Awfis Nearly Doubles Profit to Rs 30.8 Crore as Revenue Hits Rs 439 Crore

By Olivia Hart

Awfis reported Rs 439 crore in operating revenue for Q2 FY27, a 20% year-on-year increase, and nearly doubled its net profit to Rs 30.8 crore for the quarter ended September 2026. The Delhi-based co-working operator disclosed the figures on Tuesday in financial statements filed with the NSE.

Other income added Rs 25.6 crore, bringing total income for the quarter to Rs 464.3 crore. The picture over six months is stronger still: first-half FY27 revenue rose 23% to Rs 863.6 crore, up from Rs 701.6 crore in the same period a year earlier.

The headline growth rate deserves context. A 20% quarterly revenue increase is solid but not explosive for a sector that has recently traded on aggressive expansion narratives. The profit line, up 93% from Rs 16 crore a year ago, is the more striking number — though it comes off a small base.

Where does the money come from?

Co-working spaces remained the engine of the business, generating Rs 363.6 crore in Q2 FY27 — more than 83% of operating revenue. That segment grew 22% year-on-year from Rs 297.4 crore, marginally outpacing the companywide growth rate.

The construction and fit-out projects business contributed the remaining Rs 75.2 crore. Awfis did not break out that segment's growth rate, a gap worth noting for anyone tracking how diversified the revenue base really is.

In plain terms: this remains overwhelmingly a desk-rental business, and any softness in office demand would hit the core directly.

What is eating the revenue?

Total expenses climbed to Rs 433 crore in Q2 FY27 from Rs 377 crore a year earlier — a 15% rise that the revenue growth comfortably outpaced. That spread explains most of the profit jump.

Depreciation on leases was the single largest cost, rising 25% year-on-year to Rs 119 crore. Growth in the cost base, in other words, is being driven substantially by the asset-heavy lease structure rather than by headcount. Subcontracting costs stood at Rs 59.7 crore, while employee benefit expenses held flat at Rs 32.7 crore.

The flat wage bill is notable. It suggests management is scaling the business without proportional hiring — efficient if sustainable, but it limits how fast the fit-out arm can grow.

How did the quarter compare to the last one?

Sequentially, the story is one of stability on the top line and continued margin gains beneath it. Revenue from operations came in at Rs 438.7 crore against Rs 424.9 crore in Q1 FY27 — roughly a 3% quarter-on-quarter move. Net profit rose 28% from Rs 24 crore in the previous quarter.

A near-flat sequential top line with a rising profit line points to cost discipline rather than accelerating demand. Investors will want to see whether that holds once lease depreciation catches up with new capacity.

What does the market make of it?

At Tuesday's close, Awfis shares finished at Rs 241.2, valuing the company at a market capitalization of Rs 1,726 crore — roughly $182 million. That valuation against Rs 863.6 crore of first-half annualized revenue implies the market is pricing modest expectations into the stock.

The test ahead is whether the 22% growth in core co-working revenue can persist while lease depreciation rises faster than revenue. Tuesday's numbers show the model works at this scale; they do not yet show it works at a materially larger one.