Smartworks Coworking Spaces Limited has expanded its Delhi NCR footprint by opening a new managed office spanning approximately 1.41 lakh sq ft at 4 Worldmark in Aerocity. The facility, a partnership with Bharti Real Estate, targets multinational corporations and global capability centers (GCCs) seeking premium workspace near Indira Gandhi International Airport. This launch coincides with the company’s Q1 FY27 results, which reported revenue of ₹546 crore, up 44% year-on-year, underscoring strong demand visibility supported by contracted rental revenue of approximately ₹5,400 crore.

The expansion was disclosed on August 5, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Smartworks plans to fund the ₹25 crore (Approx.) investment through internal accruals, issue proceeds, and external debt. The centre is located within an IGBC Platinum Certified building, offering enterprise-grade infrastructure including collaborative workspaces, executive lounges, and wellness amenities.

Expansion Details

The following table outlines the key parameters of the new capacity addition:

Strategic Footprint and Utilization

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. This includes operational capacity of 10.4 million sq ft, with an overall utilization rate of 81% and committed occupancy at 86%. The company serves over 760 clients, including Fortune 500 firms and unicorns, leveraging partnerships with developers such as Hiranandani, Panchshil Realty, DLF, and Tata Realty.

Neetish Sarda, Founder and Managing Director, stated that Aerocity has emerged as one of Delhi NCR’s fastest-growing commercial hubs, driven by strong demand from GCCs. He noted that the addition strengthens the company’s ability to support evolving enterprise requirements in high-demand corridors.

What the Numbers Show

The simultaneous report of 44% revenue growth and a massive ₹5,400 crore contracted rental revenue base indicates robust multi-year visibility for Smartworks. The aggressive capacity addition in a premium location like Aerocity, funded partly by external debt, suggests management is confident in converting its high committed occupancy (86%) into sustained cash flows. This strategic move reinforces its position as India’s largest managed office platform by footprint, capitalizing on the structural shift towards flexible, enterprise-grade workspaces.

Smartworks Coworking Spaces Limited reported robust financial results for Q1 FY27, with revenue from operations rising 44% year-on-year to ₹5,462 million. The company’s normalised profit after tax (PAT) nearly tripled to ₹388 million, while normalised EBITDA surged 74% to ₹1,069 million, driven by operating leverage and margin expansion to 19.6%. During the subsequent earnings call held on July 22, 2026, management reaffirmed its full-year revenue growth guidance of 28% to 30% and outlined a significant capital expenditure cycle for FY27.

Financial Performance

The company’s total income for the quarter stood at ₹5,596.66 million on a consolidated basis, against total expenses of ₹5,420.98 million. Profit before tax was ₹175.68 million, marking a turnaround from the loss before tax of ₹55.69 million in Q1 FY26. On a standalone basis, total income reached ₹5,414.34 million with a profit before tax of ₹137.32 million. EBITDA for the quarter was ₹3,460 million, up from ₹2,410 million in the same period last year.

Consolidated Financial Results (₹ in millions)

Operational Highlights

Smartworks’ operational portfolio expanded to 10.4 million sq. ft. across 54 centres in 15 cities, including Singapore. Committed occupancy at mature centres stood at approximately 92%, with overall mature centre occupancy at 89%. The company added ~5.0 million sq. ft. since its IPO, bringing total signed business area to 16.9 million sq. ft. Contracted rental revenue is approximately ₹54,000 million, covering 87.2% of the full-year guidance.

Strategic Developments and Capex Guidance

Subsequent to the quarter end, Smartworks acquired 100% equity shares of Workstudio Spaces Pte. Ltd., a Singapore-based operator, for SGD 2.47 million (₹182.20 million). This acquisition adds over 1,500 seats in Singapore, which currently contributes about 2% of total revenue. Management clarified that international growth will be self-funded through international cash flows, while India cash flows will support domestic expansion.

For FY27, management guided for a capital expenditure outlay between ₹550 crore and ₹600 crore. This includes both new fit-outs and refurbishments. New fit-out costs are estimated at ₹1,350 per sq. ft., increasing by 5% annually due to inflation, while refurbishment capex is approximately 15% of initial capex every three years. The company has secured long-term rights to properties in prime locations, ensuring supply visibility through FY29.

What the Numbers Show

The surge in value-added services (VAS) revenue highlights a diversification beyond core rentals. Non-lease rental revenue tripled from ₹22 crore in Q1 FY26 to ₹68 crore in Q1 FY27, driven by recurring services like food programs. Additionally, the client mix is shifting towards larger enterprises; the 1,000+ seat cohort now contributes 41% of revenue, up from 37% in FY26, while GCC clients account for 21% of revenue, up from 15%. This shift supports higher annuity-like revenue stability and margin accretion.