Smartworks Coworking Spaces Limited reported a remarkable financial turnaround for FY26 with net profit of Rs. 70.13 million versus Rs. 617.37 million loss in FY25. Revenue grew 30.3% to Rs. 17,460.11 million driven by strong operational performance. The company successfully completed its IPO raising Rs. 4,450 million and strategically utilized proceeds for debt repayment and expansion. Q4 FY26 performance was particularly strong with profit of Rs. 150.18 million and 45.2% revenue growth year-on-year.

Smartworks Coworking Spaces Limited Reports Turnaround with Rs. 70.13 Million Profit in FY26

Smartworks Coworking Spaces Limited has delivered a strong financial turnaround for the fiscal year ended March 31, 2026, reporting a net profit of Rs. 70.13 million compared to a loss of Rs. 617.37 million in the previous year. The coworking space provider's Board of Directors approved the audited standalone and consolidated financial results at their meeting held on April 30, 2026.

Financial Performance Highlights

The company demonstrated robust revenue growth with operations revenue increasing by 30.3% year-on-year to Rs. 17,460.11 million in FY26 from Rs. 13,398.72 million in FY25. This growth trajectory was consistently reflected across quarters, with Q4 FY26 revenue reaching Rs. 5,066.32 million compared to Rs. 3,488.67 million in Q4 FY25.

Metric FY26 FY25 Change Revenue from Operations Rs. 17,460.11 million Rs. 13,398.72 million +30.3% Net Profit/(Loss) Rs. 70.13 million Rs. (617.37) million Turnaround Total Income Rs. 18,012.05 million Rs. 13,772.52 million +30.8% Basic EPS Rs. 0.63 Rs. (6.04) Positive

Quarterly Performance

The fourth quarter of FY26 showcased exceptional performance with the company posting a profit of Rs. 150.18 million against a loss of Rs. 70.75 million in Q4 FY25. Quarterly revenue grew significantly to Rs. 5,066.32 million from Rs. 3,488.67 million year-on-year, representing a 45.2% increase.

Quarter Q4 FY26 Q4 FY25 Growth Revenue Rs. 5,066.32 million Rs. 3,488.67 million +45.2% Net Profit/(Loss) Rs. 150.18 million Rs. (70.75) million Turnaround Basic EPS Rs. 1.31 Rs. (0.68) Positive

IPO Success and Capital Utilization

During FY26, Smartworks successfully completed its Initial Public Offering of 14,321,474 equity shares at an issue price of Rs. 407 per share. The IPO comprised a fresh issue of 10,941,734 shares and an offer for sale of 3,379,740 shares by selling shareholders. The company's shares were listed on NSE and BSE on July 17, 2025.

The utilization of IPO proceeds from the fresh issue of Rs. 4,450 million shows strategic deployment:

Purpose Allocated Utilized Remaining Debt Repayment Rs. 1,140.00 million Rs. 1,140.00 million Rs. 0 million Capital Expenditure Rs. 2,258.40 million Rs. 923.61 million Rs. 1,334.79 million General Corporate Purposes Rs. 566.32 million Rs. 563.63 million Rs. 2.69 million Offer Expenses Rs. 485.28 million Rs. 420.59 million Rs. 64.69 million

Consolidated Results

On a consolidated basis, the Group reported a net profit of Rs. 105.28 million for FY26 compared to a loss of Rs. 631.79 million in FY25. Consolidated revenue from operations grew to Rs. 17,958.05 million from Rs. 13,740.56 million, marking a 30.7% increase.

Financial Position Strengthening

The company's balance sheet reflects significant strengthening with total assets increasing to Rs. 64,000.74 million as of March 31, 2026, from Rs. 46,281.26 million in the previous year. The equity base expanded substantially to Rs. 5,296.82 million from Rs. 1,133.57 million, primarily due to the IPO proceeds and retained earnings.

Auditor Opinion

Deloitte Haskins & Sells LLP, the company's statutory auditors, issued unmodified audit opinions on both standalone and consolidated annual financial results for FY26, confirming the accuracy and compliance of the financial statements with applicable accounting standards and regulatory requirements.

Smartworks Coworking Spaces Limited has crossed 10 million sq ft of operational portfolio, becoming the first listed flexible workspace provider in India to achieve this scale. This milestone reinforces the company's position as a national-scale infrastructure partner for enterprises and marks a pivotal moment in India's flexible workspace sector. The achievement follows the operationalisation of the Tata Intellion Park centre in Mumbai, where the company recently added a Forbes 2000 company.

Milestone Achievement and Strategic Impact

The milestone was officially announced on April 21, 2026, through a press release filed under Regulation 30 of SEBI LODR Regulations. The company continues to see healthy traction across its portfolio, driven by rising adoption from large enterprises and Global Capability Centres (GCCs).

Parameter: Details Operational Portfolio: 10 million sq ft Achievement Status: First listed flex space provider in India Recent Addition: Tata Intellion Park centre, Mumbai New Client Type: Forbes 2000 company

Leadership Perspective on Market Evolution

Neetish Sarda, Founder and Managing Director of Smartworks, highlighted the structural shift underway in India's office market. He noted that enterprise demand is moving towards managed, campus-led solutions that offer scale, consistency, and long-term visibility. Sarda emphasized that Smartworks has evolved into a national-scale enterprise workspace infrastructure platform, serving as an infrastructure partner to enterprises and GCCs, enabling multi-city expansion with standardised delivery and predictable execution.

Financial Performance and Operational Metrics

The company's strong performance reflects the momentum in the flexible workspace sector. Smartworks demonstrated robust financial and operational metrics in Q3 FY26.

Metric: Q3 FY26 Performance Revenue: ~₹472 crore Year-on-Year Growth: ~34% Mature Centre Occupancy: ~93% committed occupancy Growth Quality: Anchored in long-tenure enterprise relationships

With this scale and portfolio maturity, Smartworks has entered a phase of cash compounding, indicating strong financial health and sustainable business model.

Market Positioning and Business Model

Smartworks operates a campus-led model of leasing entire buildings and converting them into fully managed workspaces. This approach enables enterprises to expand across cities without managing real estate operations directly. The company caters to a diverse client base including Forbes 2000 companies, GCCs, large enterprises, and scaling businesses. As of December 31, 2025, Smartworks maintains India's largest managed office platform by total area under management, with a footprint of ~15.3 million sq ft across 63 centres in 15 cities in India and Singapore, serving 770+ clients.

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