Smartworks Coworking Spaces Limited (NSE:SMARTWORKS) announced un-audited financial results for the quarter ended 30 June 2026 on 22 July 2026, marking the completion of its first full year as a publicly listed entity. The company reported revenue from operations of Rs 546 crore, up 44% year-on-year, while normalised profit after tax nearly tripled to Rs 39 crore. The company has secured Rs 5,400 crore in contracted rental revenue, covering 87.2% of its full-year guidance.
Key Highlights
- Revenue from operations increased 44% to Rs 546 crore in Q1 FY27, achieving the fifth consecutive quarter of sequential growth since listing in July 2025.
- Normalised profit after tax nearly tripled to Rs 39 crore from Rs 13 crore year-on-year; reported PAT stood at Rs 13 crore.
- Normalised EBITDA margin expanded to 19.6%, up 337 basis points, with normalised EBITDA rising 74% to Rs 107 crore.
- Operational portfolio grew to 10.4 million square feet across 54 centres in 15 cities including Singapore; total secured footprint reached 16.9 million square feet across 70 centres.
- Company signed letter of intent for Eastside in Pune, a 8.63 lakh square foot managed office campus expected to open in H2 FY27, which will be the world's largest managed office campus by footprint.
- Annualised normalised return on capital employed improved to 21.5% from 12.7% a year ago, even as investment capex rose 66%.
- Company reiterated FY27 guidance of 28-30% revenue growth, 19-20% normalised EBITDA margin, and operational footprint of 12.5-13 million square feet by March 2027.
About the Company
Smartworks Coworking Spaces Limited is India's largest managed office platform by overall footprint, operating approximately 16.9 million square feet across 70 centres in 15 cities spanning India and Singapore as of 30 June 2026. The company partners with real estate developers to transform large bare-shell assets into fully managed, enterprise-grade campuses. Smartworks serves mid-to-large enterprises, counting over 760 clients including Fortune 500 and Forbes 2000 companies, multinational corporations, leading Indian conglomerates, and unicorns. The company also offers SmartVantage, a Global Capability Centre-focused solution combining scalable campuses with curated ecosystems for legal, compliance, talent, and operational support. Smartworks is listed on the National Stock Exchange (NSE:SMARTWORKS) and BSE (544447). The company is headquartered in Gurugram, Haryana, with registered office at Nehru Place, South Delhi. Smartworks listed on NSE and BSE on 17 July 2025.
Announcement in Detail
For the quarter ended 30 June 2026, Smartworks reported revenue from operations of Rs 546 crore, representing 44% growth compared to the corresponding quarter of the previous year and 5% growth from the previous quarter. The company achieved normalised EBITDA of Rs 107 crore, up 74% year-on-year, with normalised EBITDA margin expanding to 19.6%, a 337 basis point increase. Normalised profit after tax nearly tripled to Rs 39 crore from Rs 13 crore in the same quarter last year. Reported profit after tax stood at Rs 13 crore. Normalised operating cash flow reached Rs 95 crore, with operating cash flow to EBITDA ratio at 0.9x, reflecting the timing of deposits paid to secure office space through FY28 and partially for FY29.
On the operational front, Smartworks expanded its operational portfolio to 10.4 million square feet across 54 operational centres in 15 cities, including Singapore. The company's total secured footprint stands at approximately 16.9 million square feet across 70 centres including signed buildings. During the quarter, the company added 0.3 million square feet of new operational area, with a ready pipeline of signed buildings, including Eastside and Eastbridge, scheduled to go live through the remainder of the year toward achieving the full-year target of 2.5 to 3 million square feet. Rental revenue from enterprise clients expanded to approximately 92% of total rental revenue. Mature centres operated at approximately 89% occupancy, with committed occupancy at approximately 92%. Overall occupancy stood at 81%, with committed occupancy at 86%.
The company announced the signing of a letter of intent for Eastside, by Panchshil Realty in Kharadi, Pune, comprising approximately 8.63 lakh square feet. Eastside is scheduled to open in the second half of FY27 and will become the world's largest managed office campus when operational, surpassing the company's current record. Contract rental revenue stands at approximately Rs 5,400 crore, which the company states covers 87.2% of its full-year guidance. The company reiterated its FY27 guidance of 28-30% revenue growth, 19-20% normalised EBITDA margin, and an operational footprint of 12.5-13 million square feet by March 2027. Singapore capacity as of the announcement date has doubled to approximately 1,500 seats following the acquisition of Workstudio.
Impact on Investors
The filing demonstrates sustained operational momentum in Smartworks' first full year as a listed entity. Investors will note that the company has achieved 44% year-on-year revenue growth while expanding normalised EBITDA margins significantly to 19.6%, indicating improving operational leverage. The contracted rental revenue of Rs 5,400 crore, covering 87.2% of full-year guidance, provides visibility into near-term revenue streams. Return on capital employed has improved to 21.5% from 12.7% year-on-year despite a 66% increase in investment capex, suggesting capital is being deployed efficiently toward expansion. The concentration of revenue from large clients has increased, with clients having over 1,000 seats now contributing approximately 41% of rental revenue compared to 37% in FY26, and multi-city client revenue has risen to approximately 35% of rental revenue from 31% previously. These metrics indicate strengthening customer relationships and reduced concentration risk from single-location dependencies.
Investors should observe that the company's expansion pipeline is secured through FY28 and partially for FY29, with buildings booked years in advance according to the announcement. The operational footprint expansion to 10.4 million square feet across 54 centres, with another 2.2 to 2.7 million square feet set to become operational over the next nine months, reflects the company's strategic approach to long-term lease securing in prime business locations. The addition of Eastside in Pune, positioned as the world's largest managed office campus, underscores the company's competitive positioning in the high-end managed workspace segment. However, investors should note that the company's expansion is capital intensive, as evidenced by the deposit timing impacting operating cash flow conversion. The company's guidance reiteration for FY27 at 28-30% revenue growth and 19-20% normalised EBITDA margin reflects management confidence in execution against its contracted revenue base.
Sector / Market Context
India's office real estate market recorded its highest-ever quarterly leasing of approximately 24.6 million square feet in the April-June 2026 quarter, according to property consultant data cited in the announcement. Managed workspace operators accounted for 27% of total leasing during this period, representing the largest single category of office space absorption. Global companies setting up India offices anchored 42% of total absorption, highlighting the structural shift toward flexible and managed workspace solutions. The Indian flexible workspace market continues to expand as multinational corporations and large domestic enterprises increasingly adopt scalable, managed office solutions rather than long-term traditional lease commitments. This sector backdrop supports the company's strategic positioning and the reiterated expansion guidance. The company's ability to secure large campuses in advance of market demand, particularly in high-demand cities where large-scale quality office space remains constrained, provides a competitive advantage in capturing this expanding market segment.