Awfis reported a strong December quarter with operating revenue up 20% YoY to ₹382 crore and net profit rising to ₹22 crore. The coworking leader saw solid traction from GCC and enterprise clients, maintained high occupancy, added 10 centres, and strengthened leadership with a new CFO appointment effective February 3.
Awfis, one of India’s leading coworking and managed workspace providers, delivered a solid performance in the quarter ended December, reporting a 20% year-on-year rise in operating revenue to ₹382 crore, compared to ₹318 crore in the same period last year. Total revenue also climbed to ₹411 crore from ₹331 crore, reflecting continued momentum in office space absorption led by enterprise occupiers and Global Capability Centres (GCCs).
The company also posted higher profitability, with net profit increasing to ₹22 crore, up from ₹15 crore a year ago—signalling improved operating leverage even as the business continues to expand its footprint.
Coworking Segment Remains the Main Growth Engine
Awfis’ core coworking and allied services business remained the biggest contributor to topline growth. “Our coworking and allied service segments continue to grow, rising 32% on-year to ₹322 crore and contributing 84% of the revenue,” said Amit Ramani, chairman and managing director, during a post-earnings call on Monday.
He attributed the growth to strong demand and sustained utilisation, highlighting that our ability to maintain high occupancy levels—supported by strong traction from GCCs and enterprise clients—was the key driver.
Operating EBITDA also improved, rising 30% to ₹139 crore, underscoring the benefits of managed office platforms from long-term enterprise contracts and recurring revenue models.
Costs Rise, Depreciation and Subcontracting Key Drivers
Awfis reported total expenses of ₹389 crore for the quarter, compared with ₹317 crore a year earlier. The increase was largely led by depreciation and amortisation costs of ₹99 crore, subcontracting costs of ₹49 crore, and other expenses of ₹149 crore.
While cost pressures remain a factor, the company’s performance indicates that demand-led growth and occupancy stability are helping offset expansion-related expenses—especially in a sector where fit-outs, technology, and service delivery are central to the product offering.
Network Expansion Continues Across Cities
In its earnings presentation, the New Delhi-based company said that as of December 31, it operated across 18 cities, with 246 centres and 166,000 seats. During the quarter, Awfis added 10 new centres, highlighting its ongoing scale-up strategy while staying focused on capital-efficient growth.
This expansion aligns with a broader industry trend in which flexible workspace operators are increasingly capturing demand from corporates seeking plug-and-play offices, distributed teams, and managed workspace solutions without long-term ownership commitments.
Fit-Out Segment Sees Temporary Slowdown; Leadership Update Announced
Awfis also reported a softer quarter for its construction and fit-out projects segment, which contributed ₹60 crore in revenue. “Revenue there declined primarily due to temporary project deferrals and execution delays linked to GRAP IV restrictions, as well as lower managed seat additions during the nine months of FY26 versus last year,” Ramani said.
On the leadership front, the company confirmed a CFO transition. After CFO Ravi Dugar stepped down to explore new opportunities, Awfis appointed Sumit Rochlani as its new CFO effective February 3. Rochlani previously served as Awfis’ head of finance before moving to Boeing in 2022.
Looking ahead, Ramani expects demand conditions to stay strong, supported by “sustained office leasing momentum,” rising enterprise preference for flexible solutions, and ongoing GCC expansion across Tier I and Tier II markets.
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