Innov8’s FY26 Profit Zooms Multifold To ₹13.7 Cr, Revenue Crosses ₹200 Cr Mark

Premium flexible workspace operator Innov8 Workspaces sharply improved its profitability in the fiscal year FY26 while rapidly expanding the network of centres it operates across the country.

Innov8’s net profit surged nearly 11.8X to ₹13.8 Cr in FY26 from ₹1.2 Cr in FY25, as per its annual report. Important to highlight that the startup’s profitability took a 97% hit in FY25 from ₹37.7 Cr in FY24. 

Meanwhile, operating revenue rose 76% to ₹201.3 Cr from ₹114.5 Cr, while EBITDA net of lease increased 64.6% to ₹49.4 Cr from ₹30 Cr. The company had projected its FY26 I-GAAP EBITDA to double to ₹60 Cr back in September 2025. 

The sharp improvement in the bottom line was also aided by a notable uptick in non-operating revenue. Innov8 reported ₹38.9 Cr in other income during FY26, more than 12X the ₹3.1 Cr recorded in the previous year. A substantial portion of this came from a ₹36.7 Cr gain on termination of lease contracts.

Including other income of ₹38.9 Cr, the total income stood at ₹240.2 Cr in FY26, a 104.4% increase from ₹117.5 Cr in the previous year.

Revenue Nearly Doubles In Two Years

Innov8’s growth has accelerated considerably over the past two years. Operating revenue increased from ₹52.7 Cr in FY24 to ₹114.5 Cr in FY25 and further to ₹201.3 Cr in FY26. 

In this, rental income remained the company’s primary source of revenue, contributing ₹173.6 Cr, or around 86% of operating revenue, in FY26. This was up 59.3% from ₹108.9 Cr in FY25.

The company also generated ₹27.6 Cr from other operational income, while revenue from the sale of food and beverages stood at ₹15.5 Lakh. Other operational income rose sharply from ₹5.4 Cr in FY25, indicating that ancillary services are becoming a larger part of the company’s revenue mix.

The annual report says the growth was driven by expansion of the portfolio, higher occupancy, improved pricing and the scaling of its managed workspace business. Innov8 follows a landlord-led capex model in which landlords fund the fit-outs while Innov8 provides the brand, demand generation, design and operations.

This model allows the company to expand without taking on the entire fit-out burden for new centres. Innov8 said this asset-light structure has allowed it to open a new centre roughly every three weeks over the past 15 months.

Innov8 ended FY26 with 58 operational centres, adding 16 centres during the year. The expansion continued after the end of the fiscal year. The company added another 14 centres in the three months following March 31, 2026, taking its network to 72 centres as of July 2026. It has set a target of reaching 101 centres during FY27.

Importantly, the company plans to expand to 22 cities during FY27, with Kochi, Coimbatore, Kolkata and Jaipur among the cities identified for expansion. It continues to focus on business districts and commercial clusters in cities including Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune and Chennai. Its stated strategy is to prioritise high-density commercial locations rather than pursue suburban volume.

Vatika Acquisition Adds Enterprise Business

One of the biggest developments after the close of FY26 was Innov8’s acquisition of Vatika Business Centres Private Limited.

The company entered into a share purchase agreement on June 8, 2026, to acquire the entire share capital of Vatika Business Centres for ₹27 Cr. The transaction closed on June 18, with 80% of the consideration payable at closing and the remaining 20% due three months later. Innov8 paid ₹10.2 Cr at closing, according to the annual report.

The acquisition gives Innov8 an established managed-office platform and is expected to strengthen its enterprise workspace business. The company said Vatika brings marquee enterprise clients on long-term commitments and provides further room for expansion in the managed-office segment.

“Our ambition has always been to build premium workspaces that combine thoughtful design, vibrant community, enterprise-grade infrastructure and fully managed services, while giving businesses the flexibility to adapt as their needs evolve… A customer can begin with five seats and grow to five hundred without ever leaving the Innov8 network. Our expansion into managed workspaces, including through the acquisition of Vatika Business Centres Private Limited, completes that ladder,” said Rakesh Kumar, director and CFO, Innov8.

Breaking Down Innov8’s Expenses

The company’s total expenses increased to ₹226.2 Cr in FY26, an uptick of 86% from ₹121.6 Cr in the previous fiscal year. Here is a closer look at the areas where Innov8 spent the most:

• Depreciation And Amortisation Expense: Constituting 42.7% of the overall expenditure, spending under this head rose 2.3X to ₹96.7 Cr in the year under review, from ₹42.4 Cr in FY25.
• Finance Costs: Expenses towards interest on lease liabilities, interest on borrowing and bank charges came up to ₹70 Cr in FY26, marking 127.8% increase from ₹30.7 Cr in the previous fiscal. Finance costs contributed to 30.9% of the total expenses.
• Employee Benefit Expenses: Employee costs, including salaries, wages, bonus, gratuity expense and contribution to PF and other funds rose 75.3% to ₹6.8 Cr in the reported year, from ₹3.9 Cr in FY25.

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