Space for Rent, Shares for Sale: Hall Rental Firm Goes Public

​India Exposition Mart Limited (IEML) operates a large exhibition and convention facility in Greater Noida, built across 57 acres. Its core asset comprises 17 exhibition halls, around 88,509 sq. m. of indoor space and another 78,511 sq. m. of outdoor space. The company monetizes this single physical complex through multiple complementary businesses, making it more than a conventional venue-rental company.

Six revenue engines

IEML generates revenue through third-party events, hospitality, its own exhibitions, managed events, maintenance services and its B2B digital platform, ExpoBazaar. Third-party events remain the backbone, contributing 56.44% of FY26 revenue. The company leases exhibition space to organizers and additionally earns from services such as security, housekeeping, food and beverages, medical facilities and IT support. Its recurring event calendar also provides a degree of revenue visibility.

The model is attractive because IEML can extract additional value from the same underlying asset. Its 136-room ExpoInn hotel, leased and managed hospitality properties, cafés, permanent showrooms and ExpoBazaar platform provide revenue even when exhibitions are not taking place.

Revenue growth is strong, but event volumes are falling

Revenue increased from ₹194.73 crore in FY24 to ₹290.63 crore in FY26, implying a strong growth trajectory. However, the number of events declined from 61 to 44 over the same period.

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The divergence between revenue and event count suggests that IEML is generating more revenue per event rather than simply hosting more events. That can be positive if larger exhibitions are replacing smaller ones, but it also highlights a structural limitation: the company has a finite number of halls and operating days. Future growth therefore has to come from higher revenue per event or from businesses beyond its core venue.

FY26 exposes the cost of expansion

The biggest concern is profitability. Revenue grew 20.52% in FY26, but PAT declined 19.4%, while EBITDA margin fell from 31.98% to 22.62%. The primary reason was a sharp increase in other expenses, particularly exhibition-related costs.

Fairs and exhibition expenses rose 66.93% to ₹102.03 crore. Setup costs increased significantly because FY26 included three IHGF editions compared with one in FY25. This partly reflects a calendar shift rather than a permanent increase in underlying activity.

A second issue was licence fees. These jumped from ₹0.16 crore to ₹16.35 crore as IEML held five events at external venues versus one previously. This is strategically important: when an event is held at IEML's own venue, the company benefits from owning the infrastructure; when it operates elsewhere, it must pay another venue owner.

Balance sheet and cash flow remain strengths

Despite the margin pressure, the balance sheet is relatively conservative. Borrowings declined from ₹23.27 crore in FY24 to just ₹0.60 crore in FY26. Meanwhile, capital work-in-progress rose sharply to ₹56.27 crore, indicating investment in additional capacity. Trade receivables also increased 55% to ₹47.22 crore, faster than revenue growth.

Cash generation provides another positive signal. Operating cash flow increased from ₹38.56 crore to ₹52.84 crore in FY26 even as reported profit declined. However, capex rose dramatically to ₹62.28 crore, meaning investment requirements are beginning to absorb a significant portion of internally generated cash.

Where does the IPO money goes?

The fresh issue is primarily intended to upgrade the existing facility, including air-handling units, chillers, cooling towers, lifts and escalators, while also renovating Halls 4 and 6 and developing Hall 18. A major portion of the expenditure is scheduled for FY29.

Beyond the existing venue, management is pursuing an asset-light expansion strategy. This includes a proposed 35% stake in a Mohali convention-center SPV, expansion of its own event IPs, scaling ExpoBazaar and adding hospitality properties. However, several of these initiatives remain early-stage and some hotel concepts currently exist only as trademarks.

Investment takeaway

IEML offers exposure to India's expanding MICE ecosystem, but the investment case is more nuanced than simply betting on exhibition-industry growth. The company has a strong physical asset, multiple monetization channels, low leverage and healthy operating cash generation. At the same time, its expansion strategy is gradually moving away from its highest-margin advantage owning the venue.

The central question for investors is therefore not whether IEML can grow revenue, it clearly can but whether it can expand beyond its physical venue without permanently sacrificing the attractive economics of its core business. FY26 provides the first warning sign that growth may increasingly require accepting lower margins in exchange for a larger addressable market.