Awfis Space Solutions , India's leading flexible workspace provider, has reported mixed financial results, showing strong growth for the first half of fiscal year 2026 (H1 FY26) but a significant profit decline in the September quarter.

H1 FY26 Financial Highlights

Awfis reported impressive financial performance for H1 FY26:

• Revenue from operations reached Rs. 702.00 crores, representing a 28% year-over-year growth.
• Operating EBITDA grew by 44% to Rs. 259.00 crores, with a margin of 36.9%.
• Profit after tax increased by 49% to Rs. 26.00 crores for the half-year period.

Q2 FY26 Performance

For Q2 FY26 specifically:

• Revenue reached Rs. 367.00 crores, showing a 26% year-over-year growth.
• Operating EBITDA was Rs. 132.00 crores with a margin of 36.1%.
• Consolidated profit declined by 59% to Rs. 15.97 crores, compared to Rs. 38.67 crores in the year-ago period. It's important to note that the previous year's profit included an exceptional gain of Rs. 24 crores, creating a high base effect.
• Total income for the quarter grew to Rs. 392.97 crores from Rs. 301.95 crores in the corresponding period last year.

Operational Performance

Awfis continues to strengthen its position in India's flexible workspace market:

• As of September 30, 2025, Awfis operates 247 centers with approximately 170,000 seats across 8.4 million sq ft area in 18 cities.
• The company serves approximately 3,400 active clients.
• Awfis added 35,000 seats year-over-year.
• The company maintains a 74% blended occupancy rate.

Strategic Focus

Awfis is focusing on expanding its premium workspace offerings:

• 21 Gold centers and 5 Elite centers are now operational.
• These premium centers are located in Grade A developments, catering to high-end clients.

Business Model

The recently listed company provides flexible managed office spaces by taking space from property owners and sub-leasing to enterprises.

Future Outlook

Despite the quarterly profit decline, Awfis continues to capitalize on the growing demand for flexible workspaces in India. The company's strategic initiatives, including the expansion of premium offerings and presence in Tier 2 cities, position it well for continued growth in the flexible workspace market.

While the company faces challenges of rapid expansion, Awfis's strong revenue growth and improving half-yearly profitability demonstrate its ability to execute its business strategy effectively in the dynamic Indian real estate market.

Awfis Space Solutions , a co-workspace solutions platform, has seen a significant reduction in stake by QRG Investments and Holdings, a promoter of Havells India. The transaction involved the sale of 24.07 lakh equity shares, representing a 3.37% stake in Awfis.

Transaction Details

Impact on Shareholding

• QRG Investments' stake in Awfis has decreased from 4.11% to 0.75% following this transaction.
• HSBC Mutual Fund acquired 5.21 lakh shares, equivalent to a 1.28% stake, at Rs 585 per share, totaling Rs 53.72 crore.

Market Response

The news of this significant stake sale appears to have impacted Awfis's stock performance:

• Awfis shares declined by 1.87% on the National Stock Exchange (NSE).
• The closing price was recorded at Rs 575.90.

This transaction marks a notable shift in the ownership structure of Awfis Space Solutions, with QRG Investments substantially reducing its position while HSBC Mutual Fund increases its stake. The market's initial reaction, as reflected in the share price decline, suggests that investors are closely watching these ownership changes and their potential implications for the company's future direction.