Awfis Space Solutions Limited demonstrated strong operational and financial performance in Q3FY26, with consolidated revenue growing 20% year-on-year to Rs.382 crores. The company's EBITDA surged 30% to Rs.139 crores, with margins expanding by 270 basis points, reflecting improved operational efficiency and favorable operating leverage.

Financial Performance Highlights

The company's financial metrics showed robust growth across key parameters during the quarter:

For the nine-month period FY26, consolidated revenue reached Rs.1,083 crores (up 25% YoY), while operating EBITDA stood at Rs.398 crores (up 39% YoY) with margins at 36.70%.

Segment-wise Performance

The co-working and allied services segment continued to drive growth, rising 32% year-on-year to Rs.322 crores and contributing 84% of total revenue. This momentum was supported by high occupancy levels across an expanded seat base and strong traction from Global Capability Centers (GCCs) and enterprise clients.

The construction fit-out projects (Awfis Transform segment) contributed Rs.60 crores during the quarter, though this segment saw a decline due to temporary project deferrals and execution delays linked to GRAP-IV pollution norms, as well as lower managed aggregation seat additions.

Operational Metrics and Expansion

Awfis added over 8,000 new seats during Q3FY26, bringing total operational capacity to approximately 152,000 seats across 232 centers. Including centers in fit-out phase and under LOI, total capacity stands at 177,000 seats across 257 centers, covering 8.6 million square feet.

The company maintains a diversified client base of over 3,400 active clients, with approximately 64% of occupied seats taken by large corporates and MNCs, 25% by SMEs and mid-corporates, and the remainder by startups and freelancers.

Leadership Changes and Strategic Focus

The company announced the appointment of Sumit Rochlani as Chief Financial Officer effective February 3rd, 2026, replacing Ravi Dugar. Rochlani brings over 14 years of experience across audit, controllership, financial planning, and corporate finance, having previously served as Head of Finance at Awfis.

Awfis continues to focus on Grade-A buildings and premium locations, with 100% of new supply in Grade-A and A-minus assets. The company operates 32 premium centers, including 25 gold centers and 7 elite centers across prestigious commercial locations. The Tier-2 seat capacity grew 16% year-on-year, demonstrating expanding market acceptance beyond metropolitan centers.

Market Position and Outlook

The company serves over 80 GCCs in its ecosystem, contributing 21% of space revenue share. Multi-center clients account for 46% of occupied seats, with average client tenure of 37 months and average lock-in period of 26 months, demonstrating strong client stickiness.

With a managed aggregation pipeline of 8 lakh square feet committed across prime micro-markets and a third-party transform pipeline spanning 9 lakh square feet (translating to approximately Rs.200 crores revenue opportunity), Awfis is well-positioned for continued growth in India's expanding flexible workspace market.

Awfis Space Solutions announced its unaudited financial results for Q3FY26 through a regulatory filing dated February 02, 2026. The Board of Directors approved the quarterly results for the quarter and nine months ended December 31, 2025, demonstrating robust operational performance across key business segments.

Financial Performance Highlights

The company reported strong operating revenue of ₹382 crores for Q3FY26, representing a growth of 20% year-on-year. Operating EBITDA grew by 30% to ₹139 crores, with EBITDA margins expanding by 270 basis points to 36.5%, reflecting improved scale efficiencies and operating leverage. Profit after tax (excluding exceptional items) stood at ₹22 crores, marking a growth of 52% year-on-year.

Segment-wise Performance Analysis

The co-working and allied services segment demonstrated robust growth of 32% year-on-year, driving the overall revenue performance. This growth was supported by sustained demand across enterprise and GCC clients, along with disciplined execution of the company's capital-efficient expansion strategy.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, the company reported operating revenue of ₹1,083 crores, representing a growth of 25% year-on-year. Operating EBITDA for the nine-month period grew by 39% to ₹398 crores, with margins expanding by 373 basis points to 36.7%. Profit after tax (excluding exceptional items) stood at ₹48 crores, reflecting growth of 50% year-on-year.

Operational Expansion and Network Growth

During Q3FY26, the company added 10 new centres and 8,000 seats, expanding its network to 257 centres with approximately 177,000 seats across 18 cities. For the nine-month period, the company added 22,000 seats, contributing to a year-over-year growth of 34,000 seats. All new supply additions were in Grade A/A- assets, with 7 new additions to the Gold/Elite portfolio.

Strategic Business Developments

The company maintains strong growth visibility through its Managed Aggregation model, with around 62% of signed supply under this capital-efficient approach. Multi-centre clients now account for around 46% of the client base, reflecting deeper relationships and growing pan-India mandates. The GCC portfolio continues expanding with 80+ unique GCC clients representing 21% of rental revenue share.

Management Commentary

Mr. Amit Ramani, Chairman and Managing Director, highlighted the strong operational and financial performance driven by sustained enterprise demand and disciplined execution. He noted the company's annualized ROCE at 66% and ROE at 17%, demonstrating superior capital efficiency. The management emphasized favourable industry tailwinds and the company's positioning to capture demand across client cohorts.