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AWFIS Space Solutions Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

2nd Feb 26

Summary : Awfis reports strong Q3/9M FY26 results, secures enhanced credit for expansion, and strategically divests its Design and Build segment to a wholly-owned subsidiary.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total expenses (9M FY26): INR 11,082.15 million.
  2. Employee benefits expense (9M FY26): INR 987.23 million.
  3. Finance costs (9M FY26): INR 1,398.83 million.
  4. Depreciation and amortisation expense (9M FY26): INR 2,830.36 million.
  5. Consolidated Revenue from operations (9M FY26): INR 10,833.40 million.
  6. Consolidated Total income (9M FY26): INR 11,569.64 million.
  7. Segment: Co-working space (9M FY26): INR 8,953.49 million.
  8. Segment: Construction and fit-out projects (9M FY26): INR 1,879.91 million.
  9. Consolidated Total segment assets (31 Dec 2025): INR 27,627.72 million.
  10. Consolidated Total segment liabilities (31 Dec 2025): INR 22,374.94 million.
  11. Consolidated Paid-up equity share capital (31 Dec 2025): INR 715.09 million.
  12. Loan granted to Awfis Transform Private Limited (WOS) for working capital.
  13. Business Transfer Agreement with Awfis Transform Private Limited (WOS) for Design and Build undertaking.
  14. Both standalone and consolidated unaudited financial results are presented and reviewed.

Corporate Overview

  1. Primarily India, with registered office in New Delhi.
  2. Assessing financial impact of new Labour Codes, currently not material.
  3. Co-working space on rent and allied services (space solutions, mobility, allied services).
  4. Construction and fit-out projects (Transform segment).
  5. Facility management services (Awfis care).
  6. Formal and factual, focused on compliance and growth.
  7. Committed to long-term growth and sustained value creation.
  8. Co-working space on rent and allied services
  9. Construction and fit-out projects
  10. Others (facility management services)
  11. Expanding existing centres and establishing new centres.
  12. Enhanced credit facility of INR 500 million from ICICI Bank for capital expenditures.
  13. Financing existing centre upgrades and establishing new centres.

Risk Factors

  1. Uncertain financial impact of new Labour Codes.
  2. Repayment obligations for enhanced term loan.
  3. Unsecured loan provided to wholly-owned subsidiary.

Key Drivers

  1. Enhanced credit facility for expansion.
  2. Strong Q3/9M FY26 financial performance.
  3. Strategic divestment of Design and Build.
  4. Employee stock options granted to employees.

Auditor’s Report

  1. Unmodified opinion on standalone and consolidated unaudited financial results.
  2. Review of interim financial information, not an audit.
  3. Reliance on other auditors for a subsidiary's financial information.

Board Commentary

  1. Impact of new Labour Codes on financial results.
  2. New Labour Codes effective from November 21, 2025, with rules pending notification.
  3. Approved unaudited financial results for Q3 and 9M ended December 2025.
  4. Approved enhanced credit facilities from ICICI Bank Limited.
  5. Approved grant of loan to Awfis Transform Private Limited (WOS) for working capital.
  6. Approved sale of Design and Build undertaking to ATPL (WOS) for INR 265.91 million.

Corporate Governance

  1. Audit Committee reviewed the unaudited financial results.

Management Discussion & Analysis

Future Strategy

  1. Utilizing enhanced credit for existing and new centre development.
  2. Strategic divestment of Design and Build undertaking to WOS.

Operational Focus Areas

  1. Monitoring and accounting for new Labour Code impacts.
  2. Efficient utilization of enhanced credit facilities.

Performance Drivers

  1. Expansion strategy and capital expenditure for growth.

Risk Control Measures

  1. Assessing and accounting for new Labour Code impacts.
  2. Maintaining a low gearing ratio and strong growth potential.

Critical Risks

  1. Potential financial impact from new Labour Codes.
  2. Repayment obligations for increased debt.