Awfis Space Solutions shatters records with 37% revenue surge in Q1FY25

Awfis Space Solutions Limited, a prominent player in India’s flexible workspace solutions sector, has announced impressive financial results for the first quarter of the fiscal year 2025, ending June 30, 2024. The company’s operational revenue surged by 37% year-on-year, reflecting robust growth in its core business activities.

Significant Growth in Operational Metrics

By the end of Q1 FY25, Awfis had surpassed 100,000 operational seats across 169 centers. The company reported a total of 127,726 seats, 208 centers, and 6.4 million square feet of space under operational, fit-out, or letter of intent (LOI). In Q1FY25 alone, Awfis added 5,368 new seats and 9 centers, resulting in a 6% quarter-on-quarter growth in both seats and centers.

Year-on-year, Awfis added 48 new centers and 30,156 seats since June 2023, representing a 43% increase in operational seats and a 40% increase in operational centers. Additionally, 10% of these new centers were located in Tier 2 cities, reflecting Awfis’s strategic focus on expanding into emerging markets.

Financial Performance and Operational Efficiency

Awfis’s revenue from operations grew by 37% year-on-year, with operating EBITDA increasing by 55%. The operating EBITDA margin for Q1FY25 was 30.7%. The company achieved a strong exit-month occupancy rate of 71%, with an 84% occupancy rate at centers with over 12 months of vintage, indicating high demand for flexible workspaces.

The company maintains a 64% concentration of centers and 67% of seats within its Managed Aggregation (MA) model. This asset-light and risk-averse approach has enabled Awfis to reduce fixed rental obligations and capital expenditures while maximising return on investment.

Positive Financial Indicators

For Q1FY25, Awfis reported an operating revenue of ₹258 crore, a 37% increase year-on-year. The operating EBITDA margin improved by 360 basis points to 30.7%. The company achieved a profit after tax (PAT) of ₹3 crore, a significant turnaround from a loss of ₹8 crore in Q1FY24. Cash EBIT for Q1FY25 stood at ₹38 crore, up by 158% from ₹15 crore in the same period last year. The annualised return on capital employed (ROCE) improved to 68%, compared to 42% in Q1FY24.

On an Indian Generally Accepted Accounting Principles (IGAAP) equivalent basis, Awfis reported an operating EBITDA margin of 11.5%, up from 4.5% in Q1FY24. PAT margin improved to 6%, from a negative 1.5% in the previous year, with PAT standing at ₹15 crore compared to a loss of ₹3 crore in Q1FY24.

Strategic Focus and Future Outlook

Awfis continues to focus on flexibility, accessibility, and adaptability in its workspace solutions, catering to a diverse range of client needs. The company’s strategic shift from a Straight Lease model to the asset-light Managed Aggregation model has enabled it to reduce fixed rental obligations while enhancing operational efficiency. Looking ahead, Awfis plans to pursue a controlled and methodical market expansion strategy, aiming to maximise efficiency and return on investment while maintaining its risk-averse approach.

Awfis Space Solutions Limited remains a leading player in the Indian flexible workspace sector, evolving from a co-working space provider to a comprehensive integrated workspace solutions platform catering to various business needs.