Smartworks Coworking Spaces Limited reported a strong financial performance for Q1 FY27, with revenue from operations rising 44% year-on-year to ₹5,462 million. The company’s normalised profit after tax nearly tripled to ₹388 million, while normalised EBITDA surged 74% to ₹1,069 million. This growth was driven by operating leverage and a 74% increase in normalised EBITDA, with margins expanding to 19.6%. The board of directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, at its meeting held on July 22, 2026.

Financial Performance

The company’s total income for the quarter stood at ₹5,596.66 million on a consolidated basis, while total expenses were reported at ₹5,420.98 million. Profit before tax for the quarter was ₹175.68 million, a significant turnaround from the loss before tax of ₹55.69 million recorded in Q1 FY26. On a standalone basis, total income reached ₹5,414.34 million with a profit before tax of ₹137.32 million. The company also reported EBITDA of ₹3.46 billion for the quarter, compared to ₹2.41 billion in the same period last year.

Consolidated Financial Results (₹ in millions)

Operational Highlights

The company’s operational portfolio expanded to 10.4 million sq. ft. across 54 operational centres in 15 cities, including Singapore. Contracted rental revenue stands at approximately ₹54,000 million, covering 87.2% of the full-year guidance. Mature centres operated at approximately 89% occupancy, with committed occupancy of approximately 92%. The company added ~5.0 million sq. ft. since its IPO, with total SBA reaching 16.9 million sq. ft.

Strategic Developments

Subsequent to the quarter end, the group entered into an agreement to acquire 100% equity shares of Workstudio Spaces Pte. Ltd., a Singapore-based coworking space operator. The acquisition was completed on July 7, 2026, for a consideration of SGD 2.47 million (₹182.20 million). The company continues to utilise proceeds from its Initial Public Offering (IPO) completed in the previous financial year, with ₹3,747.88 million utilised out of the gross proceeds of ₹4,450 million as of June 30, 2026. Smartworks has signed a Letter of Intent (LOI) for Eastside in Pune, which will be the world's largest managed office campus upon opening in H2 FY27.

smartworks coworking spaces has expressed confidence in meeting its financial and operational goals, anchored by a rental revenue target of ₹5,400 crore and a well-defined expansion roadmap extending through FY28 and part of FY29.

Revenue Target and Expansion Outlook

The company has set a significant rental revenue milestone of ₹5,400 crore, which it aims to achieve through sustained growth and strategic expansion initiatives. Smartworks Coworking Spaces has indicated that its expansion plans are structured to span across FY28 and into part of FY29, reflecting a phased and deliberate approach to scaling its operations.

The following table summarizes the key targets and timeline highlighted by the company:

Confidence in Goal Achievement

Smartworks Coworking Spaces has conveyed a strong sense of confidence in its ability to deliver on these targets. The company's stated assurance is backed by its expansion plans, which are designed to drive rental revenue growth over the outlined fiscal period. The managed workspace provider's focus on scaling its footprint is central to its strategy for reaching the ₹5,400 crore rental revenue goal.

Summary

Smartworks Coworking Spaces has outlined a clear financial target of ₹5,400 crore in rental revenue, supported by expansion plans through FY28 and part of FY29. The company has expressed confidence in achieving these goals, underscoring its commitment to growth in the managed coworking space segment.