Down 60% in a year! Analyst remain positive on this stock amid rising GCC demand; check targets

Shares of Awfis Space Solutions Ltd jumped more than 6 per cent during Thursday's trading session after the company reported a strong set of numbers for the September 2026 quarter. Brokerage firms, however, continue to remain positive on the stock, suggesting further upside driven by premiumisation of growth and demand from Global Capability Centres (GCCs).

Shares of Awfis Space Solutions jumped more than 6.2 per cent to Rs 272 on Thursday, commanding a total market capitalisation of slightly more than Rs 1,900 crore. However, the stock has fallen nearly 60 per cent from its all-time high of Rs 638, hit about a year ago. The stock tested its 52-week low of Rs 216.65 on October 26, 2026.

Awfis Space Solutions reported a 92.8 per cent YoY jump in net profit to Rs 30.8 crore, while revenue grew 19.6 per cent YoY to Rs 438.7 crore in the September 2026 quarter. The coworking space provider's EBITDA increased 31 per cent YoY to Rs 174 crore, while margins expanded to 40 per cent during the quarter.

Awfis Space Solutions reported a strong operating performance. Revenue growth was supported by healthy demand from enterprise clients, improving occupancy and a growing contribution from value-added services. Growth was driven by capacity additions and increased demand from Global Capability Centres (GCCs), said Systematix Institutional Equities.

"Awfis is positioned to benefit from sustained enterprise demand, increasing GCC contribution, network expansion and the growing penetration of value-added services. Improving occupancy and operating leverage should support profitability as newer centres mature. We maintain a 'buy' rating with a revised target price of Rs 345, valuing the company at seven times FY28E EV/normalised EBITDA," it said.

Shares of Awfis Space Solutions were listed in May 2024, when the company raised a total of Rs 599 crore from investors, selling its shares at Rs 383 apiece. As of its previous close at Rs 256, the stock was down 33 per cent from its IPO price.

FY27 cash EBITDA guidance remains at Rs 190–200 crore (H1FY27: Rs 93 crore), implying Rs 97–107 crore in H2. The management targets an 11.5 per cent margin in Q4FY27 and a 12 per cent margin by the March quarter-end, establishing a floor for FY28. Ancillary revenue is expected to grow by 25–30 per cent over the next 12 months. Transform's Rs 220 crore order book and advanced pipeline support FY27 revenue guidance of Rs 300 crore, albeit with milestone-linked volatility, said Nirmal Bang Institutional Equities.

Nirmal Bang maintained its revenue growth estimates at 23 per cent and cut its adjusted EBITDA estimates to Rs 207 crore for FY27E and Rs 277 crore for FY28E, with a cash EBITDA margin of 12.3 per cent in FY28E on normalised revenue. Robust GCC-led demand and premiumisation underpin growth, while margin expansion towards 12 per cent, the ramp-up of premium centres and the absorption of vacated seats remain key monitorables.

Among the three brokerage reports released so far, Ambit has a 'buy' rating on the stock with a target price of Rs 430. It sees an upside potential of 68 per cent in the stock.