Awfis Q2 cash EBITDA rises 45% as revenue gains 26%

Awfis reported Q2 FY27 cash EBITDA of Rs 49 crore, up 45% year on year, while normalised revenue rose 26% to Rs 451 crore. The cash measure reconciles Rs 174 crore of reported EBITDA through Rs 13 crore of finance-lease adjustments and Rs 136 crore of cash rent paid to landlords under Ind AS 116.

How did Awfis perform in Q2 FY27?

Awfis increased normalised revenue to Rs 451 crore in Q2 FY27 from Rs 357 crore in Q2 FY26, a 26% increase. Reported revenue from operations rose 20% to Rs 439 crore from Rs 367 crore, while the normalised presentation includes the company’s finance-lease adjustment for actual rent received.

Awfis reported EBITDA, or earnings before interest, tax, depreciation and amortisation, of Rs 174 crore in Q2 FY27, up 31% from Rs 132 crore. Reported EBITDA margin increased to 39.6% from 36.1%, while consolidated profit after tax rose 93% to Rs 31 crore from Rs 16 crore and the reported profit-after-tax margin reached 7.0% from 4.4%.

Cash EBITDA rose faster than either reported or normalised revenue, reaching Rs 49 crore from Rs 34 crore. Cash EBITDA margin increased by 1.4 percentage points to 10.8% from 9.4%, and operating profit before tax under the normalised framework rose 56% to Rs 13 crore from Rs 9 crore.

Which Awfis segments drove revenue growth?

Awfis’s co-working space on rent and allied services segment was the main contributor to Q2 FY27 normalised revenue growth, rising 31% to Rs 376 crore from Rs 288 crore. The segment added Rs 89 crore during the quarter, compared with an Rs 6 crore increase in construction and fit-out projects, which grew 8% to Rs 75 crore.

Co-working and allied services accounted for Rs 376 crore of Awfis’s Rs 451 crore normalised Q2 revenue, while construction and fit-out projects supplied Rs 75 crore. Awfis Transform, the design-and-build business, reported Rs 75 crore of Q2 FY27 revenue and said third-party work represented 93% of that revenue.

The same mix was evident over H1 FY27, when normalised revenue increased 30% to Rs 888 crore from Rs 682 crore. Co-working and allied services grew 34% to Rs 740 crore from Rs 554 crore, while construction and fit-out projects rose 16% to Rs 149 crore from Rs 128 crore.

How does Awfis reconcile reported EBITDA with cash EBITDA?

Awfis reconciled Q2 FY27 reported EBITDA of Rs 174 crore to cash EBITDA of Rs 49 crore by adding a Rs 13 crore finance-lease adjustment, deducting Rs 136 crore of landlord rent payments and applying Rs 1 crore of other adjustments. The company’s financial summary identifies other adjustments as Ind AS impacts and non-cash employee stock option plan expenses.

Under Ind AS 116, Awfis says rent is not recognised as an operating expense in reported EBITDA, so it deducts cash paid to landlords to calculate cash EBITDA. It adds rentals invoiced on finance leases, net of initial recognition, where the client lock-in period and leased area substantially match the relevant landlord lease.

The Rs 136 crore of Q2 FY27 landlord payments comprised Rs 97 crore of principal repayment on lease liabilities and Rs 39 crore of interest paid on lease liabilities. In Q2 FY26, total landlord payments were Rs 96 crore, including Rs 55 crore of principal and Rs 42 crore of interest, while the finance-lease adjustment moved to positive Rs 13 crore from negative Rs 10 crore.

What do Awfis’s H1 FY27 cash measures show?

Awfis reported H1 FY27 cash EBITDA of Rs 93 crore, up 40% from Rs 67 crore in H1 FY26, on normalised revenue of Rs 888 crore. Cash EBITDA margin increased to 10.5% from 9.8%, while reported EBITDA rose 30% to Rs 336 crore from Rs 259 crore.

The H1 FY27 reconciliation added Rs 25 crore of finance-lease adjustments and deducted Rs 268 crore of rent paid to landlords, including Rs 189 crore of principal and Rs 79 crore of lease interest. H1 FY26 landlord payments totalled Rs 181 crore, while the other H1 FY27 adjustments were positive Rs 0.32 crore.

Net cash from operating activities for the six months ended September 2026 was Rs 368 crore, compared with Rs 282 crore a year earlier. This cash-flow measure differs from the Rs 93 crore cash EBITDA measure because operating cash flow also reflects working-capital changes, direct taxes and other cash-flow items.

What balance-sheet and operating measures should be tracked?

Awfis had total assets of Rs 3,080 crore at September 2026, compared with Rs 2,910 crore at March 2026. Right-of-use assets were Rs 1,062 crore against Rs 1,063 crore, while lease liabilities totalled Rs 1,473 crore, comprising Rs 1,067 crore of non-current and Rs 406 crore of current liabilities.

Cash and cash equivalents were Rs 55 crore at September 2026, compared with Rs 56 crore at March 2026, after H1 FY27 net investing cash outflow of Rs 92 crore and net financing cash outflow of Rs 277 crore. Total equity increased to Rs 609 crore from Rs 552 crore over the same period.

Awfis also reported longer client commitments at September 2026: clients with more than 100 seats had a weighted average total tenure of 49 months and a 33-month lock-in. Across all clients, total tenure was 38 months and lock-in was 27 months, with the overall lock-in period increasing four months year on year.

Conclusion

Awfis’s Q2 FY27 results show cash EBITDA growth of 45% outpacing the 26% rise in normalised revenue, with cash EBITDA margin increasing to 10.8%. The difference between reported EBITDA of Rs 174 crore and cash EBITDA of Rs 49 crore is principally explained by the Rs 136 crore of landlord payments and the finance-lease treatment disclosed under Ind AS 116.

The next disclosed execution markers are phase one of a Fortune 500 global capability centre contract for more than 1,000 full-time employees in Chennai, scheduled to start in Q4 FY27, and Awfis Transform’s Rs 220 crore order book plus advanced pipeline. Awfis reported that third-party work represented 93% of Awfis Transform’s Rs 75 crore Q2 FY27 revenue, making subsequent conversion and delivery disclosures relevant.