Flexible workspace firm, The Executive Centre India (ECIL), has filed its Draft Red Herring Prospectus (DRHP) with SEBI, aiming to raise up to INR 2,600 crore through a fresh issue. The company, known for its premium office space solutions across India and Asia, is eyeing a significant expansion push amidst a surge in demand for high-quality commercial real estate in key business districts.
Here’s a deep dive into the issue structure, financials, market strategy, and sector outlook.
🏢 About The Executive Centre India
Founded in 2008, ECIL was among the earliest global players to enter India’s flexible office space market. Now part of the broader TEC Group, with roots going back three decades, the company positions itself firmly in the premium segment of the industry — a niche that emphasises Grade A buildings, central business districts (CBDs), and service-centric client experiences.
As of 31 March 2025, ECIL operated 89 centres across 14 cities in 7 countries, including India, Singapore, the UAE, and parts of Southeast Asia like Vietnam, Indonesia, and the Philippines.
Key differentiator? ECIL caters primarily to MNCs, which comprise over 92% of its license fee income in FY25, and boasts a REVPOW (Revenue Per Occupied Workstation) of INR 60,361 — the highest among its Indian peers, according to CBRE.
The Executive Centre IPO Highlights
- Fresh Issue: Up to INR 2,600 crore
- Use of Proceeds: INR 2,410 crore will go towards internal restructuring, specifically for acquisition payments related to its Abu Dhabi and Singapore operations.
- Remaining funds are earmarked for general corporate purposes.
Prominent promoters include Willow Holdco, TEC Singapore, and individuals George Zage III and Paul Daniel Salnikoff.
The Executive Centre IPO: Financial Performance
Despite consistent top-line growth, ECIL remains loss-making, driven primarily by high depreciation and finance costs — hallmarks of an asset-heavy, rapidly expanding enterprise.
Consolidated Financials:
| FY | Revenue | EBITDA Margin | Net Loss | EPS (INR) |
|---|---|---|---|---|
| 2025 | 1,322.6 | 53.9% | 80.61 | (2.32) |
| 2024 | 1,036.6 | 56.3% | 56.31 | (1.62) |
| 2023 | 763.4 | 61.3% | 7.36 | (0.21) |
Despite the losses, Adjusted EBITDA post-lease payment margin stood at 16.27% in FY25, signalling robust operational efficiency once capital costs are stripped out.
Importantly, the company’s net revenue retention rate of 120.33% (FY25) demonstrates strong recurring revenue from existing clients — a crucial metric in the recurring subscription-based model.
Operational Scale and Real Estate Strategy
With a workstation capacity of over 21,000, ECIL reported 91.6% average occupancy across its operational centres in FY25 — a testament to its “flight-to-quality” approach that leverages premium buildings in strategic CBDs.
Its expansion strategy is data-driven and client-led, with most new centres achieving pre-sale occupancy of 64.33%, and full occupancy within 6 to 12 months. Flagship examples include:
- One BKC, Mumbai – reached full occupancy within months of launch.
- Ocean Financial Centre, Singapore – scaled vertically floor-by-floor based on demand.
The company’s investment in fit-outs reflects its premium positioning:
- INR 4,470 per sq. ft. in Hyderabad (RMZ Nexity Tower)
- INR 13,375 per sq. ft. in Abu Dhabi (Al Maryah Tower)
Geographic Diversification: Pan-Asia Footprint
ECIL benefits from a geographically diverse network across Asia. In FY25:
- India contributed 45.65% of revenue
- Singapore: ~30%
- Middle East (Dubai, Abu Dhabi): ~15%
The company’s real estate exposure is also meticulously curated: 100% of leasable area in India and the Middle East is in Grade A properties, with over 95% of locations in CBDs or key clusters.
Client Profile: Loyal, MNC-Heavy Base
With 1,560 clients and 23,000+ members, ECIL boasts a highly sticky clientele:
- 38.34% of FY25 license fees came from multi-centre clients
- Average client tenure: nearly 49 months
- CSAT score: 90.5%
- NPS: 72.5%
The TEC brand enjoys 96% client satisfaction, according to a Kantar Brand Study.
Industry Tailwinds
The IPO arrives at an opportune moment. According to CBRE, India’s Grade A office stock is projected to grow from 751 million sq. ft. to over 1 billion by 2027, driven by:
- A strong services sector
- Talent-rich metros
- Global occupiers seeking ESG-compliant, premium spaces
The flex workspace segment, previously a fringe player, is now integral — particularly post-pandemic, where corporates seek flexible, scalable, and plug-and-play solutions. This trend isn’t India-specific. The Middle East, Singapore, and Southeast Asia are experiencing similar surges in demand.
Despite robust growth and occupancy, ECIL’s consistent losses cannot be overlooked. Heavy lease liabilities, fit-out capex, and international expansion carry financial risk, particularly in cyclical downturns.
Conclusion
With a compelling blend of pan-Asia presence, premium positioning, and strong client loyalty, The Executive Centre India presents an attractive — albeit niche — play on the structural transformation in commercial real estate.
For investors bullish on the “office-as-a-service” model and confident in India and Asia’s long-term workspace evolution, the Executive Centre India IPO could mark the entry point into a specialised but fast-maturing segment.
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