Smartworks Expands Portfolio to 12 Mn Sq Ft, Revenue at ₹3,792 Mn

Gurugram, August 12, 2025: Smartworks Coworking Spaces Limited, India’s largest managed office platform by total assets under management, reported a strong start to FY26, delivering double-digit revenue growth, margin expansion and meaningful portfolio expansion. On July 17, the company made its debut on NSE and BSE.

Revenue from operations for Q1 FY26 stood at INR 3,792 million. The majority of expansion in the portfolio is expected to mature in H2’26, further driving revenue growth and margin expansion. 

EBITDA stood at INR 2,410 million, up 25.5 per cent YoY, delivering a margin of 63.6 per cent. On a normalised basis, adjusting for accounting provision, EBITDA rose to INR 607 million, a 109 per cent YoY increase with a margin of 16 per cent driven by disciplined cost management and operating leverage. 

Profitability Turnaround 

Normalised Profit Before Tax (PBT) improved to INR 168 million, representing a 4.4 per cent margin—a significant turnaround from a normalised loss before tax of INR 102 million in Q1 FY25. On a reported basis, PBT loss narrowed to INR 56 million versus INR 311 million in Q1 FY25. Normalised operating cash flow rose over 71 per cent YoY to INR 855 million. 

Operational Highlights: 

• Portfolio reached 10.08 mn sq ft (MSF) of leased space as of June 30 with 0.70 MSF under fit-out and 1.07 MSF scheduled for handover in Q2 and Q3. Including signed LOIs, the company’s total SBA stands at 12 MSF.
• Since FY19, Smartworks has added 8.6 MSF across major cities, including Pune, Bengaluru, Hyderabad and Mumbai. 
• Occupancy in operational centres remains above 83 per cent with committed occupancy above 89 per cent. 
• Enterprise clients comprise 90.49 per cent of the portfolio; multi-city clients represent 32.91%. 
• Weighted average total client tenure is 45 months with lock-in tenure at 33 months. 
• Debtor days remain under one week, underscoring robust collections and best in class. 

“We are pleased to report a strong quarterly performance driven by continued momentum across revenue, EBITDA and operating efficiency. Our revenue growth this quarter reflects a combination of robust, sustained demand from enterprise clients and the deliberate capacity expansion we executed over the past year,” said Neetish Sarda, MD, Smartworks. 

“By adding over 1 MSF 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 INR 607 million in Q1FY26 from INR 290 million in Q1FY25.”

During the quarter, normalised EBITDA margins improved to 16.0 per cent compared to 9.3% in Q1 FY’25—reflecting the strength of “our asset-light, enterprise-focused model and the inherent scalability of our managed campus platform”.  

“This performance showcases our disciplined execution, cost-efficient expansion and the trust our clients place in us to deliver ready-to-move, high-quality workspaces that are tailored to their business needs.”  

Harsh Binani, Executive Director, Smartworks, said, “Our operational momentum remains strong supported by a high-quality portfolio and a healthy pipeline of new supply. Today, we have more than INR 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.” 

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

Occupancy trends remain strong, anchored by “our agile delivery model with turnaround times of just 45 to 60 days—among the fastest in the industry”.

“This execution speed is enabled by deep operational expertise and a repeatable, scalable playbook ensuring consistent delivery across locations. Our speed-to-market, paired with a capex-light structure and lowest-in-class operating costs, continues to unlock significant value. Long-tenured contracts (average client tenure of 45 months) and multi-city relationships drive predictable, healthy cash flows—further insulating the business in a dynamic market.”