Awfis Q2 profit before tax rises 91% to Rs 31.242 crore

Awfis Space Solutions Limited (Awfis) reported consolidated profit before tax of Rs 31.242 crore for the quarter ended 30 September 2026, up 91.3% from Rs 16.33 crore a year earlier, as revenue from operations increased to Rs 438.725 crore and co-working segment results reached Rs 34.153 crore.

How did Awfis's Q2 consolidated earnings change?

Awfis's consolidated profit before tax increased to Rs 31.242 crore in the quarter ended 30 September 2026 from Rs 16.33 crore in the quarter ended 30 September 2025. The reported figure was also above Rs 24.418 crore in the quarter ended 30 June 2026, while profit after tax rose to Rs 30.8 crore from Rs 15.973 crore a year earlier.

Revenue from operations was Rs 438.725 crore, compared with Rs 366.86 crore in the September 2025 quarter and Rs 424.924 crore in the June 2026 quarter. Other income was Rs 25.565 crore, taking total income to Rs 464.29 crore, while total expenses were Rs 433.048 crore in the September 2026 quarter.

For the six months ended 30 September 2026, Awfis reported revenue from operations of Rs 863.649 crore and profit before tax of Rs 55.66 crore. In the corresponding six months of 2025, revenue was Rs 701.564 crore and profit before tax was Rs 26.706 crore. Diluted earnings per share, not annualised for quarters, were Rs 4.30 for the September 2026 quarter, compared with Rs 2.21 a year earlier.

Which Awfis segment contributed most to Q2 earnings?

Awfis's co-working space on rent and allied services segment contributed the larger share of quarterly revenue and segment results, reporting revenue of Rs 363.564 crore and a segment result of Rs 34.153 crore in the quarter ended 30 September 2026. The company defines the segment as space solutions, mobility and allied services.

Co-working revenue increased from Rs 297.407 crore in the September 2025 quarter and Rs 351.546 crore in the June 2026 quarter. Its segment result rose from Rs 17.766 crore a year earlier and Rs 30.458 crore in the immediately preceding quarter. Co-working segment assets were Rs 2,610.235 crore at 30 September 2026, compared with Rs 2,451.553 crore at 31 March 2026.

Construction and fit-out projects generated Rs 75.161 crore of revenue in the September 2026 quarter, compared with Rs 69.453 crore a year earlier and Rs 73.378 crore in the June 2026 quarter. Its segment result was Rs 7.687 crore, against Rs 5.407 crore in the September 2025 quarter and Rs 3.228 crore in the preceding quarter.

The two operating segments together reported total segment results of Rs 41.84 crore, up from Rs 23.173 crore a year earlier. Unallocable income was Rs 1.567 crore, while unallocable expenses were Rs 9.731 crore and unallocable finance cost was Rs 2.434 crore, producing the consolidated pre-tax profit of Rs 31.242 crore.

What do Awfis's cash flow and balance sheet show?

Awfis generated net cash from operating activities of Rs 368.057 crore in the six months ended 30 September 2026, compared with Rs 282.002 crore in the corresponding six months of 2025. Cash generated from operations before tax was Rs 379.108 crore, and income tax paid net of refunds was Rs 11.051 crore.

Investing activities used Rs 92.384 crore during the six-month period, including Rs 113.111 crore spent on property, plant and equipment, capital work-in-progress, capital advances and related creditor movements. Financing activities used Rs 277.146 crore, including Rs 188.979 crore of principal repayments on building lease liabilities and Rs 78.879 crore of interest paid on those liabilities.

Cash and cash equivalents stood at Rs 54.949 crore on 30 September 2026, down from Rs 56.422 crore at 31 March 2026, reflecting a net decrease of Rs 1.473 crore over six months. Total assets increased to Rs 3,080.255 crore from Rs 2,910.189 crore, while total equity increased to Rs 608.585 crore from Rs 552.445 crore over the same period.

Lease liabilities totalled Rs 1,473.291 crore at 30 September 2026, comprising Rs 1,067.23 crore of non-current liabilities and Rs 406.061 crore of current liabilities. Borrowings totalled Rs 51.433 crore, including Rs 33.098 crore of non-current borrowings and Rs 18.335 crore of current borrowings.

What unresolved matters and plans has Awfis disclosed?

Awfis disclosed an arbitration award relating to a Noida lease that it plans to challenge before the High Court of Delhi. During the quarter ended 30 September 2026, the sole arbitrator awarded the lessor Rs 8.266 crore towards lock-in-period rent, net of the security deposit, plus interest at 18% a year and other costs of Rs 10 lakh.

The dispute followed Awfis's March 2024 termination of the lease with Ruby Infotech Private Limited during the lock-in period, citing infrastructure and safety issues at the premises. Awfis had claimed Rs 6.51 crore against the lessor, which filed counterclaims. Based on an independent legal opinion, management said it believes it has reasonable grounds to challenge the award and has recognised no provision in the consolidated results.

Awfis also deferred the proposed transfer of its Design and Build undertaking to AwfisTransform Private Limited, its wholly owned subsidiary. The business transfer agreement had an initial purchase price of Rs 26.591 crore, but the board on 3 November 2026 deferred completion beyond the previously indicated end-of-calendar-2026 timeline because procedural, administrative, operational and transition-related requirements remain.

The revised completion timeline has not been finalised, and consideration for the undertaking will be determined through an updated valuation report using the revised completion date as its reference date. Awfis granted 16,166 employee stock options under its 2024 employee stock option scheme during the September 2026 quarter, while its audit committee and board approved the unaudited results on 3 November 2026.

Conclusion

Awfis's September 2026 quarter combined higher revenue with a 91.3% year-on-year increase in consolidated profit before tax to Rs 31.242 crore. Co-working space on rent and allied services supplied Rs 363.564 crore of revenue and Rs 34.153 crore of segment result, while construction and fit-out projects added Rs 75.161 crore of revenue and Rs 7.687 crore of segment result.

The next disclosed matters to watch are Awfis's planned challenge to the arbitration award of Rs 8.266 crore plus 18% annual interest and the delayed Design and Build transfer. Awfis said the revised transfer schedule remains unset, while management expects the outstanding procedural and transition requirements to be addressed over the next 12 months.