Awfis Space Solutions Limited — Q3 FY26
Awfis delivered a solid Q3 FY26 with revenue of 382 crores (+20% YoY) and EBITDA of 139 crores (+30% YoY), with margins expanding 270 bps to 36.5%.
bullish
high
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Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered0Evaded / deflected12Questions audited
Partial answer
High priority
Occupancy outlook and mature center optimal occupancy
Asked by Girish Chri, Aendas Park
Management gave directional improvement but no specific target or timeline for mature centers.
no specific timelinequalitative optimism without hard numbers
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Question
how should we look at the occupancies going ahead? ... the matured center occupancy has remained at around 84% so is this optimal kind of occupancy in the mature centers
Sumit (management)
blended occupancy has increased by over 200 basis point from 73 to 75% ... we see a serious improvement around on occupancy buildup in the next one and two quarter itself ... we think 84 85% is not the steady state ... this can get increased up ... by almost about 100 to 150 basis point
Partial answer
High priority
Pricing growth and margin trajectory in co-working
Asked by Girish Chri, Aendas Park
Answered pricing but did not address margin trajectory specifically.
no margin trajectory givenonly discussed pricing escalations
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Question
what's the kind of price growth you're seeing ... and also wanted to understand the margin trajectory going ahead in the co-working segment
Vish (management)
pricing is a direct reflection of the overall micro market rental ... our agreements contracts have 5 to 7% kind of escalations being built in ... the overall business model enables about 5% kind of escalation in pricing
Answered
Medium priority
Tenure bucket composition and client mix evolution
Asked by Vash Galanji
Provided specific tenure percentages and improvements.
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Question
the tenure bucket of greater than 24 months has not really changed ... please help me understand the corporates MNC's or SMEs in your client mix. What cohort of seats do they usually prefer?
Sumit (management)
greater than 24 months tenure clients constitute about 73% of our portfolio ... locked in tenure for the complete portfolio is now 26 months ... for greater than 100 seats locked in tenure is 37 months
Answered
Medium priority
Reason for increased sales traction
Asked by Vash Galanji
Explained organic demand and center maturation as drivers.
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Question
please help me understand what is causing that increased sales traction. Is this something that in your offering that has changed or is it something in the macroeconomic environment?
Sumit (management)
primarily this had been organic ... significant level of behavioral change with occupiers looking to prefer flex ... also a function of the aging of centers ... centers which we opened during Q4 of last financial year ... they have started hitting higher occupancies
Answered
Medium priority
Expected proportion of revenue from construction business
Asked by Vash Galanji
Provided current and expected revenue split.
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Question
what proportion of your revenue from operations is expected from construction and business?
Amit (management)
roughly about 20% of the revenue is expected from the construction fit out business. Currently the split is about 83/17 but roughly this will settle in somewhere around 80/20
Partial answer
High priority
Operational seats guidance for FY26 and FY27
Asked by Adid, IIC Securities
Provided FY26 seat addition guidance but refused FY27.
declined FY27 guidanceonly gave FY26 number
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Question
could you help us think what is going to be the end of 26 operational seeds and a similar number for FY27 considering the pipeline which we have now
Amit (management)
for FY26 is somewhere around 32,000 seats for FY26. I would not want to comment on the FY27's guidance right now
Answered
High priority
Capex YTD and full year guidance
Asked by Adid, IIC Securities
Provided specific capex numbers and reaffirmed guidance.
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Question
just wanted a capex number YTD this numbers are 110 crores right in the 6 months so what is the number for 9 months and how much do you end up with
Ravi (management)
for the 9 month period the number is 159 crores ... we had given a guidance of 200 to 210 beginning of the year and we expect the number to be around that only
Answered
Medium priority
Cash balance on books
Asked by Adid, IIC Securities
Provided exact cash balance.
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Question
the net cash or on books as of December, you have that number handy
Ravi (management)
96 crores. The cash balance is in the books. Including investments. Around 96 crores.
Partial answer
High priority
Reason for lower seat addition and managed seat share decline
Asked by VR Kashia, Asian market securities
Explained lower seat addition but did not directly address managed seat share decline.
no specific reason for managed share declineblamed market conditions
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Question
we have added only 8,000 seats compared to around 11,000 plus seats same quarter last year. So where we went wrong ... share of managed seats which used to be 65 67 odd% is now 62%
Sumit (management)
original guidance for seat additions had been around 40,000 gross edition ... we are now guiding around 32 to 33,000 seats ... we are taking a more balanced approach ... we don't want to be stuck with signing up deals at prices which are not conducive for us in long term
Answered
High priority
Transform business revenue decline and margin deterioration
Asked by VR Kashia, Asian market securities
Provided specific reasons for revenue dip and margin impact.
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Question
for last two quarters we have seen deferral in execution ... we are down by around 10% on a Y basis ... what went wrong this financial year ... margin profile also deteriorated
Amit (management)
Q3 FY26 was impacted due to the GRAP restrictions in north and this had three large client projects that led to a revenue dip ... as the revenue dips obviously the margin will dip because the fixed cost of people continues
Partial answer
High priority
Whether 30% revenue and EBITDA growth guidance still holds
Asked by Yeshua Bardan Agarwal, IIFL Capital Asset Management
Acknowledged co-working on track but design & build off, leaving overall guidance unclear.
did not explicitly reaffirm overall guidancesplit between segments
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Question
initially we had guided for 30% growth in revenue, 30% growth in EBITDA. Does that still hold true for us?
Sumit (management)
from a co-working segment perspective both the revenue guidance as well as the margin guidance we are meeting but as of 9 month the design and build business is an area where the guidance is not going as per planned
Answered
High priority
Why capex unchanged despite lower seat addition guidance
Asked by Axa Tri Sara, Ionius Alpha
Explained mix shift to higher capex seats.
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Question
capex number was 200 210 crores for 40,000 seats and now you're guiding for the same number despite that number coming down to 32,000 seats
Sumit (management)
larger portion of seats which went live had been more on the straight lease side versus managed aggregation ... we set up more few elite centers where the whole fit out capex needed to be done from our side and it also has a higher capex