Mindspace Business Parks REIT Reports Q3 FY26 NOI Growth of 28.7% YoY; Committed Occupancy Rises to 94.5%
Q3 FY26 Financial Performance
Mindspace Business Parks REIT reported Net Operating Income (NOI) growth of 28.7% year-on-year to ₹671 crore in Q3 FY26, while Revenue from Operations increased 27.2% to ₹816 crore for the quarter ended December 31, 2025. Distribution for the quarter stood at ₹378 crore, translating to a Distribution Per Unit (DPU) of ₹5.83, marking 9.6% growth year-on-year.
The K Raheja Corp-backed REIT's operational momentum reflects sustained demand across India's commercial real estate sector. The NOI growth was supported by higher leasing activity, rental growth and continued portfolio expansion. The REIT achieved a re-leasing spread of 27.4% on 1 million square feet of area re-let during the quarter.
Occupancy and Leasing Traction
Portfolio committed occupancy rose to 94.5%, including the recently acquired Square Financial District asset, indicating strong tenant demand across the REIT's geographies. Mindspace REIT recorded gross leasing of approximately 1.1 million square feet in Q3 FY26.
Rental growth was particularly robust in Madhapur, Hyderabad, where the REIT signed deals at ₹105 per square foot, following a prior quarter transaction at ₹100 per square foot. This reflects sustained mark-to-market rental momentum in India's key office markets.
Portfolio Expansion and Acquisitions
Beyond quarterly operations, Mindspace REIT announced the acquisition of Commerzone Raidurg, a 1.82 million square feet IT park in Hyderabad's Madhapur micro-market, for ₹2,038 crore, expanding its Hyderabad portfolio to around 15 million square feet and boosting income stability.
The entire IT park is fully leased to Qualcomm, a major US semiconductor company. The acquisition will make Hyderabad the largest city in Mindspace REIT's portfolio at 15 million square feet, surpassing its 14.5 million square foot holding in Mumbai. Rents are set to rise 15 percent every three years under the terms of the lease.
The Commerzone Raidurg asset carries a weighted average lease expiry of 12 years, with rentals at ₹69 per square foot per month, indicating significant mark-to-market potential.
Market Context
Net absorption in India's office market rose to 57 million square feet, up 14.6% year-on-year, with Hyderabad, Mumbai, and Pune leading demand on the back of infrastructure growth and corporate reoccupancy. Hyderabad accounts for 17% of India's Global Capability Centers footprint, housing 370+ GCCs and a large tech talent pool—a major advantage for Mindspace's Hyderabad portfolio.
Developer Background
K Raheja Corp was founded in 1956 by Chandru Raheja and a portion of its commercial portfolio was carved into the listed entity Mindspace Business Parks REIT on the Indian bourses in August 2020. K Raheja Corp operates its commercial business under the brands Mindspace and Commerzone with projects in Mumbai, Hyderabad, Pune and Chennai. Beyond commercial real estate, the group has developed over 10 million square feet of high-quality residential area across 30+ projects and is active in hospitality through its Chalet Hotels portfolio.