Awfis expands into furniture business to boost margins, revenue
Awfis is launching a furniture business to manufacture, trade, and sell office furnishings, both for its own coworking centers and external clients.
Awfis Space Solutions Ltd is entering into the furniture and furnishings business as part of a strategic push to improve cost efficiency and tap into a new revenue stream.
The coworking space provider said it will begin manufacturing, trading, and selling office furniture and furnishings to support its core operations. The new vertical will also allow Awfis to serve external clients by offering complete workspace setup solutions.
“The Board believes that this strategic move will contribute positively to the overall growth and profitability of the Company,” Awfis said in a regulatory filing. It added that the move will help reduce costs associated with setting up and furnishing coworking centres, which remain a key expense area for the firm.
The expansion, approved through a shareholder resolution on July 9, will enable the company to produce and deal in a wide range of furniture products made from wood, steel, leather, plastic, and other materials. Awfis will also offer services such as furniture repair, cleaning, upholstery, packing, and moving.
In a separate development, Awfis shareholders also approved the reclassification of Peak XV Partners (formerly Sequoia Capital India) from the “Promoter Group” to the “Public” category. The fund held about 3.27% of the company’s equity as of the date of the reclassification request.
The reclassification implies that the investor is no longer a part of the group controlling or significantly influencing the company's operations.
Awfis reported a sharp rise in profit for the quarter ended March 2025, aided by a significant increase in other income, even as expenses nearly kept pace with revenue growth.
Revenue from operations rose 46.2% year-on-year (YoY) to Rs 339.68 crore in Q4 FY25 from Rs 232.32 crore a year ago. Total expenses increased 45% to Rs 347.52 crore, up from Rs 239.73 crore in Q4 FY24.
For the full financial year, revenue from operations stood at Rs 1,207.53 crore, up 42.3% from Rs 848.81 crore in FY24. The operational revenue comes from coworking space on rent and allied services, which grew 48% YoY to Rs 916 crore, and the construction and fill-out project segment, which grew over 35% YoY.
Full-year comprehensive profit totalled Rs 67.34 crore, compared with a loss of Rs 17.87 crore in FY24. Other income for the year rose to Rs 53.21 crore in FY25 from Rs 25.98 crore.
Edited by Kanishk Singh