Buy Awfis Space Solutions; target of Rs 868: ICICI Securities

ICICI Securities's research report on Awfis Space Solutions

Awfis Space Solutions (Awfis) delivered a strong quarter with Q2FY26 revenue growing 26% YoY while IGAAP EBITDA of INR 520mn grew 18% YoY and mature centre occupancy at 84%. As of Sep’25, Awfis had 147,000 operational seats, and is on track to reach over 170,000 operational seats by Mar’26. The company is increasingly focusing on premiumisation to tap GCC demand. It guides for FY26 revenue growth of 30%, in line with I-Sec’s estimate, and a marginal increase in IGAAP EBITDA margin. We estimate it to deliver 29% IGAAP EBITDA CAGR over FY25–28 and retain BUY with a revised TP of INR 868 (earlier INR 891) owing to higher capex, based on 18x Sep’27E IGAAP EBITDA of INR 3.2bn and adding net cash of INR 2bn. Key risks: Slowdown in flex demand and slower seat expansion.

Outlook

We retain our BUY rating with a revised TP of INR 868 (earlier INR 891) adjusting for higher capex based on 18x Sep’27E IGAAP EBITDA of INR 3.2bn and adding net cash of INR 2bn.