Awfis Space Solutions , a leading flexible workspace provider in India, has reported strong financial results for the first quarter of fiscal year 2026, demonstrating continued growth and operational efficiency.

Financial Highlights

• Revenue grew by 30% year-on-year to INR 335.00 crores
• EBITDA increased by 60% to INR 127.00 crores
• EBITDA margin expanded by 710 basis points to 37.80%
• Profit After Tax (PAT) rose to INR 10.00 crores, up from INR 3.00 crores in Q1 FY25

Operational Performance

Awfis continued to expand its presence and improve occupancy rates:

• Added 6,065 new operational seats, bringing total capacity to 140,186 seats across 220 centers
• Signed contracts for 15,000 new seats in Q1 FY26
• Exit month occupancy stood at 73%, with centers operational over 12 months achieving 84% occupancy
• Total portfolio, including centers in fit-out phase and under LOI, reached over 165,000 seats across 246 centers

Segment Performance

The company's core segments showed strong growth:

• Coworking and Allied Services revenue grew 49% year-on-year to INR 276.00 crores
• Construction fit-out projects generated INR 58.00 crores in revenue

Future Outlook

Awfis maintains a positive outlook for FY26:

• 18,000 seats already signed, scheduled for occupancy in Q2 and Q3, representing locked-in revenue of INR 463.00 crores
• Guidance for FY26 seat addition remains at approximately 40,000 seats, similar to the previous year
• Focus on expanding in Grade A commercial assets and premium offerings

Management Commentary

Amit Ramani, Chairman and Managing Director of Awfis Space Solutions, commented on the results: "We are pleased to share that we have begun FY '26 on a strong note, delivering a robust financial performance that reflects the strength of our business model and execution capability. Our performance highlights not only the resilience of our platform but also our ability to scale profitably while staying focused on service quality, client experience, and capital efficiency."

Sumit Lakhani, Chief Executive Officer, added: "We expect the Coworking segment growth momentum to remain strong through the remaining FY '26 as well. We've seen strong momentum from first-time GCC entrants, companies like ABC Fitness, Meltwater, amongst others, signing up for multi-market presence along with us, especially in key micro markets in Bangalore and Hyderabad."

Financial Position

Awfis maintains a strong financial position:

• Gross debt stood at INR 7.00 crores
• Debt-to-equity ratio improved to 0.02, down from 0.08 in Q1 FY25
• Net debt-to-equity ratio at -0.18

The company's robust Q1 FY26 performance underscores its strong position in the flexible workspace market, with continued growth in revenue, profitability, and operational metrics. Awfis remains focused on strategic expansion, premium offerings, and diversification of services to meet the evolving needs of its growing client base.

Awfis Space Solutions Limited , India's largest flexible workspace provider, has reported robust financial results for the first quarter of fiscal year 2026, demonstrating strong growth and improved profitability.

Financial Highlights

• Revenue from operations increased by 30% year-over-year to ₹335.00 crore in Q1 FY26, up from ₹258.00 crore in Q1 FY25.
• Operating EBITDA margin expanded significantly to 37.80%, a 710 basis points improvement from 30.70% in the same quarter last year.
• Profit Before Tax (PBT) grew 2.6 times to ₹10.00 crore, with a PBT margin of 3.00%.
• Annualized Return on Capital Employed (ROCE) improved to 67.00%, compared to 62.00% for the full fiscal year 2025.

Operational Performance

Amit Ramani, Chairman and Managing Director of Awfis Space Solutions, highlighted the company's operational achievements:

• 40% year-on-year growth in operational seat capacity, underlining the efficiency of the company's expansion strategy.
• Enterprise segment remains a key growth driver, with strong demand from first-time mid-sized Global Capability Center (GCC) entrants and continued expansion by existing clients.
• The 100+ seat cohort now contributes 59% of the total portfolio, reinforcing the stickiness and scale of enterprise relationships.
• 100% of new centers signed between June 2024 and June 2025 are located in Grade A assets, reflecting the company's focus on catering to premium clientele.
• Tier 2 city presence grew by approximately 25%, demonstrating success in scaling beyond metro hubs.

Network Expansion

Awfis continues to solidify its position as the market leader in India's flexible workspace industry:

• Total centers increased to 232, with 155,000+ seats and 7.80 million sq. ft. of chargeable area.
• Added 47 new centers, 43,452 seats, and approximately 2.20 million sq. ft. area since June 2024, representing a 39% growth in terms of seats.
• Managed Aggregation (MA) portfolio grew significantly, with MA seats increasing by 32% and MA centers by 23%.
• 64% of total seats and 63% of total centers now under the capital-efficient MA model.

Occupancy and Client Base

• Overall blended occupancy stood at 73.00%, with centers over 12 months vintage achieving 84.00% occupancy.
• The company serves over 3,200 active clients, with 41% being multi-center clients.
• 73% of clients have tenures exceeding 24 months, reflecting strong retention rates.

Strategic Initiatives

During the quarter, Awfis took steps to enhance its offerings and operational efficiency:

• The Board of Directors approved the commencement of a new line of business in the office furniture and furnishing industry, with an initial investment of ₹8.00-10.00 crore.
• This vertical integration strategy aims to improve cost optimization, create additional B2B revenue streams, and enhance control over quality and customization for internal fit-out needs.
• The company granted 136,777 Employee Stock Options under its Employee Stock Option Scheme - 2024, aligning employee interests with long-term company growth.

Outlook

Amit Ramani expressed confidence in the company's future, stating, "With a solid foundation, increasing institutional trust, and a clear execution focus, we remain confident in our ability to sustain profitable growth. Our integrated ecosystem — spanning co-working, allied services, and design & build — positions us strongly for long-term leadership in the flexible workspace industry."

As Awfis Space Solutions continues to expand its network and enhance its offerings, the company appears well-positioned to capitalize on the growing demand for flexible workspaces in India's evolving corporate landscape.