50 to 57 percent of occupancy. And from there, the center continues to ramp up, and we typically reach around 90% occupancy within 9 to 12 months. So this is the number. So it's not about 36 months. It's the full capix recovery we are talking about. But my break-even is within 5 to 6 months. That is also clear in my slide 17, if you see. The break-even is only 6 months, and the steady state is 12 months. So, very, very well we have mentioned in there also. So, it would, even with the growth, there will be no effect on, the margin would, there will be no pressure on the margin, if I may say so, in a simpler term. It will be in the same ranges which I mentioned before.

All right. Thank you. The next question comes from the line of Saurabh Gilta with GM Financial Services. Please go ahead.

Yeah, thank you. My first question is on the recent new sancta edition that we have done in NOIDA congrats on signing a large sancta. I think it's not just largest in insurance. I'm the largest across our entire portfolio. So, just wanted to get a sense in terms of, you know, timeline of operational for this center and, you know, what's giving you confidence to add special, you know, lab centers since we have been, you know, focusing on, you know, decent-sized centers until now. So, just wanted to get a sense how much of this is demand back.

So, thank you. So this will go live by middle of next year. So you see that Q2, FY28, or maybe Q3, that's the timeline in which the building should go operational. And because we have been present in the NCR, we already have two centers in Noida, and we have a few centers in Gurgaon. So we have a fair amount of Reiki done in that market, and we believe that the timing was right to basically do a large center where we can create basically a very high-quality product and showcase and provide a very Tech Park-grade experience for our occupiers. And then, as you know, we are seeing a lot of tides turning in NOIDA, especially because of the better registration, law and order. As well as the delivery airport starting. Let's look at picking up a larger supply and doing a high-quality product and then taking it up over there. But it is not like any demand fact or such, because as you will know, Thank you.

So, just as a follow-up, I know in Bangalore, that market being supply-constrained, it's difficult to sign such large centers, but as you expand beyond Bangalore, is that the strategy that you want to follow, the strategy of taking large centers and any new market that you're looking at for similar-sized centers in New York?

So, our philosophy always has been follow the talent strategy, to be honest with you, because if you are operating in, say, the Naiman Point or a very dense micro market in Bombay, you might expect to have a product that we are signing up in Noida. So, there we will be going with a mix of smaller buildings or looking at renovated buildings. But when we are going on, say, a Dubai Mumbai kind of location or a Noida Express Bay kind of location, these tend to be more tech park-centric, large occupier kind of locations. And the supply also favors picking up. So, our strategy will continue to be more micro-market-centric, depending upon what micro-market we are getting in, what is the customer profile, what is the availability of real estate in that micro-market, and accordingly, we will keep adjusting. We are not married to one side. For example, if you look at, we have been picking up a lot of supply tech parts also. So, it is a function of what type of demand pattern, what micro market characteristics are, and accordingly, we play it out.

So, thank you for the elaborated answer. Thanks so much.

A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Chainam Sangvi with Dhamma Capital. Please go ahead.

Hey, yeah, thank you so much for taking my question. I was actually curious on the supply side of things. What is the breakdown of institutional supply and non-institutional supply from Bangalore? You have about 76 centers in Bangalore and also your New York Noida lease. Is that institutional or non-institutional?

So, it is a non-institutional supply, even though the supply size is very large. It is a property owned by a large ultra-HNI family group. But if you look at about 20% of our supply is from institutional, which is like typically the listed REITs or a large fund kind of a thing, and the remaining is from the ultra-HLI landlords, and definitely we are seeing the share of institutional supplies growing in our portfolio. This used to be about 12% a couple of years back, and now it has about 30% of our overall portfolio.

Okay, and to follow up on that, how does pricing differ between the institutional supply and the H&I supply?

So, I would say, obviously, it depends upon the quality of the product. And as you can guess, the institutional supply product typically tends to be of a better grade. So, definitely, their pricings are higher. On an average, their common area, maintenance costs tend to be also higher. But at the same time, the profile of the customers that we are able to attract. A large percentage of them are global capital centers, so they tend to pay a higher, basically, price as well. So we are not seeing, like, even though we are paying higher in the institutional grade, I think from a margin perspective, we are fairly consistent, whether it is an institutional supply or it is an ultra-Chinite-driven supply.

Okay, got it.

Thank you so much. The next question comes from the line of Jaiqanth Beria with IIFL Capital. Please go ahead.

Yeah, hi. Thanks for the opportunity. I just wanted to get some sense of the cash flows for the quarter. So, what's the kind of OCF that we have generated for the quarter and what has been the capex? And if you could also provide some sort of capex guidance for the balance of the year?

Thank you for this question, and, you know, let me be super candid with you. For both CAPEX deployment and for the cash flow, so CAPEX deployment, you know, how we define CAPEX, it is a combination of the CAPEX and interiors, it is design-built project, the solar investment, and vendor payment cycles, and all these are reoccurring in nature. So, you know, CAPEX cannot be viewed as directly proportional to your area addition every period. It's always a combination of these four, five factors which I just mentioned. And both KPIX and cash flow both. You know, we internally, we really calculated, but we prefer not to give the provisional number at this stage, since the number will be subject to the actual audit and review. And, you know, just to give a clear picture, rather than giving an estimate and then subsequently change it, I think our H1 numbers would, you know, we will completely detail out both KPEX and cash flow. But since it was not audited as of now, so, you know, I would refrain from talking about the numbers, because it might change here and there a little bit.

Sure. Thank you. The next question comes from the line of Yog Rajani with Omega Portfolio Advisors. Please go ahead.

Hi, I had another question. So, our overall revenue to revenue is 2.2%. Could you give us a bit more detail on it on a city basis, other cities that are materially higher and cities that are materially lower, and what would the range be?

Thank you. So we did it on a corporate level, you know, and we have not done this kind of a study city-based or a building-wise and all. I mean, it is only, it is overall corporate level. So we do not calculate the revenue ratio like that, unfortunately.

The next question comes from the line of Vikrant Kashyap with Asian Market Securities. Please go ahead.

Hi, good afternoon. You guys are on a very strong set of performance this quarter again. My question is regarding we have added a lot of area in last half and even in this quarter we have added a very significant size. Do you not understand when these will add into the operational data? What are the timelines for that? And in which micro-markets are they associated with?

Vikram, can you repeat the last two, three lines of your question? Sorry.

So, my point was, we have added, I think, Robert was born for me and his wife in the last half, and this is what we have added to me. My question is, what are the timelines for those that we had in the last half and which micromarket?

Yeah. So, basically, thank you, Vikram. Most of the supply that we have signed up will get delivered between 12 to 18 months, and you will see an incremental delivery of... Those projects happening. Also, I would like to highlight that a typical pattern, if you see in real estate, in our industry, at least what we have seen has been that our leasing uptake is higher from, say, February, March, going up till, say, October, because the festive season and all that starts coming in, and then Christmas holidays and all come in, new holidays come in. So, leasing is slow. So normally what we try doing is that most of the delivery of the building, the rent-paying area, that addition happens pretty much at the beginning of, you can say, Jan-Feb kind of a time frame, so that we get sufficient time to market that inventory. So, that is how things have been done. That is the reason you are not seeing a lot of addition in our RPA. Like, RPA has remained flat, even though our AUM has increased. So, yeah, so that has been the cycle, and that's how we try to time it. Having said that, there is no perfect match to that. So, you will keep seeing additions happening, and from a micro market point of view, as you will know that. Thank you. And to give you another example, say North Bangalore. North Bangalore, we see a lot of oversupply, the frequency levels are high, a lot of new additions is coming in. So we are not, even when we are about more than 6.5 million in Bangalore, our exposure to North Bangalore is not even half a million square feet. So I think we will be quite micro market focused. Because cities are too big, Bombay is a too big a city, so most of the supplies we have signed up are all into the key performing micro markets, and that reflects the number of occupancy numbers also. If you look at overall occupancy or steady state occupancy, we have been range bound all throughout here.

Another thing, you see, when we had interrupted in the past couple of calls, you had highlighted that Hyderabad and Mumbai had this kind of area of interest for you. And actually, you have seen the financial sign has been very strong. So are we still looking at expanding our portfolio in these two markets?

Yes, very rightly, because post-COVID, we started expanding in both the cities aggressively, and we are at a good place now, and we are very hopeful that in this financial year, we should be able to sign up larger spaces in both the cities.

And Mirna, one question, my last question to you, since we are going very strongly on the VAC, we highlighted that we can expand it by 2 to 400, which is 1.5. So that would have a positive impact on our green interest in the margin or in the market, that's what I'm saying. So, FED is, I think, the total revenue per month that we have. Do we see most of the margin extension will come from BAS or the occupancy pick-up, and the rent acceleration will also factor in margin extension in the stand-up of 27 or maybe early 20 days, as you have a few areas, it's not true.

But whatever I've understood that you're talking about the margin of the VAS versus our core workspace, right? Yes, yes. So the thing is, the VAS, as I mentioned before, we would structure it would be increasing. It would be increasing by 2 to 4 percent, you would see, in the next coming years also. In terms of margin, right now, we think and we believe that with DesignCube, Indica, and Echo, the next couple of years, the priority is to focus on the growth and scale. Thank you. is to scale and grow more than the margin expansion. So our margin in my vast revenue would be around 15%. And, you know, and this is going to be like this for the next one or two years at least, you know, because at the expense of this scale, you know, at the expense of this margin, we would not compromise on our growth. Right now, it's just to kind of tap the demand, you know, that has been the focus. So margin expansion, as I said, you know, we would continue with a similar margin, both put together. But VAS, only VAS is about 15%.

Thank you very much, and thank you very much.

The next question comes from the line of Dehriya Trivedi with DTJ Investments. Please go ahead.

Hi, thanks for taking my question and congratulations on the robust set of numbers. If I see over the last 12 months, the bulk of our centre addition has come from Tier 2 towns. So if you could give some insight on how these centres are performing compared to the centres in the metros. And subsequently, my next question was around the concentration in the city of Bangalore. So, about 63-64% of our seats are just in one city. So, is there a plan to increase diversification and take up more space in, say, some of the well-performing markets like Hyderabad or Chennai?

Yeah. So, basically, the tier 2 cities... I must say that the occupancy, the profitability, the unit economics is pretty much similar to Tier 1 cities. Of course, the scale is very, very different in these cities, so we have not seen any significant deterioration. Of course, the real estate is cheaper also in these cities. Most of the time, the real estate that we pick up here is between 50 to 70 rupees per spread. Respondingly, our seat pricing are also aggressive. Like, we will be offering seats between 6,500 to 7,500 rupees per seat in those locations. So, that way, you can say that we are able to acquire real estate at a cheaper price and offer the same thing at a cheaper rate. But there is no margin hit as well. There is nothing very significantly different in these locations. The second question was... So, you are right that 60% of the area that we have is Bangalore, but if you look at Chennai, for example, Chennai is about 10% of our portfolio now. And NCR and all these are contributing now. So we are seeing that this is continuously, the Pando share is coming down. And as I mentioned in the earlier question, we have added Noida, we have plans to add larger supplies in Hyderabad, Mumbai. So these cities we certainly see that will have an increasing share. Going forward, the growth rate in those cities will be much faster for us. But nevertheless, I always say this is that if you look at the total absorption in India during the first six months of the calendar year was about 45 million to 100. And the share of Bangalore was about 12.7 million, about 28 percent. About 28 to 30 percent of the total country's real estate is Bangalore. So, if that be the case, then you can imagine, if you look at the percentage of growth which Bangalore is getting of global payability centers, unicorns, startups, those tend to be higher than the national average for us. So, Bangalore will continue to be a dominant thing for us because of Bangalore being the largest market, fastest growing market, but at the same time, you will see a lot of

And how is the supply addition coming up in the micro markets of Bangalore where we operate?

So, it is quite spread out over here. Like, a lot of supply we have signed up on the Outland Road stretch, which is, if you are familiar, this is between, say, Silk Board going up to Maratha and Lee kind of stretch, which is the best IT corridor. So, we have a lot of supply in those locations. We also have supply in Whitefield, which is there. So pretty much I will say the CBD and the SBD. As I mentioned earlier, we have not picked up a lot of supply in North Bangalore. So, mostly it is in the south-eastern and the north-eastern part. That is where bulk of our supplies are coming in.

Sure. And since our occupancies are already at 85%, would you give some insight on, you know, at what levels do occupancies peak out? And then, I mean, the causal growth, will it come from revenue growth for every state, basically?

So, as Meghna had mentioned, our steady-state centers, which are more than 12 months, the occupancy ranges between, say, 86 going up to 90%, 91% like that kind of a range, and that is what if you forget about future, if you were to look at last three-year data, you will see we have been pretty much in that range, and the overall occupancy is about 81 going up to, say, 84%, 85%, and currently it stands at 86%. Thank you very much. So there will be some fluctuation in that. So I think it's better to pick up a range, which is 86 going up to 90 for steady state centers and 82 going up to 85, 86 for the overall occupancy. So the way, as I mentioned, like the high quality supply, the good micro markets that we have in the coming pipeline, we are very, very hopeful that we should be able to maintain our occupancies in this range. And so far, we made... Margin pressure, like if 90 becomes 88 or 89, we don't see that that will result in a fall in the EBITDA margins. The good part is that our sensitivity to this is not very, very high.

Sure. Thank you and all the best.

Thank you. The next question comes from the line of Hitendra Pradhan with maximal capital. Please go ahead.

Yeah, hi sir. Thanks for the opportunity. I hope I'm audible. Yeah, I'm referring to slide 19. I see that, you know, the GCCs account for 50% and Indian enterprises account for about, you know, 30%. So my question is, I mean, what kind of growth we are expecting from the GCC side? I mean, they are adopting the flex space going forward at an industry level and at our company level. And the same goes for the Indian enterprises. And for the GCCs, in terms of the geography, maybe you partly answer this, but, you know, which specific cities you expect that growth to materialize more? And we have this applied to, you know, get to do that.

Yeah, so as you rightly mentioned in the slide, our area mix by sectors is quite distributed, and I would like to remind basically that if you look at 2020-21 scenario, when GCCs were not so much in the news, I think the flavor of the season at that time were the startups, the unicorns. So, they were very, very dominant. Indian enterprises, which also constitute small parts of IT, that was booming very heavily. The Indian companies, the likes of Mahira Logistics or TVS, they continue to grow as per our GDP numbers over there, and certainly in the last two, three years, we have seen the GCCs have picked up. There used to be about 42% has come. The good part is that this is quite spread out. And this is not just true for us. This is true for the India growth story. So something or the other has been cranking for the real estate segment. And that is why you see... India is today now almost touching 1.1 billion square feet. So if you look at a 25-year data of commercial real estate in India absorption, the absorption have been very, very secular, like typically growth-wise. 6-7% real-state growth in India continues to happen, and that is how we look at it. So, we see that certainly the GCCs from 49% today may have been a little bit more. We have a very substantial amount of GCPs over here. But the other big city that we see is Hyderabad, where the GCC activity is very, very robust, which we see. So these are the two cities where we see the bulk of the action happening. And as I mentioned earlier, we have already signed up NOIDA. You will see, hopefully, us picking up larger spaces in Mumbai as well as Hyderabad. And there the focus will be global capital centers. Plus, we are also doubling down our institutional supply. That's what I mentioned earlier. Thank you. Now, a lot of institutional supply gets picked up by global capability centers. So, our supply is quite well aligned, I must say, with the global capability centers.

Okay, okay, okay. And the second question is related to slide 16. I mean, the steady-state occupancy is 90%, and you're guided, like, you know, to expect higher 80s sort of occupancy from the mature portfolio. So, my question is, sir, like, can you give us some color of the renewal that is due this year? I mean, what happens when, you know, there is clients which are up for renewal? And, you know, if you can give us some sense of, you know, what are the renewal rate there? There's a lot of, you know, pricing step up that we can expect. What happens, basically, you know, was curious to know more.

So, the good part has been that our attrition, if you see, has been negative. Now, when I say attrition has been negative, means basically that if you take on, say, 31st December, if there are a certain number of customers, and if some customers leave for 1st January, and some customers decide to go to the call, Typically, first January. Overall, the customers who are with us are 31 December. The most sleep that they have taken is the risk that people are leaving. That number is a positive number. And the other factor I will highlight is that 41% of our revenue is coming from clients who have taken multiple centers. So that is very stable. And our renewal rate has been 90%. Our top five customers contribute only 12% of our revenue. So our client base is very, very diverse, and most of the properties, maybe with the exception of a single digit of them, are all multi-talented properties. So one tenant is leaving, that doesn't mean the building is fully becoming vacant. There is another set of clients which are willing to take up that. So we have, to be very honest with you, we have not seen any significant impact.

What is the notice period, sir? I mean, do we get any leeway from the landlord or do we get this official notice period and we kind of fill it up during that period?

Our clients are between 60 going up to 90 days. If the clients are smaller-sized clients, maybe 60 days, larger ones are 90 days. And with landlords, we have strict leases. So there is no occupancy link back-to-back arrangement with the landlords over there. But, yeah, so that is the road needed, and I think that has... We have been able to find prospective clients within that time frame, most of the time. Thank you, sir. Now I'm on the test.

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.

Thank you very much. Thank you, J.M., thank you, Saurabh, for organizing this. And I really appreciate all the investors, analysts taking out time to come on the call and asking very candid questions. We have tried to level best to answer them. If they have any further questions, they can always write back to us or reach out to our IR, and we'll be very happy to answer.

Thank you, sir.

Thank you, ma'am. Ladies and gentlemen, on behalf of GM Financial Services that concludes this conference call. Thank you for joining us and you may now disconnect your lines.