Choice Institutional Equities has issued a buy rating on Awfis Space Solutions with a revised target price of ₹590 per share, representing a 51.7% upside potential from current levels. According to the brokerage's research report dated February 03, 2026, the recommendation comes after Awfis delivered a strong operational performance in Q3FY26. The company achieved a higher blended occupancy of 75%, increasing by 100 basis points quarter-on-quarter and 200 basis points year-on-year. This improved occupancy level was supported by a favorable seat cohort mix, with the over 500-seat cohort representing 36% of the total portfolio.
The company's financial performance showed significant improvement with EBITDA margin reaching an all-time high of 36.5% in Q3FY26, compared to 36.1% in Q2FY26 and 33.8% in Q3FY25. As reported by Choice Institutional Equities, Awfis added 7,000 seats during this quarter, demonstrating continued expansion in its portfolio. The brokerage noted that the higher occupancy levels were achieved through strategic positioning in the commercial real estate sector.
The brokerage has revised its target price down from ₹760 to ₹590 per share, reflecting a combination of higher projected capital expenditure and lower profit after tax for FY26-28E. According to the report, the revision also accounts for a lower sectoral EV/Adjusted EBITDA multiple of 15x (compared to 16x earlier) to account for muted investor sentiment and subdued relative price performance of the office space sector. The target price revision represents a more conservative but still positive outlook for the company's growth trajectory.
The recommendation reflects Choice Institutional Equities' bullish stance on Awfis Space Solutions despite the revised target price. As reported by the brokerage, the company's strong operational metrics and margin expansion demonstrate its ability to capitalize on the commercial real estate recovery. The brokerage's decision to maintain a buy rating despite the target price reduction suggests confidence in the company's long-term prospects in the office space sector, supported by its improved occupancy levels and strategic positioning in the market.
