Q1 2027 Awfis Space Solutions Ltd Earnings Call

August 13, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Office Space Solutions Limited Q1 FY27 earnings conference call, hosted by Nirmal Bung Institutional Equities. Before we begin, a brief disclaimer: this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call.

Operator: Ladies and gentlemen, good day and welcome to Awfis Space Solutions Limited Q1 FY27 earnings conference call hosted by Nirmal Bang Institutional Equities. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance, and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Arora from Nirmal Bang Institutional Equities.

Speaker #1: These statements are not guarantees of future performance and may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Rahul Kundani, from Nirmal Bung Institutional Equities. Thank you, and over to you, sir.

Operator: Thank you, and over to you, sir.

Speaker #2: Thank you, Palak. Good evening, everyone. On behalf of Nirmal Bang Institutional Equities, I welcome you all to the Q1 FY27 earnings call of Awfis Space Solutions Limited.

Rahul Arora: Thank you, Palak. Good evening, everyone. On behalf of Nirmal Bang Institutional Equities, I welcome you all to the Q1 FY27 earnings call of Awfis Space Solutions Limited. The management is represented by Mr. Amit Ramani, Chairman and Managing Director, Mr. Sumit Lakhani, CEO, Mr. Sumit Rochlani, the CFO. I will now hand over to the management for their opening remarks, after which we will open the floor for Q&A. Over to you, sir.

Speaker #2: The management is represented by Mr. Amit Ramani, Chairman and MD; Mr. Sumit Lakhani, CEO; and Mr. Sumit Roshlani, CFO. I will now hand over to the management for their opening remarks, after which we will open the floor for Q&A.

Speaker #2: Over to you, sir.

Speaker #3: Thank you, Rahul. Thank you, and good evening, everyone. A very warm welcome to all of you for joining us on the call today. I'm joined by Mr. Sumit Lakhani, our CEO; Mr. Sumit Roshlani, our Chief Financial Officer; and our Investor Relation Advisor from SGA.

Amit Ramani: Thank you, Rahul. Thank you and good evening, everyone. A very warm welcome to all of you for joining us on the call today. I am joined by Mr. Sumit Lakhani, our CEO, Mr. Sumit Rochlani, our Chief Financial Officer, and our investor relation advisor from Strategic Growth Advisors. Our Q1 FY27 results presentation has been uploaded on the exchanges, and I hope you have had a chance to review it. Before I get into our performance, I want to spend a moment on the broader landscape because the momentum we are building on continues to strengthen. India's office market delivered its strongest H1 on record H1 2026, with gross leasing of approximately 43 million square feet, up 5% year-on-year. GCCs remains the single biggest driver of the demand, leasing 16.5 million square feet and growing 38% year-on-year, and now accounting for almost 38% of the total office leasing in the country.

Speaker #3: Our Q1 FY27 results presentation has been uploaded on the exchanges, and I hope you've had a chance to review it. Before I get into our performance, I want to spend a moment on the broader landscape because the momentum we are building on continues to strengthen.

Speaker #3: India's office market delivered its strongest first half on record H1 2026 with gross leasing of approximately $43 million square feet, up 5% year on year, GCCs remained the single biggest driver of the demand, leasing $16.5 million square feet and growing 38% year on year, and now accounting for almost 38% of the total office leasing in the country.

Amit Ramani: GCCs remains the single biggest driver of the demand, leasing 16.5 million square feet and growing 38% year-on-year, and now accounting for almost 38% of the total office leasing in the country.

Speaker #3: Flexible workspace operator posted their strongest half-year performance yet, leasing 8.4 million square feet—a 55% increase over H1 2025—marking the highest ever half-yearly volume the segment has recorded.

Amit Ramani: Flexible workspace operators posted their strongest half-year performance yet, leasing 8.4 million square feet, a 55% increase over H1 2025 and the highest ever half yearly volume the segment has recorded. India's GCC ecosystem itself has now crossed 2,100 centers, generating nearly USD 100 billion in revenue, with installed talent exceeding 2.3 million people and accounting for over 40% of India's commercial real estate leasing. The AI wave continues to accelerate this. India now ranks number 1 globally in AI hiring intensity across GCC market, and GCCs are increasingly choosing India not just as a cost destination, but as a genuine innovation and product hub. This plays directly to our strengths across GCCs, managed office, and co-working alike. Starting with performance highlights for this quarter, we are pleased to report another quarter of strong execution.

Speaker #3: India's GCC ecosystem itself has now crossed 2,100 centers, generating nearly $100 billion in revenue, with installed talent exceeding 2.53 million people and accounting for over 40% of India's commercial real estate leasing.

Speaker #3: The AI wave continues to exaggerate this. India now ranks number one globally in AI hiring intensity across GCC markets, and GCCs are increasingly choosing India not just as a cost destination, but as a genuine innovation and product hub.

Speaker #3: This plays directly to our strengths across GCCs managed office and coworking alike. Starting with performance highlights for this quarter, we are pleased to report another quarter of strong execution, revenue grew by 27% year on year, to $425 crores, while EBITDA increased 28% to $162 crores, with EBITDA margin expanding to 38.2%, profit before tax stood at $24 crores, and we continue to deliver industry-leading capital efficiency with a ROCE of 55%.

Amit Ramani: Revenue grew by 27% year-on-year to INR 425 crore, while EBITDA increased 28% to INR 162 crore, with EBITDA margin expanding to 38.2%. Profit before tax stood at INR 24 crore, and we continue to deliver industry-leading capital efficiency with a ROCE of 55%. Our co-working business grew 27% year-on-year, driven by sustained demand from enterprises and Global Capability Centers. Alongside the continued premiumization of our portfolio, the GCCs and Fortune 100 companies have become a structural part of our client base. Today, we serve 100 plus unique GCC clients, contributing 24% of our rental revenue, up from smaller base just a few years ago, with additional mandate already secured and expected to commence operations over the coming quarters. Our Awfis Transform business, Construction Fit Out Solution, delivered 25% year-on-year growth, supported by a healthy pipeline of projects from large enterprises and GCCs.

Speaker #3: Our coworking business grew 27% year-on-year, driven by sustained demand from enterprises and global capability centers. Alongside the continued permanentization of our portfolio, the GCCs and Fortune 100 companies have become a structural part of our client base.

Speaker #3: Today, we serve 100-plus unique GCC clients, contributing 24% of our rental revenue, up from a smaller base just a few years ago, with additional mandates already secured and expected to commence operations over the coming quarters.

Speaker #3: Our transformed business—construction and fit-out solutions—delivered 25% year-on-year growth, supported by a healthy pipeline of projects from large enterprises and GCCs, particularly those expanding into new geographies or consolidating operations into hybrid, technology-enabled workplaces.

Amit Ramani: Particularly those expanding into new geographies or consolidating operations into hybrid technology-enabled workplaces. This business has evolved well beyond its in-house capability. A shift I will come back to shortly and is now contributing meaningfully to revenue growth while accelerating project execution across our portfolio. Let me walk you through the five growth engines we outlined last quarter, each of which continues to strengthen the business. GCC demand environment remains robust, led by enterprises and Global Capability Centers expanding their footprint across India. As clients increasingly prioritize high-quality workspace in prime business districts, our focus on premium gradable assets continues to position us well to capture this opportunity. The GCC client lifecycle at Awfis follows a predictable pattern. Clients typically enter at 25 to 50 seats, expand to 100 to 300 seats as operations mature, and increasingly move into managed office mandates over time.

Speaker #3: This business has evolved well beyond its in-house capability, a shift it will come back I'll come back to shortly, and is now contributing meaningfully to revenue growth while accelerating project execution across our portfolio.

Speaker #3: Let me walk you through the five growth engines we outlined last quarter, each of which continues to strengthen the business. GCC demand environment remains robust, led by enterprises and global capability centers expanding their footprint across India, as clients increasingly prioritize high-quality workspaces in prime business districts.

Speaker #3: Our focus on premium, grade A+ assets continues to position us well to capture this opportunity. The GCC client lifecycle at Awfis follows a predictable pattern: clients typically enter at 25 to 50 seats, expand to 100 to 300 seats as operations mature, and increasingly move into managed office mandates over time.

Speaker #3: This creates long-term revenue visibility, deep stickiness, and rising allied services attached rates as relationships deepen. Premiumized action as a scale during this quarter, we further strengthened our premium supply pipeline by selling a co-branded developer partnership with Malpani Estate for two grade A+ assets in Pune for $1.4 lakh square feet, a first of its kind capital light construct for office in this format.

Amit Ramani: This creates long-term revenue visibility, deep stickiness, and rising allied services attach rate as relationships deepen. Premiumization has scaled during this quarter. We further strengthened our premium supply pipeline by signing a co-branded developer partnership with Malpani Estates for two grade A+ assets in Pune for 1.4 lakh square feet. A first of its kind capital-light construct for office in this format. Malpani Estates is a Pune-based headquartered business group with a legacy of over 100 years and well-established real estate development track record across commercial, residential, and industrial projects in the city. Partnering with a developer of this pedigree gives us confidence in both the quality of the assets and the pace of delivery. We are also finding ultra-premium grade A+ assets in 30,000 to 50,000 square foot bracket, spanning both live and under-construction buildings.

Speaker #3: Malpani Estates is a Pune-based, headquarters business group with a legacy of over 100 years and a well-established real estate development track record across commercial, residential, and industrial projects in the city.

Speaker #3: Partnering with a developer of this pedigree gives us confidence in both the quality of the assets and the pace of delivery. We are also finding ultra-premium, grade A+ assets in the 30,000 to 50,000 square foot bracket, spanning both live and under-construction buildings.

Speaker #3: We now have seven properties in our premium across micro markets, including Hegal, Golf Course, Whitefield, Worli, and two properties live and five under construction.

Amit Ramani: We now have seven properties in our premium across micro-markets, including EGL, Golf Course, Whitefield, Koramangala, and two properties live and five under construction. These additions reinforce our presence in high-demand micro-markets, and are expected to command pricing of which is 30% to 50% higher than our existing portfolio, providing a strong runway for future revenue growth and margin expansion. As of 30 June, we operated 37 Awfis Gold and Elite by Awfis centers across key enterprise and GCC hubs. Premiumization is translating into structurally better realization, stronger pricing power, longer client relationships, and a high-quality revenue mix, and importantly, the full financial benefit is still ahead of us as these centers continue to mature. We have also continued to build on our wellness and compliance credentials. Awfis remains the first portfolio-wide certified coworking brand with WELL-rated South Asian certified centers.

Speaker #3: These additions reinforce our presence in high-demand micro markets, and I expect it to command pricing of which is 30 to 50% higher than our existing portfolio, providing a strong runway for future revenue growth and margin expansion.

Speaker #3: As of June 30th, we operated 37 Gold and Elite centers across key enterprise and GCC hubs. Premiumization is translating into structurally better realization, stronger pricing power, longer client relationships, and a high-quality revenue mix. Importantly, the full financial benefit is still ahead of us.

Speaker #3: These centers continue to mature. We have also continued to build on our wellness and compliance credentials; Awfis remains the first portfolio-wide certified coworking brand, with WELL ratings now spanning 35 centers.

Speaker #3: Our premium footprint now spans key GCC hubs, including all seven Tier 1 cities, giving us presence exactly where premium demand sits. These centers are increasingly the front door for enterprise conversion, large managed office mandates, and high allied service attachments.

Amit Ramani: Our premium footprint now spans key GCC hubs, including all seven Tier 1 cities, giving us presence exactly where premium demand sits. These centers are increasingly the front door for enterprise conversion, large managed office mandates, and high allied service attachments. Our execution pipeline remains healthy, with firm focus on adding supply where enterprise demand is deepest, not simply expanding for its own sake. The next engine is multi-format supply, and this quarter it is worth talking through in some depth because the strategy is now showing up clearly across all three distinct pillars. The first is our revamped MA, managed aggregation model, which runs into two arms. The first arm is developer partnerships. During the quarter, we signed a partnership with Malpani Estates, a leading Pune-based institutional developer for two grade A+ properties spanning across 1.4 lakh square feet.

Speaker #3: Our execution pipeline remains healthy, with firm focus on adding suppliers where enterprise demand is deepest, not simply expanding for its own sake. The next engine is multi-format supply, and with this quarter, it's worth talking through in some depth because the strategy is now showing up clearly across all three distinct pillars.

Speaker #3: The first is our revamped MA-managed aggregation model, which runs into two arms. The first arm is developer partnerships. During the quarter, we signed a partnership with Malpani Estate, a leading Pune-based developer, for two Grade A+ properties spanning across 1.4 lakh square feet.

Speaker #3: This is a joint branding construct and, to our knowledge, the first-of-its-kind partnership model in the Indian flag. It gives us grade A+ supply at scale with low balance sheet drag, directly strengthening our industry-leading ROCE.

Amit Ramani: This is joint branding construct, and to our knowledge, the first of a kind partnership model in Indian flex. It gives us grade A+ supply at scale with low balance sheet drag, directly strengthening our industry-leading ROCE. The second arm is classic MA, where we apply strict filters to build a distinct product from value format players focused squarely on higher seat realization and higher velocity of sales. We have signed six grade A properties across premium micro-markets, including Viman Nagar in Pune, Thane in Mumbai, Rajarhat in Kolkata, and Sector 62 in Noida, with seven more properties in the pipeline at approximately 3 lakh square feet. The second pillar is selectively. While we are using deliberately for ultra-premium assets, that is capital, not the default. These are signed in 30,000 to 50,000 square foot bracket, live and under construction, and our pipeline here now stands at seven properties.

Speaker #3: The second arm is classic MA where we apply strict filters to build a distinct product from value format players focused squarely on higher seat realization and higher velocity of sale.

Speaker #3: We have signed six grade A properties across premium micro markets including Viman Nagar in Pune, Thane in Mumbai, Rajurhat in Kolkata, and Sector 62 in Noida, with seven more properties in the pipeline at approximately 3 lakh square feet.

Speaker #3: The second pillar is selectively while we are using deliberately for ultra-premium assets, thus capital not the default. These are signed in 30 to 50,000 square foot brackets, live and under live and under construction, and our pipeline here now stands at seven properties.

Speaker #3: The strategy here is to build real depth in five to seven core micro markets and become the number one operator in each rather than spreading ultra-premium supply thin.

Amit Ramani: The strategy here is to build real depth in five to seven core micro-markets and become the number one operator in each, rather than spreading ultra-premium supply thin. The third pillar is partial managed office, our hybrid model that gives us anchor unit economics from day one and coworking yield on the balance of the center. We sign a property only once 50% of the total seats are already committed at an enterprise GCC client, with the remainder filled through coworking. What is particularly encouraging is how broadly this format is resonating. We have now signed partial MO clients spanning across auto components players, a mobility platform, a global retail and leisure group, and a technology talent company. Four very different businesses, one format. That is real validation that this is not a niche solution, it is a genuinely scalable model.

Speaker #3: The third pillar is partial managed office, our hybrid model that gives us anchor unit economics from day one, and co-working yield on the balance of the center.

Speaker #3: We sign a property only once 50% or more of the seats are already committed at an enterprise GCC client, with the remainder filled through co-working.

Speaker #3: What particularly encouraging is how broadly this format is resonating. We have now signed partial among clients spanning across auto components players, a mobility platform, a global retail and luxury group, and a technology talent company.

Speaker #3: Four very different businesses, one format—that's real validation that this isn't a niche solution. It's a genuinely scalable model. Taken together, these three players give us 12,000-plus seats on track in H1 of FY27, and we remain on course to meet our full-year supply guidance.

Amit Ramani: Taken together, these three pillars give us 12,000 plus seats on track in H1 of FY27, and we remain on course to meet our full-year supply guidance. Organic growth is the fourth engine, expansion from within our existing client base and one of the most powerful, often underappreciated levers we have. We are seeing faster sales velocity with higher renewals across smaller cohorts and larger seats expansion from existing client base. This translated into real velocity this quarter. We sold 13,000 seats in Q1 FY27 alone, reinforcing the demand across our client base remains large, long tenure, and structurally sticky. More importantly, we continue to see a natural expansion journey within our client base. A customer may initially enter through coworking, subsequently move into managed office solution, and eventually engage Awfis Transform for design and build-up.

Speaker #3: Organic growth is the fourth engine. Expansion from within our existing client base and one of the most powerful, often underappreciated levels we have. We have seen faster sale velocity with higher renewals across smaller cohorts and larger sheets expansion from existing client base.

Speaker #3: This translated into real velocity this quarter. We sold 13,000 seats in Q1 FY27 alone, reinforcing that the demand across our client base remains large, long-tenure, and structurally sticky.

Speaker #3: More importantly, we continue to see a natural expansion journey within our client base. A customer may initially enter through co-working, subsequently move into managed office solution, and eventually engage office transform for design-based service.

Speaker #3: This creates a powerful compounding effect that strengthens customer relationships while increasing wallet share over time. Alongside this, we continue to actively optimize our portfolio where centers no longer meet our return thresholds or fit our premium portfolio strategy.

Amit Ramani: This creates a powerful compounding effect that strengthens customer relationships while increasing wallet share over time. Alongside this, we continue to actively optimize the portfolio. Where a center no longer meets our returns thresholds or fits our premium portfolio strategy, we exit, redeploy capital into better opportunities. This disciplined portfolio management remains one of the key advantages of our capital light business model. Beyond coworking, our integrated workplace solution platform continues to scale rapidly. This quarter alone, Awfis Transform delivered INR 73 crore in revenue, and we are seeing significantly large mandate as enterprise increasingly engage Awfis for end-to-end workplace solutions. This comes with a INR 200 crore plus in mandate already won for this year. The cross-sell flywheel underpinning is one of the most powerful aspects of the business. 80% of our external D&B revenue comes from clients who first enter through our flex portfolio, and it works the other way, too.

Speaker #3: We exit and redeploy capital into better opportunities. This disciplined portfolio management remains one of the key advantages of our capital-light business model. Beyond co-working, our integrated workplace solution platform continues to scale rapidly.

Amit Ramani: This disciplined portfolio management remains one of the key advantages of our capital light business model. Beyond coworking, our integrated workplace solution platform continues to scale rapidly. This quarter alone, Awfis Transform delivered INR 73 crore in revenue, and we are seeing significantly large mandate as enterprise increasingly engage Awfis for end-to-end workplace solutions. This comes with a INR 200 crore plus in mandate already won for this year. The cross-sell flywheel underpinning is one of the most powerful aspects of the business. 80% of our external D&B revenue comes from clients who first enter through our flex portfolio, and it works the other way, too.

Speaker #3: This quarter alone, Transformed delivered ₹73 crore in revenue, and we are seeing significantly large mandates as enterprises increasingly engage Awfis for end-to-end workplace solutions.

Speaker #3: This comes with ₹200 crore plus in mandates already won for this year. The cross-sell flywheel underpinning it is one of the most powerful aspects of the business.

Speaker #3: 80% of our external DNB revenue comes from clients who first entered through our flex portfolio, and in the works way of and and it works the other way too.

Speaker #3: Transform clients increasingly anchoring for future flex and managed office demand back into the office network. Key wins span a genuine a genuine cross-section of enterprise India a global IT consulting major 3 lakh square feet a renewable energy infrastructure group 1 lakh square feet global e-commerce major 67,000 square feet a diversified conglomerate 65,000 square feet and global BPO customer experience major at 50,000 square feet.

Amit Ramani: Awfis Transform clients are increasingly anchoring first future flex and managed office demand back into the Awfis network. Key wins span a general cross-section of enterprise India, a global IT consulting major, 3 lakh square feet, a renewable energy infrastructure group, 1 lakh square feet, global e-commerce major, 67,000 square feet, a diversified conglomerate, 65,000 square feet, and global BPO customer experience major at 50,000 square feet. Allied services across IT, F&B, transport, business support continue to scale rapidly as high margin layer over our core seat economics. This not only validates the strength of our execution capability, but also expands our addressable market well beyond managed workspaces. Together, these five growth engines of premiumization, GCC demand, multi-format supply, organic growth, and workplace solutions serve as growth pillars to one another rather than standalone initiatives. A premium center attracts a GCC client.

Speaker #3: Allied services across IT, F&B, transport, business support continue to scale rapidly as high margin layer over our core seat economics. This not only validates the strength of our execution capability but also expands our addressable market well beyond managed workspaces.

Speaker #3: Together, these five growth engines of premiumization, GCC demand, multi-format supply, organic growth, and workplace solutions serve as growth pillars to one another rather than standalone initiatives.

Speaker #3: A premium center attracts a GCC client, a GCC client extracting across multiple office locations, and adopts additional workplace services, managed office engagements create opportunities to transform each successful enterprise relationship, strengthens our ability to secure future developed partnerships, and partial managed office opportunities.

Amit Ramani: A GCC client expands across multiple office locations and adopts additional workplace services. Managed office engagements create opportunities to transform. Each successful enterprise relationship strengthens our ability to secure future developer partnerships and partial managed office opportunities. The interconnected flywheel is steadily gaining momentum and provides us with a strong foundation for sustainable long-term growth. Finally, our growth continues to be underpinned by strong financial discipline, and this is worth dwelling on for a moment because the scale of what we have built runs directly counter to how much capital is actually needed. Between Q1 FY25, the quarter we went public, and Q1 FY27, we added 59,000 net seats while investing close to INR 400 crores in new center openings. Over this period, revenue grew by 65%, from INR 258 crores to INR 425 crores, a 28.3% CAGR, while EBITDA grew to 105%, from INR 79 crores to INR 162 crores, a 43.2% CAGR.

Speaker #3: Interconnected flywheel is steadily gaining momentum and provides us with a strong foundation for sustainable long-term growth. Finally, our growth continues to be underpinned by strong financial discipline, and this is worth dwelling on for a moment because the scale of what we have built runs directly counter to how much capital we have actually needed.

Speaker #3: Between Q1 FY25, the quarter we went public, and Q1 FY27, we added 59,000 net seats while investing close to ₹400 crore in new center openings.

Amit Ramani: Between Q1 FY25, the quarter we went public, and Q1 FY27, we added 59,000 net seats while investing close to INR 400 crores in new center openings. Over this period, revenue grew by 65%, from INR 258 crores to INR 425 crores, a 28.3% CAGR, while EBITDA grew to 105%, from INR 79 crores to INR 162 crores, a 43.2% CAGR.

Speaker #3: Over this period, revenue grew by 65%, from ₹258 crore to ₹425 crore, at a 28.3% CAGR, while EBITDA grew by 105%, from ₹79 crore to ₹162 crore.

Speaker #3: A 43.2% CAGR—despite this expansion and after raising only ₹128 crore through our IPO—we continue to maintain a net cash position, with a net debt-to-equity ratio at a negative 0.08 times.

Amit Ramani: Despite this expansion, and after raising only INR 128 crores through our IPO, we continue to maintain a net cash position with a net debt to equity ratio at a negative 0.08 times. Put simply, we have deployed more than three times what we raised at listing entirely through our own operating cash flows without a single subsequent capital raise. The discipline shows up in our cost of capital too. Overall cost of borrowing stands at 9.05%, with the incremental cost of new borrowing even lower at 8.5%. This is a direct reflection of the A plus stable outlook credit rating we carry, and further proof that balance sheet strength we have built is being recognized by lenders, not just visible on paper. This reflects the strength of our operating cash flows and demonstrates that Awfis can continue to scale while maintaining industry-leading capital efficiency.

Speaker #3: Put simply, we have deployed more than three times what we raised at listing entirely through our own operating cash flows without single subsequent capital raise.

Speaker #3: The discipline shows up in our cost of capital too. Overall cost of borrowing stands at 9.05% with an incremental cost of new borrowing even lower at 8.5%.

Speaker #3: It is a direct reflection of an A-plus stable outlook, creating the carry and further proof that the balance sheet strength we have built is being recognized by lenders, not just visible on paper.

Speaker #3: This reflects the strength of our operating cash flows and demonstrates that Awfis can continue to scale while maintaining industry-leading capital efficiency. Looking ahead to the remainder of FY27, we remain on track to add 22,000 to 25,000 seats on a gross basis for the year.

Amit Ramani: Looking ahead to the remainder of FY27, we remain on track to add 22,000 to 25,000 seats on a gross basis for the year. We expect our coworking business to grow by 23% to 25% year on year, with Transform continuing to scale at about 20%, taking overall revenue past INR 1,800 crores for the full year. On profitability, we expect cash EBITDA performance to improve in the second half relative to first, with a full year cash EBITDA in the range of INR 190 to 200 crores. Looking ahead, we remain confident in the long-term opportunity, our expanding premium portfolio, deepening enterprise and GCC relationships, growing workplace solutions platform, proven ability to serve clients across sizes and sectors, and disciplined capital allocation. Together, these will give us multiple levers for sustained growth.

Speaker #3: We expect our co-working business to grow by 23 to 25% year on year, with Transform continuing to scale at about 20%, taking overall revenue past ₹1,800 crore for the full year.

Speaker #3: On profitability, we expect cash EBITDA performance to improve in the second half relative to the first, with full-year cash EBITDA in the range of ₹190 to ₹200 crore.

Speaker #3: Looking ahead, we remain confident in the long-term opportunity. Our expanding premium portfolio deepening enterprise and GCC relationships growing workplace solutions platform proven ability to serve client across sizes and sectors and disciplined capital allocation.

Speaker #3: Together, these will give us multiple levers for sustained growth. As the flexible workplace industry continues to evolve, we believe Awfis is uniquely positioned to capture this opportunity while continuing to deliver sustainable, profitable, and capital-efficient growth.

Amit Ramani: As the flexible workplace industry continues to evolve, we believe Awfis is uniquely positioned to capture this opportunity while continuing to deliver sustainable, profitable, and capital efficient growth. With that, let me hand over the call to Mr. Sumit Lakhani, who will take you through the operational highlights for the quarter in greater detail. Thank you.

Speaker #3: With that, let me hand over the call to Sumit Sakhani who will take you through the operational highlights for the quarter in greater detail.

Speaker #3: Thank you.

Speaker #1: Thank you, Amit. And good evening, everyone. Let me walk you through the operational highlights for Q1 FY27. Our network continued to expand in our discipline manner during the quarter.

Sumit Lakhani: Thank you, Amit, and good evening, everyone. Let me walk you through the operational highlights for Q1 FY 2027. Our network continued to expand in a disciplined manner during the quarter. As of June 2026, Awfis operated 242 centers across 18 cities with another 9 centers under fit-out, taking our total network to 251 centers. Including signed LOIs, our pipeline stands at 267 centers. On the seat front, our operational capacity increased to approximately 159,000 seats, while total capacity, including centers under fit-out, reached 170,000 seats. Including signed LOIs, our total supply stands at over 185,000 seats. During the quarter, we added approximately 4,600 gross seats against roughly 1,800 seats exited as part of our portfolio consolidation. We remain on track to accelerate additions through the balance of the year as our premium pipeline becomes operational.

Speaker #1: As of June 2026, Awfis operated 242 centers across 18 cities, with another 9 centers under fit-out, taking our total network to 251 centers. Including signed LOIs, our pipeline stands at 267 centers.

Speaker #1: On the seat front, our operational capacity increased to approximately 159,000 seats, while total capacity, including centers under fit-out, reached 170,000 seats. Including signed LOIs, our total supply now stands at over 185,000 seats.

Speaker #1: During the quarter, we added approximately 4,600 gross seats against roughly 1,800 seats exited as part of our portfolio consolidation. We remain on track to accelerate additions through the balance of the year as our premium pipeline becomes operational.

Speaker #1: Consistent with our strategy, virtually all our new supply continues to be concentrated in premium grade A assets across high demand micro-markets. During the quarter, our Elite portfolio expanded from 8 to 10 centers, while our Gold portfolio remained at 27 centers, further strengthening our premium offerings for enterprise and GCC clients.

Sumit Lakhani: Consistent with our strategy, virtually all our new supply continues to be concentrated in premium Grade A assets across high-demand micro markets. During the quarter, our Elite portfolio expanded from 8 to 10 centers, while our Gold portfolio remained at 27 centers, further strengthening our premium offerings for enterprise and GCC clients. Before I get into our network metrics, I want to address one development that shaped the quarter's occupancy. One of our enterprise clients with nearly 3,000 seats across 5 centers in 3 cities, consolidated its operations into conventional office space in May 2026, following its acquisition by a multinational company roughly 15 months ago. As a result, occupancy across centers operational for more than 12 months stood at 83%, marginally lower than last quarter, while overall portfolio occupancy held steady at 76%, in line with Q4.

Speaker #1: Before I get into our network metrics, I want to address one development that shaped the quarter's occupancy. One of our enterprise clients with nearly 3,000 seats across five centers in three cities consolidated its operations into conventional office space in 2026 following its acquisition by a multinational company roughly 15 months ago.

Speaker #1: As a result, occupancy across centers operational for more than 12 months stood at 83%, marginally lower than last quarter, while overall portfolio occupancy held steady at 76%, in line with Q4.

Speaker #1: Despite absorbing this one exit, which speaks to the underlying strength of demand across the rest of the portfolio. It's also worth worth remembering that in a business of our scale, one and a half to 2% of inventory naturally churns every month as enterprise clients expand consolidate or relocate.

Sumit Lakhani: Despite absorbing this one exit, which speaks to the underlying strength of demand across the rest of the portfolio. It is also worth remembering that in a business of our scale, 1.5% to 2% of inventory naturally churns every month as enterprise clients expand, consolidate or relocate. This was simply a larger, more concentrated instance of the same pattern. Importantly, the replacement cycle has already begun. We have pre-committed a significant chunk of the vacated capacity, and the balance is seeing healthy traction from enterprises and GCCs evaluating premium workspaces across our network, in several cases, at a better pricing than the existing client was paying. On the demand side, our active client base increased to over 3,600 clients. Client stickiness continues to improve.

Speaker #1: This was simply a larger more concentrated instance of the same pattern. Importantly, the replacement cycle has already begun we have pre-committed a significant chunk of the vacated capacity and the balance is seeing healthy traction from enterprises and GCCs evaluating premium workspaces across our network.

Speaker #1: In several cases, at a better pricing than the existing client was paying. On the demand side, our active client base increased to over 3,600 clients.

Speaker #1: Client stickiness continues to improve. The weighted average client tenure has increased to 38 months, while the average lock-in tenure has improved to 26 months, providing greater revenue visibility and reinforcing the resilience of our business model.

Sumit Lakhani: The weighted average client tenure has increased to 38 months, while average lock-in tenure improved to 26 months, providing greater revenue visibility and reinforcing the resilience of our business model. Our enterprise-led positioning remains intact. Corporates and MNCs continue to account for approximately 64% of our client base, supported by a well-diversified mix of SMEs and startups. Sector diversification also remains healthy, with technology, professional services, and BFSI continuing to be key demand drivers during the quarter. Our client base remains deliberately diversified by design rather than by chance. By industry, technology accounts for 39% of our client mix, professional services 21%, manufacturing 12%, BFSI 13%, healthcare and life sciences 5%, with the balance spread across other sectors. No single sector represents an outsized dependency, and our resilient sectors, those less exposed to cyclical downturns, account for over 40% of the base, insulating occupancy through cycles.

Speaker #1: Our enterprise-led positioning remains intact. Corporates and MNCs continue to account for approximately 64% of our client base, supported by a well-diversified mix of SMEs and startups.

Speaker #1: Sector diversification also remains healthy, with technology, professional services, and BFSI continuing to be key demand drivers during the quarter. Our client base remains deliberately diversified by design rather than by chance.

Speaker #1: By industry technology accounts for 39% of our client mix professional services 21% manufacturing 12% BFSI 13% healthcare and life sciences 5% with the balance spread across other sectors.

Speaker #1: No single sector represents an outsized dependency, and our resilient sectors—those less exposed to cyclical downturns—account for over 40% of the base, insulating occupancy through cycles.

Speaker #1: By domicile 52% of our clients are India headquartered driving faster conversions and short shorter ramp cycles while 43% are North American or European headquartered bringing structured mandates better tenures and higher allied services realizations.

Sumit Lakhani: By domicile, 52% of our clients are India-headquartered, driving faster conversions and shorter ramp cycles, while 43% are North American or European-headquartered, bringing structured mandates, better tenures, and higher allied services realizations. From a portfolio perspective, we continue to maintain a balanced mix across seat cohorts. Large enterprise clients remain an important part of the network, while smaller and mid-sized clients continue to provide occupancy velocity and a healthy funnel for future managed office opportunities. Clients with 500-plus seats account for 37% of our portfolio, our most premium and stickiest segment. Let me also give you a fuller picture of our GCC business. As of 30 June, we serve 100-plus unique GCC clients, contributing 24% of rental revenue across nine cities in India. The parentage skews heavily towards North American.

Speaker #1: From a portfolio perspective we continue to maintain a balanced mix of across seat cohorts. Large enterprise clients remain an important part of the network while smaller and midsize clients continue to provide occupancy velocity and a healthy funnel for future managed office opportunities.

Speaker #1: Clients with 500-plus seats account for 37% of our portfolio, our most premium and stickier segment. Let me also give you a fuller picture of our GCC business.

Speaker #1: As of June 30, we serve 100 plus unique GCC clients contributing 24% of rental revenue across nine cities in India. The parentage have skews heavily towards North American 79% of our GCC clients are North America headquartered with 15% from Europe and remaining 6% from Asia and ANZ.

Sumit Lakhani: 79% of our GCC clients are North America-headquartered, with 15% from Europe and remaining 6% from Asia and ANZ. Our focus remains deliberately mid-market. These are global enterprises, not legacy captives, and we continue to see strong traction from first-time and early-stage GCCs entering India. We hold clear leadership in the micro and nano categories, which is 25 to 100 seats, and we are increasingly winning large GCC mandates too, with multiple mandates over 1,000 seats now closed. The client life cycle here follows a predictable pattern. Client typically enters at 25 to 50 seats in coworking or Awfis Gold Elite formats, expand to 100 to 300-plus seats and into managed office as operations mature, and deepen their allied services attachment as tenures lengthen. This is why GCCs choose Awfis specifically. One platform for launch of operations, expansions, workspace strategy, planning, and Grade A+ fit-outs entirely in-house.

Speaker #1: Our focus remains deliberately mid-market. These are global enterprises, not legacy captives, and we continue to see strong traction from first-time and early-stage GCCs entering India.

Speaker #1: We hold clear leadership in the micro and nano categories which is 25 to 100 seats and we are increasingly winning large GCC mandates too with multiple mandates over 1,000 seats now closed.

Speaker #1: The client life cycle here follows the predictable pattern. Client typically enters at 25 to 50 seats in coworking or gold elite formats expand to 100 to 300 plus seats and into managed office as operations mature and deepen their allied services attachment as tenures lender.

Speaker #1: This is why GCCs choose Awfis, specifically one platform for launch of operations, expansions, workspace strategy planning, and Grade A+ fit-outs, entirely in-house.

Speaker #1: A single partner across IT, FNB, transport, and business support, and longstanding consultant relationships that give us first strike to pitch on new mandates. Overall, the operational indicators continue to move in the right direction.

Sumit Lakhani: A single partner across IT, F&B transport, and business support, and long-standing consultant relationships that give us first right to pitch on new mandates. Overall, the operational indicators continue to move in the right direction. We are expanding our premium network in a disciplined manner. Occupancy has held firm despite a one-off client event. Client relationships are becoming deeper and stickier, and the quality of demand remains robust. Combined with our healthy supply pipeline, we believe the business is well positioned to sustain its growth momentum over the coming quarters. With that, I will hand over the call to Mr. Sumit Rochlani for the financial update.

Speaker #1: We are expanding our premium network in a disciplined manner. Occupancy has held firm despite a one-off client event. Client relationships are becoming deeper and stickier, and the quality of demand remains robust.

Speaker #1: Combined with our healthy supply pipeline, we believe the business is well positioned to sustain its growth momentum over the coming quarters. With that, I'll hand over the call to Sumit Rushlani for the financial update.

Speaker #2: Thank you, Sumit, and good evening, everyone. Let me walk you through the financial performance for Q1 FY27 in detail. At the outset, from this quarter onwards, we have introduced cash EBITDA as an additional financial metric to provide investors with greater visibility into the underlying operating performance of the business.

Sumit Rochlani: Thank you, Sumit, and good evening, everyone. Let me walk you through the financial performance for Q1 FY27 in detail. At the outset, from this quarter onwards, we have introduced cash EBITDA as an additional financial metric to provide investors with greater visibility into the underlying operating performance of our business. Over the last few quarters, we have received feedback and suggestions from investors and analysts covering our sector to use cash EBITDA as one of the key metrics. Therefore, we have adopted it as one of the financial metrics going forward to give investors additional view on the financial performance over and above the reported Ind AS financials and other metrics that we have been reporting. The said metric has been reported on slide number 20.

Speaker #2: Over last few quarter quarters we have received feedback and suggestions from investors and analysts covering a sector to use cash EBITDA as one of the key metrics.

Speaker #2: Therefore we have adopted it as one of the financial metric going forward. To give investors additional view on the financial performance over and above the reported in their financials and other metric that we have been reporting.

Speaker #2: The set metric has been reported on slide number 20 for the current quarter. The metric and related reconciliation and adjustments have been validated by NSKA & Associates LLP, which is part of the PDO network.

Sumit Rochlani: For the current quarter, the metric and related reconciliation and adjustments have been validated by MSKA & Associates LLC, which is part of BDO network, under an agreed-upon procedures engagement as a good corporate governance practice. For the quarter, reported revenue from operations as per Ind AS stood at INR 425 crores, registering a growth of 27% year on year. Within this, our coworking and allied services segment grew 27% year on year to INR 352 crores. The construction and fit-out services, our Awfis Transform business, grew 25% year on year to INR 73 crores. Moving to profitability, reported EBITDA as per Ind AS was INR 152 crores, up 28% year on year. The profit before tax as per Ind AS stood at INR 24 crores, up 135% year on year.

Speaker #2: Under an agreed-upon procedures engagement as a good corporate governance practice, quarter-on-quarter reported revenue from operations as per NDS stood at ₹425 crore.

Speaker #2: Registering a growth of 27% year on year. Within this a coworking and allied services segment grew 27% year on year to 352 crore. The construction and fit out services are transformed business grew 25% year on year to 73 crore.

Speaker #2: Moving to profitability reported EBITDA as per NDS was 162 crore up 28% year on year. The profit before tax as per NDS showed at 24 crore up 135% year on year.

Speaker #2: Referring to slide 20 of the presentation under NDS 116 certain long-term lease arrangements are accounted for as finance leases which impacts the timing of revenue recognition.

Sumit Rochlani: Referring to slide 20 of the presentation, under Ind AS 116, certain long-term lease arrangements are accounted for as finance leases, which impact the timing of revenue recognition. Adjusting for these accounting treatments, normalized revenue stood at INR 437 crores, reflecting a healthy 35% growth year on year. To better reflect the operating performance of the business, we adjust for finance lease accounting, deduct the actual cash lease rentals paid during the quarter, and exclude non-cash ESOP expense. On this basis, cash EBITDA stood at INR 44 crores, up approximately 34% year on year, with the cash EBITDA margins at 10.1%. Operating PBT stood at INR 11 crores compared to INR 10 crores in the corresponding quarter last year. Our balance sheet remains in excellent shape. We continue to maintain a net cash position with net debt to equity at 0.08x, reinforcing the financial discipline that underpins our growth.

Speaker #2: Adjusting for these accounting treatments, normalized revenue stood at ₹437 crore, reflecting a healthy 35% growth year on year. To better reflect the operating performance of the business, we adjust for finance lease accounting, deduct the actual cash lease rentals paid during the quarter, and exclude non-cash ESOP expense.

Speaker #2: On this basis, cash EBITDA stood at ₹44 crore, up approximately 34% year-on-year, with the cash EBITDA margins at 10.1%. Operating PBT stood at ₹11 crore compared to ₹10 crore in the corresponding quarter last year.

Speaker #2: Our balance sheet remains in excellent shape. We continue to maintain a net cash position, with net debt to equity at 0.08x, reinforcing the financial discipline that underpins our growth.

Speaker #2: On returns, ROCE is sustained at 55%. Just as importantly, our revenue to gross fixed assets ratio came in at 1.5 times. Overall, the quarter reflects continued healthy growth in our core business and improving profitability.

Sumit Rochlani: On the returns, ROCE sustained at 55%. Just as importantly, our revenue to gross fixed assets ratio came in at 1.5 times. Overall, the quarter reflects continued healthy growth in our core business and improving profitability. With that, we conclude our opening remarks and would like to open the floor for questions and answers.

Speaker #2: With that we conclude our opening remarks and would like to open the floor for questions and answers.

Speaker #3: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on the touchstone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press Star and One on their touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and Two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shamit Ashar from Ambit. Please proceed with your question.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #3: Ladies and gentlemen we'll wait for a moment while the question queue assembles. The first question is from the line of Shamith Azhar from Ambit.

Speaker #3: Please proceed with your question.

Speaker #4: Hello am I audible? Yeah hi thanks for the opportunity. So I wanted to know if you look at your Q4 and Q1 so your rental payments have increased from 85 to 130 odd crores.

Shamit Ashar: Hello, am I audible?

Operator: Yes, sir.

Shamit Ashar: Yeah. Hi. Thanks for the opportunity. I wanted to know if you look at your Q4 and Q1, your rental payments have increased from INR 85 to INR 130 odd crores, and seats have been, the gross net seat additions have been in the range of 3,000 to 4,000. Can you please explain the jump in the rental payments? Secondly, I want to know that is your strategy of going for straight lease benefiting you because clearly the margins aren't showing up. Will you continue to go more towards straight lease? Even if you look at your occupancies, they are kind of constant in the range of 76% since the last two, three quarters. Please, could you just highlight, what is going on, what is your strategy going forward?

Speaker #4: And seats have been I mean the gross net seat additions have been in the range of 3,000 to 4,000. So can you please explain the jump in the rental payments and secondly I want to know that is your strategy of you know going for straight lease benefiting you because clearly the margins aren't showing up.

Speaker #4: So will you continue to go more towards straight lease because even if you look at your occupancies they are kind of constant in the range of 76% in the since the last two three quarters. please could you just you know highlight I mean what what is going on what is your strategy going forward.

Sumit Rochlani: Sure. To answer your first question, you're taking these numbers from the cash. Part of our rental expenses are also disclosed in the other expenses. The other expenses, if you look at the detailed financials, they're available. The rental expenses in the other expenses have not grown. Rather, they are flat.

Amit Ramani: Sure. To answer your first question, you're taking these numbers from the cash. Part of our rental expenses are also disclosed in the other expenses. The other expenses, if you look at the detailed financials, they're available. The rental expenses in the other expenses have not grown. Rather, they are flat.

Speaker #2: sure to answer your first question your take these numbers from the cash flow. part of our rental expenses are also disposed in the other expenses.

Speaker #2: the other expenses if you look at the detailed financials so if they're available

Speaker #2: Flat. So, the other rental expenses that are part of 'Other Expenses' primarily include the rental SOP paid as profits on the managed aggregation model.

Amit Ramani: So the other rental expenses that are part of other expenses primarily includes the rental paid as profits on managed aggregation model, as well as rental paid on the lease transactions where we were out of a lock-in, which means that we were not doing the accounting for those leases under Ind AS 116, and rental was being accounted as it would get accounted in three in the S era. If you now consider both, then the growth percentage is in line with the growth in the fees. I hope I answered your question. The second part of your question, let me take that. The blended occupancy obviously has held flat at 36%, matching the Q4, despite us having to absorb one large enterprise consolidation, which Sumit mentioned. That is the sign of real underlying trend, not a stumble.

Speaker #2: And as well as rental paid on the lease transactions where we were out of lock in which means that we were not doing the accounting for those leases under 116 and rental was being accounted as it would get accounted in pre NDS era.

Speaker #2: So if you now consider both, then this is in line with the growth in the seats. I hope I answered your question.

Speaker #4: The second part of your question let me take that. so the blended occupancy obviously has held flat at 76% matching the Q4 despite us having to absorb a one large enterprise consolidation with so much mentioned.

Speaker #4: That's the sign of real underlying strength, not a stumble. The mature cohort dipped marginally to 83% from 84%, entirely attributable to that same one-off exit.

Amit Ramani: The mature cohort dipped marginally to 83% from 84%, entirely attributable to that same one-off exit. We have already pre-committed significant chunk of the vacated capacity through signed agreements, not just conversation, and several cases are at a better pricing than before. That gives us real confidence in recovery paths than just hope here. Had that single client not exited, we would have been on track to show clear improvement across both the occupancy metrics.

Speaker #4: We have already pre-committed significant chunk of the vacated capacity through signed agreements not just conversation and several cases at a better pricing than before.

Speaker #4: That gives us real confidence in recovery paths, as in just hope here. And had that single client not exited, we would have been on track to show clear improvement across both the occupancy metrics.

Speaker #3: Hello Samit sir is your is your question answered?

Operator: Hello, Sumit Sir. Is your question answered?

Operator: Hello, Shamit Sir. Is your question answered?

Speaker #4: Hello yeah yeah yeah and I also wanted to know like you know managed aggregation model is like a core strength and since last quarter I mean even it was 62% and now it's I think 57%.

Shamit Ashar: Hello. Yeah. I also wanted to know, managed aggregation model is your core strength, and since last quarter, even it was 62%, and now it is, I think 57%. Now, just want to know that will you keep continue doing more of straight lease going forward for the rest of the quarters?

Speaker #4: So now, I just want to know, will you continue doing more straight lease going forward for the rest of the quarters?

Speaker #2: So you know managed aggregation continues to be an important part of our supply strategy. It's accounting for 57 of our current supply as you mentioned.

Amit Ramani: Managed aggregation continues to be an important part of our supply strategy, accounting for 57% of our current supply, as you mentioned. We are not fixated on the MA split versus the SL split. We let the market and the specific opportunity decide this for us. We are becoming obviously more selective overall, choosing whichever structure, MA, developer partnership, or selective lease that delivers the best realization for us. The risk profile for a given asset in a micro market, rather than forcing every deal into a one lease type. This is not a shift from MA, let me just be clear here. It is broadening of the playbook. Commercial real estate obviously moves in cycles, and the right lease structure for a given micro market or an asset changes as those cycles do.

Speaker #2: We are not fixated on the MA split versus the SL split. We let the market and the special opportunity kind of decide this for us.

Speaker #2: We are becoming obviously more selective overall choosing whichever structure MA developer partnership or selective lease that delivers the best realization for us. The risk profile for a given asset on a micro market rather than forcing every deal into a one lease type this is not a shift from MA let me just be clear here it is broadening of the playbook commercial listed obviously moves in cycles and the right lease structure for given micro market or an asset changes or as those cycles do.

Speaker #2: So straight lease is used to intentionally is used intentionally reserve deliberately for handful of ultra premium anchor value micro markets and within our MA model we are utilizing both developer partnership and classic MA to secure quality at low risk supply together.

Amit Ramani: Strategic is reduced intentionally, reserved deliberately for a handful of ultra-premium anchor value micro markets, and within our MA model, we are utilizing both developer partnerships and classic MA to secure quality at low risk supply together. Together, these give us more tools to capture demand profitably across a wide range of situations.

Speaker #2: Together, these give us more tools to capture demand profitably across a wide range of situations.

Speaker #4: Got it. And just one last small question. What would be your overall capex guidance for FY27?

Shamit Ashar: Got it. And just one last small question. What would be your overall CapEx guidance for FY 2027?

Speaker #2: So that capex guidance would be roughly in the range of about 200 to 210.

Amit Ramani: That CapEx guidance would be roughly in the range of over INR 200 to INR 210.

Speaker #4: Okay thanks and all the best for the remaining quarters.

Shamit Ashar: Okay, thanks. All the best for the remaining quarters.

Speaker #2: Thank you Shamith.

Amit Ramani: Thank you, Sumit.

Amit Ramani: Thank you, Shamit.

Speaker #3: Thank you, sir. The next question is from the line of Yashas Gil Gilganchi from Bank of Baroda Capital Markets. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Yashas Gilganchi from Bank of Baroda Capital Markets. Please proceed with your question.

Speaker #5: hi team. Thank you for taking my questions. I'd like to know more about your developer partnerships. So to start with at what stage of construction do you find these deals more specifically from the date of signing?

Yashas Gilganchi: Hi, team. Thank you for taking my question. I would like to know more about your developer partnerships. To start with, at what stage of construction do you sign these deals? More specifically, from the date of signing, when is a typical office asset expected to be delivered?

Speaker #5: When is a typical office asset expected to be delivered?

Amit Ramani: So these are different across various deals. Specifically with respect to the developer partnerships, and why we are calling it partnerships and a simple supply acquisition, is because this entails a situation where we are making the supply acquisition risk-averse and capital efficient, where the developer is also investing the capital into the fit outs, as well as giving us more preferable kind of rent fees, as well as participating in the overall profit share. Broadly, the way we are looking at it, a couple of these properties will go live over a period of 6 months to next 12 months, where these properties will go live. And these I am talking about are the buildings going live. So our centers could go live between 9 to 15 odd months, kind of scenario.

Speaker #4: so these are different across various deals. Now specifically with respect to the developer partnerships which are and we are why we are calling it partnerships in a simple supply acquisition is because this entails a situation where we are making the supply acquisition risk averse and capital efficient.

Speaker #4: Where the developer is also investing into the the cap the capital into the the tradeouts as well as giving us more preferable kind of rent fees as well as participating in the overall profit share.

Speaker #4: Broadly the way we are looking at it couple of these properties will go like over a period of six months to next 12 months.

Speaker #4: So these where these properties will go like and these I'm talking about are the buildings going like so our centers could go like between nine to 15 odd months kind of scenario.

Speaker #4: Second, in terms of a couple of premium straight lease centers, which we are signing across various Grade A properties, a few of them we are signing up are in ready-to-move properties, but a few of them we are signing across in various forward leasing structures where the buildings are under various stages of construction.

Amit Ramani: Second, in terms of a couple of premium straight lease centers, which we are signing across various grade A properties. Few of them we are signing up are in ready-to-move properties, but few of them we are signing across in various forward leasing structures, where the buildings are under various stages of construction. As you know, we are on the path of working across a premium business model. So we are also taking a phase-wise approach of taking up these properties, but the idea is to lock the grade A+ supply across the no-brainer kind of micro markets right now. And these, we are signing up with properties which are going live from next 6 odd months to next 24 odd months. So, that has been the kind of a strategy from our side.

Speaker #4: So as you know we are on the path of you know working across premium business model so we are also taking a phase wise approach of picking up these properties but the idea is to lock the grade A plus supply across the no no brainer kind of micro markets right now and these we are signing up with properties which are going like from next six odd months to next 24 odd months.

Speaker #4: So that's been the kind of a strategy. from our side. But the core is we want to lock these strategic supply across the key micro markets across the new upcoming assets.

Amit Ramani: The core is, we want to lock the strategic supply across the key micro markets, across the new upcoming assets.

Yashas Gilganchi: Oh, thank you. That is really clear. Just a little bit more on it. Furthermore, what do Awfis' typical capital contributions to these projects look like, over the 6 to 12 months that you mentioned? Lastly, under these partnerships, how long does Awfis have access to the space?

Speaker #5: Just a little bit more on this. For the 'more', what do offices' typical capital contributions to these projects look like? Like, over the six to twelve months that you mentioned.

Speaker #5: And lastly under these partnerships how how long does office have access to the space?

Speaker #4: Sorry the second part of it along the lease can you repeat the second part of your question?

Sumit Lakhani: Sorry, the second part of it. Can you repeat the second part of your question?

Speaker #5: Yes sure. The under such partnerships how long does office have access to the space to lease out let's say to your tenants?

Yashas Gilganchi: Yes, sure. Under such partnerships, how long does Awfis have access to the space to lease out, let's say, to your tenants?

Speaker #4: so in terms of we are capital contribution ranges from about of around fifty odd percent of the overall fit out value. day one it's a small kind of a security deposit which gets committed till the property goes life.

Sumit Lakhani: In terms of the capital contribution, it ranges from around 50% of the overall fit-out value. Day 1, it's a small security deposit, which gets committed till the property goes live. From that perspective, it's not very capital-intensive day 1 at the time of signing. In terms of clients, we look at marketing these properties almost about four to six months before the center goes live.

Speaker #4: So from that perspective it's not very capital intensive day one at a time of signing. in terms of clients we look at marketing these properties almost about you know four to six months before the center goes live.

Speaker #5: Okay. Yeah.

Yashas Gilganchi: Okay.

Speaker #4: Does that answer your question? No actually just on the last bit like I I meant to ask let's say you sign this partnership and you get access to the space.

Sumit Lakhani: Does that answer your question?

Yashas Gilganchi: Yeah. No, actually, just on the last bit, I meant to ask, let's say you sign this partnership and you get access to the space. How long do you have access to the space? What is your

Speaker #4: How long do you have access to the space? Like, what is your, uh, tenure with the landlord?

Sumit Lakhani: We have

Yashas Gilganchi: tenure with the landlord?

Speaker #5: Okay. So our so we are signing up nine term nine year kind of you know agreements with these properties the nine year kind of tenure around on these properties.

Sumit Lakhani: We are signing up nine-year agreements with these properties, a nine-year tenure on these properties. Our access starts from the date of signing, where the property is under construction, and the nine-year starts from the day when the OC of the building is received, and we get the possession of the property.

Speaker #5: And our excess starts from the date of signing. Where the properties under construction. And the nine year starts from the the day when the OC of the building is received and we get the position of the property.

Speaker #5: Got it. Thanks again.

Yashas Gilganchi: Got it. Thanks again.

Speaker #4: Thanks.

Sumit Lakhani: Thanks.

Speaker #3: Thank you sir. Ladies and gentlemen to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time.

Operator: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1 now. Participants who wish to ask questions may please press star and 1 at this time. The next question is from the line of Shrinik Mehta from IndoAlex Wealth. Please proceed with your question.

Operator: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1 now. Participants who wish to ask questions may please press star and 1 at this time. The next question is from the line of Shrenik Mehta from IndoAlex Wealth. Please proceed with your question.

Speaker #3: The next question is from the line of Srinik Mehta from Indo Alps Wealth. Please proceed with your question.

Speaker #5: Yeah thank you.

Shrinik Mehta: Yeah, thank you. My question here is, the chargeable area went from around almost 5 million square feet to 8.4 million square feet over the last 8 quarters. It is up almost 68%. Whereas the revenue went up from INR 258 crore to INR 425 crore, it is up only 65%. So the revenue is growing slower than the area. So per square feet, revenue is probably stable to declining. Can you give us a little bit idea about the operational seat per month cost between, say, Q1 FY25, Q1 FY26, and Q1 FY27, and some insight into what is really leading to this fairly stable kind of a revenue on a per square foot basis?

Shrenik Mehta: Yeah, thank you. My question here is, the chargeable area went from around almost 5 million square feet to 8.4 million square feet over the last 8 quarters. It is up almost 68%. Whereas the revenue went up from INR 258 crore to INR 425 crore, it is up only 65%. So the revenue is growing slower than the area. So per square feet, revenue is probably stable to declining. Can you give us a little bit idea about the operational seat per month cost between, say, Q1 FY25, Q1 FY26, and Q1 FY27, and some insight into what is really leading to this fairly stable kind of a revenue on a per square foot basis?

Speaker #4: So my question here is: the chargeable area went from around almost 5,030,000 to 8.4 million square feet over the last eight quarters.

Speaker #4: It's up almost 68%. Whereas the revenue went up from ₹258 crores to ₹425 crores. It's up only 65%. So the revenue is growing slower than the area. Super square feet revenue is probably stable to declining.

Speaker #4: So can you give us little bit idea about the operational seat per month cost between say Q1 FY twenty-five Q1 FY twenty-six and Q1 FY twenty-seven?

Speaker #4: And some insight into what is really leading to this fairly stable kind of revenue on a per square foot basis.

Speaker #5: Sure. So Srinik I would like to correct you around on this analysis where sixty-eight percent versus sixty-five percent. because one this chargeable area also includes the seats which are under fit out.

Sumit Lakhani: Sure. Shrinik, I would like to correct you around on this analysis, where 68% versus 65%, because 1, this chargeable area also includes the seats which are under fit out. So those seats are not live. But it is an interesting kind of metric which you have put across and I would want to highlight 1 point. The net seats in Q1 of FY25 were about 100,000, which at the end of Q1 FY27, are 159,000. So which is 59% is the net operational seat increase. Now corresponding to this 59% net seat increase, we had a 65% kind of a revenue growth. So from that perspective, we are doing well. And on top of it, if you factor in 76% as a blended occupancy, so revenue growth clearly is going to outgrow in terms of the overall seat growth as well.

Sumit Lakhani: Sure. Shrenik, I would like to correct you around on this analysis, where 68% versus 65%, because 1, this chargeable area also includes the seats which are under fit out. So those seats are not live. But it is an interesting kind of metric which you have put across and I would want to highlight 1 point. The net seats in Q1 of FY25 were about 100,000, which at the end of Q1 FY27, are 159,000. So which is 59% is the net operational seat increase. Now corresponding to this 59% net seat increase, we had a 65% kind of a revenue growth. So from that perspective, we are doing well. And on top of it, if you factor in 76% as a blended occupancy, so revenue growth clearly is going to outgrow in terms of the overall seat growth as well.

Speaker #5: So those seats are not life. But but it's an interesting kind of metrics which you put across. And I would want to highlight one point.

Speaker #5: The net seats in Q1 of FY twenty-five were about hundred thousand. which at the end of Q1 FY twenty-seven are hundred fifty-nine thousand. So which is fifty-nine percent is the net operational seat increase.

Speaker #5: Now corresponding to this fifty-nine percent net seat increase we had a sixty-five percent kind of a revenue growth. So from that perspective we are doing well.

Speaker #5: and on top of it if you factor in seventy-six percent is a blended occupancy. So revenue growth clearly is going to you know outgrow in terms of the overall seat growth and as well.

Speaker #4: Okay. But in this period the I mean you also increased the number of whole centers your thirty-seven whole centers and elite centers. Where probably the cost per seat would be much higher right?

Shrinik Mehta: Okay. But in this period, Amit, you have also increased the number of Awfis Gold centers. You have 37 Awfis Gold centers and Elite by Awfis centers, where probably the cost per seat would be much higher, right? In the other markets or other setups, do you see almost a flat prices? Because the market is so robust, we should expect price to go up on a per square foot basis, right? Much more.

Shrenik Mehta: Okay. But in this period, Amit, you have also increased the number of Awfis Gold centers. You have 37 Awfis Gold centers and Elite by Awfis centers, where probably the cost per seat would be much higher, right? In the other markets or other setups, do you see almost a flat prices? Because the market is so robust, we should expect price to go up on a per square foot basis, right? Much more.

Speaker #4: In the other markets or other setups do you see almost a flat prices? Because the market is so robust. I mean we we we should expect price to go up on a per square feet basis right?

Speaker #4: Much more.

Speaker #5: So, if you look at the overall seat realization trend, even over the last couple of quarters—let's say eight quarters also—you would see the price per seat as a trend almost going up almost every quarter.

Sumit Lakhani: If you look at the overall seat realization trend, even over the last couple of quarters, let's say 8 quarters also, you would see the price per seat as a trend almost going up almost every quarter. Our business inherently, even in a single kind of a center from same kind of a customer also, gives us an opportunity to have at least 4% to 7% kind of contractual escalation from the same customer. From that perspective, we are seeing price realization increasing. Second, last 12 to 14 months, the kind of focus we had with respect to getting more premium centers on board, that is also reflecting in the overall price realization.

Speaker #5: See our business inherently even in a single kind of a center from same kind of a customer also gives us an opportunity to have at least you know four to seven percent kind of contractual escalation from the same customer.

Speaker #5: So from that perspective we are seeing price realization increasing. Second last twelve to fourteen months the kind of focus we had with respect to getting more premium centers on board.

Speaker #5: that's also reflecting in the overall you know price realization. So it has I don't have a clear number but at least in from Q1 of FY twenty-five to Q1 of FY twenty-seven if we would look at the percentage kind of price increase on a seat basis it would look very healthy.

Sumit Lakhani: I do not have a clear number, but at least from Q1 of FY25 to Q1 of FY27, if we would look at the percentage kind of price increase on a seat basis, it would look very healthy. Shrinik, does that answer your question?

Speaker #3: Srinik sir is that answer your question?

Speaker #4: Yes thank you.

Rahul Arora: Yes. Thank you.

Shrenik Mehta: Yes. Thank you.

Speaker #3: Thank you, sir. The next question is from the line of Rahul Kunnani from Nirmal Bank Institutional Equity. Associate, please proceed with your question.

Sumit Lakhani: Thank you, sir. The next question is from the line of Rahul Arora from Edelweiss Institutional Equities. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Rahul Arora from Nirmal Bang Institutional Equities. Please proceed with your question.

Speaker #5: Yeah, I had a couple of questions. The first one was on transformation third-party revenue share, which is at nearly 92% this quarter.

Rahul Arora: Yeah. I had a couple of questions. The first one was on Transform, which is a third-party revenue share, which is at nearly 92% this quarter. What is driving that, and is it sustainable at this level?

Speaker #5: So, what is driving that, and is it sustainable at this level?

Speaker #2: Oh sorry. Can you hear me? Am I audible?

Amit Ramani: Oh, sorry, can you hear me?

Rahul Arora: Yeah.

Amit Ramani: Am I audible?

Speaker #3: Yes sir. Yes sir.

Sumit Lakhani: Yes, sir.

Operator: Yes, sir.

Amit Ramani: Yeah.

Sumit Lakhani: Yes, sir.

Operator: Yes, sir.

Speaker #2: Yeah. So third party next obviously has flipped structurally. Transform started when we initially started. It started off as a captive fit out arm. So in our own centers today.

Amit Ramani: Yeah. Third party makes services flip structurally. Awfis Transform started when we initially started. It started off as a captive fit-out arm, serving our own centers today. Today, it is usually third party, externally facing design and build business, compounding on its own momentum at this stage. The shift, obviously, is being driven by enterprise and GCCs increasingly engaging Awfis actively for multi-city national fit-out mandates and self-reinforcing cross-sell loops where Flex relationships convert into Awfis Transform, and Awfis Transform clients turn into anchor future Flex and managed office demand. Thirdly, it is obviously worth noting that the split will move around a bit quarter to quarter, but since it is partly a function of how many projects under MA are being delivered and built in any given period, not a fixed ratio. 92% is a general reflection of this quarter's delivery mix.

Speaker #2: and today it's majorly third party externally facing design. And built business. Compounding on its own momentum at this stage. The shift obviously is being driven by enterprise and GCCs increasingly engaging office directly for multi-city national fit out mandates and self reinforcing cross sell loop where flex relationships convert into transform and transform clients turn into anchor future flex and managed office demand.

Speaker #2: So actually, it's obviously worth noting that the split could move around a bit quarter to quarter, since it's partly a function of how many projects under MA are being delivered and built in any given period.

Speaker #2: Not a fixed ratio. Ninety-two percent is general reflection of the this quarter's delivery mix. We would expect the number to stay structurally high even if it moves within a range depending on project phasing.

Amit Ramani: We would expect the number to stay structurally high, even if it moves within a range depending on project phasing.

Speaker #5: Right. What are the margins in this business now? Where do you see the stable state margin in the business?

Rahul Arora: Right. What are the margins in this business now? Where do you see the steady-state margin in the business?

Speaker #2: So the margin profile of the business is kind of split into two. When we do what we do with our landlord partners typically it would be about a fifteen percent gross margin.

Amit Ramani: The margin profile of the business is split into two. When we do what we do with our landlord partners, typically it would be about a 15% gross margin. If I was to look at the third-party margin, that ranges anywhere between 18% to 20%. Between the two businesses, depending on the volume on each, it would somewhere be in the 17% to 18% range.

Speaker #2: And if I was to look at the third party margin that ranges anywhere between eighteen to twenty percent. and so between the two businesses depending on the volume of each it would somewhere be in the seventy to eighteen percent range.

Speaker #5: Right. And sir on the industry side how is this flex you know how is the GCC industry evolving now? And where does office sit with that in per in terms of percentage contribution from the GCCs?

Rahul Arora: Right. Sir, on the industry side, how is this Flex, how is the GCC industry evolving now, and where does Awfis sit with that in terms of percentage contributions from the GCCs?

Amit Ramani: India, as I mentioned in my commentary, the gross leasing has been about 43 million square feet in the commercial, and the Flex operators today posted the strongest H1, of 8.4 million square feet, which is a 55% increase from FY 2025 and the highest ever half-yearly volume that this segment has done. Flex penetration of overall leasing has climbed from single digits to 21% today, and this is on a clear path towards roughly 25% by 2027. Annual Flex transaction stock has grown from 30 to 38 million square feet in 2020 to 110 to 114 million square feet in 2025. This is almost fourfold increase, and this is no longer just a discretionary category, but it is a mainstream permanent part of our enterprise solution right now.

Speaker #2: So obviously India is, as I mentioned in my commentary, the gross leasing has been about 43 million square feet in the commercial.

Speaker #2: And the flex operators today posted the strongest half year obviously eight point four million square feet which is fifty-five percent increase from actually twenty-five.

Speaker #2: And highest seller half-yearly volume that we have done—the segment has done. Flex penetration of overall leasing has climbed from single digits to 21% today.

Speaker #2: And this is on a clear path towards roughly twenty-five percent by twenty twenty-seven. Annual flex transaction stock has grown from thirty-eight so thirty thirty-eight million square feet in twenty twenty to hundred and ten to hundred and fourteen million square feet in twenty twenty-five.

Speaker #2: This is almost four-fold increase. And this is no longer just a discretionary category but it is a mainstream permanent part of our enterprise solution right now.

Speaker #2: Layered on top of this is GCC opportunity. The single strongest structural tailwind in a in a commercial real estate market. GCC led H one twenty twenty-six demand.

Amit Ramani: Layered on top of this is GCC opportunity, the single strongest structural tailwind in the commercial real estate market. GCC-led H1 2026 demand, leasing was 16.5 million square feet and growing 38% year-on-year. Accounting for almost 38% of the total office leasing that is happening. India GCC ecosystem has crossed almost 2,100 centers, generating nearly USD 100 million in revenue. This is across 2.3 million people that are employed across these GCCs. Over 40% of India commercial real estate leasing is happening in this category. Awfis is obviously the largest network. We have the most capital-efficient model and model platform, specifically with GCC enterprise demand. It is on the right side of every one of these trends. As I mentioned, 24% of our revenue today comes from GCCs, that is serving about 100 plus GCC clients.

Speaker #2: Leasing was 16.5 million square feet and growing 38% year on year, now accounting for almost 38% of the total office leasing that is happening.

Speaker #2: India GCC ecosystem has crossed almost twenty-one hundred centers generating nearly hundred million in revenue. this is across two point three million people that are employed across these GCCs.

Speaker #2: Over forty percent of India's commercial real estate leasing is happening in this category. Office will obviously be the largest network. We have the most capital-efficient model and model platform.

Speaker #2: Specifically with GCC enterprise demand. It's on the right side of every one of these trends. we as I mentioned twenty-four percent of our revenue today comes from GCCs.

Speaker #2: That is serving about hundred plus GCC clients. we look at that trend continuing to grow as the GCC story continues to expand. And the robust commercial real estate market.

Amit Ramani: We look at that trend continuing to grow as the GCC story continues to expand and the robust commercial real estate market.

Speaker #5: Right. And one on the deal the after this developer deal with Malpani are there more such deals in the pipeline?

Rahul Arora: Right. One on the deal. After this developer deal with Malpani, are there more such deals in the pipeline?

Speaker #2: Yeah. As Sumit mentioned there are a couple more deals that we are curating right now. Obviously these deals take a a bit longer because there are much more complexities involved in terms of engaging in in terms of the partnership overall than a straight lease structure.

Amit Ramani: Yes. As Sumit mentioned, there are a couple more deals that we are curating right now. Obviously, these deals take a bit longer because there are much more complexities involved in terms of engaging, in terms of the partnership overall than a straight lease structure. Yes, there are a couple more deals in the pipeline. Also, we are doing this with only grade A+ developers. Our continued direction for premiumization as well as engaging with the right partners becomes important. Obviously, there might be multiple developers, but the choice developers in the grade A category obviously are less than the overall developer. We want to make sure that we partner with the right developer partner in this case.

Speaker #2: But yes there are a couple more deals in in the pipeline. also we are doing this with only grade A plus developers right? Where our our continued direction for premiumization as well as engaging with the right partners becomes important.

Speaker #2: So, obviously, there are—I mean, there might be multiple developers, but the choice developers in the grade A category, obviously, are less. Overall, there are fewer developers, so we want to make sure that we develop—we partner with—the right developer partner in this case.

Speaker #5: Right. The last one from my side, in terms of, you know, the entire growth reflecting in the margins and the occupancy moving up.

Rahul Arora: Right. The last one from my side in terms of the entire growth reflecting in the margins and the occupancies moving up. When do you see this needle moving meaningfully for us on the occupancy and on the margin front?

Speaker #5: When do you see the needle moving meaningfully for us on the occupancy and on the margin front?

Speaker #2: See, so primarily, the way we are building the whole business and how the seats are going up, occupancy percentage—this is the first quarter where this has remained a bit more flat.

Sumit Lakhani: Well, primarily, the way we are building the whole business and how the seats are going up. Occupancy percentage, this is the first quarter where this has remained a bit more flat. Otherwise, across every quarter, the occupancy percentage had been on an uptick kind of scenario. What I see is overall H2 going to be better than H1. I think Q4 is one quarter where you will at least start seeing a meaningful kind of a difference, both in terms of occupancy, the impact of a couple of more Elite and Awfis Gold centers coming in the margins as well.

Speaker #2: otherwise across every quarter the occupancy percentage had been on a uptick kind of scenario. what I see is overall H two going to be better than H one.

Speaker #2: Q four is one quarter where you will at least start seeing a meaningful kind of a difference both in terms of occupancy the impact of couple of more you know elite and good centers coming in in the margins as well.

Speaker #5: Got it. That's it from my end. Thanks so much for this.

Rahul Arora: Got it. That is it from my end. Thanks so much for this.

Speaker #1: Thank you, sir. The next question is from Hitenra Pradhan of Maximal Capital. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Hitaindra Pradhan from Maximal Capital. Please proceed with your question.

Speaker #5: Yeah. Hi sir. I hope I'm audible. So so my. First question is regarding the pipeline of the premium and grade A assets that you commented earlier.

Hitaindra Pradhan: Yeah. Hi. I hope I am audible.

Operator: Yes, sir.

Hitaindra Pradhan: My first question is regarding the pipeline of the premium and the grade A assets that you commented earlier. If you can give us some quantitative sense, like what percentage of our portfolio is currently premium and grade A, and how will that mix evolve by end of FY27 and FY28? Are all these institutional, or we have some non-institutional mix there as well?

Speaker #5: So if you can give us some quantitative sense like you know what would percentage of our portfolio is currently premium and grade A and how how will that next evolve by end of FY twenty-seven and FY twenty-eight?

Speaker #5: And are all these institutional, or do we have some non-institutional mix here as well?

Speaker #2: So overall as Sumit had highlighted that we have about two hundred and fifty odd centers or two hundred forty-two centers that are live as we speak.

Sumit Lakhani: Overall, as Sumit had highlighted, we have about 250 odd centers. There are 242 centers that are live as we speak. Out of those, about roughly 37 centers are in the Awfis Gold and premium category. That approximately makes it about roughly 15% of the portfolio is in the premium category. This year, as we mentioned in our commentary, there are seven additional properties that are in LOI stage, and there are six properties that are in fit-out stage. All of these, whatever, 13 odd properties, I would say majority of these, at least 10 out of the 13, are in the premium category, which includes Awfis Gold and Elite by Awfis type of centers. By the end of this year, we anticipate by FY27, this 85-15 split could be more closer to 80-20 split.

Amit Ramani: Overall, as Sumit had highlighted, we have about 250 odd centers. There are 242 centers that are live as we speak. Out of those, about roughly 37 centers are in the Awfis Gold and premium category. That approximately makes it about roughly 15% of the portfolio is in the premium category. This year, as we mentioned in our commentary, there are seven additional properties that are in LOI stage, and there are six properties that are in fit-out stage. All of these, whatever, 13 odd properties, I would say majority of these, at least 10 out of the 13, are in the premium category, which includes Awfis Gold and Elite by Awfis type of centers. By the end of this year, we anticipate by FY27, this 85-15 split could be more closer to 80-20 split.

Speaker #2: Out of those, about roughly 31 centers are in the Gold, and 37 centers are in the Gold and Premium category. So that approximately makes it about roughly 15% of the portfolio is in the Premium category.

Speaker #2: this year we have as as we mentioned in our commentary there are seven additional properties that are in LOI stage and there are six properties that are in fit-out stage.

Speaker #2: All of these whatever thirteen odd properties are all in the premium I would say majority of these at least I would say ten out of the thirteen are in the premium category which includes gold and elite type of centers.

Speaker #2: so by the end of this year we anticipate by FY twenty-seven this eighty-five fifteen split could be more closer to eighty-twenty split.

Speaker #5: Okay. And sir, are all of these institutional developers, or...

Hitaindra Pradhan: Okay. And sir, all of these are institutional developments or

Speaker #2: Yeah. All of all of these all of these are institutional assets. in I mean select micro markets. yeah but all are institutional.

Sumit Lakhani: Yes. All of these are institutional assets in select micro markets. Yeah. But all are institutional.

Amit Ramani: Yes. All of these are institutional assets in select micro markets. Yeah. But all are institutional.

Speaker #5: Okay. Okay. And my second one is on the Outlook or the revenue and the KS EBITDA guidance that you provided and thanks for disclosing that by the way.

Hitaindra Pradhan: Okay. My second one is on the outlook, the revenue, and the cash EBITDA guidance that you provided, and thanks for disclosing that, by the way. Sir, if I take 25% of revenue growth and INR 200 crore of cash EBITDA, that comes about 10% sort of margin, right? I was expecting this margin number to be slightly higher as long as we maintain the mature cohort occupancy intact at like 85%. Can you explain? Is it understated, or we are expecting some kind of attrition in our mature cohort? If you can just elaborate on that guidance. Thank you.

Speaker #5: so sir if I you know take twenty-five percent of revenue growth and two hundreds here of you know KS EBITDA that comes about ten percent sort of margin right?

Speaker #5: I mean I was expecting this margin number to be slightly higher as long as we maintain the mature cohort occupancy intact. it like eighty-five percent.

Speaker #5: So can you explain I mean is it understated or we are expecting some kind of actuation in our mature cohort? if you can just elaborate on that guidance.

Speaker #5: Thank you.

Speaker #2: See. in terms of the overall guidance one thing yes you are right. our margins currently are the cash EBITDA margins are living somewhere in the range of ten odd percent.

Sumit Lakhani: See, in terms of the overall guidance, one thing, yes, you are right. Currently, the cash EBITDA margins are living somewhere in the range of 10% odd. What I would say is H1, we are seeing a couple of impacts on the margin. One, as we mentioned, a large kind of a customer moving out. Our model is a bit different than everyone else is we follow a very diversified kind of approach. While the customer moved out across from five different centers, we prefer to refill those centers. So we are carrying on the fixed cost around for those centers, because we know that we would be able to continue with those centers over the next five to seven years. We will have to take a minor kind of a shock.

Speaker #2: what I would say is H one we are seeing couple of you know impacts on the margin. One I we mentioned a large kind of a customer moving out.

Speaker #2: where our model is a bit different than everyone else is we follow a very diversified kind of approach. So while the customer moved out across from five different centers we prefer to refill those centers.

Speaker #2: So we are carrying on the fixed assets' fixed cost around for those centers because we know that, over the next five to seven years, we would be able to continue with those centers.

Speaker #2: So we'll have to take a minor kind of a shock. Second specifically with respect to H one we had been a bit under on margin pressure because a large portion of our portfolio was signed up in twenty-twenty-one and there was across couple of properties there was a kind of a commercial reset.

Sumit Lakhani: Second, specifically with respect to H1, we had been a bit under on margin pressure because a large portion of our portfolio was signed up in 2021, and across a couple of properties, there was a kind of a commercial reset, which was happening after five years. There is a kind of a timing gap between when the rental increases on what we pay to the developer or to the space owner versus what we receive from the customer, because the customers, everyone has very different kind of inward cycles. While we are able to pass on through the increased pricing, there is three to four quarters kind of a timing difference around on it. These had been a kind of a reason that H1, you are seeing around this rate.

Speaker #2: which was happening after five years. There is a kind of timing gap between when the rental increases on what we pay to the developer.

Speaker #2: Or to the space owner. Versus what we receive from the customer. Because the customers everyone has very different kind of renewal cycles. So while we are able to pass on through the increased pricing.

Speaker #2: But there is you know three to four quarters kind of a pricing a timing difference around on it. So these had been a kind of reason that H one you are seeing around this way.

Speaker #2: Overall, H2 we think will outperform H1. And you know, that's primarily the kind of way why we think in the whole of the year.

Sumit Lakhani: Overall, H2, we think will outperform H1, and that is primarily the kind of a way why we think in the whole of the year, closer to INR 1,800 odd crores with INR 195 to 200 crore kind of cash EBITDA will come around. I am actually hopeful that in Q4 you will see a kind of a meaningful difference around on things.

Speaker #2: closer to eighteen hundred odd crores with one ninety-five to two hundred crore kind of cash EBITDA will come around. I'm actually hopeful that in Q four you will see a kind of a meaningful difference around on things.

Speaker #5: Okay. Thank you sir. Thank you.

Hitaindra Pradhan: Okay. Thank you, sir. Thank you.

Speaker #1: Thank you, sir. Ladies and gentlemen, to ask a question, please press star one now. Ladies and gentlemen, we'll take this as the last question for today.

Operator: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Ladies and gentlemen, we will take this as the last question for today. I would now like to hand the conference over to management for closing comments.

Speaker #1: I would now like to hand the conference over to management for closing comments.

Speaker #5: do we have a last question or should we we put it back to me?

Sumit Lakhani: Do we have a last question, or should we put it back to me?

Speaker #1: So for closing comments I have handed over to you.

Operator: Sir, for closing comments, I have handed over to you.

Speaker #5: Okay, thank you. So, thank you everyone for joining us today. To close, I would say the five engines of growth are in place, and the business is in its strongest position yet.

Sumit Lakhani: Okay. Thank you. Thank you everyone for joining us today. To close, I would say the five engines of growth are in place, and the business is in its strongest position yet to compound on this foundation through the whole of FY27. Should you have any further questions or require clarifications, please feel free to reach out to SGA, our investment relation advisors. Thank you once again, and have a great evening.

Speaker #5: To compound on this foundation through the whole of FY '27. Should you have any further questions or require clarifications, please feel free to reach out to SGA.

Speaker #5: Our investment relations advisors. And thank you once again, and have a great evening.

Speaker #1: Thank you sir.

Operator: Thank you, sir.

Speaker #2: Thank you. Thank you.

Rahul Arora: Thank you.

Amit Ramani: Thank you.

Sumit Lakhani: Thank you.

Speaker #1: On behalf of Nirmal Vang Institutional Equities that concludes this conference call. Thank you all for joining us and you may now disconnect your lines.

Operator: On behalf of Nirmal Bang Institutional Equities, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.

Browse all earnings call transcripts

Q1 2027 Awfis Space Solutions Ltd Earnings Call

Request TrialDemo

Awfis

Earnings