Smartworks plans to invest ₹550-600 crore in FY27 across existing and upcoming centres as demand for managed office space rises. The company has already signed over 3.5 million sq. ft. of future space. Strong enterprise demand, growing GCC business and long-term contracts support its expansion strategy.
Smartworks Coworking Spaces Ltd is stepping up investment to capture India’s rapidly growing managed workspace market. The Gurugram-based listed company plans to spend ₹550-600 crore in capital expenditure during FY27, covering both new capacity and refurbishment of existing centres.
The planned investment is significantly higher than the nearly ₹400 crore in capex Smartworks spent in FY26. Founder and Managing Director Neetish Sarda said, “Our capex estimate is between Rs 550 crore and Rs 600 crore for the year.” He explained that the spending will include regular refurbishment as well as fresh investment in new centres.
Smartworks has already signed more than 3.5 million sq. ft. of additional space that is either under construction or scheduled to begin construction, giving the company a substantial pipeline for future growth.
Enterprise Demand Drives the Model
Smartworks currently has a portfolio of 16.9 million sq. ft. across 70 centres in 15 cities in India and Singapore, with more than 760 clients. Its campuses serve over 1.5 lakh professionals every day, ranging from Fortune 500 companies and multinational corporations to Indian conglomerates and unicorns.
The company follows an asset-light approach by leasing entire buildings from developers and landlords before converting them into fully managed, amenity-rich workplaces. These facilities typically include cafeterias, gyms, creches, convenience stores and recreation areas.
Sarda said, “Our platform has grown to almost 17 million square feet of total area and over 760 clients.” With around 92% of revenue coming from enterprise customers, the strategy is clearly focused on larger occupiers rather than traditional small-team coworking.
Long-Term Contracts Strengthen Visibility
Smartworks is also benefiting from the longer commitments typical of managed office clients. Corporate customers generally sign agreements lasting four to five years, providing greater revenue visibility compared with short-term coworking memberships.
The company’s committed contracted revenue stands at approximately ₹5,400 crore, while 87% of its FY27 revenue is already contracted. Executive Director Harsh Binani highlighted the benefits of scale, saying, “Scale earns us preferred terms from landlords and lower unit costs across leasing and operations.”
Larger centres are increasingly being filled by major occupiers, with demand for 1,000-plus seats and multi-city requirements gaining momentum. Smartworks also said the contribution from Global Capability Centres (GCCs) is rising, adding another growth driver.
Flex Market Shows Strong Corporate Appetite
Smartworks’ expansion comes as the wider flexible workspace industry continues to gain traction. Colliers India estimates that coworking operators leased 8.6 million sq. ft. during H1 2026, up 32% year-on-year. Cushman & Wakefield also reported that operators leased 1,91,306 desks to corporates, compared with 1,13,623 seats in the same period last year.
Smartworks is showing financial momentum alongside this market growth. Its consolidated net profit reached ₹13.14 crore in Q1 FY27, compared with a ₹4.19 crore loss a year earlier, while total income rose 44% to ₹559.66 crore.
With corporate occupiers demanding flexibility, amenities and scalable capacity, Smartworks’ investment signals a broader shift: managed offices are increasingly becoming a core part of enterprise real estate strategy rather than simply an alternative to conventional coworking.
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