Smartworks Coworking Spaces Reports Strong Q3 EBITDA Growth to ₹306 Million
Smartworks Coworking Spaces delivered strong Q3 financial performance with EBITDA growing 40.37% year-over-year to ₹306 million, while EBITDA margin expanded by 273 basis points to 64.75%. The improved profitability reflects the company's successful enterprise-focused strategy and operational efficiency across its 15.30 million sq. ft. footprint spanning 15 cities.
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Smartworks Coworking Spaces Limited has reported significant improvement in its Q3 financial performance, with EBITDA reaching ₹306 million compared to ₹218 million in the same quarter of the previous year. The managed office platform also demonstrated enhanced profitability with EBITDA margin expanding to 64.75% from 62.02% year-over-year.
Updated Financial Performance
The latest quarterly results show substantial improvement in the company's profitability metrics, reflecting the structural inflection in its growth trajectory that management had previously indicated.
| Financial Metric | Q3 Current Year | Q3 Previous Year | Growth |
|---|---|---|---|
| EBITDA | ₹306.00 million | ₹218.00 million | +40.37% YoY |
| EBITDA Margin | 64.75% | 62.02% | +273 bps expansion |
Operational Excellence and Market Position
The company continues to maintain its strong operational footprint across 15 cities with over 15.30 million sq. ft. of managed space. The enhanced EBITDA performance reflects improved operational efficiency and the company's focus on high-quality enterprise clients.
| Operational Parameter | Current Status |
|---|---|
| Total Footprint | 15.30 million sq. ft. |
| Cities Present | 15 cities |
| Total Clients | 770+ clients |
| Committed Occupied Seats | 192,000+ seats |
| Committed Occupancy (Mature Centres) | 93.00% |
Enterprise-Driven Growth Strategy
The improved EBITDA margin of 64.75% demonstrates the effectiveness of Smartworks' strategy to focus on large-format enterprise contracts. Multi-city enterprise clients continue to contribute approximately 30% of rental revenue, while the 1,000+ seat client cohort represents 35% of rental revenue, enhancing the predictability of income streams.
Capital Efficiency Improvements
The strong EBITDA performance supports the company's capital-efficient growth model. With a net-debt negative balance sheet position and committed rental revenue exceeding ₹4,700 crores, Smartworks maintains financial flexibility while delivering improved returns to stakeholders.
Market Outlook
The enhanced EBITDA margin expansion from 62.02% to 64.75% year-over-year indicates the company's ability to leverage its scale for improved profitability. With secured supply visibility through FY27 and continued focus on enterprise-led demand patterns, Smartworks appears well-positioned to sustain its profitability momentum in upcoming quarters.
