Innov8 Workspaces India Annual Reports, Balance Sheet and Financials

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

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant and Equipment	202.51	27.72
Capital work-in-progress	311.50	11.10
Intangible Assets	274.63	-
Right of use assets	3,674.21	1,309.38
Other financial assets	309.98	138.40
Non-current tax Assets (net)	72.24	70.97
Deferred tax assets (net)	314.05	270.83
Other non-current assets	116.71	37.78
Current Assets
Investments	270.93	-
Trade receivables	241.77	48.60
Cash and cash equivalents	15.03	13.21
Other financial assets	365.83	150.06
Other current assets	273.83	247.02
Total Assets	6,443.22	2,325.07
Equity
Equity Share Capital	254.34	10.00
Security premium	1,244.60
Retained earnings	(897.74)	(908.16)
Other reserves	13.98	13.52
Non-Current Liabilities
Borrowing	228.98	-
Lease Liabilities	3,701.94	1,237.72
Other Financial Liabilities	170.78	67.39
Provisions	1.61	0.71
Other non-current liabilities	20.09	5.71
Current Liabilities
Borrowing	144.91	-
Lease liabilities	537.53	234.23
Trade Payables
Total outstanding dues of micro & small enterprises	13.73	0.13
Total outstanding dues to Creditors Other than above	674.94	1,062.56
Other Financial Liabilities	270.20	567.47
Provisions	1.08	0.38
Other Current Liabilities	62.25	33.41
Total Liabilities and Equity	6,443.22	2,325.07

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

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	1,144.55	526.82
Other Income	30.64	25.37
Total Income	1,175.19	552.19
Expenses
Operating expenses	337.60	161.03
Employee benefit Expense	38.91	23.01
Depreciation and Amortization expenses	424.10	203.92
Finance Costs	307.22	127.62
Other expenses	108.32	80.62
Total Expenses	1,216.15	596.20
(Loss) before exceptional items and tax	(40.96)	(44.01)
Exceptional items	(9.38)	(150.10)
Profit/(Loss) before Tax	(31.58)	106.09
Deferred tax	(43.22)	(270.83)
Profit/(Loss) After Tax for the Year	11.64	376.92
Other comprehensive loss not to be reclassified to profit and loss in subsequent periods
Remeasurement of loss on defined benefit plans	(1.22)	(0.49)
Total other comprehensive loss for the year, net of tax	(1.22)	(0.49)
Total comprehensive income for the year, net of tax	10.42	376.43
Earnings per Equity Share
Basic	0.06	2.79
Diluted	0.06	2.79

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

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit / (Loss) before tax	(31.58)	106.09
Adjustment for:
Depreciation and Amortization Expenses	424.10	203.92
Provision for expected credit loss	2.70	13.84
Provision for doubtful advances	3.51	2.83
Profit on sale of current investments	(7.84)	(0.44)
Advances written off	0.89	0.28
Interest income on security deposits	(6.68)	(3.06)
(Gain) on lease modifications	(9.22)	-
Share based payments expenses	0.46	0.09
Liabilities no longer required back	-	(21.14)
Interest expenses on security deposits received and due on micro and small enterprises	11.56	127.62
FV gain on financial instruments at FVTPL	(0.73)	-
Interest on lease liabilities	256.95	-
Interest on loans from financial institution	38.70	-
Assets written off (net)	0.04	-
Exceptional item	(9.38)	(152.21)
Movement in Working Capital
(Decrease) in trade payable	(508.84)	(10.11)
(Decrease)/ increase in other non-financial liabilities	-	(2.58)
(Decrease)/ increase in other financial liabilities	(411.71)	134.52
Increase in other liabilities	43.22	-
Increase in provision	1.60	0.48
(Increase) in other financial assets	(229.73)	(66.42)
Decrease in other non-financial assets	-	(52.92)
(Increase) in trade receivables	(159.88)	(24 13)
(Increase) in other assets	(57.12)	-
Cash generated from operations	(648.98)	256.66
Income tax paid (net of refund)	(1.26)	(51.67)
Net Cash Used in Operating Activates	(650.24)	204.99
Cash Flow from Investing Activities
Payment for Purchase of Property, plant and equipment including capital work in progress	(247.19)	(17.20)
Purchase of net assets  via business  combination	(110.00)	-
Proceeds from sale of investments	1,450.71	-
Purchase of investments	(1,713.07)	-
Net Cash Used in Investing Activities	(619.55)	(17.20)
Cash Flow from Financing Activities
Proceed from issue of share capital	1,510.00	-
Share issue expenses	(21.06)	-
Interest expense	(11,56)	-
Proceeds from borrowings	413,78	-
Repayment of borrowings	(39 89)	-
Interest on borrowings	(38 70)	-
Payment of interest portion of lease liabilities	(256 95)	( 124 90)
Payment of principal portion of lease liabilities	(284 01)	(78.55)
Net Cash Used in Financing Activities	1,271.61	(203.45)
Net (Decrease)/Increase in cash & Cash Equivalents	1.82	(15.66)
Cash & Cash equivalents at the beginning of the Year	13.21	28.87
Cash & Cash equivalents at the end of the Period	15.03	13.21

 

Summary of the Cash Flow Statement for the years 2025 and 2024:

 

Cash Flow from Operating Activities

During FY 2024–25, the company reported a net loss before tax of ₹31.58 million, compared to a profit of ₹106.09 million in the previous year, indicating pressure on operating performance. However, non-cash expenses such as depreciation and amortisation of ₹424.10 million, interest on lease liabilities (₹256.95 million), and interest on loans (₹38.70 million) were added back. Despite these adjustments, the company faced a significant outflow due to adverse working capital movements, mainly because of a decrease in trade payables (₹508.84 million) and a reduction in other financial liabilities (₹411.71 million), along with an increase in trade receivables (₹159.88 million). As a result, cash generated from operations turned negative at ₹648.98 million, and after tax payments, the company recorded a net cash outflow from operating activities of ₹650.24 million, compared to a positive inflow in FY 2023–24. This indicates operational stress and weak cash conversion during the year.

 

Cash Flow from Investing Activities

The investing activities resulted in a net cash outflow of ₹619.55 million during FY 2024–25. The company invested ₹247.19 million in property, plant and equipment and ₹110.00 million towards acquisition of net assets through a business combination, reflecting expansion or strategic investment. Additionally, there was significant churn in investments, with purchase of investments amounting to ₹1,713.07 million, partly offset by proceeds from sale of investments of ₹1,450.71 million. Overall, the investing cash flows show that the company actively deployed funds for asset creation and portfolio realignment, unlike the previous year where investing outflows were minimal.

 

Cash Flow from Financing Activities

Financing activities provided a strong net cash inflow of ₹1,271.61 million in FY 2024–25, mainly driven by proceeds from issue of share capital amounting to ₹1,510.00 million, indicating equity fund raising. This inflow was partly offset by share issue expenses of ₹21.06 million, repayment of borrowings, and significant payments towards lease liabilities, including ₹256.95 million for interest and ₹284.01 million for principal repayment. The company also raised ₹413.78 million through borrowings, while repaying a portion during the year. Overall, financing activities supported liquidity and helped offset negative operating cash flows.

 

Net Change in Cash and Cash Equivalents

Due to strong financing inflows, the company reported a net increase in cash and cash equivalents of ₹1.82 million during the year, despite negative operating and investing cash flows. Cash and cash equivalents increased from ₹13.21 million at the beginning of the year to ₹15.03 million at the end of FY 2024–25. This indicates that equity infusion played a key role in maintaining liquidity during the year.

Financial ratios of Innov8 Workspaces India Limited 

Particulars	31-03-2025	31-03-2024
Current ratio	0.68	0.24
Debt equity ratio	6.71	(1.66)
Debt service coverage ratio	1.20	(3.57)
Trade receivables turnover ratio	7.88	12.12
Trade payables turnover ratio	0.51	0.28
Net capital turnover ratio	(1.16)	(0.36)
Net profit ratio	0.07	0.72
Return on capital employed	0.05	0.40
Return on Investments	0.03	-

Summary of the Financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio improved to 0.68 in FY 2024–25 from 0.24 in FY 2023–24, indicating a better short-term liquidity position. Although the ratio is still below the ideal level of 1, the improvement shows that the company has strengthened its current assets in relation to current liabilities and is gradually improving its ability to meet short-term obligations.

 

Debt–Equity Ratio

The debt–equity ratio increased sharply to 6.71 in FY 2024–25 from (1.66) in the previous year. The negative ratio in FY 2023–24 was due to negative net worth, while the high ratio in the current year indicates heavy dependence on borrowed funds. This reflects a highly leveraged capital structure, increasing financial risk for the company.

 

Debt Service Coverage Ratio

The debt service coverage ratio improved to 1.20 in FY 2024–25 from (3.57) in FY 2023–24. A ratio above 1 indicates that the company is now just able to meet its debt servicing obligations from operating income. However, the coverage remains thin, suggesting limited margin of safety against any decline in earnings.

 

Trade Receivables Turnover Ratio

The trade receivables turnover ratio declined to 7.88 times from 12.12 times, indicating slower collection of receivables during FY 2024–25. This suggests that customers are taking longer time to pay, which could put pressure on the company’s working capital and cash flows.

 

Trade Payables Turnover Ratio

The trade payables turnover ratio increased to 0.51 times from 0.28 times, showing that the company is paying its suppliers slightly faster than the previous year. However, the ratio remains low, indicating that the company continues to rely on extended credit from suppliers to manage its working capital.

 

Net Capital Turnover Ratio

The net capital turnover ratio remained negative at (1.16) in FY 2024–25, though it deteriorated further from (0.36) in FY 2023–24. A negative ratio indicates negative working capital, suggesting that current liabilities exceed current assets and that the company is facing working capital stress.

 

Net Profit Ratio

The net profit ratio declined sharply to 0.07% from 0.72%, indicating a significant reduction in profitability. The marginal profit margin reflects high operating costs and financial expenses, leaving very little surplus from revenue.

 

Return on Capital Employed

ROCE dropped to 0.05 in FY 2024–25 from 0.40 in the previous year, indicating a substantial decline in efficiency in the use of capital. This shows that the company is generating lower returns from the capital invested in the business, which is a concern for long-term sustainability.

 

Return on Investments

The return on investments stood at 0.03 in FY 2024–25 compared to a negative return in FY 2023–24. This improvement indicates that investments started yielding positive but very low returns, suggesting cautious or early-stage investment performance.