Smartworks Coworking Spaces has filed its Business Responsibility and Sustainability Report (BRSR) for FY26 with stock exchanges. The filing outlines the company’s consolidated environmental, social, and governance performance across its portfolio of managed workspaces.

The report highlights a strategic shift toward formalising sustainability targets following a comprehensive peer benchmarking exercise. Management noted that while baseline data for FY25-26 is being established, the company is executing a three-year ESG roadmap spanning FY25-26 to FY27-28.

Environmental Performance

Smartworks reported a total energy consumption of 303,040 GJ for the current financial year, an increase from 259,510 GJ in the prior year. Despite the rise in absolute consumption, energy intensity per rupee of turnover improved to 0.0000174, down from 0.0000228 previously.

The company attributed efficiency gains to IoT-enabled lighting controls and AI-driven air conditioning optimisation. Smartworks also disclosed 43,434.51 metric tonnes of Scope 3 emissions for the first time in the reporting period.

What the Numbers Show

While total energy consumption rose by approximately 16.8%, the share of renewable energy within the total mix expanded significantly. Renewable sources accounted for roughly 7% of total energy consumption in FY26, up from about 3.4% in FY25, indicating a deliberate pivot toward cleaner power procurement alongside portfolio expansion.

Social Metrics and Safety

The workforce composition remained heavily skewed toward contract workers, who constituted 3,404 individuals compared to 1,038 permanent employees. The company reported zero fatalities and no lost-time injuries among employees. However, contract workers recorded a Lost Time Injury Frequency Rate (LTIFR) of 1.2, an improvement from 1.8 in the previous year.

Employee turnover for permanent staff stabilised at 42% in FY26, down from 46% in FY25. The company maintained 100% coverage for health and accident insurance across all permanent employees and workers.

Governance and Compliance

Smartworks confirmed compliance with all statutory requirements relevant to the National Guidelines on Responsible Business Conduct (NGRBC). The company reported one formal complaint under the Prevention of Sexual Harassment (POSH) Act, which was resolved within the mandated 90-day timeline. No monetary fines or penalties were paid to regulators during the period.

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.