Awfis Space Solutions Limited , India's leading flexible workspace provider, has announced robust financial results for the first half of fiscal year 2026, demonstrating significant growth and strategic initiatives to strengthen its market position.

Financial Highlights

For H1 FY26, Awfis reported:

• Operating Revenue of ₹702.00 crores, a 28% year-over-year increase
• Operating EBITDA of ₹259.00 crores, with a margin of 36.9%, up 430 basis points year-over-year
• Profit After Tax (PAT) of ₹26.00 crores, a 49% year-over-year growth (excluding exceptional items)

Operational Expansion

The company has shown substantial growth in its operational footprint:

• Total portfolio of 247 centers and approximately 170,000 seats across 8.4 million sq. ft.
• 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

Strategic Developments

Awfis is strategically leveraging its leadership in the value segment to move up the value curve:

• Increased focus on Grade A buildings and premium locations to cater to Global Capability Centers (GCCs) and large enterprises
• Introduced 26 premium workspace centers (21 Gold and 5 Elite)
• Secured approximately 5,000 seats from 9+ large Corporates/MNCs
• Over 10 GCCs signed across the 5 Elite Centres

The company is also expanding its pan-India presence, with Tier 2 supply increasing by approximately 28% year-over-year.

Awfis Transform Subsidiarization

In a significant move, Awfis has announced the subsidiarization of Awfis Transform, its design and build business. This strategic decision aims to:

• Drive growth within the high-potential Design & Build (D&B) segment
• Provide greater flexibility to scale independently and pursue new markets
• Enable clearer performance visibility through standalone financials

Credit Facility Enhancement

To support its expansion strategy, Awfis has sought an enhancement of ₹500.00 million to its existing Term Loan facility from ICICI Bank Limited. The enhanced facility is proposed to be utilized for financing capital expenditures for existing centers, establishing new centers, and 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."

He further added, "With a solid foundation, growing institutional trust, and a sharper focus on premium execution, Awfis is well-positioned to deliver sustained, profitable growth. Our integrated ecosystem encompassing our core co-working business, allied services, and the specialized design and build expertise of Awfis Transform creates a unique competitive advantage, enabling us to capture opportunities across both established and emerging markets and cement our leadership in India's evolving flexible workspace landscape."

The company's strategic initiatives and strong financial performance indicate its commitment to maintaining its leadership position in India's flexible workspace market while adapting to evolving client needs and market dynamics.

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.