Awfis Space Solutions Limited Reports 26% Q2 FY27 Revenue Growth

Awfis Space Solutions Limited reported normalized revenue of ₹451 crore for Q2 FY27, up 26% year on year, while cash EBITDA increased 45% to ₹49 crore for the quarter ended 30 September 2026. The results show continued growth in its co-working business and improved cash operating profitability during the September quarter.

What did Awfis report for Q2 FY27?

Awfis reported consolidated revenue from operations of ₹439 crore in Q2 FY27, compared with ₹367 crore in Q2 FY26, a year-on-year increase of 20%. After adjusting for actual rent received on finance lease arrangements, normalized revenue stood at ₹451 crore, compared with ₹357 crore a year earlier.

The company’s co-working and allied-services revenue rose 31% year on year to ₹376 crore. Revenue from construction and fit-out projects was ₹75 crore, up 8% from ₹69 crore in the corresponding quarter of the previous financial year. The mix indicates that co-working remained the larger contributor to quarterly normalized revenue.

Reported EBITDA increased 31% year on year to ₹174 crore from ₹132 crore. Cash EBITDA, a metric introduced by Awfis to provide visibility into cash operating performance, rose to ₹49 crore from ₹34 crore. The resulting cash EBITDA margin was 10.8%, compared with 9.4% in Q2 FY26.

Awfis also reported consolidated net profit of ₹31 crore for the September quarter, compared with ₹16 crore a year earlier, representing growth of 93.7%. Operating profit before tax was ₹13 crore, up from ₹9 crore in the year-ago period.

When did Awfis announce the September-quarter results?

Awfis announced its unaudited standalone and consolidated Q2 and H1 FY27 results on 3 November 2026, following a board meeting for the quarter ended 30 September 2026. The company had filed its board-meeting notice on 28 October 2026, confirming the result date.

The September quarter covers the period from 1 July to 30 September 2026. Awfis had previously indicated that its senior management, including the Chairman, Chief Executive Officer and Chief Financial Officer, would discuss the results in an earnings conference call scheduled for 4 November 2026 at 10:30 a.m. IST.

The Q2 announcement followed a strong Q1 FY27, when Awfis reported revenue from operations of about ₹425 crore, up 27% year on year. Q1 reported EBITDA was ₹162 crore and cash EBITDA was ₹44 crore, according to the company’s August investor presentation.

For the first half of FY27, reported revenue from operations reached ₹864 crore, up 23% year on year from ₹702 crore. Normalized revenue for H1 FY27 was ₹888 crore, a 30% increase from ₹682 crore in H1 FY26.

How did Awfis' operating metrics change in Q2 FY27?

Awfis improved both its revenue base and cash profitability in Q2 FY27, with cash EBITDA margin expanding by 140 basis points year on year to 10.8%. The increase in co-working and allied-services revenue was faster than the growth in construction and fit-out projects.

The company said India’s office market recorded a strong first half, with demand led by global capability centres supporting workspace expansion. However, management had also acknowledged in its Q1 presentation that churn and fit-out timing could place near-term pressure on occupancy.

The difference between reported and normalized revenue reflects Awfis’ adjustment for actual rent received on finance lease arrangements. The adjustment was ₹13 crore in Q2 FY27, while the corresponding comparative figure in Q2 FY26 was negative ₹10 crore.

What is Awfis' FY27 growth plan?

Awfis has guided for 22,000 to 25,000 gross seat additions during FY27, full-year revenue above ₹1,800 crore and cash EBITDA of ₹190 crore to ₹200 crore. Management has stated that profitability is expected to improve in the second half of FY27.

The H1 FY27 normalized revenue of ₹888 crore places the company close to half of its stated full-year revenue threshold. The H1 cash EBITDA of ₹93 crore, up 40% year on year, similarly provides the reported first-half base against its annual cash EBITDA guidance.

Expansion in flexible workspace capacity is central to the company’s operating plan. Its co-working and allied-services business accounted for ₹740 crore of H1 FY27 revenue, up 34% year on year, while construction and fit-out projects generated ₹149 crore, up 16%.

The outlook remains linked to the pace of seat additions, occupancy development and execution in its workspace portfolio. Awfis has not changed the disclosed FY27 revenue, seat-addition or cash EBITDA targets in the information provided.

Why was the Design and Build business transfer deferred?

Awfis deferred the proposed transfer of its Design and Build business to its wholly owned subsidiary, Awfis Transform Private Limited, beyond the previously indicated December 2026 timeline. The company said procedural, administrative, operational and transition-related requirements must be addressed before completion.

A revised timeline has not been finalised. Management expects to complete the necessary requirements over the next 12 months. The disclosure means the proposed internal transfer remains unfinished and will continue to be a matter for investors to track alongside quarterly operating performance.

Ahead of the results announcement, Awfis shares closed 1.25% lower at ₹238.40 on Tuesday. The results provide updated information on revenue, margins and net profit, while the deferred business transfer leaves one operational restructuring item unresolved.

Conclusion

Awfis delivered higher Q2 FY27 revenue and cash EBITDA, supported principally by growth in co-working and allied services. Normalized revenue reached ₹451 crore, cash EBITDA margin improved to 10.8%, and H1 normalized revenue rose to ₹888 crore, giving investors a clearer view of first-half operating momentum.

The next areas to watch are progress toward the FY27 targets of more than ₹1,800 crore in revenue, ₹190 crore to ₹200 crore in cash EBITDA and 22,000 to 25,000 gross seat additions. Investors will also monitor management’s eventual revised schedule for transferring the Design and Build business to Awfis Transform Private Limited.