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.

Smartworks Coworking Spaces is likely to beat its 28-30% revenue growth guidance, according to CNBCTV18, reinforcing the managed workspace provider's confidence in meeting its broader financial and operational goals. This development adds further momentum to the company's already well-defined expansion roadmap.

Revenue Growth Outlook

According to CNBCTV18, Smartworks is on track to surpass its stated revenue growth guidance of 28-30%, signaling stronger-than-expected business performance. This outlook underscores the company's ability to scale its operations at a pace that exceeds its own projections, reflecting robust demand in the managed coworking space segment.

Rental Revenue Target and Expansion Roadmap

Alongside the positive growth momentum, Smartworks Coworking Spaces has set a significant rental revenue milestone of ₹5,400 crore, to be achieved through a phased and deliberate expansion strategy. The company's expansion plans are structured to span across FY28 and into part of FY29, reflecting a measured approach to scaling its footprint.

The following table summarizes the key targets and timelines 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 likelihood of beating the 28-30% revenue growth guidance further strengthens the case for the company achieving its ₹5,400 crore rental revenue goal.

Summary

Smartworks Coworking Spaces is likely to beat its 28-30% revenue growth guidance per CNBCTV18, while also targeting ₹5,400 crore in rental revenue through a phased expansion plan extending 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.