Managed office space provider Smartworks reports Rs 472 crore revenue in Q3 FY26, turns profitable

Smartworks Coworking Spaces Limited, which claims to be India’s largest managed office platform by area under management, posted operating revenue of Rs 472.1 crore in Q3 FY26, up 34% year-on-year and 11% sequentially.

Including other income of Rs 16 crore, total income stood at Rs 488.2 crore for the quarter.

The company reported a net profit of Rs 1.2 crore during the quarter, compared with a net loss of Rs 16 crore in the same period last year and a loss of Rs 3.1 crore in the preceding September quarter. Total expenses rose 26% year-on-year to Rs 486.6 crore, reflecting portfolio expansion and higher operating scale.

Profitability gains were driven by a sharp improvement in operating metrics. Normalised EBITDA rose to a record Rs 85 crore in Q3 FY26, with margins expanding to around 18%. Normalised operating cash flow stood at approximately Rs 101 crore, exceeding EBITDA and resulting in an operating cash flow-to-EBITDA ratio of about 1.2. Annualised return on capital employed improved to around 21%, while the company maintained a net-debt-negative balance sheet of roughly Rs 42 crore.

Smartworks attributed the improvement in margins and cash flows to a higher share of large-format, long-tenure enterprise contracts and a growing base of mature centres.

The company achieved profitability at the PAT level under Ind AS during the quarter. Committed rental revenue crossed Rs 4,700 crore, providing multi-year visibility, while committed occupancy at mature centres stood at around 93%.

Operationally, Smartworks’ monthly revenue run-rate approached Rs 150 crore during the quarter. Its total footprint expanded to about 15.3 million square feet, supported by letters of intent signed for 1.7 million square feet of new large-format campuses across core growth markets.

As of the end of December 2025, the company operated 63 centres across 15 cities in India and Singapore, serving more than 770 corporate clients. Committed occupied seats stood at nearly 1.92 lakh.

Enterprise demand remained the primary growth driver during the quarter. Multi-city enterprise clients accounted for roughly 30% of rental revenue, as large organisations increasingly consolidated real estate requirements across locations with a single workspace partner. The 1,000-plus seat cohort contributed about 35% of rental revenue, improving revenue predictability through longer lock-ins and reduced dependence on smaller, short-tenure contracts.

On the supply side, Smartworks closed multiple large deployments with clients across BFSI, consulting, technology and global services, while also seeing expansions from existing enterprise customers. The company said it has secured supply visibility through FY27, with sourcing activity underway for FY28.

Commenting on the performance, founder and managing director Neetish Sarda said, “Q3 FY26 represents Smartworks’ strongest quarter to date and confirms that the business has entered a compounding phase. We delivered record normalised EBITDA alongside strong revenue growth, driven by rising portfolio maturity and sustained enterprise demand. Growth during the quarter was anchored in large, long-tenure enterprise contracts and continued expansions from existing clients, improving the quality, predictability, and durability of our revenues.”

Sarda added that as operating leverage continues to play out across a larger base of mature centres, profitability, cash generation and returns on capital are expected to improve further. He said the company’s net-debt-negative position and operating cash flows exceeding EBITDA reflect a disciplined, self-funded expansion model, positioning Smartworks to sustain momentum over the coming quarters.