Smartworks Coworking Spaces Limited (NSE:SMARTWORKS) released its unaudited standalone financial results for the quarter ended 30 June 2026 on 22 July 2026, following approval by the Board of Directors and Audit Committee. The company reported standalone revenue from operations of Rs 5,277.13 million and net profit of Rs 102.76 million for the quarter, alongside limited review certification from statutory auditors Deloitte Haskins & Sells LLP.
Key Highlights
- Standalone revenue from operations for Q1 FY27 stood at Rs 5,277.13 million, compared to Rs 5,066.32 million in the prior quarter (Q4 FY26) and Rs 3,647.85 million in Q1 FY26, reflecting year-on-year growth.
- Net profit for the quarter reached Rs 102.76 million, lower than the prior quarter's Rs 150.18 million but compared to a loss of Rs 45.02 million in the same quarter of the previous financial year.
- Total comprehensive income for Q1 FY27 was Rs 101.36 million, comprising profit of Rs 102.76 million adjusted by other comprehensive loss of Rs 1.40 million.
- Earnings per share (basic and diluted) for Q1 FY27 were Rs 0.90 per share of face value Rs 10 each, compared to Rs 1.31 in the prior quarter and a loss of Rs 0.44 in Q1 FY26.
- The Board noted that IPO fresh issue proceeds of Rs 4,450 million had been utilised to the extent of Rs 3,747.88 million as of 30 June 2026, with Rs 702.12 million remaining uninvested and held in escrow, monitoring, and fixed deposit accounts.
- Finance costs for the quarter were Rs 944.78 million, and depreciation and amortisation expense totalled Rs 2,388.42 million, reflecting the company's capital-intensive operational model in serviced office spaces.
About the Company
Smartworks Coworking Spaces Limited (NSE:SMARTWORKS, BSE:544447) is a coworking and serviced office operator headquartered in Gurugram, Haryana. The company develops, designs, and licenses fully serviced office spaces alongside design and fitout services. Registered at Unit 305-310, Vardhman Trade Centre, Nehru Place, New Delhi, the company completed its initial public offering on 17 July 2025, listing on both the National Stock Exchange and BSE Limited. The IPO involved a fresh issue of 10,941,734 equity shares and an offer for sale of 3,379,740 shares by selling shareholders at an issue price of Rs 407 per share. The company operates with a single operating segment focused on the coworking and serviced office space sector in India.
Announcement in Detail
The Board of Directors of Smartworks Coworking Spaces Limited met on 22 July 2026, commencing at 10:49 AM IST and concluding at 11:57 AM IST. The Board considered and approved the unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, along with the limited review reports prepared by the statutory auditors. The Audit Committee had reviewed and recommended these results prior to Board approval, in accordance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The standalone financial results disclosed revenue from operations of Rs 5,277.13 million for Q1 FY27, together with other income of Rs 137.21 million, yielding total income of Rs 5,414.34 million. Operating expenses were reported at Rs 1,528.05 million, with employee benefits expense at Rs 244.64 million and finance costs at Rs 944.78 million. Depreciation and amortisation charges stood at Rs 2,388.42 million. After accounting for total tax expense of Rs 34.56 million, the net profit for the quarter was Rs 102.76 million. The independent auditor's review report confirmed that nothing had come to the auditor's attention that would suggest the financial results were not prepared in accordance with Ind AS 34 or that they contained material misstatements.
In respect of IPO proceeds utilisation, the company disclosed that of the gross fresh issue proceeds of Rs 4,450 million, Rs 3,747.88 million had been deployed by 30 June 2026 across capital expenditure for fitouts and security deposits in new centres (Rs 1,596.54 million utilised out of Rs 2,258.40 million allocated), repayment of borrowings (Rs 1,140 million fully utilised), general corporate purposes (Rs 566.15 million utilised out of Rs 566.32 million allocated), and offer-related expenses (Rs 445.19 million utilised out of Rs 485.28 million allocated). The remaining uninvested amount of Rs 702.12 million was held in escrow, monitoring, and fixed deposit accounts as of the quarter-end date.
Impact on Investors
Investors will note that the company has returned to profitability in Q1 FY27, recording net profit of Rs 102.76 million compared to a loss of Rs 45.02 million in the corresponding quarter of the prior financial year. Standalone revenue growth of 44.7% year-on-year (from Rs 3,647.85 million in Q1 FY26 to Rs 5,277.13 million in Q1 FY27) indicates operational expansion since the company's IPO listing on 17 July 2025. The earnings per share of Rs 0.90 reflects the increase in the paid-up equity capital following the IPO, which raised the share capital from Rs 1,031.90 million (as of 30 June 2025) to Rs 1,142.63 million (as of 30 June 2026).
The filing shows that the company continues to deploy IPO proceeds toward capital expenditure and debt reduction, with Rs 702.12 million of fresh issue proceeds remaining uninvested. The high depreciation charge of Rs 2,388.42 million in the quarter reflects the significant capital base acquired through fitout investments and demonstrates the capital-intensive nature of the serviced office business model. Investors should observe that finance costs of Rs 944.78 million indicate ongoing debt obligations, which, while declining from the IPO's debt repayment allocation, remain a material component of operating costs. The statement of results has been limited reviewed by statutory auditors in accordance with SRE 2410 standards and confirms compliance with Ind AS 34 and SEBI regulations.
Sector / Market Context
The Indian coworking and serviced office space sector has grown as enterprises increasingly adopt flexible workplace models and reduce fixed real estate commitments. The sector encompasses companies offering managed office solutions, flexible workspaces, and design-led fitout services primarily across metropolitan areas such as Delhi, Bangalore, and Mumbai. Smartworks operates within this broader context of office real estate democratisation and the adoption of hybrid work models by Indian corporates and multinational enterprises. The company's capital expenditure on new centres and security deposits, as disclosed in the IPO proceeds utilisation note, reflects sector trends toward geographic and capacity expansion.
Revenue growth of 44.7% year-on-year suggests the company's ability to increase operational capacity and pricing realisation following its July 2025 IPO listing, when the company moved from private to public equity ownership. The high depreciation charges reflect the revaluation and capital investment patterns typical of companies in the office space leasing and management sector, where fitout and design assets depreciate over the lease terms of underlying client agreements. The company's focus on repaying borrowings using IPO proceeds indicates a strategic shift toward reducing financial leverage while simultaneously investing in capacity expansion and security deposits for new centres.