Awfis Space Solutions Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Awfis Space Solutions Ltd filed with BSE on 29 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Awfis reported FY26 revenue from operations of Rs 1,493 crore, up 24% year-on-year, with the coworking and allied services segment growing 35% to Rs 1,237 crore. Operating EBITDA grew 37% to Rs 550 crore with margins expanding to 36.8%, while PAT before exceptional items grew 66% to Rs 71 crore. Management described the year as one of premiumization, higher enterprise and GCC penetration, and disciplined capital deployment, while gross seat additions were more selective than earlier guided.
Numbers mentioned
Revenue from operations: INR1,493 crores (FY26)
p. 4
“revenue from operations grew 24% year-on-year to INR1,493 crores with our coworking and allied services segment growing 35% to INR1,237 crores, a meaningful acceleration over the previous year”
Amit Ramani, page 4 of the filed PDF · View the filing
Operating EBITDA: INR550 crores (FY26)
p. 4
“Operating EBITDA grew 37% year-on-year to INR550 crores with margins expanding to 36.8%.”
Amit Ramani, page 4 of the filed PDF · View the filing
PAT before exceptional items: INR71 crores (FY26)
p. 4
“PAT before exceptional items grew 66% to INR71 crores reflecting the underlying earning quality of the platform.”
Amit Ramani, page 4 of the filed PDF · View the filing
ROCE: 60% plus (FY26)
p. 4
“We continue to operate at industry-leading capital efficiency with ROCE sustaining at 60% plus and maintained at a net flat position through the year.”
Amit Ramani, page 4 of the filed PDF · View the filing
Q4 revenue from operations: INR410 crores (Q4 FY26)
p. 11
“consolidated revenue from operations for Q4 FY '26 stood at INR410 crores, growing 21% year-on-year”
Sumit Rochlani, page 11 of the filed PDF · View the filing
Q4 Operating EBITDA: INR152 crores (Q4 FY26)
p. 11
“Operating EBITDA for the quarter stood at INR152 crores, a 31% increase year-on-year with EBITDA margins expanding to 37%.”
Sumit Rochlani, page 11 of the filed PDF · View the filing
Q4 PAT: INR23 crores (Q4 FY26)
p. 11
“PAT for the quarter came in at INR23 crores, compared to INR11 crores in Q4 FY25, a growth of 107%.”
Sumit Rochlani, page 11 of the filed PDF · View the filing
Normalized EBITDA: INR213 crores (FY26)
p. 11
“normalized EBITDA for FY '26 stood at INR213 crores a 27% increase year-on-year, with normalized EBITDA margins at 14.3%.”
Sumit Rochlani, page 11 of the filed PDF · View the filing
Cash generated from operations: INR655 crores (FY26)
p. 11
“Cash generated from operations for FY '26 stood at INR655 crores.”
Sumit Rochlani, page 11 of the filed PDF · View the filing
Net cash from operating activities: INR616 crores (FY26)
p. 11
“After tax payments, net cash from operating activities came in at INR616 crores as per Indian accounting standard.”
Sumit Rochlani, page 11 of the filed PDF · View the filing
ROE: 17% (FY26)
p. 11
“On returns, ROCE sustained at 60% and annualized ROE stood at 17%.”
Sumit Rochlani, page 11 of the filed PDF · View the filing
Total capex: INR208 crores (FY26)
p. 11
“total capex deployed towards capex during FY '26 stood at approximately INR208 crores, primarily directed towards Grade A/ A+ centres in premium micro markets.”
Sumit Rochlani, page 11 of the filed PDF · View the filing
Total supply seats: approximately 167,000 seats (as of March 2026)
p. 8
“As of March 2026, our total supplies stood at 250 centers and approximately 167,000 seats across 18 cities, while signed supply expanded to 266 centers and approximately 184,000 seats.”
Sumit Lakhani, page 8 of the filed PDF · View the filing
Mature center occupancy: approximately 84% (FY26)
p. 8
“All occupancy, mature centers defined as those operating for more than 12 months sustained at approximately 84%, while the blended occupancy stood at 76%.”
Sumit Lakhani, page 8 of the filed PDF · View the filing
Design and build net margin: 7% to 8%
p. 12
“The design and build margins are close to 7% to 8%, and this is the net margins that I'm referring to.”
Sumit Rochlani, page 12 of the filed PDF · View the filing
Revenue-to-rent ratio: 2.3x
p. 12
“So the revenue-to-rent ratio for us comes around 2.3x.”
Sumit Rochlani, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Coworking and Allied segment revenue growth — 25% to 28% · FY27
stated firmly by Amit Ramani
p. 17
“So starting with revenue, our Coworking and Allied segment is expected to grow in the range of 25% to 28% (Correct number: 25% to 27%, previously stated on call) in FY '27.”
Amit Ramani, page 17 of the filed PDF · View the filing
Awfis Transform revenue growth — 20% to 23% · FY27
stated firmly by Amit Ramani
p. 17
“Awfis Transform is expected to grow in the range of 20% to 23% (Correct Number: 22% to 25%,previously stated on call) over FY '26 levels.”
Amit Ramani, page 17 of the filed PDF · View the filing
Total revenue growth — approximately 25% to 27% · FY27
stated firmly by Amit Ramani
p. 17
“Together, this total will constitute a revenue growth of approximately 25% to 27% for the full year.”
Amit Ramani, page 17 of the filed PDF · View the filing
Gross seat additions — 22,000 to 25,000 gross seats · FY27
stated firmly by Sumit Lakhani
p. 13
“what we expect to do is probably around 22,000 to 25,000 gross seats translating closer to 1.25 million square feet.”
Sumit Lakhani, page 13 of the filed PDF · View the filing
Capex — similar to FY26 levels · FY27
stated conditionally by Sumit Lakhani
p. 13
“In terms of the overall capex, the way we are projecting and seeing is it would be almost on similar lines of FY '26 across for these seats.”
Sumit Lakhani, page 13 of the filed PDF · View the filing
Mature cohort occupancy improvement — a couple of 100 basis point increase · next couple of quarters
stated as an aspiration by Sumit Lakhani
p. 13
“Broadly in this kind of a cohort, we would prefer that at least we have a couple of 100 basis point increase over the next couple of quarters.”
Sumit Lakhani, page 13 of the filed PDF · View the filing
Managed aggregation to straight lease ratio — 60-40
stated firmly by Amit Ramani
p. 15
“we will continue to maintain the ratio in the 60-40 kind of a range, which we have done over the last few quarters as well.”
Amit Ramani, page 15 of the filed PDF · View the filing
Frame external mandates — 2-3 large external mandates · H2
stated as an aspiration by Amit Ramani
p. 7
“by H2, we expect to have 2-3 large external mandates closed with corporate clients where we are not engaged in Flex or D&B relationship, which is the first proof point of Frame as a stand-alone revenue channel.”
Amit Ramani, page 7 of the filed PDF · View the filing
Developer partnerships as supply pillar — FY27 and '28
stated as an aspiration by Amit Ramani
p. 5
“We expect these partnerships to become a meaningful supply pillar in FY '27 and '28.”
Amit Ramani, page 5 of the filed PDF · View the filing
Design and Build pipeline — INR130 crores of mandates · next 6 to 7 months
stated firmly by Amit Ramani
p. 7
“The pipeline going into FY '27 is materially stronger with INR130 crores of mandates already won in delivery across the next 6 to 7 months.”
Amit Ramani, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Occupancy is calculated on total operational seats, around 157,000.
Answered by Sumit Lakhani
Asked by Murtuza Arsiwalla: Is occupancy calculated on operational capacity or total supply seats?
p. 12
“So with respect to the occupancy, we look at the occupancy calculated on the total operational seats, so which in this case would be around 157,000 seats.”
Sumit Lakhani, page 12 of the filed PDF · View the filing
Management said the reduction was a deliberate quality-over-quantity choice, focusing on Grade A/A+ buildings, with gross addition actually at 30,000 and net at approximately 22,000 after closures.
Answered by Amit Ramani
Asked by Aditya Sharma: Why was seat addition guidance reduced from 40,000 to 32,000 to an actual of 26,000/22,000 net?
p. 14
“So the seat addition still is 30,000. It's because of some of the closures that have happened. So the gross addition is 30,000.”
Amit Ramani, page 14 of the filed PDF · View the filing
Management guided to 22,000-25,000 gross seats and capex similar to FY26 levels.
Answered by Sumit Lakhani
Asked by Shamit Ashar: What is the expected seat addition and capex for FY27?
p. 13
“what we expect to do is probably around 22,000 to 25,000 gross seats translating closer to 1.25 million square feet.”
Sumit Lakhani, page 13 of the filed PDF · View the filing
Management explained FY26 was a year of deliberate portfolio rebalancing including exit of a 3,000-seat short-term client arrangement, and said this level of closure is not expected going forward.
Answered by Sumit Lakhani
Asked by Shrinjana Mittal: Was the FY26 seat closure rate of approximately 5% typical churn or a one-time portfolio adjustment?
p. 18
“So FY '26 was a year of portfolio rebalancing for us. As we were premiumizing the network towards Grade A and A+ assets. So we thought there are certain centers which we should exit.”
Sumit Lakhani, page 18 of the filed PDF · View the filing
Management said reconciling items such as operating lease timing differences remain and offered to walk through the calculation separately.
Answered by Sumit Rochlani
Asked by Shrinjana Mittal: Why has the gap between adjusted rent in the normalized P&L and cash flow rent widened in FY26?
p. 19
“the reconciling items that we had shared earlier, more or less, those reconciling items are still there as far as items like operating lease and as far as operating lease is concerned, of course, that with the passage of time as a higher number.”
Sumit Rochlani, page 19 of the filed PDF · View the filing
Management attributed the increase primarily to seat additions during the year, rent-free periods ending on newer centers, and lease renewal escalations.
Answered by Sumit Rochlani
Asked by Fenil Brahmbhatt: Why has the payment of principal portion of lease liability increased significantly in FY26?
p. 17
“So we have also added supply in a meaningful way this year alone, we have added 30,000 seats. So that alone contributes to the increase in the payment of lease liabilities.”
Sumit Rochlani, page 17 of the filed PDF · View the filing
Risks flagged
New centers added during the year remain in a ramp phase and continue to drag on blended occupancy while growth continues at pace
p. 12
“The blended figure of 76%, it's essentially a function of the large cohort of new centers added during FY '26 still being in the ramp phase. So as long as we are growing at this pace, there is always going to be some drag on blended occupancy, right.”
Sumit Lakhani, page 12 of the filed PDF · View the filing
FY26 Design & Build segment revenue was softer, driven by project timing and fewer managed aggregation deals
p. 6
“FY '26 was a softer year on overall D&B revenue, driven by project timing and lower count of managed aggregation deals.”
Amit Ramani, page 6 of the filed PDF · View the filing
Consolidated revenue growth was impacted by softness in the Design Build segment
p. 7
“Consolidated revenue growth was slightly impacted by softness in Design Build segment, where EBITDA held up strongly, which speaks to the operating leverage and the earnings quality of the core platform.”
Amit Ramani, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.