Awfis Space Solutions Q3 FY25 Results: Key Financial Highlights, Future Outlook & More

Awfis Space Solutions, a coworking space provider, has demonstrated a mixed financial performance in the third quarter of the fiscal year 2024-25 (Q3 FY25). While the coworking space provider successfully transformed a ₹6.29 Cr loss from the previous year into a ₹15.18 Cr profit, it faced a sequential challenge with profits declining 61% from Q2’s ₹38.67 Cr.

Despite this quarter-over-quarter dip in profitability, the company maintained its growth trajectory with robust year-on-year improvements in both revenue and operational metrics. Let’s look at the Q3 FY25 results of Awfis Space Solutions in detail.

Financial Performance

Awfis’s operating revenue for Q3 FY25 stood at ₹317.72 Cr, marking a 44% increase year-on-year and a 9% increase quarter-on-quarter. The operating EBITDA jumped 59% YoY to ₹107 Cr, with the EBITDA margin rising to 33.8% from 30.6% in the previous year’s quarter. Total expenses for the quarter increased by 37% YoY and 10% QoQ, reaching ₹317.18 Cr.

Revenue Streams

The company’s revenue is generated primarily from two streams: coworking spaces on rent and allied services, and construction and fit-out projects. In Q3 FY25, the coworking space business contributed ₹243.39 Cr, yielding a profit of ₹16.63 Cr, while the construction projects business generated ₹73.21 Cr with a profit of ₹5.26 Cr.

A significant portion of the company’s expenditure was attributed to depreciation and amortisation, subcontracting costs, and other expenses.

Also read: Union Bank of India Q3 results FY25: Key Highlights

Operational Highlights

As of the end of the December quarter, Awfis operated 214 centres across nine Tier-I & II cities in India. These centres have a chargeable area of 7.2 million sq ft and over 1.42 Lakh seats, positioning Awfis as the largest network of flexible workspaces in India. The company’s active client base exceeded 3,000, with an average total tenure of 33 months.

Awfis is targeting a 40% seat expansion by the end of FY25. As of March 2024, the company had 181 centres across 17 cities, totalling 95,000 operational seats, and plans to add approximately 40,000 seats in FY25, aiming for a total of around 135,000 operational seats by the end of the fiscal year.

30,000 of the 40,000 seats that Awfis Space Solutions can accommodate have already been filled. The company anticipates an occupancy rate of 70 to 72% overall and 84 to 85% for its older centres.

Strategic Initiatives and Future Outlook

Awfis Space Solutions aims to achieve 30% revenue growth in the current financial year, with a margin improvement of around 1.5%. Amit Ramani, the Chairman and Managing Director, mentioned that the company aims to improve its EBITDA margin by 1.5% from the current 31%.

Nearly 90% of Awfis’s flexible workspace solutions are located in Tier-one cities, with the remaining 10% in Tier-two cities.

Also read: ICICI Bank Q3 Results 2025: Key Financial Highlights, Strategic Initiatives, & More

Comparison with Previous Quarters

While Awfis reported a net profit in all three quarters of FY25, its profit fell by 61% from Rs 39 crore in the July-September period. In Q3 FY25, the company’s revenue from operations rose to Rs 316.47 crore, up 8.58% from Rs 291.44 crore in the previous quarter and 43.75% higher than the previous year.

Awfis’s January-March revenue increased 44% over last year to ₹231 crore. The profit was ₹1.3 crore, and the margin was 28.4%, which was lower than the previous year’s 30.4%.

Conclusion

Awfis Space Solutions has shown resilience and growth in Q3 FY25, marked by increased revenue and operational efficiencies. While the net profit declined compared to the previous quarter, the year-on-year growth in revenue, EBITDA, and expansion of operational seats indicate a positive trajectory. The company’s strategic focus on Tier-I and Tier-II cities, combined with its expansion plans and emphasis on operational efficiencies, positions it well for sustained growth in the flexible workspace market.