Innov8 Profit Rebounds To ₹13.8 Cr As Revenue Reaches ₹201.3 Cr

Innov8 Workspaces lifted FY26 net profit to ₹13.8 Cr from ₹1.2 Cr a year earlier while operating revenue crossed ₹201.3 Cr, Inc42 reported from the flexible workspace company’s annual report.

The result marks a sharp turn for a business whose FY25 profit had fallen 97% from ₹37.7 Cr in FY24.

Operating revenue rose 76% from ₹114.5 Cr, while EBITDA net of lease increased 64.6% to ₹49.4 Cr from ₹30 Cr.

The bottom line also benefited from non-operating income: other income reached ₹38.9 Cr, more than 12 times the ₹3.1 Cr recorded in FY25, including a ₹36.7 Cr gain tied to terminated lease contracts.

Total income reached ₹240.2 Cr, up 104.4% from ₹117.5 Cr.

The revenue base has more than tripled over two years, moving from ₹52.7 Cr in FY24 to ₹114.5 Cr in FY25 and then to ₹201.3 Cr in FY26.

Rental income remained the main engine.

It contributed ₹173.6 Cr, or about 86% of operating revenue, after rising 59.3% from ₹108.9 Cr.

Other operational income expanded to ₹27.6 Cr from ₹5.4 Cr, showing a larger role for services around the core workspace business, while food and beverage sales contributed ₹15.5 Lakh.

The annual report linked the growth to portfolio expansion, higher occupancy, improved pricing and a larger managed-workspace operation.

Innov8 uses a landlord-led capital expenditure model in which landlords fund fit-outs, while the company provides the brand, demand generation, design and operations.

That structure reduces the upfront burden of opening new centres and has helped the company add a centre roughly every three weeks over the past 15 months.

The network ended FY26 with 58 operational centres after 16 additions during the year.

Another 14 centres opened in the three months after March 31, 2026, taking the footprint to 72 centres by July.

Innov8 is targeting 101 centres in FY27 and plans to expand to 22 cities, including Kochi, Coimbatore, Kolkata and Jaipur, while continuing to focus on high-density commercial districts in Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune and Chennai.

Expansion after the fiscal year also included a deal for Vatika Business Centres Private Limited.

Innov8 signed a share purchase agreement on June 8, 2026 to buy all of Vatika Business Centres for ₹27 Cr, with the transaction closing on June 18.

The annual report recorded ₹10.2 Cr paid at closing, with 80% of the consideration due then and the remaining 20% scheduled three months later.

The acquisition adds a managed-office platform and enterprise clients on long-term commitments.

Rakesh Kumar, Innov8’s director and CFO, said the company wants customers to move from five seats to five hundred within the same network, and described the Vatika acquisition as completing that ladder.

Costs rose alongside the buildout.

Total expenses increased 86% to ₹226.2 Cr from ₹121.6 Cr, with depreciation and amortisation at ₹96.7 Cr, finance costs at ₹70 Cr, and employee benefit expenses at ₹6.8 Cr.

FY27 will test whether the landlord-led model and Vatika integration can keep revenue growth ahead of that heavier expense base.