Smartworks Coworking Spaces Limited , a prominent player in the coworking industry, has released an update on ongoing litigation related to its initial public offering (IPO). The company disclosed details of a pending appeal before the Supreme Court of India.

Supreme Court Hearing

The matter, which stems from an appeal filed by Infrastructure Watchdog before the Securities Appellate Tribunal, was listed for hearing in the Supreme Court on August 14, 2025. However, the court has adjourned the case to August 18, 2025, with the matter still pending admission.

Parties Involved

Notably, the company's promoters - Neetish Sarda, NS Niketan LLP, and SNS Infrarealty LLP - are parties to the case. This information underscores the significance of the litigation for the company's key stakeholders.

Compliance and Transparency

Smartworks Coworking Spaces has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The company emphasized that this is a voluntary disclosure, demonstrating its commitment to transparency with investors and regulatory bodies.

Company's Statement

In its filing, Smartworks stated, "The Company will provide further updates as and when there is a substantial development in the matter." This assurance indicates the company's intention to keep stakeholders informed about any significant progress in the litigation.

Background of the Litigation

The current update is part of a series of disclosures made by the company since July 19, 2025, regarding the pending litigation. These disclosures relate to the appeal filed by Infrastructure Watchdog concerning Smartworks' initial public offering of equity shares, as detailed in the company's prospectus dated July 14, 2025.

As the legal proceedings continue, investors and market watchers will be keenly awaiting the Supreme Court's decision on August 18, 2025, which could have implications for Smartworks Coworking Spaces and potentially the broader coworking sector in India.

Smartworks Coworking Spaces Limited , India's largest managed office platform, has reported robust financial results for the first quarter of fiscal year 2026, demonstrating significant growth and improved profitability.

Revenue and Profitability

The company's revenue from operations for Q1 FY26 stood at INR 3,792.00 million, marking a 21% year-over-year increase from INR 3,134.00 million in Q1 FY25. This growth was primarily driven by sustained demand from enterprise clients and strategic capacity expansion.

Smartworks achieved a remarkable improvement in profitability, with normalized EBITDA more than doubling to INR 607.00 million, compared to INR 290.00 million in the same quarter last year. The normalized EBITDA margin expanded to 16.00% from 9.30% in Q1 FY25, reflecting the strength of the company's asset-light, enterprise-focused model.

Operational Highlights

• Portfolio reached 10.08 million square feet of leased space as of June 30, 2025
• 0.70 million square feet under fit-out and 1.07 million square feet scheduled for handover in Q2 and Q3
• Total Super Built-up Area (SBA) stands at approximately 12 million square feet, including signed Letters of Intent (LOIs)
• Occupancy in operational centers remains above 83%, with committed occupancy above 89%
• Enterprise clients comprise 90.49% of the portfolio
• Weighted average total client tenure is 45 months

Financial Performance

• Normalized Profit Before Tax (PBT) improved to INR 168.00 million, representing a 4.40% margin
• Normalized Operating Cash Flow rose by 71% year-over-year to INR 855.00 million
• Annualized Return on Capital Employed (RoCE) doubled to 13.00% from 6.50% in FY25

Strategic Expansion

Smartworks has been rapidly expanding its footprint across India. The company now operates in 15 cities with 54 leased centers and a total leased capacity of 232,000 seats. Recent additions include:

• Bharat IT Park (Bangalore): 200,000 sq. ft. with ~6,000 capacity seats
• Tech Park One (Pune): 165,000 sq. ft. with ~3,000 capacity seats
• Intellion IT Park (Mumbai): 557,000 sq. ft. with ~14,000 capacity seats

Management Commentary

Neetish Sarda, Managing Director of Smartworks, commented on the results: "We are pleased to report a strong quarterly performance, driven by continued momentum across revenue, EBITDA, and operating efficiency. Our revenue growth this quarter reflects a combination of robust, sustained demand from enterprise clients and the deliberate capacity expansion we executed over the past year."

Harsh Binani, Executive Director, added: "Our operational momentum remains strong, supported by a high-quality portfolio and a healthy pipeline of new supply. Today, we have more than INR 40,000.00 million in committed revenue, providing strong visibility into future cash flows."

Outlook

With its strong financial performance, expanding footprint, and focus on enterprise clients, Smartworks is well-positioned to capitalize on the growing demand for flexible workspace solutions in India. The company's asset-light model and efficient operations continue to drive profitability and returns, making it a significant player in the evolving commercial real estate landscape.

As Smartworks continues to expand its presence across major commercial hubs in India, it remains focused on delivering value-driven, flexible workspace solutions that meet the evolving demands of modern businesses.