Awfis Posts Massive 66% Profit Surge Amid GCC Boom

Flexible workspace company Awfis Space Solutions, available at Awfis Space Solutions, is entering a new growth phase with a major business restructuring, strong earnings growth, and expansion in the Global Capability Center (GCC) segment. The company has also announced the resignation of its Chief Financial Officer Ravi Dugar.

The latest updates come at a time when demand for flexible office spaces is growing quickly across India. Startups, multinational companies, and GCCs are increasingly choosing managed workspaces instead of traditional office setups.

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Awfis Transfers Design & Build Business to Subsidiary

Awfis recently approved the transfer of its Design and Build (D&B) business to its wholly-owned subsidiary, Awfis Transform Private Limited (ATPL). The company clarified that this is not an exit from the business, but a strategic move to manage the segment separately and increase growth opportunities.

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The transfer will happen through a slump sale on a going-concern basis. The initial transaction value has been set at around ₹26.59 crore, based on a valuation report dated September 30, 2025. The final value will be decided after an updated valuation report by March 31, 2026.

The D&B business is an important part of Awfis’s operations. In FY25, the segment generated around ₹278 crore in revenue, contributing more than 23% of the company’s total turnover. It also contributed strongly to the company’s overall net worth.

Awfis founder and CEO Amit Ramani said the restructuring will help the company separately track the performance and profitability of the coworking business and the D&B business.

According to the company, nearly half of the D&B revenue currently comes from building Awfis centres, while the remaining revenue comes from outside commercial projects. With a dedicated subsidiary and management team, Awfis now plans to aggressively target third-party office fit-out and design projects.

Since ATPL remains a fully-owned subsidiary, the restructuring is not expected to significantly impact Awfis’s consolidated financials or shareholding structure.

Strong Earnings Growth Driven by GCC Demand

Awfis reported strong financial growth for FY26, supported by rising demand from enterprise clients and GCCs. The company posted annual revenue of ₹1,493 crore, up 24% year-on-year. Net profit increased 66% to ₹71 crore during the financial year.

The company also delivered a strong performance in the March quarter. Quarterly profit more than doubled to ₹23.2 crore, while revenue reached ₹410 crore. EBITDA margins improved to 36.5%, showing better operational efficiency as the company expanded its seat capacity across multiple cities.

A major growth driver for Awfis has been the GCC segment. The company recently developed a 67,000 sq. ft. innovation hub for eBay, whose official website is eBay, in Bengaluru. The deal also helped boost investor confidence in the company.

Awfis currently serves more than 100 GCC clients, and this segment now contributes around 23% of its total rental revenue. Industry experts believe GCC demand in India will continue growing as global companies expand operations in the country.

To support future expansion, Awfis recently secured a ₹75 crore term loan along with a ₹5 crore overdraft facility. Despite taking fresh funding, the company said its total debt remains low. Amit Ramani stated that overall debt currently stands at only ₹21 crore, which is lower than last year.

Promoter Stake Sales and CFO Exit in Focus

Investors are also closely watching promoter stake sales in Awfis. However, experts say this is part of a larger trend in the Indian stock market and should not automatically be seen as a negative sign.

Many promoters across listed Indian companies have been reducing stakes to benefit from high market valuations, diversify personal wealth, reduce debt, or comply with public shareholding norms set by Securities and Exchange Board of India. More information is available on SEBI.

At the same time, Awfis also confirmed the resignation of CFO Ravi Dugar. The company said Dugar is leaving to pursue better personal opportunities and career growth.

CEO Amit Ramani thanked Dugar for his contribution to the company, especially during Awfis’s journey to becoming a listed company.

Despite the leadership change, Awfis appears focused on long-term growth. With higher profits, growing GCC demand, and a clearer business structure, the company is aiming to strengthen its position in India’s fast-growing flexible workspace market.