Awfis Q4: Profit Jumps 8X YoY To INR 11.2 Cr

Coworking space provider Awfis’ consolidated net profit surged 8X to INR 11.2 Cr in Q4 FY25 from INR 1.4 Cr in the year-ago period. However, the bottom line shrank 26% quarter-on-quarter (QoQ) from INR 15.2 Cr.

Operating revenue grew 46% to INR 339.7 Cr from INR 232.3 Cr in the year-ago quarter. Sequentially, it rose 7% from INR 317.7 Cr.

Including other income of INR 19.8 Cr, Awfis’ total income for the quarter grew 49% YoY to INR 359.5 Cr. Meanwhile, its expenses grew 45% YoY and 10% QoQ to INR 347.5 Cr during the quarter under review.

For the full fiscal year FY25, Awfis’ operating revenue rose 42.2% to INR 1,207.5 Cr from INR 848.8 Cr in the previous year. The company also turned profitable, posting a profit of INR 67.8 Cr in FY25 as against a loss of INR 17.6 Cr in FY24.

Awfis added over 39K seats and opened 48 new centres to take its total count to 1.34 Lakh seats and 208 centres at the end of FY25. Besides, the company said it has 22 new centres which are currently being fitted out and letters of intent for 13 new additions, putting it on path to increase its centres to 243.

With this, the company said that it delivered on its guidance for 1.35 Lakh operational seats by March 2025. 

“Our asset-light, risk-averse Managed Aggregation (MA) model remains at the core of our strategy, with 67% of seats and 64% of centres aligned under this approach to maximise returns on investment,” Awfis chairman and managing director Amit Ramani said.

Looking ahead, Awfis has broken down its FY26 strategy into two phases – while it will focus on optimising its current pipeline of seats in the first half, it will prioritise capacity expansion, targeting high-potential locations, in the second half. 

Awfis Enters New Vertical

The company’s board, in its meeting today, approved a change in its memorandum of association (MoA) to expand its objects clause to include manufacturing, trading, assembling, importing, exporting, and dealing in all kinds of furniture and furnishing materials. 

Awfis said that this would help it support its core operations and reduce costs associated with setting up and furnishing its coworking centres. 

In its reasoning for the move, the company said that it will open up doors for it to engage directly in the “furniture, fixtures, and related goods required for setting up coworking spaces”. 

It expects the vertical integration to bring in significant cost efficiencies in the setup and maintenance of its coworking centres.

With this, the company will deal in furniture made from materials such as wood, steel, glass, leather, plastic, rubber, fibre, among others, and related furnishings like carpets, rugs, curtains, blinds, and office decor items. 

The new business will also allow it to offer ancillary services such as repair, cleaning, upholstery, packing, and moving services in connection with the furniture and furnishings business. 

Awfis Gets New CEO

The company’s board also approved the appointment of its deputy CEO Sumit Lakhani as its CEO. Ramani will continue to hold the office of the chairman & MD at Awfis and provide an overarching strategic direction. 

Notably, Awfis didn’t have a full-time CEO when it filed its draft papers for IPO.

“This leadership transition is a significant step forward in our journey of scaling Awfis into a futuristic, world-class organisation. Sumit has played a key role in Awfis’ growth story, consistently demonstrating a deep understanding of our business, customers, and culture,” Ramani said. 

The new CEO was a founding member of Awfis, joining the company as its chief marketing officer in 2015. He took up the role of deputy CEO in 2022. Prior to joining Awfis, Lakhani worked for Yes Bank as its vice president of investment banking for a period of seven years.

Awfis said that, in his new position, Lakhani will focus on new business initiatives like Awfis Transform (Design and Build), as well as oversee core enabling functions such as finance, HR, legal, and administration. 

Shares of Awfis ended today’s trading session 1.66% higher at INR 659.90 on the BSE.