Smartworks adds 4.92 lakh sq ft capacity in Bengaluru

Smartworks Coworking Spaces Limited is expanding its operational footprint by adding 4,92,661 sq ft of capacity in Bengaluru. The company will invest approximately ₹70 crore in this expansion, financed through internal accruals and issue proceeds. This addition is scheduled to be completed within May 2026 and aims to support business growth by expanding the company's presence in key enterprise corridors.

Capacity Expansion Details

The new capacity addition increases Smartworks' overall portfolio. As of March 31, 2026, the company reported an existing leased capacity of 13.7 million sq ft, which includes operational, fitout, and yet-to-be-handover assets. The operational capacity stood at 10.1 million sq ft, with a utilization rate of 82%.

Particulars	Details
Proposed Capacity Addition	4,92,661 Sq. Ft.
Investment Required	₹70 Crore (Approx.)
Mode of Financing	Internal Accruals / Issue Proceeds
Existing Leased Capacity	13.7 Million Sq. Ft.
Existing Operational Capacity	10.1 Million Sq. Ft.
Capacity Utilization	82%

Strategic Rationale

The expansion is driven by the objective to enhance the company's operational footprint. The disclosure was submitted to the National Stock Exchange of India Limited and BSE Limited on May 27, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The specific details of the addition were provided in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Punam Dargar, Company Secretary & Compliance Officer, signed the disclosure on behalf of Smartworks Coworking Spaces Limited.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.36%	-0.86%	-2.13%	-1.75%	+0.29%	+0.29%

Smartworks Coworking Spaces Limited has disclosed its presentation for the analyst meeting organized by Centrum Broking Ltd on May 22, 2026. The company reported a 24% year-on-year growth, significantly outpacing the broader office market's 8% growth. The presentation highlighted that the company has transitioned from a scaling phase to a cash-compounding phase, driven by enterprise-led demand and operating leverage.

Financial Performance

The company reported strong financial results for the quarter and fiscal year ended March 31, 2026. Revenue from operations for Q4 FY26 stood at INR 5,197 Mn, a 45% increase from INR 3,584 Mn in Q4 FY25. For the full year FY26, revenue grew by 31% to INR 17,958 Mn compared to INR 13,741 Mn in FY25.

Particulars	Q4 FY26 (INR Mn)	Q4 FY25 (INR Mn)	YoY Growth %
Revenue from operations	5,197	3,584	45%
EBITDA	3,383	2,324	46%
Profit After Tax (PAT)	166	(83)	NA
Normalised PAT	349	138	153%

Operational Metrics

Smartworks expanded its total Super Built-up Area (SBA) to 16.1 Mn sq ft by March 2026, a 36% increase from 11.8 Mn sq ft in March 2025. The portfolio achieved 89% mature occupancy with a contracted value of INR 52,000 Mn. The company noted that supply visibility is secured entirely for FY27 and 75% plus for FY28.

City	Total SBA Mar'25 (Msf)	Total SBA Mar'26 (Msf)	% Variance
Pune	3.7	4.3	16%
Bengaluru	1.7	3.4	100%
Gurugram	1.2	2.2	83%
Mumbai	1.9	2.0	5%
Noida	0.9	1.4	56%
Hyderabad	1.2	1.3	8%
Others	1.2	1.5	25%
Total	11.8	16.1	36%

Returns and Efficiency

The company reported a significant improvement in return metrics. Return on Capital Employed (RoCE) for Q4 FY26 reached 22%, compared to 15% in Q4 FY25. The annualised RoCE for FY26 stood at 16%, up from 7% in FY25. Normalised Operating Cash Flow (OCF) for FY26 was INR 3,564 Mn, a 42% increase year-on-year. The balance sheet remained net-debt-negative, with net debt at INR (561) Mn as of March 31, 2026.