Awfis Posts INR 15 Cr Profit In Q3, Revenue Up 44% YoY

Coworking space provider Awfis reported a consolidated net profit of INR 15.18 Cr in the third quarter of the fiscal year 2024-25 (Q3 FY25) as against a loss of INR 6.29 Cr in the year-ago quarter. 

However, its profit declined 61% from INR 38.67 Cr profit in Q2 FY25. While its operating EBITDA jumped 59% YoY to INR 107 Cr, its EBITDA margin jumped to 33.8% from 30.6% in the year-ago quarter.

Operating revenue increased on a year-on-year (YoY) as well as quarter-on-quarter (QoQ) basis. Awfis’ revenue from operations stood at INR 317.72 Cr in Q3 FY25, up 44% YoY and 9% QoQ. Its total expenses for the quarter rose 37% YoY and 10% QoQ to INR 317.18 Cr.

While Awfis earned INR 243.39 Cr from its coworking space on rent and allied services business, it earned INR 73.21 Cr from its construction and fit-out projects in the quarter. It realised a profit of INR 16.63 Cr from the former and INR 5.26 Cr from its construction projects business.  

At the end of the December quarter, Awfis operated 214 centres across nine Tier-I & II cities in India. With a chargeable area of 7.2 Mn sq ft and over 1.42 Lakh seats, the company claims to have the largest network of flexible workspace in India. Its active clients at the end of the quarter exceeded 3,000 with an average total tenure of 33 months.  

“Including fit-outs and LOIs (letter of intents), we now have over 160K seats covering 8 Mn sq ft. We remain confident in reaching our target of 135K operational seats by March 2025. Our strategy continues to focus on asset-light growth with 73% of new seat additions signed under the Managed Office (MA) model. This approach allows us to maximise return on investment while scaling efficiently,” Awfis’ chairman and managing director Amit Ramani said. 

In its investor presentation, Awfis said it has launched a new centre of about 48K sq ft in Fun Republic mall in Lucknow. Besides, it also claimed to have increased its presence in Tier-II cities by about 29%, growing from 17 centres to 22 since December 2023.

Moving forward, Awfis will look to expand into “key micro-markets in Tier-I cities and upcoming Tier-II cities”, along with making investments in markets with “high demand and stronger long-term returns”. Besides, it also plans to increase its focus on Awfis Transform, Awfis Care and allied services moving forward. 

The company made its public market debut in May last year, raising INR 117.03 Cr via a fresh issue of shares. Of the total sum raised, Awfis has utilised INR 51.52 Cr for working capital requirements and INR 29.29 Cr for its capital expenditure towards establishment of new centres. 

Besides, Awfis’ IPO comprised an offer for sale (OFS) component of up to 1.23 Cr shares.  Peak XV Partners and Bisque Limited were among the investors which sold stakes via the OFS. Peak XV further offloaded Awfis’ shares worth INR 379.8 Cr via multiple bulk deals in December 2024.

Last month, Awfis received a request from Peak XV Partners, which holds 3.27% stake in the company, seeking its reclassification from ‘Promoter and Promoter Group’ category shareholders to ‘Public’ category shareholders. The company’s board approved the same on February 11.