Awfis Space Solutions Limited announced robust financial and operational performance for Q4 FY'25 and the full financial year FY'25, along with strategic initiatives and leadership changes.

• Financial Highlights (FY'25):

  • Consolidated operating revenue grew by 42% year-on-year (Y-o-Y) to ₹1,208 crore, surpassing the initial guidance of 30%.
  • Operating EBITDA increased by 64% Y-o-Y to ₹402 crore, with a margin of 33.3%, an improvement of 440 basis points over FY'24, exceeding guidance.
  • Co-working allied services revenue grew 48% to ₹916 crore, contributing 76% of total revenue.
  • Construction fit-out projects, including Design & Build business, grew 36% to ₹278 crore, accounting for 23% of revenue.
  • PBT (excluding exceptional items) stood at ₹97 crore, compared to ₹13 crore in FY'24.
  • Maintained strong liquidity with ₹130 crore in cash, bank, and FD balances, with gross debt at ₹23 crore, resulting in a debt-equity ratio of 0.05.
  • Return on Capital Employed (ROCE) improved from 43% in FY'24 to 62% in FY'25.

• Financial Highlights (Q4 FY'25):

  • Consolidated operating revenue was ₹340 crore, a 46% Y-o-Y growth.
  • Operating EBITDA reached ₹116 crore, a 73% Y-o-Y growth, with a margin of 34.1% (520 bps improvement).
  • PBT (excluding exceptional items) was ₹12 crore, up from ₹1 crore in Q4 FY'24.

• Operational Highlights (FY'25):

  • Added approximately 39,000 new seats, bringing total operational capacity to around 134,000 seats across 208 centers nationwide as of March 2025.
  • Total capacity, including centers in fit-out phase and under LOIs, now stands at over 164,000 seats across 243 centers, covering 8.4 million square feet.
  • Expanded into 9 Tier 2 cities and 5 new micro markets.
  • Exit month occupancy reached 73% as of March 2025, with centers operational for over 12 months recording 84% occupancy.
  • Signed contracts for 53,000 new seats in FY'25.
  • Approximately 66% of occupied seats are taken by large corporates and MNCs.
  • Average client tenure is 33 months with an average lock-in period of 24 months.

• Management Commentary & Future Outlook:

  • Mr. Amit Ramani, Chairman and Managing Director, congratulated Mr. Sumit Lakhani on his appointment as Chief Executive Officer, highlighting his instrumental role in Awfis' success and his new responsibilities in overseeing P&L, daily operations, and customer-centric initiatives.
  • The company plans a two-pronged strategy for FY'26: focusing on driving higher occupancy rates in the first half for centers that went live in Q3 and Q4 FY'25, and prioritizing strategic capacity expansion in the second half.
  • Guidance for FY'26 includes adding a similar number of seats as FY'25 (~39,000), achieving revenue growth closer to 30%, and maintaining margins similar to FY'25 with a potential upward bias.
  • Awfis will strengthen its position for large-scale tailored workplace solutions, especially for enterprise clients and Global Capability Centers (GCCs), and plans to launch 'Design 6.0' for co-working spaces.
  • Expansion of Design & Build capabilities is planned to cater to broader sectors and larger mandates, with a focus on innovation.
  • The company will scale high-margin allied services, including Awfis Café (expanding to external clients), Awfis TechLabs, transportation services (through a strategic partnership with Eco Mobility), and event management services.
  • Regarding taxation, the company expects to utilize carried-forward losses for the main entity through FY'26, with potential tax outgo in Q4 FY'26 or Q1 FY'27.
  • Awfis is exploring backward integration into furniture manufacturing and retailing (B2B focused) to service captive demand and expand into a new service line, leveraging its existing client base.