The flexible workspace industry in India continues to gain momentum, and Awfis Space Solutions has emerged as one of its strongest performers. In the third quarter of FY26, the co-working solutions provider delivered consistent revenue growth and a notable improvement in profitability, driven by strong demand for managed offices, higher occupancy levels, and rising ancillary income.
According to financial disclosures filed with the National Stock Exchange (NSE), Awfis posted a solid set of numbers for Q3 FY26, reinforcing confidence in the long-term sustainability of the flexible workspace model.
This article takes a deep dive into Awfis’ Q3 FY26 performance, breaking down revenue growth, segment-wise performance, cost structure, profitability trends, and what it means for investors and the future of the co-working industry in India.
Awfis Q3 FY26 Financial Highlights at a Glance
- Revenue from operations: ₹382 crore (up 20% YoY)
- Total income (including other income): ₹411 crore
- Net profit: ₹21.6 crore (up 44% YoY)
- Market capitalisation: ₹2,759 crore
- Share price (closing): ₹389.5
These numbers underline the company’s ability to scale revenues while maintaining cost discipline, resulting in expanding margins.
Revenue Growth Driven by Core Co-Working Business
Awfis reported revenue from operations of ₹382 crore in Q3 FY26, compared to ₹318 crore in the same quarter last year. This represents a healthy 20% year-on-year growth, reflecting sustained demand for flexible office solutions across major Indian cities.
Including other income of ₹29 crore, total income for the quarter reached ₹411 crore. The rise in other income played a meaningful role in boosting overall profitability, highlighting the company’s ability to monetise non-core revenue streams efficiently.
Segment-Wise Performance: Co-Working Remains the Backbone
1. Co-Working Spaces Lead Growth
The co-working segment remained Awfis’ primary growth engine, accounting for 84% of total operating revenue.
- Co-working revenue: ₹322 crore
- Year-on-year growth: 32.5%
This strong performance was supported by increasing enterprise adoption of managed office spaces, higher occupancy levels, and improved pricing power in premium locations.
Enterprises are increasingly preferring flexible, fully-managed offices over traditional long-term leases, especially in a post-pandemic environment where agility and scalability are critical.
2. Construction and Fit-Out Projects
Awfis also generated revenue from construction and fit-out services:
- Construction and fit-out revenue: ₹60 crore in Q3 FY26
While this segment contributes a smaller share of total revenue, it complements the co-working business by enabling faster expansion and customised workspace solutions for clients.
Nine-Month Performance Shows Consistent Momentum
For the nine months ended December 2025, Awfis reported:
- Operating revenue: ₹1,083 crore
- Year-on-year growth: 24.5%
- Previous year (9M FY25): ₹868 crore
This steady growth over multiple quarters suggests that Awfis’ business model is scaling sustainably rather than relying on one-off gains.
Cost Structure: Depreciation Remains the Largest Expense
While revenues rose sharply, expenses also increased as the company continued to expand its footprint and invest in infrastructure.
Key Expense Components in Q3 FY26
- Total expenses: ₹389 crore (vs ₹317 crore in Q3 FY25)
- Depreciation: ₹99 crore (largest cost head)
- Employee benefit expenses: ₹36 crore
- Other costs: Finance charges, subcontracting expenses, and operational overheads
The high depreciation expense reflects Awfis’ asset-heavy expansion strategy, including long-term leases and fit-out investments. However, rising occupancy and revenue per seat are helping offset these costs.
Profitability Improves Sharply
Despite higher expenses, Awfis delivered a strong improvement in bottom-line performance.
- Net profit: ₹21.6 crore
- Year-on-year growth: 44%
- Q3 FY25 profit: ₹15 crore
The sharp rise in profit was driven by:
- Higher operating leverage
- Strong growth in high-margin co-working revenues
- Increased other income
- Better cost absorption across a larger revenue base
This improvement indicates that Awfis is gradually moving towards a more margin-stable phase of growth.
Market Performance and Valuation
Following the Q3 FY26 results, Awfis’ shares closed at ₹389.5, giving the company a market capitalisation of approximately ₹2,759 crore (around $303 million).
Investor sentiment remains cautiously optimistic, as the company demonstrates its ability to grow revenues while improving profitability in a competitive market.
Why Awfis’ Q3 FY26 Performance Matters
1. Validation of the Flexible Workspace Model
Awfis’ results highlight the resilience of the flexible workspace industry in India. As companies move away from rigid, long-term leases, demand for managed offices and co-working spaces continues to rise.
2. Enterprise Demand Is a Key Growth Driver
Unlike early co-working models that relied heavily on freelancers and startups, Awfis has successfully tapped into enterprise clients. These customers offer:
- Higher seat volumes
- Longer contract tenures
- More predictable revenue
This shift improves revenue stability and margin visibility.
3. Operating Leverage Is Kicking In
The 44% jump in profit compared to 20% revenue growth shows that operating leverage is beginning to work in Awfis’ favour. As occupancy levels rise, fixed costs such as rent and depreciation get spread across a larger revenue base.
4. Ancillary Income Adds Cushion
Growth in other income provides an additional buffer to profitability, reducing reliance on core rental revenue alone.
Challenges to Watch Going Forward
While the outlook remains positive, some risks remain:
- High fixed costs: Depreciation and lease liabilities can pressure margins during downturns
- Competition: The co-working space is highly competitive, with both organised players and local operators
- Economic sensitivity: Corporate leasing decisions are closely tied to macroeconomic conditions
Effective cost control and sustained occupancy growth will be critical to navigating these challenges.
Outlook: What Lies Ahead for Awfis
Looking ahead, Awfis is well-positioned to benefit from:
- Increasing adoption of hybrid work models
- Expansion into Tier-2 and emerging business hubs
- Rising demand for customised managed offices
If the company continues to focus on high-margin co-working revenue, disciplined expansion, and efficient capital allocation, profitability could improve further in the coming quarters.
Conclusion
Awfis’ Q3 FY26 results present a compelling picture of steady growth, improving margins, and a maturing business model. With a 20% rise in operating revenue and a 44% jump in profits, the company has demonstrated its ability to scale efficiently in India’s fast-evolving workspace market.
As enterprises increasingly favour flexible, managed office solutions, Awfis stands to remain a key beneficiary of this structural shift — making it a company worth watching in the commercial real estate and co-working space.
