Smartworks posted 21% YoY revenue growth to ₹424.8 crore, a 46% jump in normalised EBITDA to ₹69.6 crore, and 40% QoQ PBT growth to ₹24.5 crore, with RoCE at 14.3%. The company turned net-debt negative, won an ‘A; Stable’ CareEdge upgrade, and signed 8.15 lakh sq. ft. at Eastbridge, Mumbai—its largest global campus deal.
Smartworks Coworking Spaces Ltd reported a strong second quarter of FY26, reinforcing momentum in India’s flex-space market. Revenue rose 21% year on year to ₹424.8 crore, while normalised EBITDA increased 46% to ₹69.6 crore, reflecting tighter cost controls and better utilisation across mature centres. Profit before tax increased 40% quarter-over-quarter to ₹24.5 crore, and the return on capital employed reached a record 14.3%, underscoring improved unit economics.
Balance Sheet De-risked; Ratings Upgraded
The quarter also showcased a healthier balance sheet. Smartworks turned net-debt negative by ₹59 crore, supported by an operating cash flow of ₹ 61.4 crore. Since its IPO, the company has reduced gross debt by 45%, signalling cash-efficient expansion. CareEdge Ratings upgraded the company to ‘A; Stable’ from ‘BBB+; Positive’, citing stronger cash flows, disciplined execution, and better debt-servicing metrics—an important signal for lenders and enterprise clients evaluating long-term partners.
Scale, Utilisation, and Client Mix
Smartworks now manages 12.7 million sq. ft. across 14 cities, with 9.1 million sq. ft. operational across 54 centres. Portfolio occupancy stands at 81%, while mature centres have reached 93% utilisation—key to operating leverage in the managed office model. The platform serves over 760 enterprise clients, with approximately 90% of rental revenue coming from large corporates, de-risking churn and providing multi-year visibility.
Eastbridge: A Category-Defining Campus
A highlight of the quarter was the 815,000 sq. ft. signing at Eastbridge, Mumbai—a marquee development by Regalia Business Parks (Hiranandani Group). Positioned as the world’s largest managed office campus operated by any flex player, Eastbridge expands Smartworks’ campus-led strategy in India’s deepest office market. Founder and MD Neetish Sarda said, “Our Q2 results reflect the strength of our managed campus model. With Eastbridge, we’ve set a new global benchmark. We remain focused on sustainable growth and long-term value creation.”
Diversified Demand; GCC Flywheel
Sectoral demand continues to broaden. BFSI, consulting, manufacturing, and healthcare tenants are scaling flex footprints for speed-to-occupy, turnkey fit-outs, and uptime guarantees. SmartVantage—Smartworks’ enterprise solution stack—has helped global capability centres integrate workspace, tech, and facility operations at scale. GCCs contribute about 15% of revenue today, with management targeting a doubling over the next two years as offshoring and process consolidation accelerate.
Outlook: Visibility and Margin Expansion
With supply visibility locked for FY27–FY28 and strong pipelines across NCR, Mumbai, Pune, and Hyderabad, Smartworks expects to compound profitably while expanding margins and cash generation. The mix of large campuses, higher-yield mature centres, and a stronger credit profile positions the company to capture enterprise relocations and expansions. In a competitive field that includes Awfis, WeWork India, and IndiQube, Smartworks’ campus-scale leasing and cash discipline remain its differentiators, supporting its ambition to sustain a 30–35% CAGR and deepen its share in India’s managed office market.
