Smartworks Achieves Profitability, Posts 31% Revenue Growth Amid Expansion to Over 10 Million Square Feet of Operational Space
Smartworks Posts First Annual Profit, Reports 31% Revenue Growth
Flexible workspace operator Smartworks Coworking Spaces Limited has reported its first annual profit in FY26, driven by higher occupancy across its office portfolio and increasing demand from enterprise clients for managed workspaces.
The company posted revenue from operations of Rs 1,796 crore for the year ended March 31, a 31 percent increase from Rs 1,372 crore in the previous year. Smartworks reported a net profit of Rs 11 crore, compared to a loss of Rs 63 crore in FY25. The company's financial performance was detailed in a regulatory filing on April 30.
Smartworks' operating profitability improved significantly during the year, with normalized EBITDA rising 75 percent to Rs 314 crore. The company's EBITDA margin expanded to 17.5 percent from 13.1 percent in the previous year. Return on capital employed rose to 16 percent, more than double the previous year's 7.3 percent.
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In the January-March quarter, Smartworks achieved its strongest quarterly performance to date, with revenue rising 45 percent year-on-year to Rs 520 crore. The company reported a quarterly net profit of Rs 17 crore, while normalized EBITDA increased 71 percent to Rs 99 crore.
Smartworks' operational footprint crossed 10 million square feet during the year, with its total portfolio expanding to 16.1 million square feet across 66 centres in 15 cities. Mature centre occupancy stood at 89 percent.
The company's founder and managing director, Neetish Sarda, highlighted the strong full-year performance, with revenue growing 31 percent to Rs 1,796 crore. Smartworks enters FY27 with more than Rs 5,200 crore in contracted rental revenue, giving it visibility over future cash flows.
| Financial Metric | FY26 | FY25 | % Change |
|---|---|---|---|
| Revenue from Operations | Rs 1,796 crore | Rs 1,372 crore | 31% |
| Net Profit | Rs 11 crore | Rs -63 crore | -117% |
| Normalized EBITDA | Rs 314 crore | Rs 179 crore | 75% |
| EBITDA Margin | 17.5% | 13.1% | 4.4% |
| Return on Capital Employed | 16% | 7.3% | 8.7% |
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Smartworks added that over 80 percent of its expected FY27 revenue is already locked in, providing a strong foundation for the company's future growth.
Investor Takeaway
Investors should consider Smartworks' improved profitability and revenue growth as a positive sign for the company's future prospects.
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