Q1 Growth Story Sends Awfis Shares Skyward

Awfis Space Solutions shares were up almost 11% in early trade today after the company posted sharp profit growth for the April–June 2025 quarter.

Net profit came in at about ₹10 crore, a big jump from ₹2.79 crore in the same period last year. Revenue from operations rose 30% year-on-year to ₹335 crore, helped by strong demand for its co-working spaces and steady expansion across cities.

Better Margins and Cost Control

Operating margins improved significantly, with EBITDA at 37.8% compared to around 30% a year ago. The boost came from higher occupancy, more enterprise clients, and tighter control over employee and subcontracting costs. Depreciation and finance expenses are still on the higher side, reflecting the company’s ongoing investments in expanding its network.

Expansion and New Plans

Awfis has been adding capacity quickly — seat count is up 40% from last year, with 220 centres in 18 cities and over 1.4 lakh seats in total. Tier-2 cities are becoming a bigger part of the business, growing around 25% year-on-year. Occupancy in centres open for more than a year remains high at 84%, showing stable demand.

The company is also moving into the office furniture and furnishing business, with plans to invest ₹8–10 crore in product design, partnerships, and marketing. The idea is to offer clients a full package — from workspace to fittings.

Investor Reaction

The market responded strongly to the results, with the stock surging at the open as investors signalled confidence in Awfis’ growth story. While higher interest costs remain a watch point, the combination of faster revenue growth, solid occupancy, and new business lines paints a positive near-term outlook.

For now, Awfis looks set to benefit from India’s growing demand for flexible workspaces, especially as hybrid working patterns continue to fuel demand beyond the big metros.

Sources: Economic Times, Capital Market, Business Outreach, Outlook Business, Moneycontrol, NSE filings