Smartworks Coworking Spaces Limited announced its unaudited financial results for the quarter ended December 31, 2025, showing a remarkable turnaround with the company posting its first profit in recent quarters. The coworking space provider demonstrated strong operational recovery with significant revenue growth and improved cost management.

Financial Performance Overview

The company's standalone financial performance for Q3 FY26 showed substantial improvement across key metrics:

The company achieved a profit before tax of ₹3.92 crores compared to a loss of ₹235.38 crores in the corresponding quarter of the previous year, marking a significant operational turnaround.

Consolidated Results Show Strong Performance

On a consolidated basis, Smartworks Coworking Spaces demonstrated even stronger performance with the group posting a profit of ₹12.40 crores for Q3 FY26:

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company showed mixed results with improved revenue but continued losses on a year-to-date basis. Standalone revenue from operations reached ₹12,393.79 crores, representing a 25.06% increase from ₹9,910.05 crores in the corresponding period of FY25. However, the company reported a nine-month loss of ₹80.05 crores compared to ₹546.62 crores loss in the previous year, showing significant reduction in losses.

Expense Management and Operational Efficiency

The company demonstrated improved expense management during the quarter. Total expenses for Q3 FY26 stood at ₹4,769.95 crores compared to ₹3,761.45 crores in Q3 FY25. Key expense categories included:

• Operating expenses: ₹1,310.72 crores (vs ₹1,015.51 crores in Q3 FY25)
• Depreciation and amortisation: ₹2,168.63 crores (vs ₹1,610.68 crores in Q3 FY25)
• Finance costs: ₹956.89 crores (vs ₹846.14 crores in Q3 FY25)
• Employee benefits: ₹230.99 crores (vs ₹148.05 crores in Q3 FY25)

IPO Proceeds Utilization Update

The company provided an update on the utilization of its IPO proceeds of ₹4,450.00 million. As of December 31, 2025, the company had utilized ₹2,723.06 million, with ₹1,726.94 million remaining unutilized. The major utilizations included complete repayment of borrowings worth ₹1,140.00 million and capital expenditure of ₹645.06 million for fit-outs and security deposits for new centers.

Regulatory and Compliance Updates

The company noted the impact of new Labour Codes effective November 21, 2025, which resulted in a one-time increase in employee benefit provisions of ₹5.34 million. The financial results were reviewed by the Audit Committee and approved by the Board of Directors on January 15, 2026, with limited review conducted by statutory auditors Deloitte Haskins & Sells LLP.

Smartworks coworking spaces Limited has announced a conference call with investors and analysts to discuss its Q3FY26 performance and business updates. The company has formally notified both the National Stock Exchange of India Limited (NSE) and BSE Limited about this scheduled interaction under Regulation 30 of the Securities and Exchange Board of India (LODR) Regulations, 2015.

Conference Call Details

The earnings conference call is scheduled for January 16, 2026, and will provide stakeholders with insights into the company's third-quarter performance for fiscal year 2026.

Management Participation

The conference call will feature key members of Smartworks' senior management team who will present the company's quarterly results and address questions from investors and analysts.

Access Information

Participants can join the conference call through multiple channels. The universal dial-in numbers for domestic participants are +91-22-6280 1366 and +91-22-7115 8267. International participants have access to toll-free numbers across different regions.

Participants are advised to dial in 10 minutes prior to the scheduled time to ensure proper connection. The call will also be accessible through a Diamond Pass link for express joining.

Company Information

Smartworks Coworking Spaces Limited, formerly known as Smartworks Coworking Spaces Private Limited, operates from its registered office at Unit No. 305-310, Plot No. 9, 10 & 11, Vardhman Trade Centre, Nehru Place, South Delhi. The company's corporate office is located in DLF Commercial Building, Block-3, Zone-6, DLF Phase-5, Gurugram, Haryana. Company Secretary and Compliance Officer Punam Dargar has signed the regulatory notification to the stock exchanges.