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.

Awfis Space Solutions , a prominent player in the flexible workspace sector, has announced ambitious growth projections for the upcoming fiscal year. The company is setting its sights on a substantial 30% revenue growth for FY26, building on its strong performance and expansion strategy.

Seat Capacity Expansion

Awfis has demonstrated significant growth in its seat capacity over the past year. The company reported selling 53,000 seats in FY25, marking a notable increase from 37,000 seats in FY24. This expansion represents a year-over-year growth of approximately 43% in seat sales.

Current Operations and Future Visibility

As of the latest update, Awfis boasts a total of 135,000 live seats across its various locations. Moreover, the company has expressed confidence in its future growth, citing visibility for an additional 30,000 seats. This pipeline suggests a potential total seat capacity of 165,000 in the near future.

Occupancy Rates

Awfis reported a blended occupancy rate of 73.00% across its portfolio. Notably, the company's mature centers, defined as those operational for 12 months or more, have achieved an impressive occupancy rate of 84.00%. This higher occupancy in established centers indicates strong demand and customer retention in Awfis's longer-running locations.

Margin Improvement Expectations

Looking ahead, Awfis anticipates improvements in its profit margins. This optimistic outlook is based on the growing proportion of mature centers within its portfolio. As these centers typically operate at higher occupancy rates and potentially command premium pricing, they are expected to contribute positively to the company's overall financial performance.

Conclusion

Awfis Space Solutions' projected 30% revenue growth for FY26, coupled with its expanding seat capacity and improving occupancy rates, demonstrates the company's strong growth trajectory in the competitive flexible workspace market. The firm's focus on maturing its portfolio and increasing operational efficiency appears to be central to its strategy for sustained growth and profitability.