Innov8 Workspaces India Annual Reports, Balance Sheet and Financials

Innov8 Workspaces India Limited Standalone Balance Sheet (Rs in Crores)

Innov8 Workspaces India Limited Standalone Profit & Loss Statement (Rs in Crores)

Innov8 Workspaces India Limited Standalone Cash Flow Statement (Rs in Crores)

Summary of Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

The company witnessed a significant improvement in cash flow from operating activities during 2025–26. Net cash flow from operating activities increased from negative ₹65.02 crore in 2024–25 to positive ₹117.19 crore in 2025–26. This turnaround indicates a substantial improvement in the company’s ability to generate cash from its core business operations. Profit before tax also improved from a loss of ₹3.16 crore to a profit of ₹13.98 crore, while operating profit before working capital changes increased from ₹67.35 crore to ₹143.28 crore. Although there were cash outflows due to a reduction in trade payables and an increase in trade receivables, the overall operating cash generation remained strongly positive. This reflects a considerable improvement in the company’s operational cash position.

Cash Flow from Investing Activities

Investing activities showed a positive change during 2025–26. The company generated a net cash inflow of ₹10.60 crore, compared with a net cash outflow of ₹61.95 crore in the previous year. This improvement was mainly due to a substantial reduction in the purchase of investments, which fell from ₹171.31 crore to ₹48.90 crore. At the same time, the company received ₹76.30 crore from the sale of investments. Capital expenditure on property, plant and equipment also declined from ₹24.72 crore to ₹16.80 crore. Overall, the investing cash flow indicates a more cautious approach towards investments and capital expenditure, which helped the company preserve and generate cash during the year.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹121.21 crore in 2025–26, compared with a net cash inflow of ₹127.16 crore in 2024–25. The major reason for this change was that the company had received ₹151 crore through issue of share capital in the previous year, whereas there was no such inflow in 2025–26. During the current year, the company received only ₹5.92 crore from borrowings, while repaying ₹11.14 crore of borrowings. Further, substantial cash was used for interest and lease liabilities, including ₹60.06 crore towards interest on lease liabilities and ₹47.57 crore towards the principal portion of lease liabilities. Thus, the negative financing cash flow indicates that the company used a significant portion of its internally generated funds to meet debt and lease-related obligations.

Net Change in Cash and Cash Equivalents

Despite the large financing cash outflow, the company recorded a net increase of ₹6.59 crore in cash and cash equivalents during 2025–26, compared with an increase of only ₹0.18 crore in 2024–25. This was mainly supported by the strong operating cash inflow of ₹117.19 crore and positive investing cash flow of ₹10.60 crore. Consequently, cash and cash equivalents increased from ₹1.50 crore at the beginning of the year to ₹8.08 crore at the end of 2025–26. Overall, the increase in closing cash indicates an improvement in liquidity; however, considering the company’s substantial lease payments and financial obligations, maintaining strong operating cash flows will remain important for its financial stability.

Financial ratios of Innov8 Workspaces India Limited

Summary of Financial Ratios for the years 2026 and 2025:

Current Ratio
The current ratio declined from 0.68 in 2024–25 to 0.57 in 2025–26. This indicates a deterioration in the company’s short-term liquidity position. A ratio below 1 suggests that current liabilities are higher than current assets, meaning the company may face some pressure in meeting its short-term obligations. The decline further indicates that the company’s working capital position became relatively weaker during 2025–26.

Debt-Equity Ratio
The debt-equity ratio decreased from 6.71 in 2024–25 to 6.04 in 2025–26. Although the ratio improved slightly, it remains quite high, indicating significant reliance on borrowed funds compared with shareholders’ funds. The reduction suggests a marginal improvement in the company’s capital structure and leverage position. However, the high ratio continues to indicate relatively high financial risk and greater dependence on debt financing.

Debt Service Coverage Ratio
The debt service coverage ratio improved marginally from 1.20 to 1.22. This indicates a slight improvement in the company’s ability to generate sufficient operating income to meet its debt servicing obligations, including interest and principal repayments. A ratio above 1 indicates that the company is generating enough earnings to cover its debt obligations, although the relatively low level suggests that the margin of safety remains limited.

Trade Receivable Turnover Ratio
The trade receivable turnover ratio declined from 7.88 in 2024–25 to 7.07 in 2025–26. This indicates that the company’s efficiency in collecting amounts due from customers weakened during the year. The lower ratio suggests that receivables remained outstanding for a relatively longer period, which could affect cash flows and working capital management. The company may therefore need to strengthen its credit and collection policies.

Trade Payable Turnover Ratio
The trade payable turnover ratio increased significantly from 0.51 in 2024–25 to 1.17 in 2025–26. This indicates that the company is settling its trade payables at a faster rate compared with the previous year. While faster payment may improve relationships with suppliers and demonstrate better payment discipline, it can also result in greater use of available cash. The substantial increase should therefore be viewed in conjunction with the company’s weak current ratio.

Net Capital Turnover Ratio
The net capital turnover ratio improved from -1.16 to -2.84, but it remained negative and became more negative during 2025–26. A negative ratio generally indicates that the company has negative working capital, with current liabilities exceeding current assets. The more negative ratio suggests a further weakening of the net working capital position. This highlights the need for careful working capital and liquidity management.

Net Profit Ratio
The net profit ratio remained unchanged at 0.07 (7%) in both years. This indicates that the company maintained broadly the same level of net profitability relative to its revenue despite changes in its financial and operating position. The stability suggests that there was no significant change in the company’s overall profit margin during the period. However, the relatively low margin means that controlling operating and financing costs remains important.

Return on Capital Employed
ROCE increased substantially from 0.05 (5%) in 2024–25 to 0.16 (16%) in 2025–26. This represents a significant improvement in the efficiency with which the company utilised its capital to generate operating profits. The increase indicates better utilisation of capital employed and stronger operating performance during 2025–26. Among the ratios presented, ROCE shows one of the most notable improvements in the company’s financial performance.

Return on Investment
The return on investment declined from 0.03 (3%) to 0.02 (2%). This indicates that the returns generated from investments decreased during 2025–26. The fall suggests that the company’s investment resources were generating slightly lower returns compared with the previous year. Management may need to review the productivity and profitability of its investments to improve returns.