Awfis Reports 40% Revenue Growth in Q2 FY25

Awfis Space Solutions Limited (Awfis) a leading flexible workspace solutions provider company in India has released its unaudited financial results for the quarter and half year ended 30th September 2024

Commenting on the results, Mr. Amit Ramani, Chairman and Managing Director, Awfis Space Solutions Limited, said: ​

"We are pleased to report a robust revenue growth of 40% in Q2 FY25 over the previous year, reaching Rs. 292 crores. This growth was primarily driven by contributions from newly added seats and increased occupancy at existing centers. Operational EBITDA for the quarter also grew by 67% year-on-year to Rs. 100 crores, achieving an EBITDA margin of 34.3%, an improvement of 550 bps from last year. This increase in margins was largely driven by higher revenues, improved occupancy in established centers, the filling of additional seats, all of which contributed to enhanced operating leverage and higher profitability. As of September 2024, we achieved an exit month occupancy rate of 73%, with 84% occupancy in centers with over 12 months of operation, highlighting sustained demand for our flexible workspaces. Our Design & Build business has also seen strong traction supported by a solid order pipeline and favorable market conditions.​

We have now surpassed 110K operational seats and 180 centers. Including Fit-out and LOI, we have a total of 150K+ seats across 224 centers, covering 7.6 million sq. ft., on track to reach our target of 135K operational seats by March 2025.​

Responding to the rising demand for flexible workspaces in Tier II cities, we have expanded our footprint in these emerging markets. Most recently, we entered a new tier 2 city - Guwahati, strengthening our commitment to supporting growth in these regions. Since September 2023, our footprint in Tier II cities has grown by 43% since September 2023, increasing from 14 to 20 centers, reinforcing our commitment to these regions. ​

Our asset-light, risk-averse Managed Aggregation (MA) model remains at the core of our strategy, with 68% of seats and 64% of centers aligned under this approach to maximize returns on investment. ​

I’m excited to announce the opening of our first Elite by Awfis Centre at Aurobindo Orbit in Hyderabad’s Hitech City. Awfis Elite sets a new benchmark for luxury in flexible workspaces, combining elegance, functionality, and a focus on sustainability. Designed to inspire creativity and collaboration, it offers more than just a workspace, it provides an environment where professionals can excel in both comfort and style.

Our commitment to innovation and client-centric solutions positions us strongly for success in the evolving commercial real estate market.“ ​

Operational Highlights:

^LOI refers to Letters of Intent signed with space owners

Consolidated Financial Highlights:

* Cash EBIT is Operating EBITDA plus Other income minus actual lease payments during the period​

+ Adjusted for Ind-AS 109 - Financial Instruments & Ind-AS 102 –Share based payments​

H1FY25 Consolidated Financial Highlights

• On Reported basis:

• H1FY25 reported strong Operating Revenue of Rs. 550 Crs, growth of 39% YoY​

• ​Operating EBITDA margin for H1FY25 is 32.6%, improved by 460 bps on YoY basis, on the back of strong revenue growth, occupancy improvement, Enterprise clients, Allied services and operating efficiencies​

• ​In H1FY25, reported PAT (excl. Exceptional Items) is Rs. 17 Crs vs loss of Rs. 13 Crs in H1FY24​

• ​H1FY25 Cash EBIT stood at Rs. 90 Crs vs Rs. 39 Crs in H1FY24, a growth of 132%​

• ​Exceptional Item includes sale of Facility Management business (“Awfis Care”) ​

• On IGAAP Equivalent basis:​

• ​Operating EBITDA margin improved to 13.3% in H1FY25 against 6.4% in H1FY24 ​

• ​H1FY25 PAT (excl. Exceptional Items) was Rs. 42 crores against loss of Rs (0.1) Crs in H1FY24.​

Q2FY25 Consolidated Financial Highlights

• On Reported basis:

• Q2FY25 reported strong Operating Revenue of Rs. 292 Crs, growth of 40% YoY

• Operating EBITDA margin for Q2FY25 is 34.3%, improved by 550 bps on YoY basis, on back of strong revenue growth, occupancy improvement, Enterprise clients, Allied services and operating efficiencies

• In Q2FY25, reported PAT (excl. Exceptional Items) was Rs. 15 Crs vs loss of Rs. 4 Crs in Q2FY24

• Q2FY25 Cash EBIT stood at Rs. 52 Crs vs Rs. 24 Crs in Q2FY24, a growth of 115%

• Exceptional Item includes sale of Facility Management business (“Awfis Care”)

• On IGAAP Equivalent basis:​

• ​ Operating EBITDA margin improved to 14.9% in Q2FY25 against 8.1% in Q2FY24

• Q2FY25 PAT (excl. Exceptional Items) grew 8x YoY to Rs. 27 crores.