Strong Financial Performance Across Metrics

Awfis’ profitability metrics also saw significant improvement during the year. Operating EBITDA rose 37% year-on-year to ₹550 crore, with margins expanding to 36.8%, reflecting better scale efficiencies, a higher share of mature centres, and improved operating leverage.

Net profit (PAT) stood at ₹71 crore in FY26, registering a 66% year-on-year growth. The company also achieved a Return on Capital Employed (ROCE) of over 60%, positioning it among the most capital-efficient players in the listed flexible workspace segment.

On a quarterly basis, Q4 FY26 continued the growth trajectory. Revenue stood at ₹410 crore, up 21% year-on-year, while EBITDA rose 31% to ₹152 crore. Net profit more than doubled to ₹23 crore, reflecting a 107% year-on-year increase.

Balance Sheet Strength and Capital Efficiency

The company maintained a strong balance sheet, with a net cash position and a negative net debt-to-equity ratio of -0.20x. Its interest coverage ratio stood at 11x, indicating healthy financial stability.

Awfis also reported a revenue-to-gross fixed assets ratio of 1.5x, one of the best in the industry, underscoring efficient asset utilization.

Rapid Network Expansion Across India

Operationally, Awfis expanded its footprint significantly during FY26. The company now operates 266 centres with a total capacity of approximately 1.84 lakh seats across 18 cities.

During the year, it added nearly 30,000 seats across 41 new centres, all within Grade A and A+ commercial spaces located in high-demand micro-markets. This expansion strategy has helped the company strengthen its presence in key urban clusters and build strong network effects.

Enterprise and GCC Demand Driving Growth

A major driver of Awfis’ growth has been its increasing focus on enterprise clients. Large enterprises and multinational corporations (MNCs) now account for 64% of its client base.

The company has also seen strong traction from Global Capability Centres (GCCs), with over 100 such clients contributing approximately 23% of rental revenue. Notably, large-format deals continue to dominate, with clients occupying over 500 seats accounting for 37% of the portfolio.

Interestingly, even within smaller seat categories, enterprise demand remains strong, with nearly half of sub-100 seat clients being large corporations.

High Occupancy and Stable Revenue Visibility

Awfis reported a mature occupancy level of 84%, with an overall blended occupancy of 76%. The company’s average client tenure stands at 37 months, with a lock-in period of 26 months, ensuring stable and predictable cash flows.

Additionally, 48% of its clients operate across multiple centres, highlighting strong client retention and stickiness.

Premiumization Strategy Gains Momentum

The company is also accelerating its premiumization strategy. It currently operates 35 premium ‘Elite’ and ‘Gold’ centres and has introduced upgraded formats such as Gold 2.0 and Awfis 6.0.

Over 60% of its new supply has been secured through partnerships with institutional landlords, further strengthening its asset quality. Awfis has also achieved a significant milestone by becoming the first coworking brand in India to receive three simultaneous WELL certifications, reinforcing its focus on health-centric and sustainable workspaces.

Outlook

With rising demand for flexible workspaces, increasing enterprise adoption, and the expansion of GCCs in India, Awfis appears well-positioned to sustain its growth momentum. Its strong financial performance, scalable business model, and focus on premium assets are likely to support continued expansion in the evolving office real estate landscape.

Also Read: Awfis partners with Nucleus Office Parks to launches Awfis Gold Centre in Mumbai

The post Awfis Posts Record ₹1,493 Cr Revenue in FY26 on Strong Coworking Demand Surge appeared first on Square Feat India.

This marks a notable evolution in the country’s commercial real estate landscape, where businesses are increasingly moving beyond metros in search of scalable and cost-efficient alternatives.

Tier-2 Cities Gain Ground in Flex Office Market

The report highlights that Tier-2 cities collectively account for:

• 575+ flex workspace centres
• ~29% share of total flex centres in India
• 8.8 Mn sq ft of flex stock (~9% pan-India share)

This growth reflects a broader decentralisation trend, as companies look to reduce dependence on saturated metro markets.

City-wise Flex Space Distribution

Among Tier-2 cities, flex space supply is led by:

• Ahmedabad – 22.7% share
• Kochi – 10.2%
• Indore – 10.1%
• Jaipur – 8.5%
• Coimbatore – 8.3%
• Lucknow – 7.6%
• Mangaluru – 6.3%
• Chandigarh – 4.9%
• Bhubaneswar – 4.3%
• Dehradun – 4.0%
• Other cities (Vadodara, Surat, Vizag, etc.) – 13.1%

This spread indicates that flex workspace demand is no longer limited to a handful of cities but is broad-based across emerging urban corridors.

Cost Advantage Driving GCC Expansion

One of the biggest drivers of this shift is cost arbitrage, with Tier-2 cities offering:

• Up to 50% lower occupancy costs compared to metro cities
• Access to skilled talent pools
• Reduced operational expenses

As a result:

• 200+ companies have established
• 300+ Global Capability Centres (GCCs) across Tier-2 cities

Key sectors driving this demand include:

• IT-ITeS
• Consulting services
• BFSI
• Engineering & manufacturing

Flex Spaces Becoming Preferred Choice for GCCs

While GCCs are not the dominant occupiers of flex spaces, their presence is steadily increasing:

• ~9% of flex centres in Tier-2 cities cater to GCC-led operations
• 16% of GCC bases operate out of flex workspaces

This signals a growing preference for flexible, scalable office models among global firms entering smaller cities.

Quality & ESG Shift in Tier-2 Office Market

Interestingly, the report highlights a quality gap and opportunity in Tier-2 markets:

• Only 60% of flex centres are in dedicated office buildings
• Just 26% are in Grade-A assets

However, GCC occupiers are setting higher benchmarks:

• 53% of GCC-occupied flex centres are in Grade-A buildings
• 19% operate from green-certified spaces

This indicates that demand for premium, ESG-compliant office spaces will be a key growth driver going forward.

The Bigger Trend: Decentralisation of India’s Office Market

According to Shrinivas Rao, CEO of Vestian:

“The rise of Tier-2 cities is a defining shift in India’s expansion strategy. As infrastructure improves and flex ecosystems mature, the decentralization of GCCs will become a cornerstone of the Viksit Bharat 2047 vision.”

What This Means for Real Estate

For developers, investors, and occupiers, this trend has clear implications:

• New investment hotspots emerging beyond metros
• Rising demand for Grade-A office assets in Tier-2 cities
• Flex operators scaling aggressively in non-metro markets
• Strong linkage between infrastructure growth and commercial real estate demand

As metros face saturation, Tier-2 cities are not just alternatives anymore—they are becoming core to India’s office market expansion story.

Also Read: Flex Spaces to Play Major Role in Office Expansion, Survey Reveals

The post Flex Stock in Tier-2 Cities Hits ~9 Mn Sq Ft, Accounts for 9% of India’s Total appeared first on Square Feat India.

Colliers estimates that average annual enterprise seat demand will increase by 25%, reaching nearly 200,000 seats in 2026 and 2027 compared to 160,000 seats in 2024–2025.

Enterprise Demand, GCC Growth Fuel Next Wave

According to the report, technology and BFSI companies will account for 60–65% of enterprise seat uptake, while engineering, manufacturing, and consulting firms are expected to contribute 10–15% each. Enterprise occupiers now account for nearly 70% of total flex demand.

A major shift is the growing dominance of GCCs. They accounted for 40–45% of enterprise seat uptake in 2025, and their share is likely to rise to nearly 50% over the next two years as they scale R&D, analytics, engineering, and AI capabilities in India.

“As domestic enterprises and GCCs deepen their flex adoption, operators are curating next-generation, customized workspaces with advanced PropTech and ESG features. Several operators raising capital through IPOs further reflects strong investor confidence,”
said Arpit Mehrotra, Managing Director, Office Services, Colliers India.

Bengaluru Dominates, Pune Leads in Penetration

With 22.6 million sq ft of operational flex space, Bengaluru remains India’s largest flex market, accounting for 31% of national stock. Delhi NCR follows with 12.5 million sq ft.

Pune stands out for having the highest flex penetration at 11.5%, supported by demand from tech, BFSI, and start-up ecosystems.
Chennai, meanwhile, has recorded an impressive 5.6X growth in flex stock since 2021.

City-Wise Highlights (2025E)

• Bengaluru: 22.6 msf flex stock | 9.7% penetration
• Pune: 9.9 msf | 11.5% penetration (highest)
• Delhi NCR: 12.5 msf | 8.2% penetration
• Chennai: 7.3 msf | 8.2% penetration | 5.6X growth
• Mumbai: 9.7 msf | 7.1% penetration
• Hyderabad: 9.6 msf | 7.7% penetration

Overall, flex stock across India’s top 7 cities has grown 2.4X between 2021 and 2025.

Tech-Enabled, Customised & ESG-Focused Workspaces in Demand

Occupiers increasingly prefer scalable, plug-and-play, managed offices with deep tech integration. Flex operators are upgrading their offerings with:

• Occupier-specific customisation
• PropTech-driven workspace management
• “GCC-as-a-Service” models
• Compliance-ready infrastructure
• Strong ESG features and green-certified buildings

Nearly 70% of flex space uptake in the last 2–3 years has been in green-certified buildings.

Tier II Expansion to Strengthen

While Tier I cities continue to dominate flex absorption—especially Secondary Business Districts (SBDs)—operators are rapidly scaling into Tier II markets such as Ahmedabad, Jaipur, Kochi, Chandigarh, Lucknow, Indore, Bhubaneswar, and Coimbatore.

Seat rentals in these cities are 30–35% lower than Tier I, making them attractive for distributed workforce and hub-and-spoke models. By 2027, Tier II cities could account for 10–15% of India’s flex stock.

“With sustainability features, PropTech adoption and enterprise-grade solutions expanding rapidly, GCCs are expected to drive nearly half of total enterprise demand over the next two years,”
said Vimal Nadar, National Director & Head of Research, Colliers India.

Also Read: Hiring Wave Ahead: Office Space Demand Soars

The post Flex Office Stock to Cross 100 Million Sq Ft by 2027; Penetration to Exceed 10% appeared first on Square Feat India.

Mumbai, November 11, 2025:
Awfis Space Solutions Limited, one of India’s leading flexible workspace providers, reported a 44% year-on-year rise in operating EBITDA for the first half of FY26, driven by expanding demand from enterprises and GCCs.

Operating revenue for H1 FY26 stood at ₹702 crore, up 28% YoY, while PAT rose 49% to ₹26 crore (excluding exceptional items). The company achieved an EBITDA margin of 36.9%, a gain of 430 basis points over the previous year.

In Q2 FY26, Awfis posted ₹367 crore in operating revenue and ₹16 crore in PAT, reflecting consistent growth momentum through the quarter.

Expanding Portfolio and Enterprise Focus

As of September 30, 2025, Awfis managed 247 centers with 1.7 lakh seats across 8.4 million sq. ft., including spaces under fit-out and signed LOIs.

The company added 14,000 new seats in H1 FY26 and 8,000 seats in Q2, marking a year-over-year increase of 35,000 seats. Notably, 100% of new supply was in Grade A assets, with 70% in Grade A+ developments.

Awfis currently operates 26 premium centers — including 21 Gold and 5 Elite centers — catering to large corporates, GCCs, and enterprise clients. During H1 FY26, the company secured 5,000 seats from over nine large corporates and MNCs, with 10 GCCs signing up across its Elite centers.

Strategic Shift Toward Premium, Enterprise-Grade Workspaces

Commenting on the results, Amit Ramani, Chairman and Managing Director, Awfis Space Solutions Limited, said:

“Our operating performance underscores the strength of our execution and the maturity of our enterprise client base. The growing contribution from the 500+ seat cohort, now forming 34% of our portfolio, reflects the stability and stickiness of our large clients.”

He added that Awfis is now moving up the value curve — focusing on premium Grade A buildings and enterprise-driven locations, while continuing expansion in Tier 2 cities where supply grew 28% YoY.

Awfis Transform to Drive Next Growth Phase

Awfis also announced the subsidiarization of Awfis Transform, its design and build vertical, which will now operate as a wholly owned subsidiary. The move aims to provide greater operational flexibility, enabling the unit to pursue opportunities in new sectors such as retail, hospitality, and commercial interiors.

This restructuring is expected to enhance transparency in performance metrics and accelerate diversified growth for the group.

Outlook

With an integrated ecosystem covering flexible workspace operations, allied services, and design-build expertise, Awfis is positioning itself for sustained, profitable growth. The company’s strategy combines premium execution in top metros with measured expansion in emerging markets, aligning with evolving enterprise workspace preferences.

Also Read: Awfis expands its footprint in Kolkata

The post Awfis H1 FY26 Operating EBITDA Jumps 44% YoY; Revenue Up 28% Amid Strong Enterprise Demand appeared first on Square Feat India.

Vacancy levels have fallen to their lowest in three years — down from 16.7% to 16.2%, despite a steady stream of new office completions.

Rents Rise, Vacancies Fall

• Average office rent: ₹90 per sq. ft. (up from ₹85 last year)
• Vacancy levels: 16.2% in 9M 2025 (down from 16.7%)
• City with least vacancy: Chennai (8.9%)
• Highest rent growth: Bengaluru (9% year-on-year increase)

The data signals that India’s post-pandemic office recovery is firmly underway, powered by expanding global capability centers (GCCs), coworking spaces, and BFSI demand.

Pune and Bengaluru Dominate Absorption

Net office space absorption across the top 7 cities reached a record 42 million sq. ft. — up 34% from 31 million sq. ft. in the same period last year.

• Pune led the charge with a massive 97% rise in absorption, growing from 3.1 to 6.2 million sq. ft.
• Bengaluru topped in total leasing with 9.95 million sq. ft., followed by Delhi-NCR (8.2 million sq. ft.) and Mumbai Metropolitan Region (6.6 million sq. ft.)
• Kolkata was the only city to see a dip of 19% in leasing activity.

“GCCs alone accounted for 40% of total office leasing in India,” said Anuj Puri, Chairman of ANAROCK Group. “Bengaluru, Pune, and Chennai remain the preferred destinations for such occupiers.”

New Supply Surges — Led by Pune and NCR

Developers responded to the demand with a 15% jump in new office completions — from 34 million sq. ft. in 9M 2024 to 39.2 million sq. ft. this year.

• Pune again topped with a 168% rise in new office completions.
• Delhi-NCR saw 80% growth, followed by Chennai (28%) and Bengaluru (20%).
• In contrast, Hyderabad (-39%) and Mumbai (-41%) saw a slowdown in new completions, as developers focused on leasing existing inventory.

Who’s Leasing All This Space?

The sector-wise split reveals that the office market’s backbone remains strong:

• IT/ITeS sector: 27% of total leasing (slightly lower than last year)
• Coworking spaces: 23% (up from 21%)
• BFSI: 18%

Coworking and hybrid work models have continued to shape demand. Many companies are opting for flexible, green-certified, amenity-rich spaces, which are now a major focus for developers.

What This Means for Businesses

For occupiers, the data indicates rising rents but improving availability of premium Grade A offices with modern infrastructure.
For developers, it’s a sign that the commercial segment is rebounding faster than expected.
For employees and cities, it means more job hubs, revived CBDs, and higher business confidence.

Even with global headwinds, India’s office market is back in growth mode — signaling strong investor faith in the country’s long-term corporate fundamentals.

Also Read: Occupiers across major markets in India willing to pay higher rentals for quality office supply

The post India’s Office Rentals Rise 6% as Companies Rush to Expand – Pune and Bengaluru Lead, Vacancy at 3-Year Low appeared first on Square Feat India.

Meeting Rooms Designed for Every Business Need

Table Space’s offering includes spaces of all sizes – from 4-seater rooms for small team huddles to executive boardrooms and 50-seater training halls.

Each space is:

• Fully equipped with modern amenities
• Backed by Table Space’s hospitality support
• Designed to ensure clients can focus on business while operations, logistics, and guest experience are seamlessly managed

Table Space App: The Digital Workplace Hub

The Table Space App already serves as the single digital interface for enterprise clients, integrating:

• Service requests with live tracking for IT, housekeeping, and pantry
• Visitor management
• Emergency SOS for instant access to support teams

With the new Meeting Rooms module, the app is now open to a wider audience, including non-partner enterprises. Users can:

• Book instantly with real-time availability and transparent pricing
• Preview amenities and images before booking
• Ensure seamless check-in with integrated visitor management
• Enjoy hospitality touchpoints including on-ground support and complimentary beverages

Leadership Speak

Karan Chopra, Chairman & Co-CEO of Table Space, said:

“At Table Space, technology is embedded into every part of the workplace journey. The launch of Meeting Rooms as a Product takes us a step further in making premium, enterprise-grade workspaces available to all enterprises, so any business can host high-stakes meetings with ease and confidence.”

He added that these meeting spaces are designed to support critical decision-making and client presentations, with dedicated hospitality ensuring businesses can focus solely on their priorities.

Tech-First + Hospitality-Led Model

The launch builds on Table Space’s existing tech-enabled innovations, including:

• AI-led workspace planning
• IoT-enabled access systems
• Data-driven occupancy management
• App-first service delivery

By integrating hospitality and technology, Table Space positions itself as a partner in seamless workplace experiences.

About Table Space

• Total leasable area: Over 9.9 million sq. ft. (as of March 31, 2025)
• Presence: 7 cities across India
• Focus: Fully managed, customised workspaces for global enterprises

The addition of Meeting Rooms as a Product extends this service ecosystem to businesses of every size, including those not currently associated with Table Space.

Also Read: Now Make A Reservation At A Restaurant, For Co-Work Table.

The post Table Space Expands Tech-Enabled Offerings with Launch of On-Demand Meeting Rooms on Workspace App appeared first on Square Feat India.

Data from industry leader Awfis Space Solutions highlights this shift — its Tier-2 city presence expanded by nearly 25% in the last year, with new signings in high-quality Grade A assets forming 100% of additions between June 2024 and June 2025.

The appetite for flexible workspaces in Tier-2 locations is being driven by:

• First-time mid-sized GCC entrants setting up operations outside metros
• Expanding back-office and satellite setups by large enterprises
• Landlords in smaller cities upgrading to Grade A inventory
• Businesses seeking to reduce operational costs without compromising quality

Awfis’ operational capacity grew 40% YoY to 1,40,186 seats in June 2025, with 59% of its total portfolio now occupied by large-format 100+ seat cohorts. The company’s strong Tier-2 momentum mirrors a broader sector trend — smaller cities are now seen as profitable, scalable markets rather than experimental outposts.

Occupancy trends remain healthy, with 84% utilisation in centres older than 12 months and 73% overall. Operators are increasingly targeting high-potential micro-markets in cities like Indore, Coimbatore, Jaipur, and Chandigarh, where corporates are actively seeking ready-to-move-in premium offices.

Financially, Awfis’ numbers back the demand narrative — Q1FY26 revenue rose 30% YoY to ₹335 crore, with operating EBITDA margins hitting 37.8%. These gains are being supported by landlord confidence in Tier-2 markets and the availability of institutional-grade spaces.

As the flexible workspace market matures, Tier-2 cities are emerging as the next big battleground, offering operators a combination of cost efficiency, fresh demand pipelines, and untapped enterprise relationships.

Also Read: Minimalist Hotels Launches Coworking Spaces

The post Tier-2 Cities Outpace Metros in Coworking Boom — Demand Jumps 25% in Just One Year appeared first on Square Feat India.

India’s office real estate market continues its upward trajectory in Q2 2025, clocking a robust 18.79 million sq. ft. of gross absorption — a 10% YoY and 5% QoQ rise — according to Vestian Research.

The IT-ITeS sector emerged as the top performer, absorbing 9.4 Mn sq. ft., or 50% of total leasing activity, followed by flex spaces, which saw an impressive 68% growth over the previous quarter, absorbing 2.63 Mn sq. ft. and accounting for 14% of pan-India office absorption.

Sector-Wise Absorption – Q2 2025

Others include Aviation, Consulting, Engineering, Retail, Healthcare, Infra, Logistics, Telecom, FMCG, etc.

Key Southern Cities Dominate

Bengaluru, Hyderabad, and Chennai contributed nearly 80% of the flex space absorption across the top 7 cities — signaling the growing preference for hybrid and agile workspaces in tech-dominated hubs.

“India’s office market continued to grow in Q2 2025, largely driven by robust absorption in Bengaluru, Hyderabad, and Mumbai. With enterprises returning to office and Grade-A completions due in H2 2025, we expect this growth to sustain.”
— Mr. Shrinivas Rao, CEO, Vestian

City-wise Office Market Performance – Q2 2025

Total India Q2 2025 Absorption: 18.79 Mn sq. ft.
Total New Supply: 14.7 Mn sq. ft.

Highlights & Insights

Flex Spaces on the Rise

• Grew 68% QoQ, now 14% share in Q2 vs. 9% in Q1
• Southern cities = 80% of flex space leasing
• Preferred by startups, SMEs, and hybrid-model enterprises

IT-ITeS Still the Backbone

• 50% share of leasing
• Strongholds: Yeshwantpur (Bengaluru), Nanakramguda (Hyderabad), Airoli (Mumbai)

Regional Momentum

• South India share in total absorption surged to 59% in Q2 2025, up from 46% in Q1

City Snapshots

• Bengaluru: Bounced back after two weak quarters; highest absorption among all cities
• Chennai: Absorption grew 13% QoQ, aided by massive supply influx
• Hyderabad: Strong quarterly jump of 34%
• Mumbai: Absorption dropped 14% QoQ, despite YoY growth
• Kolkata: Highest absorption in 2 years
• Pune: Sharp drop in leasing but strong new supply
• NCR: Mixed trend – YoY surge but marginal QoQ dip

Market Summary Box

India Office Market – Q2 2025:

Full Year Projection: Likely to cross 75 Mn sq. ft. – highest ever

Gross Absorption: 18.79 Mn sq. ft.

YoY Growth: 10%

QoQ Growth: 5%

Flex Space Growth (QoQ): +68%

Top Sectors: IT-ITeS (50%), Flex (14%)

Top Cities: Bengaluru, Hyderabad, Mumbai

Total H1 2025 Absorption: 36.75 Mn sq. ft. (+21% YoY)

Also Read: Reality Hits Realty Sector Hard

The post IT-ITeS Powers India’s Office Market in Q2 2025; Flex Spaces Gain Traction with 68% Surge appeared first on Square Feat India.