Office Space Solutions’ Q2 Profit Rises 93% to 31 Crore Rupees
Key Facts
Office Space Solutions reported profit after tax of 31 crore rupees in the second quarter of fiscal 2027, compared with 16 crore rupees in the same period a year earlier, an annual increase of 93%. Revenue from operations rose 20% to 439 crore rupees from 367 crore, the company said in its results statement. Normalised revenue was 451 crore rupees, up 26% year on year, after adjusting for effective rent received under finance lease arrangements. The results show growth in the core business alongside improved operating profit and cash generation. The results for the quarter ended in September were announced as the company expanded its coworking centres and related services.
Revenue from coworking and related services rose 31% to 376 crore rupees, while revenue from fit-out projects increased 8% to 75 crore rupees. Reported EBITDA rose to 174 crore rupees from 132 crore, an annual increase of 31%. Cash EBITDA increased 45% to 49 crore rupees. Its margin rose to 10.8% from 9.4% in the year-earlier quarter. Revenue growth in coworking outpaced growth in fit-out projects, while the cash measure grew faster than reported operating profit.
The company added 6 centres during the quarter, taking its network to 254 centres with about 174,000 seats across 18 cities. Overall portfolio occupancy was 76.2%, while centres with more than 12 months of operating history recorded occupancy of 84.1%. The company said it sold more than 25,000 seats in the first half of fiscal 2027 and that demand continued to build ahead of new capacity additions. It also said incremental contracted seats were priced about 35% above its core products, and all new supply was in Grade A or A+ assets. The gap in occupancy between the overall portfolio and older centres puts the network’s expansion in the context of the operating results reported by the company.
Chairman and Managing Director Amit Ramani linked the quarter’s performance to continued demand from large corporations and global capability centres, and to a focus on raising product standards and operating efficiency. He said growth was “supported by continued demand from large corporations and global capability centres, alongside our continued focus on premium product development and operating efficiency.” The company added that it serves more than 105 global capability centre clients, which contribute about 24% of rental revenue. It said about half of the seats in its managed operating model are pre-committed by corporations. In addition, 57% of its centres operate under a managed aggregation model, in which property owners fund fit-out costs.
The company said it had signed a mandate for a global capability centre for more than 1,000 employees with a Fortune 500 company in Chennai, with the first phase set to begin in the fourth quarter of fiscal 2027. It set an annual cash EBITDA target of between 190 and 200 crore rupees, with improving occupancy and earnings quality among its fiscal-year priorities. Separately, the board deferred completion of the transfer of its design and build business beyond the previous deadline of the end of 2026. The company said the revised timeline had not yet been finalised and that management expects to complete the requirements within the next twelve months from the November 3, 2026 announcement. The available disclosure does not include a verified figure for the stock’s movement or price in the November 4 session.