Smartworks Coworking Spaces' revenue grows to Rs 379.2 crore in Q1 FY26

Smartworks Coworking Spaces Limited, which claims to be India’s largest managed office platform by total assets under management, reported a strong start to FY26 with double-digit revenue growth, margin expansion, and portfolio gains. The company debuted on the NSE and BSE on July 17, 2025. 

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Revenue from operations in Q1 FY26 was Rs 3,792 million, with much of the portfolio expansion expected to mature in the second half of the fiscal year, further driving revenue and margins.

IND-AS EBITDA rose 25.5% year-on-year to Rs 2,410 million, representing a margin of 63.6%. On a normalised basis, adjusting for accounting provisions, EBITDA increased 109% year-on-year to Rs 607 million, with a margin of about 16%, supported by disciplined cost control and operating leverage.

Normalised profit before tax improved to Rs 168 million, or a 4.4% margin, compared with a normalised loss before tax of Rs 102 million in Q1 FY25. On a reported basis, the PBT loss narrowed to Rs 56 million from Rs 311 million a year earlier. Normalised operating cash flow rose more than 71% year-on-year to Rs 855 million.

As of June 30, 2025, the company’s portfolio reached 10.08 million sq. ft. of leased space, with 0.70 million sq. ft. under fit-out and 1.07 million sq. ft. scheduled for handover in Q2 and Q3. Including signed letters of intent, total SBA stands at approximately 12 million sq. ft.

Since FY19, Smartworks has added 8.6 million sq. ft. across major cities, including Pune, Bengaluru, Hyderabad, and Mumbai. Occupancy in operational centres remains above 83%, with committed occupancy above 89%. Enterprise clients account for 90.49% of the portfolio, with multi-city clients representing 32.91%. The weighted average total client tenure is 45 months, with a lock-in tenure of 33 months, while debtor days remain under one week, reflecting strong collections performance.

“By adding over 1 million sq. ft. of new supply, we not only strengthened our footprint in key markets but also positioned ourselves to capture incremental demand quickly. Normalised EBITDA doubled to Rs 607 million in Q1FY26 from Rs 290 million in Q1FY25. During the quarter, normalised EBITDA margins have improved to 16.0 % as compared to 9.3% in Q1 FY’25,” said Neetish Sarda, Managing Director of Smartworks.

“Looking ahead, we will continue to leverage presence across markets, India and Singapore, and integrated service model to drive sustainable growth and long-term value creation.” 

“Our operational momentum remains strong, supported by a high-quality portfolio and a healthy pipeline of new supply. Today, we have more than Rs 40,000 million in committed revenue, providing strong visibility into future cash flows. We added several marquee clients across industries to our growing portfolio, reaffirming our position as the workspace partner of choice for enterprise India,” said Harsh Binani, Executive Director of Smartworks.

“Over 90% of our revenue comes from enterprise clients, and more than 30% from multi-city engagements — a testament to the trust large corporates place in our platform. With 1.07 million sq. ft. scheduled for handover in the next two quarters, we are on track to expand to ~12 million sq. ft. during FY26, further consolidating our leadership in the segment.”

Smartworks Coworking said it focuses on mid-to-large Enterprises and has a diverse client base of over 700, which includes Fortune 500 companies, corporates, MNCs and startups. The company manages 10.08 million square feet, across 54 centers in 15 cities, including Bengaluru, Pune, Hyderabad, and Mumbai, and in Singapore, with a capacity of over 230,000 seats.