KOCHI: At a time when many government-backed ventures are struggling to stay commercially viable, Kerala’s Infoparks has posted a robust 57.72 per cent profit growth for FY25, defying the broader trend.
Infoparks, the government-promoted tech infrastructure hub in Kerala, has pulled off this feat on the back of improved operational performance and minimal debt. The society posted a net profit of Rs20.74 crore in FY25, up from Rs13.15 crore in the previous year.
Operating income also saw a sharp 45.20 per cent growth, rising from Rs65.20 crore to Rs94.67 crore. The profit margin for FY25 stood at an impressive 22 per cent.
Despite the strong financials, concerns linger over the demand outlook for the IT industry, which could weigh on Infoparks’ future prospects. The organisation currently has a moderate occupancy rate of 72 per cent, leaving room for vulnerability if leasing momentum slows further.
With the global tech landscape facing macroeconomic headwinds, any downturn could impact cash flows, especially since Infoparks was conceived primarily to support IT development in Kerala.
Infoparks was set up as an autonomous society by the Government of Kerala in 2004 to promote high-tech industries in Kochi and surrounding areas. It currently operates four centres – Phase I and Phase II in Kochi (hub locations), and additional centres in Cherthala and Koratty (spoke locations).
Bank loans at Rs200cr
The society enjoys a sound financial risk profile, supported by minimal borrowings. Total bank loan facilities stand at Rs200 crore, rated ‘A’ by CRISIL. Its low gearing – under 0.1 time – has translated into low interest costs and a healthy interest coverage ratio. These metrics suggest continued financial stability over the medium term.
Infoparks also maintains strong liquidity, with cash reserves of around Rs174 crore as of March 31, 2025. Continued support from the state government is expected, particularly if new projects are launched.
However, progress in leasing out properties, particularly at Phase II Kochi, Cherthala, and Koratty, remains a key area to watch. The society’s fortunes are closely tied to the health of the global IT sector.
If the current industry slowdown persists, occupancy could decline further, affecting revenue visibility and dampening the long-term outlook.
