Awfis Space Solutions , India's largest workplace solutions provider, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating resilient growth and strategic expansion in the premium workspace segment.

Financial Highlights

• Revenue grew by 26% year-on-year to INR 367.00 crores
• EBITDA increased by 32% to INR 132.00 crores
• EBITDA margin expanded by 180 basis points compared to the same period last year
• Co-working and allied services segment rose 36% year-on-year to INR 297.00 crores, contributing about 80% of total revenue

Operational Performance

Awfis continued to strengthen its market position with significant operational achievements:

• Added 14,000 new seats during Q2, bringing total operational capacity to 147,000 seats
• Expanded to 247 centers across 18 cities, covering 8.4 million square feet
• Premium workspace portfolio grew to 26 centers, including 21 Gold and 5 Elite centers
• Achieved 74% exit month occupancy, with centers operational for over 12 months reaching 84% occupancy

Strategic Focus on Premium Segment

The company is strategically moving up the value chain by focusing on Grade A and Grade A+ assets, driven by rising demand from Global Capability Centers (GCCs) and large enterprises seeking high-quality, tech-enabled workspaces. This shift is expected to deliver higher margins at the center level compared to managed aggregation structures.

Client Base and Retention

Awfis demonstrated strong client retention and diversification:

• Over 3,400 active clients as of September 30, 2025
• 61% of occupier seats taken by large corporates and MNCs
• 44% of clients operate across multiple centers within the Awfis network
• Average client tenure of 36 months with a 23-month average lock-in period

Market Outlook

The Indian office market continues to show strong momentum, with cumulative gross leasing volumes of approximately 64 million square feet year-to-date FY25. GCC transactions remain a key growth driver, contributing 32% of quarterly gross leasing.

Future Prospects

Awfis remains optimistic about future growth, citing several factors:

• Increasing demand for flexible, high-quality workspaces
• Strong traction from GCCs and enterprise clients
• Expansion into Tier 2 cities, with seat capacity growing by 28% year-on-year
• Continued focus on both flex and enterprise segments

As Awfis continues to expand its premium offerings and maintain its asset-light strategy, the company is well-positioned to capitalize on the growing demand for flexible workspace solutions in India's dynamic commercial real estate market.

Management Commentary

Sumit Lakhani, CEO of Awfis Space Solutions, commented on the results: "We are excited about the growth potential in both our flex and enterprise segments. Our strategy of catering to a diverse range of clients, from small cohorts to large corporates, has given us a competitive advantage in the market."

Amit Ramani, Chairman and Managing Director, added: "Our ability to scale consistently and profitably in a rapidly evolving commercial real estate environment underscores the strength of our business model and the resilience of our team."

As Awfis continues to innovate and expand its offerings, it remains at the forefront of India's flexible workspace revolution, setting new benchmarks for quality, technology integration, and client satisfaction in the industry.

Awfis Space Solutions Limited , India's leading flexible workspace provider, has announced robust financial results for the first half of fiscal year 2026, along with strategic initiatives to enhance its market position and operational efficiency. The company has also reported near-complete utilization of its IPO proceeds.

IPO Proceeds Utilization

According to the monitoring agency report for the quarter ended September 30, 2025:

• Awfis has utilized Rs. 126.45 crore out of its Rs. 128 crore IPO proceeds
• Deployment of funds:
  • Rs. 42.03 crore for funding capital expenditure towards establishment of new centers
  • Rs. 54.37 crore for working capital requirements
  • Rs. 20.63 crore for general corporate purposes
  • Rs. 9.38 crore for issue-related expenses
• The monitoring agency, CARE Ratings Limited, reported no deviations from the stated objectives
• Rs. 1.59 crore remains in the public issue account for pending issue-related expenses
• Rs. 7.35 crore of unutilized proceeds are kept in the public issue account

The company's IPO was conducted from May 22-27, 2024, in the flexible workspace solutions sector.

Financial Highlights

For the six months ended September 30, 2025, Awfis reported:

• Consolidated revenue from operations of ₹7,015.64 crore, a 27.5% increase year-over-year
• Operating EBITDA of ₹2,590.00 crore, growing 44% compared to H1 FY25
• Profit After Tax (PAT) of ₹259.50 crore, up 49% from the previous year

The company's performance was driven by strong growth across its business segments:

Operational Achievements

Awfis continues to expand its footprint and enhance its offerings:

• Total portfolio of 247 centers and approximately 170,000 seats across 18 cities
• Added 14,000 seats in H1 FY26, contributing to a year-over-year growth of 35,000 seats
• 100% of new supply is in Grade A assets, with 70% in Grade A+ developments
• Operates 26 premium workspace centers (21 Gold and 5 Elite)
• Secured approximately 5,000 seats from 9+ large Corporates/MNCs
• Over 10 Global Capability Centers (GCCs) signed across the 5 Elite Centres

Strategic Initiatives

The Board of Directors has authorized, in principle, the sale of the company's Design and Build business to a wholly-owned subsidiary. This move aims to:

1. Enable focused growth and partnerships in the Design and Build segment
2. Present standalone financials for clearer performance visibility
3. Accelerate sustainable, diversified growth for the Group

Additionally, Awfis is seeking an enhancement of ₹500.00 crore to its existing Term Loan facility from ICICI Bank Limited. This will support:

• Financing capital expenditures for existing centers
• Establishing new centers
• Reimbursing eligible capital expenditures already incurred

Management Commentary

Amit Ramani, Chairman and Managing Director of Awfis Space Solutions Limited, commented on the results: "At Awfis, we have built India's largest flexible workspace portfolio, comprising 247 centers and ~170k seats across 18 cities, serving a diverse base of around 3.4k clients. This scale reflects the strength of our execution capabilities and the deep operational expertise we've developed over the past decade."

Ramani added, "We are now strategically leveraging our leadership in the value segment to move up the value curve, focusing on Grade A buildings and premium locations to cater to GCCs, large enterprises, and other premium clients."

Future Outlook

With a solid foundation, growing institutional trust, and a sharper focus on premium execution, Awfis is well-positioned to deliver sustained, profitable growth. The company's integrated ecosystem, encompassing its core co-working business, allied services, and the specialized design and build expertise, creates a unique competitive advantage, enabling it to capture opportunities across both established and emerging markets.

As Awfis continues to expand its pan-India presence and enhance its product offerings, it remains committed to catering to a wider range of clients and tailoring its services to meet evolving market needs.

This article is based on the latest available financial data and company statements. Investors are advised to conduct their own research and consult financial advisors before making investment decisions.