Financial Performance Overview

For the quarter ended June 30, 2026 (Q1 FY27):

Revenue & Profitability:

  • Revenue from operations: ₹546 crore, representing 44% year-on-year (YoY) growth and 5% quarter-on-quarter (QoQ) growth
  • This marks the fifth consecutive quarter of sequential growth since listing
  • Normalised EBITDA: ₹107 crore, up 74% YoY
  • Normalised EBITDA margin: 19.6%, expanding by 337 basis points YoY
  • Normalised profit after tax (PAT): ₹39 crore, up 197% YoY from ₹13 crore
  • Reported PAT: ₹13 crore

Cash Flow & Returns:

  • Normalised operating cash flow: ₹95 crore
  • OCF-to-EBITDA ratio: 0.9x (reflecting timing of deposits paid to secure office space through FY28 and partially for FY29)
  • Annualised Normalised ROCE: 21.5%, up from 12.7% a year ago
  • Investment capex: Increased by 66% YoY

Operational Highlights

Portfolio Metrics:

  • Operational portfolio: 10.4 million sq. ft. across 54 operational centres in 15 cities including Singapore
  • Total secured footprint: ~16.9 million sq. ft. across 70 centres including signed buildings
  • Added 0.3 million sq. ft. of new operational area during the quarter
  • Ready pipeline of signed buildings including Eastside and Eastbridge going live through rest of the year
  • Full-year target: 2.5-3 million sq. ft. of new operational area

Occupancy & Client Metrics:

  • Mature centres occupancy: ~89%
  • Committed occupancy: ~92%
  • Overall occupancy: 81%
  • Overall committed occupancy: 86%
  • Rental revenue from enterprise clients: ~92%
  • Revenue from Global Capability Centres (GCCs): ~21% of rental revenue (up from ~15% for FY26)
  • Multi-city client revenue: ~35% of rental revenue (up from ~31% for FY26)
  • Clients with 1,000+ seats contribution: ~41% of rental revenue (up from ~37% for FY26 and ~34% in FY26)

Expansion & Contracts:

  • Contracted rental revenue: ~₹5,400 crore, covering 87.2% of full-year guidance
  • FY27 and FY28 expansion fully booked; work on FY29 buildings has begun
  • Singapore capacity doubled to ~1,500 seats with acquisition of Workstudio
  • Existing Singapore centres operate at high occupancy

Strategic Developments

Eastside, Pune Campus:

  • Signed LOI for Eastside by Panchshil Realty in Kharadi, Pune
  • Size: ~8.63 lakh sq. ft.
  • Will be the world's largest managed office campus when operational
  • Scheduled to open in H2 FY27
  • Will surpass the company's own previous record

Expansion Pipeline:

  • Eastbridge in Mumbai: ~8.15 lakh sq. ft.
  • Total new capacity: 2.2-2.7 million sq. ft. set to become operational over next nine months
  • All new campuses have robust client precommitments

Management Commentary

Mr. Neetish Sarda, Founder & Managing Director, highlighted:

  • Confidence in India's flex space market long-term growth phase
  • Large enterprises increasingly moving to flexible, fully managed workspaces
  • Ability to design workspaces customized to client needs (functional, premium)
  • Continuous enhancement of member experience through AI integration into internal tools and processes
  • AI enables faster execution, better decision-making, and more efficient operations
  • Strategic advantage in securing prime location buildings well in advance
  • Well positioned to meet client growth requirements in cities with limited high-quality managed campuses

Market Context

  • India's office market recorded highest-ever quarterly leasing of ~24.6 million sq. ft. in April-June 2026
  • Managed workspace operators accounted for 27% of total leasing (largest single category)
  • Global companies setting up India offices anchored 42% of total absorption
  • Market running short of quality office space

FY27 Guidance Reiterated

  • Revenue growth: 28-30%
  • Normalised EBITDA margin: 19-20%
  • Operational footprint: 12.5-13 million sq. ft. by March 2027

Company Background

Smartworks is India's largest managed office platform by overall footprint with ~16.9 million square feet across 70 centres in 15 cities across India and Singapore as of June 30, 2026. The company partners with real estate developers to transform large, bare-shell assets into fully managed, enterprise-grade campuses. Serves 760+ clients including Fortune 500 and Forbes 2000 companies, MNCs, leading Indian conglomerates and unicorns. Also offers SmartVantage, a GCC-focused solution. Listed on NSE and BSE on 17 July 2025.