ICICI Securities has reaffirmed its bullish stance on Awfis Space Solutions, raising its target price to ₹1,049 from ₹979, signalling a 44% upside. The brokerage firm credits Awfis’ unique asset-light business model, strategic seat expansion, and competitive positioning in India’s growing coworking sector for this optimistic projection.

Unlike traditional real estate players, Awfis is not a land aggregator or landlord. Instead, it partners with space owners on the supply side and offers on-demand services to clients. “With Awfis being the first coworking company in India, there’s limited scope for direct comparison with industry peers,” noted ICICI, likening the company more closely to hotel peers due to its operational model and high RoCE, which is expected to exceed 50% from FY26 onwards.

Awfis is poised to deliver robust financial growth. ICICI projects a 31% revenue CAGR from FY24 to FY27, bolstered by seat expansion and strategic releasing to enterprise clients. Additionally, EBITDA is expected to grow at an impressive 53% CAGR over the same period. Thanks to operational scale and rising non-seat revenue streams, margins will improve from 9.2% in FY24 to 14.6% by FY27.

“A competitive coworking market and flex operators expanding into tier-II cities will drive space additions and preleasing tie-ups with enterprise clients,” said ICICI analyst Adhidev Chattopadhyay. Awfis’ asset-light strategy through management agreements and service-level contracts will likely enable operational seat growth at a 35% CAGR through FY27.

Despite this promising outlook, challenges remain. Pricing competition and a potential slowdown in India’s office leasing market could impact the company’s growth trajectory. However, sector consolidation, with more prominent players acquiring centres from smaller operators, is expected to benefit established brands like Awfis.

Recently, Awfis shares were trading at ₹727 on the BSE, reflecting a flat trend with a slight negative bias. With its asset-light model and focus on expansion, Awfis remains a standout player in India’s coworking landscape and is poised for long-term growth.