Indiqube Spaces (NSE:INDIQUBE) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the q one FY twenty seven INDIQUBE 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. Please note that this conference is being recorded. I now hand the conference over to mister 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 q one FY twenty seven earnings call of Indiqube Spaces Limited.

0:49 From the management, we have with us mister Rishi Das, CEO, miss Megana Garwal, COO, mister, CFO, mister, head IR, and mister, AVP marketing. We would like to now begin the call with opening remarks from the management. Post which, we will have the phone open for for an interactive question and answer session. Thank you. And over to you, Rishi and Migdal. Yes. Thank you, Saurabh. Good afternoon, everyone, and thank you for joining us for the Indiqube Spaces Limited Q1 FY 'twenty seven Earnings 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.

1:40 Q1 'twenty seven marks a very strong start for the year with Indiqube eleven hits highest ever quarterly revenue of INR $4.28 crores, representing growth of 37% year on year. The strong revenue performance was accompanied by healthy growth across profitability metrics. Our EBITDA increased by 34% to 87 crores. EBIT grew from INR 59 crores to INR 55 crores, while PAT increased by 91% to INR 35 crore. What is equally encouraging is the quality of this growth with profitability strengthening as we scale. EBIT margin improved to 13% in Q1 FY 'twenty seven from 11% in Q1 FY 'twenty six, while PAT margin expanded to 8% from 6% during the same period last year.

2:34 EBITDA margin remained healthy at 20%. Together, these metrics demonstrate the operating leverage inherent in our platform and our ability to translate growth and scale with stronger profitability. On the operational front, we continue to expand our portfolio at a healthy pace. During the year, we added 1,910,000 square feet to our area under management, and we launched 70 new centers. This expansion continues to be guided by our follow the current 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.

3:25 So as of June 2026, we catered to eight fifty five clients. And this was across a good diverse mix of global capability centers, Indian conglomerates, unicorns and high growth startups. GCCs contributed 53% of our revenue during the quarter And multicenter clients who have taken more than one centers, 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 they expand across cities and micro markets in India.

4:19 Alongside growth and profitability, sustainability continues to remain a very important pillar of our strategy. Nearly 30 megawatts 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 portfolio to 100% green power. So if you have to reflect back, the last decade was about building and evolving Indiqube. We expanded from Bengaluru to multiple cities, our progress from managed workspaces to an integrated managed basis platform, broadened the range of services we offer to our customers and transitioned from being a private company to becoming a listed institution.

5:09 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, strong operating leverage and our sustainability initiatives create a solid foundation for the next phase of Indiqube growth. With that, I will now hand over to my co founder, Regna Agarwal, who will take you through the key business highlights for the quarter. Yes. Thank you, Rishi, and good afternoon, everyone. Firstly, I would 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 Indiqube evolving into an integrated managed spaces platform.

6:01 That evolution is reflected in the breadth of our offerings. The first one is GROW, our core managed workspace proposition, DESIGN Q, which is 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. Indiqube, rebranded version of Indiqube One, allowing us to address broader operations, employee experience and facility requirements. And importantly, extending the Indiqube proposition into retail, where we see a significant opportunity to manage end to end stores and branches, 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 square footage.

6:51 We have consistently said that we intend to add close to 2,000,000 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 DesignQube, Indiqube and Eco scale up, we expect WaaS to become an increasingly important component of our revenue mix. Our vast 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 create more value from the capabilities and platforms we are already building. When we look at these offerings together, the opportunity becomes much larger.

7:40 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 Indiqube platform we all are building. With that, we look forward to addressing your questions during the Q and A session. Thank you. Thank you. We will now begin with the question and answer Participants are requested to use handsets while asking a question.

8:29 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 2,000,000 square feet of area addition annually. But if we look at quarter one of FY twenty seven, 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?

9:16 Are you seeing some sort of a slowdown in supply or increased competition? That's my first question. Secondly, on VAS, you recognized INR 39 crores as onetime VAS revenue this quarter. So what led to jump in the onetime revenue? And how do you see this segment on a steady basis for the remaining of FY 'twenty seven? And my last question is on your solar. I think you can take the two, and then I'll take the third one. Yes. Okay. Thank you, Sameer. I'll try to answer the first two questions, okay? And it will be 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 2,000,000 square feet annually, which translates to approximately 44,000 seats per year.

10:09 And we definitely intend to continue operating within the same range forward. But if you see in the rent paying area, our expansion is an annual basis rather than on the quarter on quarter because the timing of the new center addition can actually vary significantly from one quarter to another. And in H2 FY 'twenty six, we've added approximately 1,140,000 square feet. So therefore, the sequential movement in this renting area in this quarter, you are seeing the relatively flat. But going forward in the current year in all, you would see the additions in the renting area increasing and reaching our close to 2,000,000 square feet. So overall annual basis, we would be as per our guidance, and we are seeing no more... No slowing here. We already have a headroom of about three point...

10:56 We have a headroom of about 3,900,000 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 in that area. Quarter on quarter, as I said, there would be a certain changes which we cannot because of the timings of 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% under mature centers. So these are the numbers which we... You would see on an annual basis. Few percentage here and there on a quarter would come. This is the way this model performs. Okay. So this is your first question. The second question was about your VAS. Now the VAS is definitely has contributed and as I mentioned earlier, it's also from 12% to 15% to 17%, and it would always remain integral part of the strategy and client offering.

11:52 And so that's the to add on a consolidated basis. Because for your first time revenue, when you mentioned, it is because of all the other services, which is your design queue, Indiquare and Echo. So although this would be, like, a onetime affair, but we 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 to two by 2% to 4% approximately. This quarterly percentage may fluctuate, but the structural competition of that will increase and you will see continuing over time. So structurally, you might see onetime going up and down, but overall, the contribution of the VAT you would see is increasing. I hope I've been able to answer those Yes, That was helpful. And second and lastly on your solar, so can you just lay down how much of CapEx have you earmarked for solar till date? And what kind of IRRs are you expecting from your solar investments?

12:54 That's it from my end. Yes. Thank you, Shamik. So as mentioned, we have now 30 megawatts of operational capacity. And this year, we intend to add another 25 to 30 megawatts worth of capacity, translating into a requirement of about INR 100 crores to INR 120 crores capital expenditure. That is there. And our solar IRR has been very healthy. Typically, it has been between going up to 22% kind of an IRR, wherever we have invested in solar, our paybacks have been extremely good on that. So we will continue to doubling down because as we are expanding and our clients, a lot of green transition is happening.

13:44 So they are expecting us to provide a full blown sustainability solution. So yes, so we will add for us, and we'll also do a small part for our clients as and when they require green transition. Thank you. The next question comes from the line of Yashash Gilianshi with POP 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, Yash. So if you look at what our revenue, about 52% of our revenue is coming from global capability centers and 28% comes from the start ups sorry, 23% comes from start ups and unicorns about 28% comes from Indian enterprises.

14:55 Now this Indian enterprises basically cover our IT services companies also, the like the mid caps and all that, which are Indian origin IT companies. And then we have other companies like, say, logistics or TVS kind of company are also there. So basically, the Indian IT services companies are a part 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 large percentage being 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?

15:43 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. Ashish. Vikas here. So our debt has increased because as Rishi said 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 understanding, so even growth in rentable area would be close to 2,000,000 square foot each year, although with a lag. Is that...

16:31 Is my understanding correct? Yes. So rentable area, yeah. So I I think we've just kind of quantified the definition. It's a renting area, rentable area. And that is the right matrix to look at, you know, the right rent paying area and the rent yielding area. The rent paying area could be the rentable area. Yes, as I mentioned, it is about 2,000,000 square feet, close to 2,000,000 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 renting area.

17:18 So we have around, say, 2,800,000 square feet of area that would come under rent paying. So could you tell us what the timeline? So our current area is 10.61. So if you go to the slide number in our presentation, 15, one five. If you go go there, you you would see the the breakup of that 10.61. The 10.61 in that 7.8 is the the rent paying area, and the 6.74 is the rent yielding area. And the balance is either getting operation and... But the LOI has been signed. And this would get to operation about twelve to fifteen months. Okay.

18:03 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 numbers. No. So what I've given, what we have provided you 10. Okay. The quarter wise, yes, so we have done on the early. So yes, this yes, we will take a note of it probably in future. But as of now, we would have just this number. Fair enough. Yes. My next question 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 breakeven? Yes. I mean the thing is, as you always maintain that there would be a certain range quarter on quarter, so the occupancy for the corporate level would be always in the range of between 80 to 85%.

18:58 Sometimes it's both 81, 82, sometimes it will be 85, 86. And for the mature centers, is more than twelve months, it would be in the range of 85 to 90. Okay, 88 to 90. And even for that matter, even EBITDA margin would range from 19% to 21%. My EBIT margins would be in the range of 11% to 13%, and my PAT margin would be in the range of 8% to 10%. So 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 seeing in the coming quarters and years. Yes. My point was more with regards to the growth. So assuming the steady state occupancy remains what it is, the newer area the newer footprint that we plan to add would not break even quite soon. It would take, say, around thirty six months to break even.

19:52 So wouldn't that have an impact on overall profitability? No. So our breakeven so sorry, okay. So my breakeven is not so first, I'll tell you what. Our new centers typically take five to six months to reach operating breakeven, which is approximately about 50 to 57% of occupancy. And from there, the center continues to ramp up, and we typically reach around 90% occupancy within nine to twelve months. So so this is the number. So it's not about 30. Thirty six months is the full CapEx recovery we are talking about, but my breakeven is within five to six months. That is also clear in my slide 17. One seven, if you see, breakeven is only six months and the steady state to twelve 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.

20:52 All right. Thank you. The next question comes from the line of Saurabh Gelta with GM Financial Services. Please go ahead. Yes. Hi. My first question is on the recent new center addition that you have done in Noida. Congrats on signing at that center. I think it's not just largest in from the largest across our entire portfolio. So just wanted to get a sense in terms of, you know, timeline of operation for this center and, you know, what's giving you confidence to add such a, large centers since we have been focusing on decent sized centers until now. So just wanted to get a sense of how much of this is demand back?

21:44 So thank you. So this will go live by middle of next year. So you see that Q2 FY 'twenty eight or maybe Q3, that's the time line in which the building should go operational. And because we have been present in the NCR, we already have two centers in Voida, and we have few centers in Gurgaon. So we have a fair amount of 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 like tech park great experience for our occupiers. So and then as you know, we are seeing a lot of tides turning in Noida, especially because of the better registration, Noida order as well as the airport starting, all these things, I think, are culminating we are quite bullish on that. So that gave us a confidence that let's look at picking up a larger supplier and doing a high quality product and then taking it up over there. So yes, but it is not like any demand fact or as such. Because as you will know, most of the buildings that we pick up, we proactively pick them up. We don't do too much of back to back. But once in a while, if there is a customer requirement, we do that. But the large part of our supplies have been because we believe in the market and our philosophy of basically

23:16 land, expand and build scale. That is what exactly is playing out in Moida, where we landed a few years back, We basically got the confidence and now we are in the expired phase. And hopefully, you will see the same strategy playing out in other cities also soon. So just as a follow-up, I know in Bangalore, being 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 are looking at for similar sized centers in the item? So our philosophy always has been follow the talent strategy, to be honest with you.

24:03 Because if you are operating in, say, the nine month point or 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 Delhi Mumbai kind of location or a Noida Expressway kind of location, these tend to be more tech park centric, large occupier kind of locations. And the supply also favors picking up larger products. So our strategy will be 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 supplier 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 parks also of late. And our tech park presence has reached almost 20% of our portfolio. So it is a function of what type of demand factor and what micro market characteristics are. And accordingly, we play it out.

25:19 The next question comes from the line of with Dhama 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 institution... Non institutional supply from Bangalore? You have about 76 centers in Bangalore and also your NOIDA lease. What is 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.

26:10 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 high landlords. And definitely, we are seeing the share of institutional supply is 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, yes. Okay. And to follow-up on that, how does pricing differ between these institutional supply and the H and I supply? So I would say, obviously, it depends upon the quality of the product. And as you can guess, the institutional supply products typically tends to be of a better grade.

27:01 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 are also a large percentage of them are global capability 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 grid. I think from a margin perspective, we are clearly consistent, whether it is institutional supply or it is a ultra high driven supply. Thank you, gentlemen. The next question comes from the line of Jaykanth Beria with IIFL Capital.

27:50 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 let me be super candid with you. So both CapEx deployment and for the cash flow. So CapEx deployment, how we define CapEx, it is a combination of the CapEx and interiors. It is designed with project, the solar investment and vendor payment cycles. And all these are reoccurring in nature. So that CapEx cannot be viewed as a directly proportional to your area addition every period. It's always a combination of these four, five factors, which I just mentioned.

28:46 And both CapEx and cash flow, both internally, we really calculate it, but we prefer not to give the provision number at this stage since the number will be subject to the H1 audit and review. And just to give a clear picture rather than give you an estimate and then subsequently change it, I think our H1 numbers would we will completely detail out both CapEx and cash flow. But since it was not audited as of now, so I would refrain from talking about the numbers because it might change here and there a little bit. Sure. Sure. Thank you. The next question comes from the line of Yog Rajani with Omega Portfolio Advisors. I had another question. So our overall rent to revenue to rent is just 2.2.

29:37 Could you give us a bit more detail on a city basis, other cities that are materially higher and cities that are materially lower? And what would the range be? So on a corporate level, and we have not done this kind of a study city wise 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. All right. Thank you. The next question comes from the line of Vikram Kashyap with Asian Market Securities. Please go ahead. Congrats on a very strong set of performance this quarter again.

30:27 My question is regarding we have started a lot of area in last half and even this quarter, we have added a very size. We must understand in this is we'll add in to the operational data. What are the time lines for that? And in which micro markets are we? Vikram, can you repeat the last two, three lines of your question, sorry? So my point was we have added I think, 1,140,000 square feet in the last half and this quarter we have added significant size into the AAG. My question is what are the time lag for those that we added in the last half and which micro markets?

31:21 Yes. So basically, you, Vikram. Most of the supply that we have signed up will get delivered between twelve to eighteen months. And you will see an incremental delivery of those projects happening. Also, would like to highlight that the typical pattern, if you see in real estate in our industry, I think 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, January kind of a time frame, so that we get sufficient time to market that inventory.

32:19 So that is how things have been. And that is the reason you are not seeing a lot of additions in our RPA, like RPA has remained flat, even though our AUM has increased. So yes, 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 a lot of our supply is into the key micro markets. Typically, the micro markets where occupancy levels are, say, like 85% and above kind of a thing. For example, if you look at Bangalore, like we are a lot of our supplies are on the Outer Ring Road kind of area, which is the best performing large scale micro market.

33:15 Even though to give you another example, let's say North Bangalore. North Bangalore, we see a lot of oversupply, the vacancy levels are high, a lot of new additions is coming in. So we are not even when we are about more than $6,500,000 in Bangalore, our exposure to North Bangalore is not even zero five million square feet. So I think we will be quite micro market focused because cities are too big. Bombay is a two bigger city or Bangalore is a two bigger city. So depending on most of the supplies we have signed up are all into the key performing micro markets. And that reflected on our occupancy numbers also. If you look at overall occupancy or steady state occupancy, we have been range bound all throughout, yes. Another thing to see when we had seen this past quarter results, you had highlighted that Hyderabad and Mumbai has kind of series of interest for you.

34:10 The tax rate you have seen in the segmental side has been very strong. So are we still looking at expanding our portfolio in these two markets? Yes. Very, very, very rightly highlighted with us like 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 Migna, one question, my last question for you. Since we are going very strongly on the batch, I think you highlighted that we can expand it by 200 to 400 basis points.

34:59 That will have a positive impact on our green base in the margin. So as I I think, total revenue per month that we are to mark like every. The levels. Do we see most of the margin expansion will come from BaaS or the occupancy pickup and the rent acceleration will also factor in margin expansion in the second half of 'twenty seven or maybe at least 'twenty eight as you go to few in just past two. So in your voice, we can't. But whatever I understood that you're talking about the margin of the VAS versus our core workspace, right?

35:51 Yes. Thing is, the VAS, as we know, as I mentioned before, we would structure it would be increasing, right? It would be increasing by 2% to 4%, you would see in the next coming years also. In terms of margin, right now, we think and we believe that with the DesignQUBE, Indiqube and Echo, the next couple of years is the priority is to focus on the growth and scale because there's a significant demand opportunity we see. So the focus is to scale and grow more than the margin expansion. So our margin in my batch revenue would be around about 15%. And this is going to be like this for the next one or two years at least because at the expense of this scale, at the expense of this margin, we will not compromise on our growth. Right now, it's just to kind of tap the demand. That has been the focus.

36:40 So margin expansion, as I said, would continue with the similar margin, both put together. And but RAS only RAS is about 15%. The next question comes from the line of Derya Trivedi with DTJ Investments. Congratulations on the lowest set of numbers. If I see over the last twelve months, some work of our center addition has come tier two towns. So if you could give some insight on how these centers are performing compared to the centers 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.

37:28 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? Yes. Basically, the Tier two cities, I must say that the occupancy, the profitability, the unit economics is pretty much similar to Tier one 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 INR 50 to INR 70 per square feet. And correspondingly, our seat pricings are also aggressive.

38:14 Like we will be offering seats between INR 6,500 to INR 7,500 per seat in those locations. So that way, we are you can say that we are able to acquire real estate at a cheaper price and offer the same thing at a cheaper rate. So but there is no margin hit as well. There's nothing very significantly different in these locations. The second question was with regards to the Bangalore concentration. 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 Bangalore 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 that if you look at the total adoption in India during the first six months of the calendar year was about INR 45,000,000.

39:33 And the share of Bangalore was about INR 12,700,000, about 28%. About 28% to 30% of the total country's real estate is Bangalore. So if that be the case, when you can imagine, if you looked at the percentage of growth, which Bangalore is getting of global capability centers, unicorn 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 addition in NCR, invest as well as in Hyderabad. These will add further in addition to Chennai and Bangalore, where we have been quite dominant here.

40:24 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 Outer Ring Road stretch, which is, if you are familiar, this is between, say, 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. Yes. So pretty much, I will say the CVD and the SVD. As I mentioned earlier, we have not picked up a lot of supply in North Bangalore over there. So mostly, it is in the Southeastern, yes, and the Northeastern part.

41:16 That is where bulk of our supplies are coming in. Sure. And since our occupancies are already at 86%, could you give some insight on at what levels do occupancies speak out? And then I mean, the further growth, will it come from revenue growth for every seat basically? So as Migna had mentioned, our steady state center, which are more than twelve months 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%.

42:05 And currently, it stands at 86%. 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, say, 85, 86 for the overall occupancy. So the way as I mentioned, like the high quality supply, the good micro market 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 maintain occupancies in this range. We don't see any margin pressure. Like if 90 becomes 88 or 89, we don't see that, that will result in a fall in the EBITDA margins. Good part is that our sensitivity to this is not very, very high.

42:56 The next question comes from the line of Hitendra Pradhan with Maximal Capital. I'm audible. I'm referring to Slide 19. I see that the GCCs account for 50% and Indian enterprises account for about 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.

43:42 And for the CCCs, in terms of the geography, maybe you partly answered this, but which specific cities you expect that growth to materialize more? And do we have this applied to get to that? 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 twenty twenty, 'twenty one scenario when GCCs were not so much in the news, I think the flavor of the season at that time were the start up, the unicorns. So they were very, very dominant.

44:28 Indian enterprises, which also constitutes small percentage of IT that was moving very heavily. The Indian companies, the likes of minor logistics or DBS, 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. That used to be about 42% has come 49%, 50%. But the good part is that this is quite spread out. And this is not just true for us, is true for the India growth story. So one something or the other has been cranking for the real estate segment. And that is why you see the but India is today now almost touching 1,100,000,000 square feet. So if you look at a twenty five year data of commercial real estate in India adoption, the adoptions have been very, very secular, like typically, they're growth wise. 6%, 7% real estate growth in India continues to happen.

45:27 And that is how we look at it. So we see that certainly the GCCs from 49% today may grow to 54%, 55% typically, but we don't see that changing very, very drastically. And we want to keep it that way. Now if you look at the second part of the question, definitely, Bangalore being the largest, we have a very substantial amount of GCCs 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.

46:18 And there, the focus will be global capability centers, plus we are also doubling down our institutional supply. That's what I mentioned earlier. Our institutional supply is about 20% of our portfolio. 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. Thank you, sir. And the second question is related to Slide 15. I mean the steady state occupancy is 90% and you've guided like to expect higher ITs sort of occupancy from the mature portfolio.

47:04 So my question is, sir, like can you give us some color on the renewal that is due this year? I mean, what happens when there is clients which are up for renewal? And if you can give us some sense of what are the renewal rate there? And if what sort of pricing step up that we can expect? Or whenever those things are triggered, what happens basically? I was curious to know more about that. 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 the December 31, if there are a certain number of customers and if some customers leave on January 1 and some customers decide to grow typically on January.

48:06 Overall, the customers who are with us are 31, the most seats that they have taken vis a vis the people leaving, that number is a positive number. And the other factor I will highlight is that 41% of our revenue is coming from our clients who have taken multiple centers. So there, that is very stable. And our renewal rate has been 90% with the customers over there, plus our top five customers contribute only 12% of our revenue. So our client base is very, very diverse. And most of the properties, very with the exception of a single digit of them, are all multitenanted properties. So one tenant is leaving, that doesn't mean the building is fully becoming vacant.

48:52 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 even post COVID happening because of any one client moving out over there. What is the notice period, sir? I mean, do we get any leeway from the landlord if a client gets and or do we get this official notice period and we kind of fill it up during that period? I mean Our client period are between sixty going up to ninety days. If the clients are smaller sized clients, maybe sixty days, larger ones are ninety days. And with landlords, we have strict leases.

49:40 So there is no like occupancy linked back to back arrangement with the landlords over there. But yes, so that is the notice period. And I think that has we have been able to find prospective clients within that time frame, most of the time. 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. So 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 our level best to answer them.

50:30 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 basically answer them to the best of our ability. Thank you very much and look forward to your continued support. You. Thank you. Thank you very much. Appreciate the time. Thank you. 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.