Awfis Space Solutions has received a Show Cause Notice from the Commercial Tax Officer, Nungabakkam, Central-III, Chennai Central, Tamil Nadu, regarding discrepancies in its GST returns for FY 2022-23. The notice, dated May 23, 2026, and received on May 25, 2026, raises a demand of approximately INR 7.10 Crores, inclusive of interest and penalty. The company disclosed this information to the stock exchanges on June 02, 2026, under Regulation 30 of the SEBI LODR Regulations.

The company stated that it is currently examining the notice and plans to submit a reply within the prescribed time period. During its review, Awfis identified an apparent discrepancy, including a material calculation error in the demand amount specified in the notice. Consequently, the company is engaging with its consultant to seek clarification from the concerned GST authority to ascertain the correct demand amount.

Awfis emphasized that it does not envisage any relevant impact on its financials, operations, or other activities as a result of this notice. The disclosure was made by Shweta Gupta, Company Secretary and Compliance Officer, on behalf of the company.

The company attributed a delay in making the disclosure to the time required for a preliminary review of the notice to evaluate facts, implications, and materiality. Additional time was necessary to verify the discrepancy in the demand amount and ensure accurate information was provided to stakeholders.

The table below outlines the key details of the litigation and the financial implications as per the filing:

Awfis Space Solutions has reported its audited consolidated financial results for the financial year ended March 31, 2026, recording a 24% year-on-year increase in revenue from operations to INR1,493 crores. The company posted a profit after tax (PAT) before exceptional items of INR71 crores for the full year, reflecting a 66% growth compared to the previous year. For the quarter ended March 31, 2026, the net profit stood at INR23 crores, more than doubling from INR11 crores in the corresponding period of the previous year. The strong performance was driven by robust demand from enterprise and Global Capability Centers (GCC) clients. The board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, during a meeting held on May 25, 2026.

FY26 Financial Performance

The annual results show significant expansion across key metrics. Revenue from operations for the year increased to INR1,493 crores from INR1,207 crores in FY25. Operating EBITDA grew to INR550 crores from INR401 crores in the prior year, with margins expanding by approximately 350 basis points to 36.8%. Profit before tax (PBT) for the year stood at INR722.51 crore. The company maintained a net cash position with cash and cash equivalents of INR564.22 crore as of March 31, 2026.

Q4 Performance Highlights

The fourth quarter marked the highest-ever quarterly revenue, EBITDA, and profitability in the company's history. Revenue from operations grew to INR410 crores from INR340 crores in the same period last year. EBITDA for the quarter rose to INR152 crores from INR115 crores in the previous year, with the EBITDA margin expanding to 37% from 34.01% year-on-year. PBT for the quarter stood at INR235.02 crore.

Operational Highlights

Awfis Space Solutions expanded its network significantly during the year, adding 41 new centres and 30,000 operational seats on a gross basis. Its signed network now spans 266 centres with approximately 184,000 seats across 18 cities. The company serves a diversified client base of around 3,500 customers, with enterprise and MNC clientele accounting for 64% of the share. GCC clientele expanded to 100+ clients, contributing approximately 23% of rental revenue. Multi-centre clients now account for 48% of the client base, indicating strong pan-India mandates.

FY27 Outlook and Growth Guidance

Looking ahead, Awfis Space Solutions aims for 25-27% revenue growth in FY27 while keeping current profit margins stable. The company also targets boosting occupancy from over 76% to approximately 84% in FY27. On expansion, the company expects to add 20,000 to 25,000 new seats, adding approximately 1.25 million square feet, with capital expenditure anticipated to match FY26 levels of around INR208 crores. Coworking services are expected to grow by 25-27%, while the Awfis Transform segment is projected to grow by 22-25%.

Corporate Announcements

The board also approved availing of term loan facilities of INR750 million and overdraft facilities of INR50 million from IDFC First Bank Limited. These facilities are intended for reimbursement of capital expenditure and fresh capital expenditure requirements, as well as business operating expenditure needs. The agreements are yet to be executed. The statutory auditors, Walker Chandiok & Co LLP, issued an unmodified opinion on the audited financial results.