Source: Entrackr
Co-working space operator Awfis Space Solutions has revealed new results for the first quarter of FY26, with promising revenue growth and a significant increase in profit.
According to a filing with the NSE, revenue from operations was ₹335 crore in Q1 FY26, a 30% increase from ₹258 crore in Q1 FY25. In Q1 FY26, the company had ₹18 crore of other income, which took total income to ₹353 crore. On a quarter-on-quarter basis, revenue had declined by 1.5% from ₹340 crore in Q4 FY25.
Founded in 2015, Awfis provides flexible office spaces for startups, SMEs, and corporations. Besides providing workspaces, the company provides food and beverages, IT support, and infrastructure solutions.
Segments of Business
Sector-wise division has not changed, the co-working space segment of the business remained the primary source of income for Awfis, amounting to 276 crores during Q1 FY26, from 185 crores the same time last year – a year-on-year growth of 49%. The construction and fit-out projects division represented an additional 58 crore to revenues, while other services contributed an additional 1 crore to revenues.
Costs and Expense Management.
Out of all the expenses, depreciation was the highest cost for the company at ₹86 crore. The employee benefit expense fell from ₹42 crore to ₹30 crore during the quarter, which suggests improved cost control. Subcontracting expenses were also reduced by 15% year-on-year to ₹47 crore.
The company had finance costs of ₹46 crore and total expenses of ₹343 crore during Q1 FY26. Managing costs effectively played an important role in improving the bottom line.
Profits Soar.
With steady revenue gains and tighter expense control, Awfis’s net profit surged 3.5 times to ₹10 crore in Q1 FY26 compared to ₹2.8 crore in Q1 FY25. This was one of the company’s strongest quarterly profit growth rates in recent years.
ESOPs and Market Capitalization
As part of its employee retention and reward program, Awfis granted 136,777 Employee Stock Options (ESOPs) under its 2024 ESOP Scheme, which currently have a value of ₹7.6 crore.
In the stock market, Awfis shares were trading for ₹557 as of 4:12 PM on the day of the announcement, for a total market capitalization of ₹3,971 crore (about USD 453 million).
Outlook
Awfis’s results for the Q1 FY26 indicate that it is in a good position in the co-working segment. The segment is continuing to grow and costs are maintained. Awfis looks to sustain profitability and increase its market share over the next few quarters.
