The following discussion is intended to convey managements perspective on our financial condition and results of operations for Fiscals 2023, 2024 and 2025. You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our Restated Consolidated Financial Information the Fiscals 2023, 2024 and 2025, including the related annexures.
Unless otherwise indicated or context otherwise requires, the financial information the Fiscals 2023, 2024 and 2025 is derived from the Restated Consolidated Financial Information, included in this Red Herring Prospectus. For further information, see "Restated Consolidated Financial Information" and "Summary Financial Information" on pages 337 and 112. Our Fiscal year ends on March 31 of each year. Accordingly, all references to a particular Fiscal are to the 12-month period ended March 31 of that year.
The industry-related information contained in this section is derived from the industry report titled "Flexible Workspaces Segment in India" dated June 20, 2025 prepared by CBRE South Asia Private Limited ("CBRE Report"). We commissioned and paidfor the CBRE Report pursuant to the engagement letter dated May 15, 2024 executed with CBRE, for the purposes of confirming our understanding of the industry specifically for the purpose of the Offer. CBRE is an independent agency and is not a related party of our Company, its Subsidiaries, Directors, Promoters, Key Managerial Personnel, Senior Management or the Book Running Lead Managers. A copy of the CBRE Report is available on the website of our Company at https://smartworksoffice.com/investors. For further details, see "Definitions and Abbreviations - Business related terms" on page 16 for definitions of certain terms used in the CBRE Report and certain industry-related terms contained in this section.
We have included certain non-GAAP financial measures and other performance indicators relating to our financial performance and business in this Red Herring Prospectus, each of which is a supplemental measure of our performance and liquidity and not required by, or presented in accordance with, Ind AS, Indian GAAP, IFRS or U.S. GAAP. Furthermore, such measures and indicators are not defined under Ind AS, IFRS, U.S. GAAP or other accounting standards, and therefore should not be viewed as substitutes for performance, liquidity or profitability measures under such accounting standards. In addition, such measures and indicators, are not standardised terms, hence a direct comparison of these measures and indicators between companies may not be possible. Other companies may calculate these measures and indicators differently from us, limiting their usefulness as a comparative measure. Although such measures and indicators are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating our operating performance. For risks relating to such non-GAAP measures, see "Risk Factors - 57. We have presented certain supplemental information of our performance and liquidity which is not prepared under or required under Ind AS" on page 102.
This discussion contains forward-looking statements that involve risks and uncertainties and reflects our current view with respect to future events and financial performance. Actual results may differ from those anticipated in these forward-looking statements as a result of factors such as those set forth under "Forward-Looking Statements" and "Risk Factors" on pages 24 and 40, respectively.
OVERVIEW
We are an office experience and managed Campus platform. As of March 31, 2024, we were the largest managed campus operator, amongst the benchmarked operators in terms of total stock, with a lease signed portfolio of 8.0 million square feet. (Source: CBRE Report). We have leased, and we manage a total SBA of 8.99 million square feet as of March 31, 2025. We strive to make Enterprises and their employees in India more productive at work by providing value-centric pricing and superior office experience vis-a-vis traditional workspaces, with access to enhanced services and amenities. Landlords, especially passive and non-institutional, benefit from the transformation of their bare shell properties into ‘ Smartworks branded, fully serviced managed Campuses.
We focus on mid-to-large Enterprises and have built a growing Client base, which includes Indian corporates, MNCs operating in India and startups. We equip our Campuses with modern and aesthetically pleasing designs using our extensive design library, integrated proprietary technology solutions and amenities such as cafeterias, sport zones, Smart Convenience Stores, gymnasiums, creches and medical centres. Some of these amenities take care of the daily needs of the employees of our Clients, and some are aspirational in nature, leading to collaborative workspace and team building. These aspects are likely to enhance well-being, fostering a vibrant and engaging work atmosphere.
Our scale
Our managed Campus platform consists of a total SBA of 8.99 million square feet across 50 Centres in 15 cities such as Bengaluru (Karnataka), Pune (Maharashtra), Hyderabad (Telangana), Gurugram (Haryana), Mumbai (Maharashtra), Noida (Uttar Pradesh) and Chennai (Tamil Nadu), with 203,118 Capacity Seats, as of March 31, 2025, break-up of which is provided in the table below:
| As on March 31, 2025 | As on June 30, 2025 | |||||
| Particulars | SBA (in million square feet) | Number of Centres | Capacity Seats | SBA (in million square feet) | Number of Centres | Capacity Seats |
| Operational Centres" | 8.09 | 46 | 183,613 | 8.31 | 4^ 00 | 190,421 |
| Fit-outs Centres | 0.72 | 3 | 15,494 | 0.70 | 2 | 15,042 |
| Centre(s) yet to be handed over(1) | 0.18 | 1 | 4,011 | 1.07 | 4# | 26,085 |
Total |
8.99 | 50 | 203,118 | 10.08 | 54 | 231,548 |
(1
Refers to Centres which are yet to be handed over to us by the respective Landlords as on March 31, 2025 and as on June 30, 2025, respectively, which are presently not operational. The Capacity Seats of such Centres may undergo change when the Centres becomes Operational on account of actual designs and interiors of the Centre.*Includes (i) an Operational Centre as on June 30, 2025, which was a Fit-Outs Centre as of March 31, 2025, and (ii) a new Operational Centre in respect of which the lease became effective post March 31, 2025.
a Includes SBA of 0.06 million square feet in two centres in Mumbai (Maharashtra) wherein our Company only manages the operations of the Centres leased by the Clients from the Landlord.
# Includes (i) a Centre which was yet to be handed over as of March 31, 2025 and (ii) three new Centres taken on lease by our Company, which is yet to be handed over by the respective Landlords as on June 30, 2025.
As on June 30, 2025, we have signed non-binding letters of intent/MoUs with Landlords for for an additional SBA of 1.46 million square feet across three Centres in Pune (Maharashtra), Kolkata (West Bengal) (partially handed over to the extent of 0.02 million square feet which has been excluded) and Mumbai (Maharashtra).
As on June 30, 2025, we have signed term sheets with Landlords in Gurugram for a Centre with a total SBA of 450,000 square feet under the variable rental business model, of which SBA of 33,504 square feet has been operationalised pursuant to agreements entered into by our Company with the Landlord and each of the respective Client(s). For details, see " - Our Strategies" on page 271.
As of March 31, 2025, our Operational Centres served 738 Clients occupying 152,619 Seats. Further, as on June 30, 2025, we had 728 Clients with 169,541 Seats, out of which 12,044 Seats were yet to be occupied at our Operational Centres by the respective Clients. The following table sets forth the details of our Committed Occupancy as on June 30, 2025:
Capacity Seats in Operational Centres (A) |
190,421 |
Committed Seats (B) |
169,541 |
Committed Occupancy Rate (B/A x 100) |
89.03% |
Note: Capacity Seats in Operational Centres herein refers to the maximum number of Seats available in all the Operational Centres of our Company. Committed Seats refers to the (i) Occupied Seats of Operational Centres; and (ii) Seats occupancy in our Operational Centres reserved by the Client(s) through an agreement or a letter of intent and by payment of security deposit, and such Client(s) are yet to move-in to our Operational Centre(s) pursuant to such agreement or letter of intent. Committed Occupancy Rate is the percentage of Committed Seats out of the total Capacity Seats in Operational Centres.
We have also taken on lease two Centres in Singapore with a total SBA of 35,036 square feet and serve 83 Clients as on June 30, 2025. For details, see "History and Certain Corporate Matters - Other agreements - Acquisition of assets of Keppel Real Estate Services Pte. Ltd. on page 304. Singapore has emerged as one of the preferred locations for corporate headquarters with the highest number of completed regional headquarters in the past 10 years in Asia Pacific (2014 - 2023) (Source: CBRE Report). Our presence in Singapore provides us the opportunity to explore further business opportunities in both India and Singapore.
We have a total of four lease signed centers in India above 0.5 million square feet in size, with the largest center of approximately 0.7 million square feet. located in Vaishnavi Tech Park in Sarjapur, ORR in Bengaluru (Source: CBRE Report). We have constantly outranked ourselves in leasing large Campuses in India. Vaishnavi Tech Park in Bengaluru (Karnataka) surpassed our other Campuses, namely, M-Agile in Pune (Maharashtra), with a total SBA of 0.69 million square feet and AP-81 in Pune (Maharashtra), with a total SBA of 0.55 million square feet.
Note: Map not to scale.
Note: Includes SBA of 1.46 million square feet across three Centres in Pune (Maharashtra), Kolkata (West Bengal) (partially handed over to the extent of 0.02 million square feet which has been excluded) and Mumbai (Maharashtra) for which our Company has signed non-binding letters of intent/MoUs with the respective Landlords. Also includes, (i) SBA of 0.45 million square feet under the variable rental business model for which our Company has signed term sheets with Landlords in Gurugram, out of which SBA of 33,504 square feet has been operationalised pursuant to agreements with the Landlord and each of the respective Client(s) and (ii) SBA of 0.06 million square feet in two centres in Mumbai (Maharashtra) wherein our Company only manages the operations of the Centres leased by the Clients from the Landlord.
Our operating model : Office experience and managed Campus platform
We typically focus on leasing entire/ large, bare shell properties in prime locations from Landlords and transform them into fully serviced, aesthetically pleasing and tech-enabled Campuses with daily-life and aspirational amenities. Our Centres offer Clients employees a modern, attractive and aesthetically pleasing work environment. We cater to Clients needs of all team sizes, from under 50 to over 6,300 Seats, with a specific focus on mid-to- large Enterprises having a requirement of over 300 Seats.
The below table set forth details of Rental Revenue from Enterprise Clients during the Fiscals indicated:
Particulars |
Fiscals | ||
| 2025 | 2024 | 2023 | |
| Rental Revenue from Enterprise Clients (in Rs million) | 11,345.68 | 8,847.99 | 6,044.91 |
| Rental Revenue (in Rs million) | 12,821.65 | 9,870.26 | 6,645.82 |
| Percentage of Rental Revenue from Enterprise Clients | 88.49% | 89.64% | 90.96% |
We standardise designs by using modular and reusable fit-outs, and also focus on achieving economies of scale. We also leverage our integrated proprietary technology to build out and operate Centres. This allows us to offer our Clients a standardised, hassle-free, one-stop solution for their workspace needs by combining core services such as design and build out, facility management and technology infrastructure. This helps our Clients to focus on their business priorities without worrying about day to day management of workspace.
Since we invest in the initial workspace build out cost and provide cost-effective and sustainably priced flexible workspace solutions, it allows our Clients to achieve financial and capital efficiencies by allocating capital to their core business. Our Clients also benefit from the swift turn-around time of delivery of workspace experience in 45 to 60 days from the date of the contractual arrangement.
Our economics
Our profitability is driven by the maturity of our Centres. We classify our Centres as ‘mature (more than 12 months from the date of commencement of operations) and ‘developing (less than or equal to 12 months from the date of commencement of operations). Typically, we achieve breakeven vis-a-vis operational cost of a Centre, during the period of transition from ‘developing to ‘mature. Most of the initial operational expenditure incurred for a Centre is recovered by this breakeven point. Any incremental utilisation beyond breakeven flows to our unit- level profitability, as most of the cost is already recovered. Separately, our corporate costs, which primarily comprise of employee expenses and corporate overheads (such as business development and legal costs), create source of operating leverage as they get spread over a higher SBA across our Centres.
Our evolution and growth
We started our operations in 2016 with early support from Promoters and their family members, followed by investment in our Company by early stage investors in Fiscal 2018. We initially operated as a co-working space provider, catering primarily to startups/ mid-sized organisations. In a short span of two years, we expanded to become a national player by the end of Fiscal 2018 with 12 Centres across nine Tier 1 cities. During this time, we recognised that we were not catering to larger Enterprises that occupy a larger workspace and could lend longterm stability to our business model.
Accordingly, in Fiscal 2019, we saw the opportunity to create a platform for mid-to-large Enterprises, by creating an offering which could enable them to transition from conventional to fully managed workspaces. As a result, we pivoted our business model to become an office experience and managed Campus platform to address the unique requirements of such Enterprises. In Fiscal 2020, Singapore based Keppel Ltd, a global asset manager and operator, made an investment of Rs 1,772.19 million, through Space Solutions India Pte. Ltd (formerly Lisbrine Pte Limited). This investment provided us with financial backing and valuable industry expertise. It also enabled us to expand our business and reach out to large Enterprises and Landlords with the enhanced ‘Keppel brand association.
This transition enabled us to mitigate risks particularly during the COVID-19 pandemic. While the pure play coworking sector faced widespread challenges, we maintained business continuity with stable financial performance, and emerged as a suitable infrastructure partner for large Enterprises. Post COVID-19, we witnessed a strong demand for flex workspaces, which we capitalised on and established managed Campuses that suit the purposes of such large Enterprises. We expanded our operations between Fiscal 2023 and Fiscal 2025 by adding a total SBA of 2.83 million square feet under our management, with a CAGR of 20.80%.
For further details, see "Our Business - Overview on page 248.
Principal factors affecting our financial condition and results of operations
Revenue drivers
Geographic footprint and number of Seats
The expansion of our footprint in terms of number of Centres and the corresponding increase in number of Capacity Seats is one of the important factors affecting our results of operations and financial condition. An increase in our footprint, which we measure as total SBA, allows us to accommodate more Clients, including existing Clients which increases our revenue from lease rentals.
We have increased our footprint from SBA of 6.16 million square feet across 39 Centres as of March 31, 2023, to SBA of 8.99 million square feet across 50 Centres as of March 31, 2025. This includes SBA of 0.18 million square feet in one Centre which was yet to be handed over by the Landlord and SBA of 0.72 million square feet across three Fit-outs Centres as on March 31, 2025.
As of March 31, 2025, we have established ourselves in 19 key clusters with 40 Centres with a total SBA of 8.48 million square feet, ensuring our presence in developed and high-growth areas. The number of Capacity Seats in our Centres has increased from 137,564 Capacity Seats as of March 31, 2023 to 203,118 Capacity Seats as of March 31, 2025 resulting in a CAGR of 21.51% during the same period. Our CAGR of Capacity Seats is higher than the CAGR of SBA, as a result of our strategic decision to lease large Centres which helps in achieving higher area efficiency and demonstrates our ability to optimize design which allows us to maximize Capacity Seats within our Centres.
In addition, leasing entire/ large properties allows us to leverage economies of scale and at the same time provide rental assurance of the entire property to the Landlords. This ensures financial security/ predictability, building and tenant management and achieve greater area efficiency (as common services are spread over a larger SBA). An increase in area efficiency allows us to increase the Capacity Seats in our Centres which in turn increases our revenue from lease rentals and thereby increasing our margin. Over a period of time, we have focused on leasing larger Centres. As of March 31, 2025, 78.83% of our total SBA consisted of Centres larger than 150,000 square feet (includes SBA of 0.18 million square feet of one Centre which was yet to be handed over by the Landlord and SBA of 0.72 million square feet of three Fit-outs Centres as of March 31, 2025). Our SBA of Centres larger than 150,000 square feet has increased to 78.83% of our total SBA as of March 31, 2025 from 70.78% of our total SBA as of March 31, 2023. The area efficiency of our Centres larger than 150,000 square feet has improved to 43.63 square feet per Seat as of March 31, 2025, from 43.80 square feet per Seat as of March 31, 2023.
Our Mature Centres especially the large Centres typically achieve higher margins. Our Mature Centres SBA out of the SBA of the overall Operational Centres as on respective dates, has increased to 88.64% as of March 31, 2025, from 64.62% as of March 31, 2023.
We focus on mid-to-large Enterprises and have built a growing Client base, which includes Indian corporates, MNCs operating in India and startups. Our focus is on acquiring Enterprise Clients with higher Seat requirements as well as emerging mid-to-large Enterprises, and grow with them. While we cater to the needs of all team sizes, typically from under 50 to over 4,800 Seats, with a specific focus on mid and large Enterprises that typically have a requirement of over 300 Seats. Clients occupying more than 300 Seats in our Centres, constituted 66.68%, 63.08% and 57.89% of the Occupied Seats (i.e., total number of Seats contracted with our Clients in our Operational Centres) for Fiscals 2025, 2024 and 2023, respectively. The contribution of such Clients Rental Revenue increased to 63.44% in Fiscal 2025, from 59.98% in Fiscal 2024, and increased from 55.85% in Fiscal 2023.
Our Rental Revenue from our multi-city Clients grew at a CAGR of 36.26% between Fiscal 2023 to Fiscal 2025 and was Rs 4,090.42 million, Rs 3,025.40 million, Rs 2,203.05 million, for Fiscals 2025, 2024 and 2023, respectively.
We continue to attract and retain such Clients by providing daily-life and aspirational amenities in our Centres across India.
For further details, see "Our Business" and "Riskfactors" on pages 247 and 40.
Geographic distribution and Client Industry
The geographic spread of our Centres is another factor impacting our business performance. Our revenue from
lease rentals is based on the underlying rents we pay to Landlords. Since rent rates vary by city, our pricing structure reflects these differences through a multiplier applied to the rents payable to Landlords.
During Fiscal 2025, we derived 75.19% of our Rental Revenue from Centres located in Pune (Maharashtra), Bengaluru (Karnataka), Hyderabad (Telangana) and Mumbai (Maharashtra). The below table provide the city wise break-up of our Rental Revenue for the Fiscals indicated:
City |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Rental Revenue (Rs in million) | As a % of Rental Revenue (%) | Rental Revenue (Rs in million) | As a % of Rental Revenue (%) | Rental Revenue (Rs in million) | As a % of Rental Revenue (%) | |
| Pune (Maharashtra) | 4,213.71 | 32.86 | 3,066.65 | 31.07 | 2,023.89 | 30.45 |
| Bengaluru (Karnataka) | 2,996.83 | 23.37 | 2,521.78 | 25.55 | 1,509.84 | 22.72 |
| Hyderabad (Telangana) | 1,493.37 | 11.65 | 1,401.69 | 14.20 | 851.91 | 12.82 |
| Mumbai (Maharashtra) | 937.27 | 7.31 | 912.98 | 9.25 | 787.90 | 11.86 |
| Other cities* | 3,180.48 | 24.81 | 1,967.16 | 19.93 | 1,472.28 | 22.15 |
Total Rental Revenue (Rs in million) |
12,821.65 | 100.00 | 9,870.26 | 100.00 | 6,645.82 | 100.00 |
*Other cities refer to Chennai (Tamil Nadu), Delhi, Gurugram (Haryana), Noida (Uttar Pradesh), Jaipur (Rajasthan), Indore (Madhya Pradesh), Ahmedabad (Gujarat), Kolkata (West Bengal) and Kochi (Kerala). During the Fiscal 2025, we also operationalised a Centre in Coimbatore (Tamil Nadu) and two Centres in Singapore.
For further details, "Risk factors- 1. During Fiscal 2025 and Fiscal 2024 we derived 75.19% and 80.07%, respectively, of our Rental Revenue from our Centres located in Pune, Bengaluru, Hyderabad and Mumbai. Any adverse developments affecting such locations and Centres could have an adverse effect on our business, results of operations and financial condition. " on page 40.
The diversification of the sectors in which our Clients operate is also an important factor impacting our operations. Our Clients are from diverse industries like information technology, engineering, insurance, energy, Ed-tech, e- commerce, fintech and consulting. Our business is also dependent upon the performance of the industries/sectors in which our Clients operate. A majority of our Rental Revenue is derived from sectors other than information technology, technology and software development which contributed 57.72% of our Rental Revenue during Fiscal 2025. For further details, see "Our Business - Our Strengths - Our focus on acquiring Enterprise Clients with higher Seat requirements as well as emerging mid-to-large Enterprises, and grow with them" and "Risk factors- 2. Our business is focused on Clients who typically require over 300 Seats across multiple Centres and cities. We may not have equal negotiating power with such Clients and it may be difficultfor us to find suitable replacements upon termination of agreements with such Clients, which could adversely affect our business, cash flows, results of operation and financial performance. " on pages 265 and 42.
The following table sets forth the breakdown of Rental Revenue generated from our Clients by their industries for the Fiscals indicated:
| Rental Revenue | % of Rental Revenue | |||||
| Industry Mix | Fiscal 2025 (Rs in million) | Fiscal 2024 (Rs in million) | Fiscal 2023 (Rs in million) | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Information technology, technology and software development | 5,420.63 | 4,294.12 | 2,661.37 | 42.28 | 43.51 | 40.05 |
| Engineering and manufacturing | 1,234.86 | 1,094.66 | 815.49 | 9.63 | 11.09 | 12.27 |
| Banking, financial services and insurance | 1,143.39 | 893.12 | 675.12 | 8.92 | 9.05 | 10.16 |
| Business consulting and professional services | 1,788.53 | 872.49 | 491.70 | 13.95 | 8.84 | 7.40 |
| Others | 3,234.24 | 2,715.86 | 2,002.13 | 25.22 | 27.52 | 30.12 |
Total |
12,821.65 | 9,870.26 | 6,645.82 | 100.00 | 100.00 | 100.00 |
Occupancy Rate, Client agreement duration, lock-in period and Seats Retention Rate
We have a base of 738 Clients as of March 31, 2025, including Indian corporates, MNCs as well as startups across sectors such as information technology, engineering, fintech, business consulting banking, financial services and insurance. We have cumulatively added 217 Clients between March 31, 2023 to March 31, 2025.
Our results of operations are also driven by the Occupancy Rate of our Centres. Occupancy Rate is the percentage of the total number of Occupied Seats divided by total number out of Capacity Seats in a Centre. Occupancy Rate is directly linked with revenue from operations as higher Occupancy Rate leads to higher revenue from operations. Lower Occupancy Rate results in underutilized space which could otherwise generate revenue, thereby impacting our revenue from operations. We have been able to improve our Occupied Seats and Occupancy Rate over time thereby contributing to our revenue growth. The table below sets forth our Occupied Seats in Operational Centres for as of the dates indicated:
Particulars |
As on March 31, 2025 | As on March 31, 2024 | As on March 31, 2023 |
| Number of Occupied Seats in Operational Centres* | 152,619 | 130,047 | 105,568 |
* Sum of Occupied Seats in Operational Centres.
Our Occupied Seats have grown at a CAGR of 20.24% between March 31, 2023 to March 31, 2025. As on June 30, 2025 our Committed Seats stood at 169,541 with a Committed Occupancy Rate of 89.03%. Additionally, we have experienced an increase in our overall Occupancy rate in Operational Centres to 83.12% as of March 31, 2025 from 76.74% as of March 31, 2023, which has resulted in an increase in our Rental Revenue. Occupancy Rate is the percentage of the total number of Occupied Seats divided by total number out of Capacity Seats in a Centre. The following table sets forth the details of our Committed Occupancy Rate as on June 30, 2025
Capacity Seats in Operational Centres (A) |
190,421 |
Committed Seats (B) |
169,541 |
Committed Occupancy Rate (B/A x 100) |
89.03% |
vumiiiinvu tv yr/yn. a. l v/ v/ f uy.u — /
Note: Capacity Seats in Operational Centres herein refers to the maximum number of Seats available in all the Operational Centres of our Company. Committed Seats refers to the (i) Occupied Seats of Operational Centres; and (ii) Seats occupancy in our Operational Centres reserved by the Client(s) through an agreement or a letter of intent and by payment of security deposit, and such Client(s) are yet to move-in to our Operational Centre(s) pursuant to such agreement or letter of intent. Committed Occupancy Rate is the percentage of Committed Seats out of the total Capacity Seats in Operational Centres.
• An increase in the number of Mature Centres allows us to achieve a higher Occupancy Rate ensuring that a larger number of Seats are consistently filled, which maximizes revenue from each such Centre. The number of Occupied Seats in our Mature Centres were 143,415, 125,776 and 75,027 as of March 31, 2025, March 31, 2024 and March 31, 2023, respectively.
• An increase in the Occupancy Rate of our Centres has also been driven by faster ramp-up and our ability to lease our Centres to Clients taking up larger number of Seats within our Centres. Our largest Client deal size in terms of number of Seats was over 6,300 Seats in Fiscal 2025, over 4,800 Seats in Fiscal 2024, and over 3,500 Seats in Fiscal 2023.
• Tenure of Client agreements have a significant impact on our revenue from operations as longer Client agreement tenure typically lead to a more stable and predictable revenue stream, save costs relating to brokerage and lead to savings on refurbishment capital expenditure on Client move-out. Typically, lease agreements for higher number of Seats have longer total tenure and lock-in period tenure. Our weighted average total tenure for Clients with occupying than more than 300 Seats stood at 50 months as of March 31, 2025. Our agreements with Clients have a lock-in period typically ranging from 12 months to 36 months. Our weighted average lock-in period for Clients with more than 300 Seats stood at 34 months as of March 31, 2025. Post the expiry of their lock-in period, our Clients may terminate such service agreements with a notice period, ranging from three months to six months.
The table below reflects our ability to attract large Clients on the basis of average tenure and lock-in periods of our Clients:
Particulars |
As of March 31, 2025 | As of March 31, 2024 | As of March 31, 2023 |
Weighted average total tenure (in months) |
46 | 46 | 46 |
| 0-100 Seats | 45 | 35 | 34 |
Particulars |
As of March 31, 2025 | As of March 31, 2024 | As of March 31, 2023 |
| 101-300 Seats | 39 | 40 | 43 |
| 300+ | 50 | 49 | 49 |
Weighted average lock-in tenure (in months) |
32 | 30 | 30 |
| 0-100 Seats | 23 | 24 | 22 |
| 101-300 Seats | 31 | 27 | 27 |
| 300+ | 34 | 33 | 32 |
Note: Weighted average total tenure refers to average contract period for which we enter into agreements with our Clients, weighted by the monthly rental. Weighted average lock-in tenure refers to average lock-in period in agreements with our Clients, weighted by the monthly rental
Our Seats Retained have increased by 46.61% to 41,050 seats in Fiscal 2025 from 27,999 seats in Fiscal 2023, demonstrating our ability to retain Clients post expiry of their lock-in periods. Higher number of Seats Retained helps in stable cashflows, reduced brokerage expenses and reduce capital expenditure for refurbishment after Client move out.
• The table below gives break-up of our Rental Revenue based on various Seat cohorts for the Fiscals indicated:
Seat cohorts |
Fiscal 2025 (as a % of Rental Revenue) | Fiscal 2024 (as a % of Rental Revenue) | Fiscal 2023 (as a % of Rental Revenue) |
| 0-100 Seats | 12.03 | 12.77 | 14.94 |
| 101-300 Seats | 24.54 | 27.25 | 29.21 |
| More than 300 Seats | 63.44 | 59.98 | 55.85 |
Total |
100.00 | 100.00 | 100.00 |
Rental rates and escalation
Our revenue from lease rentals represents the revenue generated from rentals charged to our Clients. The rental rates that we charge depends on various factors including demand and comparable supply of large workspace solutions in the key clusters in which we operate, rental rates payable to our Landlords, attractiveness of our Centres and the ability to retain Clients without incurring significant costs.
• Our Revenue from lease rentals grew by 29.31% to Rs 12,892.73 million during Fiscal 2025, from Rs 9,970.62 million during Fiscal 2024 and by 45.04% during Fiscal 2024 from Rs 6,874.59 million during Fiscal 2023 and has grown at a CAGR of 36.95% from Fiscal 2023 to Fiscal 2025.
• As a lessor: Our agreements with Clients require them to pay a fixed rental amount, which is typically subject to escalation at the rate of 5% p.a.
• As a lessee: Our agreements with Landlords for entire building/large Campuses, are for extended periods (average ranging from 10 to 15 years) with the typical lock-in period ranging up to five years for us which allows us to exit with our modular fitouts in case of any downward trend.
Accordingly, our revenue from operations is also directly affected by the lease rental rates of our Centres. The lease rental rates are affected by various factors, including prevailing economic conditions, income and demographic conditions in the micro-markets in which we operate, prevailing rental rates in the micro-market where our Centres are located, the amenities and facilities in our Centres.
Other streams of revenue
Revenue from ancillary services represents our revenue generated from services such as meeting room charges, one-time setup costs, parking charges, internet fees, electricity charges, etc.
Our revenue from ancillary services, increased by 16.40% to Rs 488.79 million in Fiscal 2025 from Rs 419.92 million in Fiscal 2024, which in turn was an increase of 75.46% from Rs 239.33 million in Fiscal 2023.
We also introduced software fees as a stream of revenue in Fiscal 2024 and have experienced a growth of 287.10% to Rs 12.00 million during Fiscal 2025 from Rs 3.10 million during Fiscal 2024.
Further, we have added design and fitout service as an additional stream of revenue in Fiscal 2025. Our revenue from design and fitout service was Rs 347.04 million during Fiscal 2025.
We intend to increase the scale and operations of these businesses, by increasing our focus on our existing offerings and introducing new value-added services. For further details, see "Our Business - Our Strategies- Scale up our new revenue streams, which are margin-accretive" on page 272.
Cost drivers
Expenses
Our expenses include:
• Operating expenses: our operating expenses such as housekeeping, security, support service, plantation and pest control, electricity expenses and water charges, building maintenance, equipment and asset hire charges, communication expenses, rent expenses, subcontracting cost, freight and transportation and parking charges are dependent on the Occupancy Rate of each of our Centres. During Fiscals 2025, 2024, and 2023, these expenses were Rs 3,753.03 million, Rs 2,680.82 million and Rs 1,926.63 million, constituting 26.62%, 24.08% and 25.89% of our total income for each of the aforementioned Fiscals, respectively.
• Commission and brokerage expenses: we incurred commission and brokerage expenses of Rs 407.31 million, Rs348.59 million and Rs 273.61 million, constituting 2.89%, 3.13% and 3.68% of our total income, during the Fiscals 2025, 2024 and 2023, respectively. We use the services of property consultants and brokers for identifying the Clients. We have managed to reduce our deals done through property consultants and brokers over a period of time.
• Employee benefit expenses: our employee benefit expenses were Rs 653.69 million, Rs 496.08 million and Rs 408.37 million, constituting 4.64%, 4.46% and 5.49% of our total income during the Fiscals 2025, 2024 and 2023, respectively.
Other expenses
We also incur other expenses such as information technology expenses, business development expenses, legal and professional charges, travelling expenses, consultancy expenses, insurance charges, provisions contingencies and other expenses. The total other expenses incurred by us were Rs 353.89 million, Rs 271.45 million and Rs 265.33 million, constituting 2.51%, 2.44% and 3.57% of our total income during the Fiscals 2025, 2024 and 2023, respectively.
Sourcing and space procurement strategy
We primarily follow a straight lease business model, whereby we lease bare shell properties on long-term basis within key clusters. We leverage our expertise in risk management and execution to maximize value. As we move forward, we intend to strategically expand into the variable rental and management contract models as well. For further details, see "Our Business- Our Strategies - Enhance capital efficiency through variable rental business model and managed contracts on page 272.
We enter long-term lease agreements with Landlords for 10 to 15 years, with between six to 12 months of rent- free period. This strategic approach enables us to provide daily-life and aspirational amenities in our Centres and offer amenities such as cafeterias, sport zones, Smart Convenience Stores, gymnasiums, creches and medical centres. The duration of our lease agreements with Landlord cushions our business against the cyclical risks of rental fluctuations, which are inherent to the commercial real estate industry. For further details, see "Our Business - Centre identification and sourcing" on page 275.
Critical accounting policies and significant judgments and estimates
Basis of preparation and presentation
The Restated Consolidated Financial Information of the Group comprises of the Restated Consolidated Statement of Assets and Liabilities as at March 31, 2025, 2024 and 2023, the Restated Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Restated Consolidated Statement of Cash Flows and the
Restated Consolidated Statement of Changes in Equity for the years ended March 31, 2025, 2024 and 2023 and the Summary of Material Accounting Policies and explanatory notes (collectively, the ‘Restated Consolidated Financial Information).
These Restated Consolidated Financial Information has been prepared by the Management of the Group for the purpose of inclusion in this Red Herring Prospectus (‘RHP) and Prospectus (collectively, the "Offer Documents") prepared by the Company in connection with its proposed Initial Public Offer ("IPO") in terms of the requirements of:
(i) Section 26 of Part I of Chapter III of the Companies Act, 2013, as amended ("the Act");
(ii) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the "ICDR Regulations"); and
(iii) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI), as amended (the "Guidance Note").
These Restated Consolidated Financial Information have been compiled by the Management from the audited consolidated financial statements of the Group as at and for the years ended March 31, 2025, 2024 and 2023 prepared in accordance with the Ind AS as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India (the "Consolidated Financial Statements"), which have been approved by the Board of Directors at their meetings held on June 13, 2025, July 19, 2024, and September 29, 2023 respectively.
The accounting policies have been consistently applied by the Group in preparation of the Restated Consolidated Financial Information and are consistent with those adopted in the preparation of financial statements as at and for the year ended March 31, 2025.
These Restated Consolidated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of board meeting for adoption of the audited Consolidated Financial Statements as at and for the years ended March 31, 2025 ,2024 and 2023.
The Restated Consolidated Financial Information:
(a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the years ended March 31, 2024 and 2023, to reflect the same accounting treatment as per the accounting policy and grouping/classifications followed as at and for the year ended March 31, 2025, as applicable;
(b) do not require any adjustment for modification mentioned below.
The audit reports on the internal financial controls with reference to the consolidated financial statements were modified and included following matters giving rise to modifications on the internal financial controls with reference to the consolidated financial statements as at and for the year ended March 31, 2023:
Basis for Qualified opinion
" With respect to the Parent, according to the information and explanations given to us and based on our audit, the following material weakness has been identified in the Companys internal financial controls with reference to consolidated financial statements as at March 31, 2023:
The Parent did not have an appropriate internal control with reference to consolidated financial statement for property, plant and equipment with regard to (a) identification and recording of assets discarded on account of properties vacated by the company and termination of lease by customers and (b) determining and recording the discrepancies in individual items of assets between property, plant and equipment register and physical verification report. This could potentially result in material misstatements in the Companys property, plant and equipment, depreciation and other expense account balances.
A ‘material weakness is a deficiency, or a combination of deficiencies, in internal financial control with reference to consolidated financial statements, such that there is a reasonable possibility that a material misstatement of the Companys annual or interim financial statements will not be prevented or detected on a timely basis
The Restated Consolidated Financial Information are presented in Indian Rupees "INR" or "Rs." or and all
values are stated as INR or Rs. or f million, except when otherwise indicated.
Current versus non-current classification
The Group presents assets and liabilities based on current/ non-current classification.
Assets: An asset is treated as current when it is:
(i) Expected to be realised or intended to be sold or consumed in normal operating cycle
(ii) Held primarily for the purpose of trading
(iii) Expected to be realised within twelve months after the reporting period, or
(iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
Liabilities: A liability is current when:
(i) It is expected to be settled in normal operating cycle
(ii) It is held primarily for the purpose of trading
(iii) It is due to be settled within twelve months after the reporting period, or
(iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities, and all other assets and liabilities which are not current (as discussed in the above paragraphs) are classified as non-current assets and liabilities.
Operating cycle:
All assets and liabilities have been classified as current or non-current as per the Groups operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the rendering of service and their realization in cash and cash equivalents, the Group has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.
Fair value measurement
Fair value is the price at the measurement date, at which an asset can be sold or a liability can be transferred, in an orderly transaction between market participants. The Groups accounting policies require, measurement of certain financial instruments at fair values (either on a recurring or non-recurring basis).
The Group is required to classify the fair valuation method of the financial assets and liabilities, either measured or disclosed at fair value in the Financial Information, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurement). Accordingly, the Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Basis of consolidation
The Parent consolidates entities which it controls. The Restated Consolidated financial information comprise the financial information of the Parent and its subsidiaries. Control exists when the parent has power over the entity, is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entitys returns. Subsidiaries are consolidated from the date the control commences until the date control ceases.
The Restated financial information of the Group companies are consolidated on a line-by-line basis and intra-Group balances and transactions including unrealised gain / loss from such transactions are eliminated upon consolidation.
Accounting policies of the respective individual subsidiaries are aligned wherever necessary to ensure consistency with the accounting policies that are adopted by the Group under Ind AS and other generally accepted accounting principles.
Amendments to Ind AS
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During Fiscal 2025, MCA has notified amendment to Ind AS - 116 Leases applicable to the Group w.e.f. September 9, 2024. The Group has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact on its Restated Consolidated Financial Information.
Functional and presentation currency
The Restated Consolidated Financial Information are presented in Indian rupees, which is the functional currency of the Group and the currency of the primary economic environment in which the Group operates.
Use of estimates and judgement
The preparation of Restated Consolidated Financial Information in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates (Refer note 3A of Restated Consolidated Financial Information).
Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
Revenue recognition
Operating revenue
Revenue from operation includes rental income for use of co-working space, along with related ancillary services, software fees and income from rendering of designing services (design and fitout service).
Rental Income
Revenue from leased out co-working space under an operating leases is recognized on a straight line basis over the lease term, except where there is an uncertainty of ultimate collection. The Group assesses the lease term based on the customer portfolio to determine whether it is reasonably certain that any options to extend or terminate the contract will be exercised. The Group has determined the lease term as the non-cancellable term or contract term based on the customer portfolio. After lease term, rental revenue is recognized as and when services are rendered on a monthly basis as per the contractual terms prescribed under agreement entered with customers. Initial direct costs, such as commissions, incurred by the Group in negotiating and arranging a lease are deferred and allocated to income over the lease term for revenue, which has been presented as Prepayments in Restated Consolidated Statement of Assets and Liabilities.
Design and fitout service
Design and fitout service where the Group is acting as a contractor, revenue is recognized in accordance with the terms of the construction agreements. Under such contracts, assets created does not have an alternative use and the Group has an enforceable right to payment.
The Group uses cost based input method for measuring progress for performance obligation satisfied over time. Under this method, the Group recognizes revenue in proportion to the actual project cost incurred as against the total estimated project cost. The management reviews and revises its measure of progress periodically and are considered as change in estimates and accordingly, the effect of such changes in estimates is recognised prospectively in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognized immediately.
As the outcome of the contracts cannot be measured reliably during the early stages of the project, contract revenue is recognized only to the extent of costs incurred in the Restated Consolidated Statement of Profit and Loss.
Software Fees
Revenue from contracts with customers for software fees is recognized when control of services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services.
Ancillary services
Revenue from contracts with customers for ancillary services (such as meeting room charges, one-time setup costs, parking charges, internet fees, electricity charges, facility management services etc.) is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.
Revenues in excess of invoicing are classified as unbilled revenue while invoicing and collection in excess of revenue are classified as deferred revenue. The Group presents service revenue net of indirect taxes in its Restated Consolidated Statement of Profit and Loss.
Other income
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assets net carrying amount on initial recognition.
On disposal of an investment, the difference between the carrying amount and the disposal proceeds, net of expenses, is recognized in the Restated Consolidated Statement of Profit and Loss.
Leases
Group as a lessee
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
At the date of commencement of the lease, the Group recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognizes the lease payments as an operating expense over the term of the lease.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Depreciation is computed using the straight-line method from the commencement date to the end of the useful life of the underlying asset or the end of the lease term, whichever is shorter. If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates that commensurate with the lease term (refer note 3A.1.1 of Restated Consolidated Financial Information). Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or Restated Consolidated Statement of Profit and Loss if the ROU asset has been reduced to zero.
Asset retirement obligation is determined at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the particular right-of-use asset on initial recognition.
Group as a lessor
Leases in which the Group transfers substantially all the risks and benefits of ownership of the asset are classified as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net investment in the lease. After initial recognition, the Group apportions lease rentals between the principal repayment and interest income so as to achieve a constant periodic rate of return on the net investment outstanding in respect of the finance lease. The interest income is recognized in the Restated Consolidated Statement of Profit and Loss.
Leases in which the Group does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in property, plant and equipment and right of use assets. Management recognised lease income on an operating lease is recognized in the Restated Consolidated Statement of Profit and Loss on a straight-line basis over the lease term on reasonable basis.
Foreign currency transactions and balances
Transactions in currencies other than the Groups functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognized in Restated Consolidated Statement of Profit and Loss in the period in which they arise.
The assets and liabilities of foreign operations are translated into Rupees at the exchange rates prevailing at the reporting date whereas their Statements of Profit and Loss are translated into Rupees at daily average exchange rates and the equity is recorded at the historical rate. However, if exchange rates fluctuate significantly during the period, the exchange rates at the date of transactions are used. The resulting exchange differences arising on the translation are recognised in OCI and held in foreign currency translation reserve (‘FCTR), a component of equity. On disposal of a foreign operation (that is, disposal involving loss of control), the component of OCI relating to that particular foreign operation is reclassified to Restated Consolidated Statement of Profit or Loss.
Employee benefits
Groups employee benefit mainly includes salaries, bonuses, defined contribution absences and defined benefit plans. The employee benefits are recognised in the year in which the associated services are rendered by the Group employees. Short term employee benefits are recognised in Restated Consolidated Statement of Profit and Loss at undiscounted amounts during the period in which the related services are rendered.
Short-term benefits
Liabilities for salaries, including non-monetary benefits (such as compensated absences) that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the Restated Consolidated Statement of Assets and Liabilities.
Long term benefits
Compensated absences
Compensated absences benefits comprises of encashment and availment of leave balances that were earned by the employees over the period of past employment. The Group provides for the liability towards the said benefits on the basis of actuarial valuation carried out as at the reporting date, by an independent qualified actuary using the projected-unit-credit method. The related re-measurements are recognised in the Restated Consolidated Statement of Profit and Loss in the period in which they arise.
Post-employment obligations
Defined benefit plans
The Group has defined benefit plan namely gratuity. The said plan requires a lump-sum payment to eligible employees (meeting the required vesting service condition) at retirement or termination of employment, based on a pre-defined formula. The cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Defined benefit costs are categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
• net interest expense or income; and
• remeasurement
The Group presents the first two components of defined benefit costs in Restated Consolidated Statement of Profit and Loss. Curtailment gains and losses are accounted for as past service costs. Past service cost is recognized in Restated Consolidated Statement of Profit and Loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Restated Consolidated Statement of Changes in Equity and in the Restated Consolidated Statement of Assets and Liabilities.
Defined contribution plans
The Group has defined contribution plans for post-employment benefit. The Groups contribution thereto is charged to the Restated Consolidated Statement of Profit and Loss. The Group has no further obligations under these plans beyond its periodic contributions.
Share based payments
Employees of the Group receives remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments.
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using Black Scholes valuation model. The grant date fair value of options granted to employees is recognised as employee benefit expenses with a corresponding increase in employee stock options reserve, over the period in which the eligibility conditions are fulfilled and the employees unconditionally become entitled to the awards. The cumulative expense recognised for equity settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Groups best estimate of the number of equity instruments that will ultimately vest.
The Restated Consolidated Statement of Profit and Loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
Finance costs
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are charged to the Restated Consolidated Statement of Profit and Loss for the period for which they are incurred.
Taxation
Income tax expense represents the sum of the current tax and deferred tax.
Current tax
The current tax is based on taxable profit for the year. Taxable profit differs from Profit Before Tax as reported in the Restated Consolidated Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Groups current tax is calculated using tax rates applicable for the respective period.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Restated Consolidated Financial Information and their tax bases. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences and incurred tax losses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting year and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognized in Restated Consolidated Statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Property, plant and equipment (PPE)
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.
Cost comprises of the purchase price including freight and non-refundable taxes, and directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management.
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use (refer note 2.10 of Restated Consolidated Financial Information)
Cost incurred for expected fit-out period is capitalised as part of leasehold improvement, as this cost is attributable to bring the asset in necessary condition for its intended use. (Refer note 3A.1.2 of Restated Consolidated Financial Information).
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset is derecognized when replaced. The other repairs and maintenance are charged to Restated Consolidated Statement of Profit and Loss during the reporting period in which they are incurred.
Depreciation method, estimated useful lives and residual value
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Residual value is estimated to be five percent of total cost of asset, except for certain leasehold improvement and electrical equipment classes of assets where it is estimated to be nil.
Depreciation on property, plant and equipment is computed using the straight-line method over the estimated useful lives. The management basis its past experience and technical assessment has estimated the useful lives, which is at variance with the life prescribed in Part C of Schedule II to the Act and has accordingly, depreciated the assets over such useful lives. The Group has established the estimated range of useful lives for different categories of property, plant and equipment as follows :
| Categories | Useful life |
| Leasehold improvement | Lease term or 10 years, whichever is less |
| Electrical installations and equipment | 10 |
| Plant and equipment | 15 |
| Furniture and fixtures | 3-10 |
| Vehicles | 8-10 |
| Computer and data processing unit | 3-6 |
| Office equipment | 3-10 |
The useful lives, residual values and depreciation method of PPE are reviewed, and adjusted appropriately, at least as at each financial year end so as to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from these assets. The effect of any change in the estimated useful lives, residual values and / or depreciation method are accounted prospectively, and accordingly the depreciation is calculated over the PPEs remaining revised useful life.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.
Any gain or loss arising on the disposal or retirement of an item of plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Restated Consolidated Statement of Profit or Loss.
Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in Restated Consolidated Statement of Profit and Loss within other gains / (losses).
Capital work in progress
Capital work in progress is stated at cost less impairment losses. Such expenditure includes the cost of materials and goods purchased or acquired with the intention of creating any capital asset and the project site and cost incurred for expected fit-out period which is attributed to the property, plant and equipment.
Intangible assets
Initial measurement
Software (both purchased and internally generated) which is not an integral part of related hardware, is treated as intangible asset and stated at cost on initial recognition and subsequently measured at cost less accumulated amortization and accumulated impairment loss, if any.
Internally-generated intangible assets
Expenditure on research activities for internally generated intangible assets is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following conditions have been demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure on direct salary incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in the Restated Consolidated Statement of Proft or Loss in the period in which it is incurred.
Subsequent measurement
Subsequent costs are included in the assets carrying amount, only when it is probable that future economic benefits associated with the cost incurred will flow to the Group and the cost of the item can be measured reliably. All other expenditure is recognized in the Restated Consolidated Statement of Profit and Loss.
Derecognition policy
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognised in Restated Consolidated Statement of Profit and Loss when the asset is derecognised.
Amortisation method and periods
Intangible assets i.e. software are amortised on a straight line basis over its estimated useful life i.e. 3 years. The estimated useful life and amortisation method are reviewed at the end of each reporting year, with the effect of any changes in estimate being accounted for on a prospective basis.
Impairment of non-financial assets
At the end of each reporting year, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in Restated Consolidated Statement of Profit or Loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in Restated Consolidated Statement of Profit or Loss.
Provisions and contingencies
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
Asset retirement obligations (ARO) are provided for those operating lease arrangements where the Group has a binding obligation at the end of the lease period to restore the leased premises in a condition similar to inception of lease.
Asset retirement obligation are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the particular asset. The cash flows are discounted using incremental borrowing rate that reflects the risks specific to the site restoration obligation. The unwinding of the discount is expensed as incurred and recognized in the Consolidated Statement of Profit and Loss as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments.
The Group determines the classification of its financial instruments at initial recognition.
Financial assets
Initial recognition and measurement
At initial recognition, financial asset (except trade receivables which do not contain a significant financing component) is measured at its fair value plus, in the case of a financial asset not at fair value through Restated Consolidated Statement of Profit and Loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through Profit and Loss are expensed in Restated Consolidated Statement of Profit and Loss.
Subsequent measurement
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
The Group classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income, or through Restated Consolidated Statement of Profit and Loss), and
• those measured at amortised cost.
The classification depends on the entitys business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in Restated Consolidated Statement of Profit and Loss or other comprehensive income. Investments in debt mutual funds are measured at fair value through Restated Consolidated Statement of Profit and Loss as per the business model and contractual cash flow test.
Impairment of financial assets
The Group assesses at each Reporting Date whether a financial asset or a Group of financial assets is impaired. Ind
AS 109 requires expected credit losses to be measured through a loss allowance. The Group recognises lifetime expected losses for trade receivables that do not constitute a financing transaction. For other financial assets carried at amortised cost the Group assesses, on a forward looking basis, the expected credit losses associated with such assets and recognises the same in Restated Consolidated Statement of Profit and Loss.
Cash and cash equivalents
For the purpose of presentation in the Restated Consolidated Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments, other than which are lien against borrowings, with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and book overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Restated Consolidated Statement of Assets and Liabilities.
Derecognition of financial assets
The Group derecognises financial assets in accordance with the principles of Ind AS 109 which usually coincides receipt of payment or write off of the financial asset.
Financial liabilities and equity instruments
Classification of debt or equity
Debt and equity instruments issued by a Group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Group entity are recognised at the proceeds received, net of direct issue costs.
Financial liabilities
Classification: The Group classifies all financial liabilities as subsequently measured at amortised cost.
Initial recognition and measurement : All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Loans and borrowings : After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognised in the Restated Consolidated Statement of Profit and Loss when the liabilities are derecognised. Amortised cost is calculated by taking into account any discount or premium on acquisition and transactions costs. The EIR amortisation is included as finance costs in the Restated Consolidated Statement of Profit and Loss.
Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and are recognised in Restated Consolidated Statement of Profit and Loss.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Groups obligations are discharged, cancelled or have expired.
Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) attributable to the shareholders of the Group by the weighted average number of equity shares outstanding during the period.
Equity shares which are issuable upon the satisfaction of certain conditions resulting from contractual arrangements / shareholder agreement are considered outstanding and included in the computation of basic earnings per share from the date when all necessary conditions under the contract have been satisfied as on the reporting date.
Diluted earnings per share is computed by adjusting, the profit/ (loss) for the year attributable to the shareholders and the weighted average number of shares considered for deriving Basic earnings per share, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period.
Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and sale is considered highly probable. A sale is considered as highly probable when decision has been made to sell, assets are available for immediate sale in its present condition, assets are being actively marketed and sale has been agreed or is expected to be concluded within 12 months of the date of classification.
Non-current assets held for sale are neither depreciated nor amortised.
Assets and liabilities classified as held for sale are measured at the lower of their carrying amount and fair value less cost of disposal and are presented separately in the Restated Consolidated Statement of Assets and Liabilities.
KEY SOURCES OF ESTIMATION UNCERTAINTIES AND CRITICAL JUDGEMENTS
In applying the Groups accounting policies, which are described in note 2 of Restated Consolidated Financial Information, the directors are required to make judgements (other than those involving estimations) that have a material impact on the amounts recognized and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Groups accounting policies
Lease term -Group as a Lessee
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain.
The Group makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Group considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to the Groups operations taking into account the location of the underlying building and the availability of suitable alternatives. The Group has ascertained lease term as non-cancellable term.
Capitalisation of fit out period
Cost (depreciation on Right of Use asset, interest expense of lease liability, electricity charges, building maintenance charges, housekeeping & security charges, project and design related employee cost) for the expected fit-out period is capitalised as part of leasehold improvement, considering, this cost is attributable to bring the asset in necessary condition for its intended use. The fit out period has been determined by the management basis the historical experience and the size and complexities involved for development of property to make them available for intended use.
Incremental borrowing rate
The initial recognition of lease liabilities at present value requires the identification of an appropriate discount rate. The Group has determined the incremental borrowing rate based on considerations specific to the leases by taking consideration of the risk free borrowing rates as adjusted for country / Group specific risk premiums (basis the readily available data points). The Group is considering fixed deposit rates as appropriate discount rates to get fair value of financials assets.
Key sources of estimation uncertainty
Taxes
Deferred tax assets are recognised for the unused tax losses for which there is probability of utilisation against the future taxable profit. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, future tax planning strategies and recent business performances and developments (Refer note 11 of Restated Consolidated Financial Information).
Useful life of property, plant and equipment
As described at note 2.12.1 of Restated Consolidated Financial Information, the Group reviews the estimated useful lives of PPE at the end of each reporting year. After considering market conditions, industry practice, technological developments and other factors, the Group determined that the current useful lives of its PPE remain appropriate. Uncertainties in these estimate relate to technical and economic obsolescence that may change the utility of assets.
Segment reporting
The Groups primary business segment involves developing and licensing fully serviced office spaces in business centres. Refer Note 45 of Restated Consolidated Financial Information for principal activity of wholly-owned subsidiaries. The Board of Directors of the Parent Company, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Group Performance, allocate resources based on the analysis of the various performance indicator of the Group as a single unit of coworking spaces. Therefore, there are no separate reportable business segments as per Ind AS 108- "Operating Segments". The Group does not have any single external customer contributing to 10% or more of the groups revenue.
Principal components of Income and Expenses
We report our income and expenditure in the following manner:
Total income
Our total income comprises revenue from operations and other income.
Revenue from operations
Our revenue from operations comprises revenue from lease rentals, revenue from ancillary services, revenue from software fees and revenue from design and fitout service. Revenue from lease rentals represents revenue generated from rental income received from Clients for managing workspaces which are configured to their specific requirements. Revenue from ancillary services represents revenue generated from services such as meeting room charges, one-time setup costs, parking charges, internet fees, electricity charges, etc. Revenue from design and fitout service represents revenue from designing modern and aesthetically pleasing workspaces using our in-house strong design team, extensive design library and wide network of vendors.
The following table shows a breakdown of our revenue from operations for the Fiscals indicated:
Revenue from operations |
Fiscal 2025 (in Rs million) | As a percentage of revenue from operations for Fiscal 2025 (%) | Fiscal 2024 (in Rs million) | As a percentage of revenue from operations for Fiscal 2024 (%) | Fiscal 2023 (in Rs million) | As a percentage of revenue from operations for Fiscal 2023 (%) |
| Revenue from lease rentals | 12,892.73 | 93.83 | 9,970.62 | 95.93 | 6,874.59 | 96.64 |
| Revenue from ancillary services | 488.79 | 3.56 | 419.92 | 4.04 | 239.33 | 3.36 |
| Revenue from software fees | 12.00 | 0.09 | 3.10 | 0.03 | - | - |
| Revenue from design and fitout service | 347.04 | 2.53 | - | - | - | - |
Total revenue from operations |
13,740.56 | 100.00 | 10,393.64 | 100.00 | 7,113.92 | 100.00 |
Other income
Other income primarily comprises of interest income on fair valuation of security deposits, interest income on bank deposits and others, income from delay in handover of property, income from reimbursement of fit-out costs incurred, and income from scrap sales. Other gain and losses comprise of interest income on income tax refund, liability/provision no longer required written back, gain on lease termination/reassessment, COVID-19 related rent concessions, profit on sale of property, plant & equipment and others.
The following table shows a breakdown of our other income for the Fiscals indicated:
(in ^ million)
Particulars |
During Fiscals | ||
| 2025 | 2024 | 2023 | |
Interest income earned on financial assets that are measured at amortized cost |
|||
| - Security deposits | 255.86 | 286.64 | 144.57 |
| - Interest income on bank deposits | 28.64 | 75.03 | 56.31 |
| - Others | 0.24 | 0.16 | 0.09 |
| Income from reimbursement of fitout | 17.60 | 17.64 | 4.87 |
| Income from scrap sales | 12.15 | 25.44 | 2.42 |
Other gain and losses |
|||
| - Interest income on income tax refund | 25.00 | 0.07 | 11.27 |
| - Liability/provision no longer required written back | - |
14.32 | 36.34 |
| - Gain on lease termination/reassessment | - | 310.86 | 68.89 |
| - Gain on fair valuation of investment in mutual fund | 7.21 | 4.28 | - |
| Gain on sale of mutual fund units | 7.15 | - | - |
| - Profit on sale of property, plant & equipment | 1.02 | - | 1.42 |
| - Others | 1.26 | 3.02 | 0.60 |
Total other income |
356.13 | 737.46 | 326.78 |
For further details, see "- Critical accounting policies and significant judgments and estimates - C. Leases" on page 411.
Expenses
Our total expenses comprise of operating expenses, employee benefits expenses, finance costs, depreciation and amortization expenses and other expenses.
Operating expenses. Our operating expenses primarily comprise of housekeeping, security, support services, plantation and pest control, electricity and water charges, building maintenance, equipment and asset hire charges, commission and brokerage, communication expenses, rent expenses, subcontracting costs, freight and transportation and parking charges.
Employee benefit expenses. Our employee benefit expenses primarily comprise of salaries and wages, contribution to provident fund and other funds, gratuity expenses, share based payment expense and staff welfare expenses.
Finance costs. Our finance costs primarily comprise of interest expenses on lease liabilities, borrowings and financial liabilities and other finance costs such as interest on asset retirement obligations and others.
Depreciation and amortization expense. Our depreciation and amortization expenses comprise of depreciation on property, plant and equipment, depreciation of right-of-use assets and amortization of intangible assets.
Other expenses. Our other expenses comprise of business development expenses, legal and professional charges, travelling expenses, postage and stationery, consultancy expenses, property plant and equipment written off, rates and taxes, allowance for doubtful debts and advances, provision for contingencies, information technology expenses, insurance charges, loss on sale of property, plant & equipment and other miscellaneous expenses. For further details, see Principal Factors Affecting Our Financial Condition and Results of Operations" on page 402.
The following table shows a breakdown of our expenses for the Fiscals indicated:
(in X million)
Expenses |
For Fiscals | ||
| 2025 | 2024 | 2023 | |
| Operating expenses* | 4,160.34 | 3,029.41 | 2,200.24 |
| Employee benefit expense | 653.69 | 496.08 | 408.37 |
| Finance costs | 3,363.38 | 3,283.18 | 2,366.56 |
| Depreciation and amortization expenses | 6,359.98 | 4,727.20 | 3,562.46 |
| Other expenses | 353.89 | 271.45 | 265.33 |
Total expenses |
14,891.28 | 11,807.32 | 8,802.96 |
* Operating expenses include commission and brokerage expenses.
Other comprehensive income
Other comprehensive income / (loss) comprises re-measurement of the defined benefit plans, net gain due to foreign currency translation differences and tax related to these items.
Our results of operations
The following table sets forth select financial data derived from our restated consolidated statement of profit and loss for the Fiscals 2025, 2024 and 2023 and we have expressed the components of select financial data as a percentage of total income for such Fiscals:
(in X million)
| Particulars | For Fiscals | |||||
| 2025 | 2024 | 2023 | ||||
| (in Rs million) | (% of total income) | (in Rs million) | (% of total income) | (in Rs million) | (% of total income) | |
Income |
||||||
| Revenue from operations | 13,740.56 | 97.47 | 10,393.64 | 93.37 | 7,113.92 | 95.61 |
| Other income | 356.13 | 2.53 | 737.46 | 6.63 | 326.78 | 4.39 |
Total income |
14,096.69 | 100.00 | 11,131.10 | 100.00 | 7,440.70 | 100.00 |
Expenses |
||||||
| Operating expenses | 4,160.34 | 29.51 | 3,029.41 | 27.22 | 2,200.24 | 29.57 |
| Employee benefits expense | 653.69 | 4.64 | 496.08 | 4.46 | 408.37 | 5.49 |
| Finance costs | 3,363.38 | 23.86 | 3,283.18 | 29.50 | 2,366.56 | 31.81 |
| Depreciation and amortisation expense | 6,359.98 | 45.12 | 4,727.20 | 42.47 | 3,562.46 | 47.88 |
| Other expenses | 353.89 | 2.51 | 271.45 | 2.44 | 265.33 | 3.57 |
Total expenses |
14,891.28 | 105.64 | 11,807.32 | 106.08 | 8,802.96 | 118.31 |
Restated loss before tax |
(794.59) | (5.64) | (676.22) | (6.08) | (1,362.26) | (18.31) |
Tax expense/(credit) |
||||||
| Current tax | 0.96 | 0.01 | - | - | - | - |
| Deferred tax | (163.76) | (1.16) | (176.65) | (1.59) | (351.80) | (4.73) |
Total tax credit |
(162.80) | (1.15) | (176.65) | (1.59) | (351.80) | (4.73) |
Restated loss for the year |
(631.79) | (4.48) | (499.57) | (4.49) | (1,010.46) | (13.58) |
| Restated other comprehensive income/ (loss) | ||||||
| Particulars | For Fiscals | |||||
| 2025 | 2024 | 2023 | ||||
| (in Rs million) | (% of total income) | (in Rs million) | (% of total income) | (in Rs million) | (% of total income) | |
| - Net gain due to foreign currency translation differences | 3.68 | 0.03 | ||||
| - Re-measurement of the defined benefit plan | (0.47) | 0.00 | 1.73 | 0.02 | 0.35 | 0.00 |
| - Tax related to above item | 0.12 | (0.00 | (0.49) | (0.00) | (0.09) | (0.00) |
Restated total other comprehensive income/ (loss) for the year (net of tax) |
3.33 | 0.02 | 1.24 | 0.01 | 0.26 | 0.00 |
Restated total comprehensive loss for the year |
(628.46) | (4.46) | (498.33) | (4.48) | (1,010.20) | (13.58) |
Fiscal 2025 compared to Fiscal 2024 Total income
Our total income comprises of revenue from operations and other income. Total income increased by 26.64% to Rs 14,096.69 million for Fiscal 2025 from Rs 11,131.10 million for Fiscal 2024. This increase was primarily due to an increase in revenue from operations which was partially off-set by a decrease in other income. The increase in revenue from operation was primarily driven by an increase in revenue from lease rentals.
Revenue from operations. Our revenue from operations increased by 32.20% to Rs 13,740.56 million for Fiscal 2025 from Rs 10,393.64 million for Fiscal 2024. This increase was primarily due to an increase in revenue from lease rentals. This increase in revenue from lease rentals of 29.31% to Rs 12,892.73 million during Fiscal 2025 from Rs 9,970.62 million for Fiscal 2024, was primarily due to:
Increase in Capacity Seats: Our SBA increased to 8.99 million square feet across 50 Centres (includes SBA of
0. 18 million square feet of one Centre which was yet to be handed over by the Landlord and SBA of 0.72 million square feet of three Fit-outs Centres as of March 31, 2025), as of March 31, 2025, from 8.00 million square feet across 41 Centres as of March 31, 2024 (including SBA of 0.18 million square feet in one Fit-outs Centre and SBA of 0.61 million square feet in one Centre yet to be handed over by the Landlord). As a result, our Capacity Seats increased to 203,118 Seats, as of March 31, 2025, from 182,228 Seats, as of March 31, 2024.
Increase in Occupancy Rate:
1. Increase in Occupancy Rate to 83.12% in Fiscal 2025 (excludes three Fit-outs Centre and one Centre yet to be handed over) from 79.77% in Fiscal 2024 (excludes one Fit-outs Centre and one Centre yet to be handed over) across existing and new Clients, resulting in increased total number of Occupied Seats to 152,619 Seats as of March 31, 2025, from 130,047 Seats as of March 31, 2024.
ii. Increase in our Seats Retained to 41,050 Seats during Fiscal 2025, from 28,336 Seats during Fiscal 2024.
iii. Increase in Rental Revenue from Clients with more than 300 Seats to Rs 8,133.62 million during Fiscal 2025, a growth of 37.39% over Fiscal 2024, demonstrating continued success in catering to the evolving needs of Enterprise Clients.
iv. Increase in revenue contribution of Rental Revenue of multi-city Clients by 35.20% to Rs 4,090.42 million for Fiscal 2025 from Rs 3,025.40 million for Fiscal 2024.
Our revenue from ancillary services also increased by 16.40% to Rs 488.79 million for Fiscal 2025 from Rs 419.92 million for Fiscal 2024, primarily due to increase in Occupancy Rate at our Centres resulting in higher usage of ancillary services offered. For further details in relation to our product offerings, see "Our Business" on page 247.
We have introduced design and fitout service as a new revenue stream in Fiscal 2025 leveraging our in-house design team, design library and network of vendors. Our revenue from design and fitout service was Rs 347.04 million during Fiscal 2025.
We had introduced software fees services as a new revenue stream in Fiscal 2024, primarily due to increasing focus of our business on expertise in software selection, implementation, and integration, driving demand for advisory services. Our revenue from software fees services increased by 287.10% to Rs 12.00 million in Fiscal 2025 from Rs 3.10 million in Fiscal 2024.
Other income. Our other income decreased by 51.71% to Rs 356.13 million for Fiscal 2025 from Rs 737.46 million for Fiscal 2024, primarily due to:
i. decrease in gain on lease termination/reassessment by 100% to Rs Nil for Fiscal 2025 from Rs 310.86 million for Fiscal 2024. For further details in relation to the gain on lease termination/reassessment, see
"Restated Consolidated Financial Information - Note 5.4 - Right-of-use Assets" on page 358;
ii. decrease in interest income on bank deposits by 61.83% to Rs 28.64 million for Fiscal 2025 from Rs 75.03 million for Fiscal 2024.
Total Expenses
Our total expenses increased by 26.12% to Rs 14,891.28 million in Fiscal 2025 from Rs 11,807.32 million in Fiscal 2024.
Operating expenses. Our operating expenses increased by 37.33% to Rs 4,160.34 million for Fiscal 2025 from Rs 3,029.41 million for Fiscal 2024, primarily due to:
i. increase in electricity and water charges which increased by 26.73% to Rs 1,191.32 million for Fiscal 2025 from Rs 940.01 million for Fiscal 2024 and increase in housekeeping, security, support service, plantation and pest control by 27.94% to Rs 998.14 million for Fiscal 2025 from Rs 780.15 million in Fiscal 2024. This increase was primarily attributable to an increase in the number of Operational Centres and higher Occupancy Rate leading to a higher utilization of electricity;
ii. an increase in building maintenance charges by 20.25% to Rs 835.06 million for Fiscal 2025 from Rs 694.44 million for Fiscal 2024. This increase was primarily due to expansion of our operations in terms of Centre SBA of 8.99 million square feet (including SBA of 0.18 million square feet of one Centre yet to be handed over by the Landlord and SBA of 0.72 million square feet of three Fit-outs Centres) as on March 31, 2025, from SBA of 8.00 million square feet as on March 31, 2024 (including SBA of 0.61 million square feet of one Centre yet to be handed over by the Landlord and SBA of 0.18 million square feet of one Fit-outs Centre);
iii. increase in our commission and brokerage expenses by 16.85% to Rs 407.31 million for Fiscal 2025 from Rs 348.59 million for Fiscal 2024. This increase was primarily on account of increase in number of Clients to 738 as on March 31, 2025 from 603 as on March 31, 2024. We have been able to maintain commission and brokerage expenses under 4.00% of revenue from lease rentals during Fiscals 2024 and 2025.
iv. subcontracting costs were Rs 283.55 million for Fiscal 2025. This expense was primarily incurred on account of the new revenue stream of design and fitout service introduced in Fiscal 2025.
Employee benefit expenses. Our employee benefits expenses increased by 31.77% to Rs 653.69 million for Fiscal 2025 from Rs 496.08 million for Fiscal 2024, primarily due to increase in salaries and wages by 23.83% to Rs 557.27 million for Fiscal 2025 from Rs 450.02 million for Fiscal 2024 which was primarily attributable to an increase in the number of employees to 794 as on March 31, 2025, from 651 as on March 31, 2024.
Finance costs. Our finance costs increased by 2.44% to Rs 3,363.38 million for Fiscal 2025 from Rs 3,283.18 million for Fiscal 2024, primarily due to:
i. increase in the interest expense on lease liabilities by 11.71% to Rs 2,790.52 million for Fiscal 2025 from Rs 2,498.10 million for Fiscal 2024. This increase was primarily attributable to increase in SBA to 8.99 million square feet as of March 31, 2025 (including SBA of 0.18 million square feet of one Centre yet to be handed over by the Landlord and SBA of 0.72 million square feet of three Fit-outs Centres) from 8.00 million square feet as of March 31, 2024 (including SBA of 0.61 million square feet of one Centre yet to be handed over by the Landlord and SBA of 0.18 million square feet of one Fit-outs Centres).
ii. decrease in the interest on borrowings by 26.19% to Rs 395.93 million for Fiscal 2025 from Rs 536.43 million for Fiscal 2024. This decrease was primarily attributable to a decrease in net debt to Rs 2,992.51 million for Fiscal 2025 from Rs 3,270.59 million for Fiscal 2024.
Depreciation and amortization expense. Our depreciation and amortization expense increased by 34.54% to Rs 6,359.98 million for Fiscal 2025 from Rs 4,727.20 million for Fiscal 2024, primarily due to:
i. increase in depreciation of property, plant, and equipment by 18.43% to Rs 1,801.73 million for Fiscal 2025 from Rs 1,521.32 million for Fiscal 2024. This increase was due to increase in property, plant and equipment to Rs 11,379.92 million as on 31 March 2025 from Rs 9,638.61 million as on 31 March 2024; and
ii. increase in the depreciation of right-of-use assets by 42.08% to Rs 4,526.83 million for Fiscal 2025 from Rs 3,186.14 million for Fiscal 2024. This increase was due to additions in right-of-use assets amounting to Rs 7,761.30 million for Fiscal 2025. The increase in right-of-use assets and increase in property, plant and equipment was primarily attributable to expansion of our Centres and our SBA.
Other expenses. Our other expenses increased by 30.37% to Rs 353.89 million for Fiscal 2025 from Rs 271.45 million for Fiscal 2024, primarily due to an increase in Provision for customer claims to Rs 33.22 million during Fiscal 2025 which was Nil in Fiscal 2024 and increase in Information Technology expenses to Rs 54.00 million during Fiscal 2025 from Rs 27.80 million during Fiscal 2024.
Restated loss for the year
For the reasons discussed above, since our total income was Rs 14,096.69 million and Rs 11,131.10 million and our total expenses were Rs 14,891.28 million and Rs 11,807.32 million for Fiscals 2025 and 2024, respectively, the restated loss for the year increased by 26.47% to Rs 631.79 million for Fiscal 2025 from Rs 499.57 million for Fiscal 2024, and our net profit ratio increased to (4.60)% for Fiscal 2025 from (4.81)% for Fiscal 2024. For a detailed explanation for increase in our total income and total expenses, please see Fiscal 2025 compared to Fiscal 2024- Total income" and "- Fiscal 2025 compared to Fiscal 2024- Total Expenses" on pages 423 and 424, respectively.
Restated total other comprehensive income/ (loss)
Our other comprehensive income was Rs 3.33 million for Fiscal 2025 as compared to Rs 1.24 million for Fiscal 2024 which was primarily attributable to an increase in net gain due to foreign currency translation differences to Rs 3.68 million for Fiscal 2025 from Rs Nil for Fiscal 2024.
Fiscal 2024 compared to Fiscal 2023
Total income
Our total income comprises of revenue from operations and other income. Total income increased by 49.60% to Rs 11,131.10 million for Fiscal 2024 from Rs 7,440.70 million for Fiscal 2023. This increase was primarily due to an increase in revenue from operations, which was primarily driven by an increase in revenue from lease rentals.
Revenue from operations. Our revenue from operations increased by 46.10% to Rs 10,393.64 million for Fiscal 2024 from Rs 7,113.92 million for Fiscal 2023.This increase was primarily due to an increase in revenue from lease rentals. This increase in revenue from lease rentals of 45.04% to Rs 9,970.62 million during Fiscal 2024 from Rs
6,874.59 million for Fiscal 2023, was primarily due to:
Increase in Capacity Seats: Our SBA increased to 8.00 million square feet across 41 Centres (including Fit-outs Centres and Centres yet to be handed over), as of March 31, 2024, from 6.16 million square feet across 39 Centres as of March 31, 2023. As a result our Capacity Seats increased to 182,228 Seats, as of March 31, 2024, from 137,564 Seats, as of March 31, 2023.
Increase in Occupancy Rate:
(i) Increase in Occupancy Rate to 79.77% in Fiscal 2024 (excludes Fit-outs Centre and Centre yet to be
handed over) from 76.74% in Fiscal 2023 across existing and new Clients, resulting in increased total number of Occupied Seats to 130,047 Seats as of March 31, 2024, from 105,568 Seats as of March 31, 2023.
(ii) Increase in our Seats Retained to 28,336 Seats during Fiscal 2024, from 27,999 Seats during Fiscal 2023.
(iii) Increase in Rental Revenue from Clients with more than 300 Seats to Rs 5,920.02 million during Fiscal 2024 from Rs 3,711.56 million during Fiscal 2023.
(iv) Increase in revenue contribution of Rental Revenue of multi-city Clients by 37.33% to Rs 3,025.40 million for Fiscal 2024 from Rs 2,203.05 million for Fiscal 2023.
Our revenue from ancillary services also increased by 75.46% to Rs 419.92 million for Fiscal 2024 from Rs 239.33 million for Fiscal 2023, primarily due to increase in Occupancy Rate at our Centres resulting in higher usage of ancillary services offered. For further details in relation to our product offerings, see " Our Business " on page 247.
We introduced software fees services as a new revenue stream in Fiscal 2024, primarily due to increasing focus of our business on expertise in software selection, implementation, and integration, driving demand for advisory services. Our revenue from software fees services was Rs 3.10 million for Fiscal 2024.
Other income. Our other income increased by 125.67% to Rs 737.46 million for Fiscal 2024 from Rs 326.78 million for Fiscal 2023, primarily due to:
(i) increase in interest on security deposits by 98.27% to Rs 286.64 million for Fiscal 2024 from Rs 144.57 million for Fiscal 2023; and
(ii) increase in gain on lease termination/reassessment by 351.24% to Rs 310.86 million for Fiscal 2024 from Rs 68.89 million for Fiscal 2023. For further details in relation to the gain on lease termination/reassessment, see "Restated Consolidated Financial Information - Note 5 - Right-of-use Assets" on page 358.
Total Expenses
Our total expenses increased by 34.13% to Rs 11,807.32 million in Fiscal 2024 from Rs 8,802.96 million in Fiscal 2023.
Operating expenses. Our operating expenses increased by 37.69% to Rs 3,029.41 million for Fiscal 2024 from Rs 2,200.24 million for Fiscal 2023, primarily due to:
(i) increase in electricity and water charges which increased by 51.56% to Rs 940.01 million for Fiscal 2024 from Rs 620.22 million for Fiscal 2023. This increase was primarily attributable to an increase in the number of Centres and higher Occupancy Rate leading to a higher utilization of electricity;
(ii) an increase in building maintenance charges by 49.63% to Rs 694.44 million for Fiscal 2024 from Rs 464.11 million for Fiscal 2023. This increase was primarily due to expansion of our operations in terms of Centre SBA of 8.00 million square feet (which includes SBA of 0.79 million square feet of one Centre yet to be handed over and one Fit-outs Centre) as on March 31, 2024, from SBA of 6.16 million square feet as on March 31, 2023; and
(iii) increase in our commission and brokerage expenses by 27.40% to Rs 348.59 million for Fiscal 2024 from Rs 273.61 million for Fiscal 2023. This increase was primarily on account of increase in number of Clients to 603 in March 31, 2024 from 521 in March 31, 2023. We have been able to maintain commission and brokerage expenses under 4.00% of revenue from lease rentals for Fiscals 2023 and 2024.
Employee benefit expenses. Our employee benefits expenses increased by 21.48% to Rs 496.08 million for Fiscal 2024 from Rs 408.37 million for Fiscal 2023, primarily due to increase in salaries and wages by 19.35% to Rs 450.02 million for Fiscal 2024 from Rs 377.06 million for Fiscal 2023 which was primarily attributable to an increase in the number of employees to 651 as on March 31, 2024, from 564 as on March 31, 2023.
Finance costs. Our finance costs increased by 38.73% to Rs 3,283.18 million for Fiscal 2024 from Rs 2,366.56 million for Fiscal 2023, primarily due to:
(i) increase in the interest expense on lease liabilities by 26.78% to Rs 2,498.10 million for Fiscal 2024 from Rs 1,970.39 million for Fiscal 2023. This increase was primarily attributable to increase in SBA from 6.16 million square feet as of March 31, 2023, to SBA of 8.00 million square feet as of March 31, 2024 (which includes one Fit-outs Centre and one centre yet to be handed over).
(ii) increase in the interest on borrowings by 94.90% to Rs 536.43 million for Fiscal 2024 from Rs 275.23 million for Fiscal 2023. This increase was primarily attributable to an increase in net debt to Rs 3,270.59 million for Fiscal 2024 from Rs 2,740.47 million for Fiscal 2023.
Depreciation and amortization expense. Our depreciation and amortization expense increased by 32.69% to Rs 4,727.20 million for Fiscal 2024 from Rs 3,562.46 million for Fiscal 2023, primarily due to:
(i) increase in depreciation of property, plant, and equipment by 76.10% to Rs 1,521.32 million for Fiscal 2024 from Rs 863.90 million for Fiscal 2023. This increase was due to increase in property, plant and equipment from Rs 8,292.88 million as on 31 March 2023 to Rs 9,638.61 million as on 31 March 2024; and
(ii) increase in the depreciation of right-of-use assets by 18.22% to Rs 3,186.14 million for Fiscal 2024 from Rs 2,695.02 million for Fiscal 2023. This increase was due to additions in right-of-use assets amounting to Rs 4,339.02 million for Fiscal 2024. The increase in right-of-use assets and increase in property, plant and equipment was primarily attributable to expansion of our Centres and footprints.
Other expenses. Our other expenses increased by 2.31% to Rs 271.45 million for Fiscal 2024 from Rs 265.33 million for Fiscal 2023, primarily due to an increase in legal and professional charges to Rs 62.51 million during Fiscal 2024 from Rs 38.29 million in Fiscal 2023.
Restated loss for the year
For the reasons discussed above, since our total income was Rs 11,131.10 million and Rs 7,440.70 million and our total expenses were Rs 11,807.32 and Rs 8,802.96 million for Fiscals 2024 and 2023, respectively, the restated loss for the year decreased by 50.56% to Rs 499.57 million for Fiscal 2024 from Rs 1,010.46 million for Fiscal 2023 and our net profit ratio increased to (4.81)% for Fiscal 2024 from (14.20)% for Fiscal 2023. For a detailed explanation for increase in our total income and total expenses, please see Fiscal 2024 compared to Fiscal 2023- Total income" and "- Fiscal 2024 compared to Fiscal 2023- Total Expenses" on pages 425 and 426, respectively.
Restated total other comprehensive income/ (loss)
Our other comprehensive income was Rs 1.24 million for Fiscal 2024 as compared to Rs 0.26 million for Fiscal 2023 which was primarily attributable to an increase in re-measurements of the defined benefit plans to Rs 1.73 million for Fiscal 2024 from Rs 0.35 million for Fiscal 2023.
Cash Flows
The following table sets forth our cash flows and cash and cash equivalents for the Fiscals indicated:
(in Rs million)
Particulars |
Fiscals | ||
| 2025 | 2024 | 2023 | |
| Net cash generated from operating activities | 9,285.16 | 7,433.00 | 5,318.32 |
| Net cash used in investing activities | (2,760.77) | (1921.59) | (3,066.30) |
| Net cash used in financing activities | (6,377.07) | (5,771.80) | (1,705.81) |
Net increase / (decrease) in cash and cash equivalents |
147.32 | (260.39) | 546.21 |
| Cash and cash equivalents at the beginning of the year | (36.75) | 223.64 | (322.57) |
| Cash and cash equivalents at the end of the year | 110.57 | (36.75) | 223.64 |
Operating activities
Net cash generated from operating activities aggregated to Rs 9,285.16 million for Fiscal 2025 while our operating cash flow before working capital changes was Rs 8,634.70 million. Our restated loss before tax of Rs
794.59 million for Fiscal 2025, was primarily adjusted for depreciation and amortization expenses of Rs 6,359.98 million and finance cost of Rs 3,363.38 million. Our changes in working capital for Fiscal 2025 primarily consisted of an increase in other financial and non-financial liabilities of Rs 1,051.09 million and was offset by a decrease in trade receivables of Rs 113.29 million and trade payables of Rs 39.07 million.
Net cash generated from operating activities aggregated to Rs 7,433.00 million for Fiscal 2024 while our operating cash flow before working capital changes was Rs 6,616.73 million. Our restated loss before tax of Rs 676.22 million for Fiscal 2024, primarily adjusted for depreciation and amortization expenses of Rs 4,727.20 million and finance cost of Rs 3,283.18 million. Our changes in working capital for Fiscal 2024 primarily consisted of an increase in trade payables of Rs 204.90 million and increase in other financial and non-financial liabilities of Rs 1,131.29 million and was offset by a decrease in other financial and non-financial assets of Rs 321.19 million.
Net cash from operating activities aggregated to Rs 5,318.32 million for Fiscal 2023 while our operating cash flow before working capital changes was Rs 4,095.43 million. Our restated loss before tax of Rs 1,362.26 million which was adjusted primarily for depreciation and amortization expense of Rs 3,562.46 million and finance cost of Rs 2,366.56 million. Our changes in working capital for Fiscal 2023 primarily consisted of increase in trade payables of Rs 589.70 million and an increase in other financial and non-financial liabilities of 1,538.64 million and was offset by a decrease in other financial and non-financial assets of Rs 829.04 million.
Investing activities
Net cash used in investing activities aggregated to Rs 2,760.77 million for Fisal 2025 primarily due to Rs 2,910.44 million used for purchase of property, plant, and equipment, intangible assets and capital work-in-progress, Rs 1,615.01 million used for investments in mutual funds, Rs 1,648.93 million generated from sale of mutual fund units and Rs 98.34 million generated from bank deposits not considered as cash and cash equivalents.
Net cash used in investing activities aggregated to Rs 1,921.59 million for Fiscal 2024, primarily due to Rs 2,663.42 million used for purchase of property, plant, and equipment, intangible assets and capital work-in-progress, Rs 31.84 million generated from sale of property plant and equipment (including sale and lease-back) and Rs 739.66 million generated from bank deposits not considered as cash and cash equivalents.
Net cash used in investing activities aggregated to Rs 3,066.30 million for Fiscal 2023, primarily due to Rs 3,246.16 million used for purchase of property, plant, and equipment, intangible assets and capital work-inprogress and Rs 157.53 million used for investments in bank deposits not considered as cash and cash equivalents. This was partially offset by Rs 282.61 million generated from sale of property plant and equipment (including sales and lease back).
Financing activities
Net cash used in financing activities aggregated to Rs 6,377.07 million for Fiscal 2025 and primarily included proceeds from long term borrowings of Rs 1,158.71 million and proceeds from issue of equity shares and share warrants of Rs 1,165.50 million and proceeds from issue of cumulative convertible preference shares of Rs 2.88 million, this was significantly offset by payment of principal portion of lease liabilities of Rs 4,059.83 million, repayment of long term borrowings of Rs 1,465.12 million, interest paid on lease liability of Rs 2,790.51 million and interest paid on borrowings of Rs 416.98 million.
Net cash used in financing activities aggregated to Rs 5,771.80 million for Fiscal 2024 and primarily included proceeds from long term borrowings of Rs 1,575.20 million and proceeds from issue of equity shares and share warrants of Rs 355.62 million and proceeds from issue of cumulative convertible preference shares of Rs 328.12 million, this was significantly offset by payment of principal portion of lease liabilities of Rs 3,038.23 million, repayment of long term borrowings of Rs 1,868.45 million, interest paid on lease liability of Rs 2,498.10 million and interest paid on borrowings of Rs 537.48 million.
Our net cash used in financing activities for Fiscal 2023 was Rs 1,705.81 million and primarily included proceeds from long-term borrowings of Rs 3,718.98 million and proceeds from issue of equity shares and share warrants of Rs 183.96 million, this was significantly offset by payment of principal portion of lease liabilities of Rs 1,905.99 million, repayment of long term borrowings of Rs 1,145.01 million, repayment of short term borrowings (net) of Rs 267.03 million, interest paid on lease liabilities of Rs 1,970.39 million. and interest paid on borrowings of Rs 281.91 million.
Financial indebtedness
The table below sets forth our financial indebtedness with definitive payment terms as of the dates indicated. These obligations primarily relate to our borrowings.
(in Rs million)
Particulars |
As of | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
Non-current |
|||
Secured - at amortised cost |
|||
Bonds |
|||
| Non-convertible bonds | 620.93 | 932.44 | 1,240.18 |
From Bank |
|||
| - Term loan | 2,186.49 | 1,825.18 | 2,538.02 |
| - Vehicle loan | 11.96 | 13.90 | 8.10 |
From NBFC |
|||
| - Term loan | 680.34 | 1,029.60 | 203.55 |
| - Vehicle loan | 4.28 | 5.56 | 6.72 |
Unsecured - at amortized cost |
|||
From related party |
|||
| -Inter-corporate deposits | - | - | 85.00 |
| Less: current maturities of long term borrowings | (1,343.74) | (1,409.20) | (1,083.28) |
Total non-current borrowings |
2,160.26 | 2,397.48 | 2,998.29 |
Current |
|||
Secured - at amortized cost |
|||
| -Bank overdraft | 386.14 | 424.35 | 958.79 |
| -From NBFCs | - | - | 81.03 |
| Vendor financing arrangement | 2.27 | - | - |
Unsecured - at amortized cost |
|||
| -Inter-corporate deposits from related parties | - | - | 15.00 |
| -Inter-corporate deposits from other parties | - | 17.50 | 17.50 |
| Vendor financing arrangement | 85.29 | 24.97 | - |
Current maturities of long-term borrowings |
|||
Secured |
|||
| -Non-convertible bonds | 309.41 | 312.50 | 312.50 |
| -Term loan (from Banks) | 795.37 | 739.30 | 684.14 |
| -Term loan (from NBFC) | 234.49 | 353.21 | 83.33 |
| - Vehicle loan (from Banks) | 3.05 | 2.91 | 2.15 |
| - Vehicle loan(from NBFC) | 1.42 | 1.28 | 1.16 |
Total current borrowings |
1,817.44 | 1,876.02 | 2,155.60 |
For further details of financial indebtedness as on April 30, 2025, see "FinancialIndebtedness" on page 434. Liquidity and capital resources
Historically, our primary liquidity requirements have been to finance our working capital and capital expenditure needs for our operations. We have met these requirements through cash flows from operations, borrowings and equity infusions from investors. As of March 31, 2025, we had Rs 496.71 million in cash and cash equivalents, Rs
192.59 million in other bank balances other than cash and cash equivalents and Rs 424.09 million in other current financial assets.
Non- GAAP Measures
For reconciliation of non-GAAP measure, see "Other Financial Information" on page 394.
Contingent liabilities and Commitments
The following table and notes below set forth the principal components of our contingent liabilities and Commitments as of March 31, 2025, March 31, 2024, and March 31, 2023, as derived from the Restated
Consolidated Financial Information:
Particulars |
As of March 31, | ||
| 2025 | 2024 | 2023 | |
| Claims against the group not acknowledged as debt: | |||
| Income tax matters (net of paid under protest) | 1.99 | 1.45 | 1.45 |
| Indirect tax matters | - | 6.80 | - |
| Commitments (Estimated amount of contracts remaining to be executed on property, plant and equipment and intangible assets and not provided for (net of related advances)) | 252.51 | 448.06 | 190.30 |
| Corporate guarantees (Corporate guarantee provided to third party on behalf of vendors of Group) | - | - | 158.28 |
| Others (Letter of credit and guarantees excluding financial guarantees) | 12.89 | 15.89 | 17.89 |
Apart from the commitments disclosed above, the Group has no financial commitments other than those in regular business operations.
Capital expenditures
Our historical capital expenditure primarily were addition of property, plant and equipment for purchase of leasehold improvement, electrical equipment/installations, plant and equipment, furniture and fixtures, office equipment and computers and data processing units. The capital expenditure is primarily funded through cash generated from operations, supplemented by borrowings and equity contributions by our shareholders. We expect our future capital expenditures to comprise primarily of leasehold improvement and Furniture and fixtures. The details of our capital expenditure are as set forth below, as of the dates indicated:
(in Rs million)
Particulars |
As on March 31, 2025 | As on March 31, 2024 | As on March 31, 2023 |
| Purchase of property, plant and equipments, intangible assets and | 2,910.44 | 2,663.42 | 3,246.16 |
| capital-work-in progress (net of capital advances) (as per restated consolidated statement of cash flows) |
Off-balance sheet commitments and arrangements
We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements.
Related party transactions
We have engaged in the past, and may engage in the future, in transactions with related parties. For details of our related party transactions for the last three Fiscals, see "Financial Information - Related Party Transactions" on page 397.
Quantitative and qualitative analysis of market risks
We are exposed to market risks in the ordinary course of business. Market risk is the risk of loss of future earnings to fair value or to future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rate, foreign currency exchange rates or other market changes that affect market risk sensitive instruments. Our market risks include credit risk, liquidity risk, currency risk and interest rate risk. For further details, see "Risk Factors" on page 397.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk mainly with respect to trade receivables, investment in mutual funds, bank deposits and bank balances.
Trade Receivables
Our trade receivables are typically non-interest bearing and derived from sales made to a large number of independent customers. As the customer base is widely distributed both economically and geographically, there is minimal concentration of credit risk. The credit period provided by us to our customers generally ranges from 7 days.
The management performs ongoing assessment of trade receivables for each customer basis the terms and conditions of each contract to identify the material breach. Facts and circumstances relevant to each customer are reviewed by the management to assess credit risk. Receivables are credit impaired to the extent unsecured and there is no convincing evidence establishing collection of consideration in near future.
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. Where the financial asset has been written-off, the Group continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in the Restated Consolidated Statement of Profit and Loss.
Other financial instruments and bank deposits
The Groups treasury, in accordance with the board approved policy, maintains its cash and cash equivalents, deposits and investment in mutual funds with banks, financial and other institutions, having good reputation and past track record, and high credit rating. Similarly, counter-parties of the Groups other receivables carry either no or very minimal credit risk. Further, the Group reviews the creditworthiness of the counter-parties (on the basis of its ratings, credit spreads and financial strength) of all the above assets on an on-going basis, and if required, takes necessary mitigation measures.
Liquidity risk
We manage our liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities, security deposits from customers to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.
Currency risk
Currency risk is the risk or uncertainty arising from possible currency movements and their impact on the future cash flows of a business. There are no material currency risk affecting the financial position of the Group as there are no material transactions in currency other than functional currency of the Group.
Interest risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Groups fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings keeping in view of current market scenario.
Interest rate risk exposure
Our floating rate borrowing is subject to interest rate fluctuations. Below is the overall exposure of the borrowing (undiscounted):
(in Rs million)
Particulars |
As at March 31, 2025 | As at March 31,2024 | As at March 31, 2023 |
| Floating rate borrowings | 3,865.87 | 4,105.80 | 4,982.79 |
| Fixed rate borrowings | 130.68 | 191.59 | 213.54 |
Sensitivity:
Profit or loss is sensitive to higher/ lower interest expense from floating rate borrowings as a result of changes in interest rates (for complete year on closing balance):
(in Rs million)
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Increase by 1% | 38.66 | 41.06 | 49.83 |
| Decrease by 1% | (38.66) | (41.06) | (49.83) |
Price Risk
Our exposure to price risk arises from investments held and classified as at fair value through profit and loss. To manage the price risk arising from investments in mutual funds, we diversify our portfolio of assets.
Sensitivity analysis:
Profit or loss is sensitive to higher/ lower prices of instruments classified as FVTPL on the Groups profit for the periods (for complete year on closing balance):
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Increase by 5% | 5.48 | 5.64 | - |
| Decrease by 5% | (548) | (564) | - |
Unusual or infrequent events or transactions
Except as described in this Red Herring Prospectus, there have been no other events or transactions that may be described as ‘unusual or ‘infrequent and may affect our business operations or future financial performance.
Auditor qualifications and emphasis of matter
No qualifications have been included in in the audit report of our Statutory Auditor on the audited consolidated financial statements of our Company for Fiscals 2025 and 2024.
i. For the year ended March 31, 2023:
Basis for Qualified opinion
"With respect to the Parent, according to the information and explanations given to us and based on our audit, the following material weakness has been identified in the Parents internal financial controls with reference to consolidated financial statements as at March 31, 2023:
The Parent did not have an appropriate internal control with reference to consolidated financial statement for property, plant and equipment with regard to (a) identification and recording of assets discarded on account of properties vacated by the Company and termination of lease by customers and (b) determining and recording the discrepancies in individual items of assets between property, plant and equipment register and physical verification report. This could potentially result in material misstatements in the Companys property, plant and equipment, depreciation and other expense account balances.
A ‘material weakness is a deficiency, or a combination of deficiencies, in internal financial control with reference to consolidated financial statements, such that there is a reasonable possibility that a material misstatement of the companys annual or interim financial statements will not be prevented or detected on a timely basis."
Company Response:
" The Company has a policy of conducting physical verification with regards to 1/3rd of the total centres every year which is commensurate with the size and nature of the company. The Company will endeavour a more frequent physical verification to further mitigate the risk of the reconciliation gap with respect to physical and recorded assets. For the properties vacated by the company, the assets discarded are written off during the year and for the client vacated leases, the majority of the assets are used by the new client moving in at that space. "
Known trends or uncertainties
Our business has been affected and we expect will continue to be affected by the trends identified above in " -
Principal factors affecting our financial condition and results of operations" and the uncertainties described in the section titled "Risk Factors" on page 40.
Future relationship between cost and revenue
Other than as described in "Risk Factors" on page 40 and this section, there are no known factors that might affect the future relationship between cost and revenue.
Competitive conditions
We operate in a competitive environment. Please refer to "Risk Factors" and "Industry Overview" on pages 40 and 187, respectively, for further information on our industry and competition.
Seasonality and cyclicality of business
Our business is not subject to seasonality.
Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices
Changes in revenue in the last three Fiscals, are as described in, "-Fiscal 2025 compared to Fiscal 2024" and "Fiscal 2024 compared to Fiscal 2023" on pages 423 and 425, respectively.
Significant dependence on single or few customers
We follow a diversification strategy by typically not leasing more than 30% space in any Centre (for Centres with more than 0.15 million square feet) to a single Client.
The table below outlines the contribution to our revenue from lease rentals of our top Clients for the Fiscals indicated:
| For Fiscals | |||
Client |
2025 | 2024 | 2023 |
| (as a % of revenue from lease rentals) | (as a % of revenue from lease rentals) | (as a % of revenue from lease rentals) | |
| Top Client | 4.41% | 2.71% | 2.48% |
| Top three Clients | 9.14% | 7.01% | 6.66% |
| Top five Clients | 12.52% | 10.28% | 10.51% |
Note: The top Client, the top three Clients and the top five Clients for Fiscals 2025, 2024 and 2023 may refer to different Clients for each of the respective Fiscals.
New products or business segments
Except as disclosed in "Our Business"" on page 247, and products that we announce in the ordinary course of business, we have not announced any new products or business segments.
Significant developments occurring after March 31, 2025
Except as set out in this Red Herring Prospectus, to our knowledge, no circumstances have arisen since the date of the last financial statements as disclosed in this Red Herring Prospectus which materially or adversely affect or are likely to affect, our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next 12 months.
Recent accounting pronouncements
As on the date of this Red Herring Prospectus, there are no recent accounting pronouncements, which, we believe, would have a material effect on our financial condition or results of operations.
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