Awfis Space Solutions is targeting 30% revenue growth in FY26 to cross ₹1,600 crore, adding 40,000 seats across 70 new centres. With 232 live locations, the company plans to boost its non-core revenue—design, IT, furniture, and cafeteria services—to 40% over five years, maintaining strong profitability and near-zero debt.
Awfis Space Solutions, India’s largest homegrown coworking operator, is charting an ambitious course for FY26 with a 30% year-on-year growth target, aiming to surpass ₹1,600 crore in revenue while maintaining a healthy 14% EBITDA margin and 67% RoCE.
“We closed the first quarter with ₹335 crore in revenue and ₹127 crore EBITDA, growing seven percent sequentially. Our year-on-year growth exceeded 40%, and the momentum continues,” said Amit Ramani, Chairman & Managing Director, Awfis Space Solutions, in an interview with ETRealty.
The company remains financially strong, operating in a net-cash position with minimal debt—just ₹20 crore against ₹1,200 crore in revenue. “We’re nearly debt-free, with over ₹100 crore in cash,” Ramani added, emphasising prudent capital management.
Network Expansion Across Key Cities
Awfis currently runs 232 live centres and counts over 260 when including those under fit-outs or letters of intent. Following its proven mid-size model, the company plans to add another 40,000 seats across 70–75 centres this fiscal year.
“Our sweet spot is 30,000 sq. ft per centre, offering agility and faster scalability,” explained Ramani. “We may take multiple floors in one building, each run as a separate P&Ls. It allows network density—like our 35 centres in Mumbai—to serve every micro-market.”
Awfis is also executing select large-format projects in prime markets, such as an 85,000 sq. ft centre in Aerocity and a 1.2 lakh sq. ft facility in Mumbai’s BKC, both in partnership with Prestige Group.
Diversified Model Reduces Concentration Risk
Responding to investor concerns about concentration risk, Ramani noted that no single centre accounts for more than 1% of total revenue. “Diversification wins at our scale,” he noted. “If one micro-market slows due to external factors, our spread across 70-plus centres absorbs the shock better than a five-centre mega-plate strategy.”
About 67% of Awfis’ footprint follows a managed aggregation model, where landlords fund 70–80% of capex and share upside post-profitability—keeping the company asset-light and capital-efficient.
Beyond Coworking: Building New Growth Engines
While 75% of revenue currently comes from coworking and managed offices, Awfis is expanding aggressively into ancillary verticals such as design & build, IT services, furniture, and cafeteria management.
“Our Design & Build division alone contributed ₹258 crore in FY25 and is set to cross ₹300 crore this year,” Ramani said. “These are high-ROCE, capital-light services that complement our core business.”
Awfis aims to derive 40% of total revenue from these non-core segments within five years. Its in-house design team of 100 professionals now operates across India, the US, and Manila, while Awfis Tech Labs and partnerships like ECOS Mobility are driving its tech and logistics offerings.
Balancing Growth, Profitability, and Stability
Occupancy levels remain strong at 73% overall and 84% for centres older than a year, with monthly churn between 1–1.2%. Client stickiness is high, with an average lock-in of 24 months and tenure exceeding 33 months.
Awfis’ portfolio continues to be dominated by enterprise clients, with 65% large corporates, 25% SMEs, and 10% startups.
“We don’t chase scale for its own sake,” Ramani concluded. “Adding 100,000 seats is easy, but not if it compromises profitability. Our focus is sustainable growth—expanding with precision, not excess.”
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