Awfis Space Solutions surges as Q2 net profit jumps 93% YoY

Awfis Space Solutions surged 12.77% to Rs 271.90 after the company reported a 93% year-on-year increase in consolidated reported profit after tax to Rs 31 crore in Q2 FY27.

The company reported a 20% year-on-year increase in consolidated revenue from operations to Rs 439 crore from Rs 367 crore. Normalised revenue, including the adjustment for actual rent received on finance lease arrangements, increased 26% to Rs 451 crore from Rs 357 crore.

Reported EBITDA increased 31% year on year to Rs 174 crore in Q2 FY27. Cash EBITDA rose 45% to Rs 49 crore from Rs 34 crore, while cash EBITDA margin improved to 10.8% from 9.4% in Q2 FY26.

Operating profit before tax increased 56% year on year to Rs 13 crore from Rs 9 crore. Operating PBT margin improved to 3% from 2.4%.

The co-working and allied services business reported revenue of Rs 376 crore, up 31% year on year from Rs 288 crore. Revenue from construction and fit-out projects increased 8% to Rs 75 crore from Rs 69 crore in Q2 FY26.

The company sold more than 25,000 seats in H1 FY27. It added six centres during Q2, taking its network to 254 centres with approximately 174,000 seats across 18 cities. Portfolio occupancy stood at 76.2%, while occupancy at centres operating for more than 12 months reached 84.1%.

Awfis said 57% of its centres operate under the Managed Aggregation model, in which landlords fund fit-out capex. Around 50% enterprise pre-commitment under its partial Managed Office model is balanced by co-working demand. Incremental seats are being signed at around 35% higher pricing than flagship products.

The company also signed a mandate for more than 1,000 employees from a Fortune 500 company for a global capability centre in Chennai. The first phase is scheduled to start in Q4 FY27. Its Global Capability Centre (GCC) portfolio includes more than 105 clients, contributing around 24% of rental revenue.

Chairman and managing director Amit Ramani said demand from large enterprises and GCCs remained strong. He said the company continued to focus on premiumisation and operational efficiency, with its Gold and Elite portfolio expanding to 39 centres. The company aims to achieve cash EBITDA of Rs 190-200 crore for FY27.

Meanwhile, the company's board of Awfis Space Solutions took note of the resignation of Shweta Gupta as company secretary and compliance officer. Her employment will continue until 10 November 2026.

The board approved the appointment of Juhi Garg as company secretary and compliance officer, key managerial personnel and authorised person, effective 11 November 2026. She will also take over as the company's compliance officer, from the same date.

The board also deferred the proposed transfer of the company's design & build business to its wholly owned subsidiary, Awfis Transform, beyond the earlier target of the end of calendar year 2026. The delay is due to procedural, administrative, operational and transition-related requirements. The revised completion timeline has not been finalised, though management expects to address these requirements within the next 12 months.

Until the transaction is completed, Awfis will continue to operate the design & build business in the ordinary course. The final purchase price will be determined based on an updated valuation report, using the closing date as the valuation reference date.

Awfis Space Solutions is an Indian flexible workspace provider offering co-working spaces, managed offices, mobility solutions, design and fit-out services, and technology infrastructure. It operates across 18 cities with more than 250 centres and serves over 3,700 clients across industries.

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