The board of Smartworks Coworking Spaces on August 24, 2026, approved a scheme to reduce its share capital via the Securities Premium Account. This move aims to fully set off accumulated losses reported in the audited financial statements for the year ended March 31, 2026.

The proposal seeks to present a true and fair view of the company's financial position by eliminating these losses from the books of account. The reduction does not involve any decrease in issued, subscribed, or paid-up share capital. Consequently, the face value and number of equity shares held by each shareholder will remain unchanged, with no payment made to shareholders and no alteration to percentage shareholding.

Board Recommendations

In addition to the capital reduction scheme, the board recommended the appointment of two Non-Executive Independent Directors for a term of five consecutive years. The appointments were made on the recommendation of the Nomination and Remuneration Committee.

The company confirmed that neither director has been debarred from holding office by SEBI or any other authority. These appointments are subject to approval by members through an ordinary resolution.

Regulatory Approvals Required

The share capital reduction scheme requires further approvals before implementation. It must be sanctioned by the Hon’ble National Company Law Tribunal (NCLT) and approved by members via a Special Resolution. Any other statutory or regulatory permissions required will also be sought.

The board meeting commenced at 3:30 pm and concluded at 4:25 pm. The disclosures were made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Smartworks Coworking Spaces Limited added ~₹235 crore in incremental contracted rental revenue through expansion mandates from existing enterprise clients. The announcement on August 24, 2026, highlights deepening commitments from large multinational corporations and Indian conglomerates across multiple cities.

The new contracts feature engagement tenures of up to 60 months and build upon the company's disclosed contracted rental revenue base of ~₹5,400 crore as of June 30, 2026. This incremental revenue reflects leasing rentals from clients including Fortune 500 and Forbes 2000 companies.

Client Profile and Expansion Drivers

The expansion mandates include a global leader in engineering and technology services (a subsidiary of a Fortune India 500 company), the India IT services arm of a Forbes 2000 company, and a Fortune 500 global infrastructure consulting firm. Several of these clients are building advanced technology and AI capabilities out of their India centres.

Neetish Sarda, Founder and Managing Director, stated that the expansions validate the platform's ability to support seamless growth within fully managed campuses. He noted that large organisations seek prime locations, quality infrastructure, and scalable space without the disruption of relocation.

What the Numbers Show

The revenue composition underscores Smartworks' focus on large enterprises. Approximately 92% of the company's revenue is derived from enterprise clients. Additionally, ~35% of revenue comes from multi-city clients, indicating a growing role as a preferred workspace partner for enterprises operating across geographies.

Operational Footprint

As of June 30, 2026, Smartworks reported a total secured footprint of ~16.9 million sq. ft. across 70 centres in 15 cities in India and Singapore. The company strategically secures long-term leases for large campuses in prime business locations.

The company has secured its expansion pipeline in prime locations for FY27 and FY28, with partial capacity locked for FY29. This positions the firm to serve client demand ahead of time.