Strong 27% growth offset by flat occupancy and margin headwinds

Delivered ₹424.9 Cr (27% growth QoQ +3.6%)

Delivered OPM 38.2%

Coworking & Allied ₹352 Cr (27% growth claimed)

Transform ₹73 Cr (25% growth claimed)

Mature cohort 83% (down from 84%), blended 76% (flat vs Q4)

100+ unique GCC clients, revenue mix not independently verified

Coworking 25–27% (prior) → 23–25% (new). Transform 22–25% → ~20%. Full FY27 revenue guidance >₹1,800 Cr implies ~6% growth from Q1 annualized run rate.

Mature cohort 83% (vs. 84% prior; down 1%). Blended 76% flat. Prior calls emphasized occupancy momentum; Q1 shows stall due to large customer exit.

Management introduced cash EBITDA (₹44 Cr, 10.1% margin) to explain operating reality beneath IND AS 116 distortions. Signals transparency but also hints at lower core profitability.

Developer partnerships + selective lease + partial managed office now co-exist. Previously MA-focused (62%); now 57% MA, rest split across formats. First Malpani deal closed (1.4L sqft).

37 Gold/Elite centers (15% of portfolio) expected to reach 80–20 split (20% premium) by FY27 end. 30–50% pricing premium unlocked. Concrete mechanism for premiumization thesis.

Part of rental in other expenses (managed aggregation, leases outside Ind AS 116). Excluding those, rental growth in line with indices. Q1 also absorbed one-off large customer exit, creating ramp pressure.

Not a shift, a broadening. We're selective across all formats (MA, developer partnerships, selective lease) based on market. MA remains core but no fixated ratio.

Sign at various stages; buildings go live 6–12 mo, centers 9–15 mo. Capex ~50% of fit-out value day one (small security deposit). Nine-year lease from OC receipt.

Chargeable area includes under-fit-out (not live). Net operational seats +59%, revenue +65%. On true operational capacity, outperforming.

Shift from captive to external D&B is structural, driven by GCC/enterprise multi-city mandates. 92% reflects project delivery mix; will stay high but fluctuate. Margins: landlord partner ~15%, third-party 18–20%, blended 17–18%.

Flex penetration 21% (from single digits), headed to ~25% by 2027. GCC H1 2026 leasing 16.5M sqft, +38% YoY, 38% of total office. Awfis largest network, 24% revenue from 100+ GCC clients. Right side of every trend.

37 centers = 15% now. 13 new properties coming (10 premium). By FY27 end, 85–15 split shifts to ~80–20. All institutional assets in select micro-markets.

H1 margin compressed: (1) large 3K-seat customer exit—absorbed fixed cost to retain centers; (2) 2021 lease reset cycle—3–4 quarter timing gap between rental increase paid and received. H2 expected better. Q4 will show meaningful difference. No guided attrition; recovery in progress.

Based on 23–25% coworking + ~20% Transform growth. Q1 annualized run-rate ~₹1,700 Cr; >₹1,800 implies deceleration in Q2–Q4 or ramp-up in H2. H2 expected to outperform H1.

H1 compressed by one-off 3K-seat customer exit and 2021 lease reset cycle (3–4 quarter timing gap on rent pass-through). H2 recovery expected from lease cycle completion and premium center ramps.

Gross seat additions 22–25K. Mix shifting toward premium assets (Developer Partnership, Selective Lease) which are more capital-light (fit-out share reduced via co-investing).

Large enterprise client consolidated operations post-acquisition (May 2026). Impacted 5 centers across 3 cities. Occupancy mature cohort fell 84% → 83%. Recovery 'pre-committed' but not yet signed.

Occupancy held flat (76%) vs Q4, mature cohort declined (84% → 83%). Prior calls emphasized occupancy momentum; Q1 shows stall. One-off exit explains it, but recovery signal needed for confidence.

Cash EBITDA margin 10.1% (₹44 Cr on ₹437 Cr normalized revenue). FY27 guidance ₹190–200 Cr on >₹1,800 Cr = 10% margin. Attributable to: (1) customer exit fixed cost absorption, (2) 2021 lease resets (3–4 quarter timing gap on rent pass-through).

Selective Lease (ultra-premium 30–50K sqft) now 20–25% of supply mix vs. <10% historically. Requires higher capex contribution vs. MA. Longer break-even if occupancy slow. Seven properties in pipeline; strategy to dominate 5–7 core micro-markets (Hebbal, Golf Course, Whitefield, Worli).

GCC H1 2026 demand +38% YoY. India now #1 in AI hiring intensity. Awfis positioned to capture this. However, if tech hiring cools, new GCC formations and expansions could slow sharply. 24% of revenue from GCCs creates concentration.