Awfis Space Solution – go to solution provider for new corporate India leasing requirements
Company striking all the right targets to become a profitable business in the growing managed co-working space industry in India
Exceptional performance in Q2FY25 with highest topline and profits in its history
• Company reported Q2 FY’25 revenue growth of 40% YoY, reaching ₹292 crores
• Co-working and Allied Services segment revenue was up by 43% and reached ₹218 crores.
• Construction and Fit-Out Projects segment reported ₹68 crores, saw 36% growth
• EBITDA up by 67% YoY to ₹100 crores; EBITDA margin of 34.3% (+550 bps YoY).
• Overall monthly occupancy rate was at 73%, while with centers operational for over 12 months it reached 84%
• 110k+ operational seats across 180 centers; total capacity 150k seats across 224 centers
• Management anticipates upside potential to initial guidance of 30% revenue growth and improvement in margins
Margin improvements supported by management’s well set plan of moving to Asset Light Business Model along with moving into premium workspace solutions
- Shifting to Asset Lite Model under MA (Managed Aggregation model) agreements, where capital expenditure per seat has halved thereby offering early breakeven
• By end of Q2, 67% of seats under managed aggregation model, aligning with an asset-light, risk-averse strategy.
2) Launched first Elite Center in Hyderabad, aimed at premium workspace solutions, with expected seat realization 40%-45% higher than Awfis products.
Expansion Strategy to increase presence in Tier 1 and Tier 2 cities will add further scale
- The company operates in 9 Tier 1 and 7 Tier 2 cities, with plans to expand into high-demand micro-markets within Tier 1 cities. It also aims to enter new Tier 2 cities like Lucknow, Guwahati, and Vijayawada. Additionally, it intends to upgrade workspaces in prime micro-markets of Tier 1 cities.
2. Significant expansion in Tier-2 cities, now present in 20 centers across regions including Ahmedabad, Guwahati, and Indore