Shares of Awfis Space Solutions Ltd fell 5.21% to Rs 596.80 in early trade on Wednesday, November 12, after the company reported a sharp year-on-year decline in its second-quarter profit. The stock slipped from its previous close of Rs 629.60 on the NSE amid a mixed earnings performance, where revenue growth was offset by a significant drop in profitability.
Q2 FY26 financial performance
For the quarter ended September 30, 2025, Awfis Space Solutions posted a net profit of Rs 15.9 crore, down 58.8% year-on-year from Rs 38.6 crore in the same quarter last year.
However, the company’s revenue rose 25.5% YoY to Rs 366.8 crore from Rs 292.3 crore, supported by healthy demand for flexible workspaces across metros and Tier-II cities.
EBITDA increased 32.7% YoY to Rs 132.3 crore, compared to Rs 99.7 crore a year ago, while margins improved to 36% from 34.1%, indicating improved operational efficiency despite an ongoing expansion phase.
Business outlook and expansion plans
In a recent interaction with CNBC-TV18, Chairman and Managing Director Amit Ramani said the company is targeting 30% revenue growth in FY26, driven by capacity expansion, allied services, and increasing demand from Global Capability Centres (GCCs).
Awfis currently operates 232 centres with 1.55 lakh seats and has signed letters of intent for another 10,000 seats. “We are targeting about 40,000 seats to be added this year — same as last year. We have clear visibility of about 30,000 right now, and another 10,000 we will add over the next eight months,” Ramani said.
By the end of FY26, Awfis expects to reach 1.75 lakh seats, with a 65:35 mix between managed aggregation and trade lease spaces.
Tier-II expansion and GCC traction
Ramani added that Tier-II cities now contribute nearly 10% of the company’s portfolio, or around 17,000 seats, with Vijayawada set to become the company’s 19th city. Awfis aims to expand its footprint to 20 cities by year-end.
In Mumbai, the company has surpassed one million sq. ft. of workspace across 34 locations, with its latest addition being a 50,000 sq. ft. facility at Supreme Business Park, Powai, where 65% of the space has been leased by Howden Insurance Brokers. Over the past six months, Awfis has also signed 11 new GCCs across India, strengthening its client base among global enterprises seeking scalable flexible workspace solutions.
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