New Delhi — Shares of Awfis Space Solutions Ltd. saw a significant bounce of over 6% during Thursday's trading session, despite having fallen nearly 60% from their all-time high recorded approximately a year ago. The surge followed the coworking space provider's robust financial performance for the September 2026 quarter (Q2 FY27), which has kept brokerage firms optimistic about its future.
Awfis reported a net profit of Rs 30.8 crore, marking a substantial 92.8% year-on-year (YoY) increase. Revenue also climbed by 19.6% YoY, reaching Rs 438.7 crore. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 31% YoY to Rs 174 crore, with margins expanding to 40% during the quarter.
Strong Demand Drives Growth and Profitability
The company's strong operating performance was attributed to healthy demand from enterprise clients, improving occupancy rates, and a growing contribution from value-added services. Capacity additions and increased demand from Global Capability Centres (GCCs) were highlighted as key growth drivers.
Systematix Institutional Equities maintained a 'buy' rating on Awfis, setting a revised target price of Rs 345. They stated, “Awfis is positioned to benefit from sustained enterprise demand, increasing GCC contribution, network expansion and the growing penetration of value-added services. Improving occupancy and operating leverage should support profitability as newer centres mature.”
Analyst Targets and Future Outlook
Nirmal Bang Institutional Equities also maintained its revenue growth estimates at 23% and adjusted EBITDA estimates to Rs 207 crore for FY27E and Rs 277 crore for FY28E. They emphasized robust GCC-led demand and premiumisation as underlying factors for growth, with margin expansion towards 12% and the ramp-up of premium centres being key monitorables.
Among the positive outlooks, Ambit has a 'buy' rating on the stock with an even higher target price of Rs 430, indicating a potential upside of 68% from current levels.
Awfis Space Solutions was listed in May 2024, raising Rs 599 crore from investors at an IPO price of Rs 383 per share. Despite the recent positive momentum, the stock, which closed previously at Rs 256, remains about 33% below its initial public offering price.