India, November 7th, 2025: Smartworks Coworking Spaces Limited (“Smartworks” or “the Company”), India’s largest managed office platform by area under management, announced a strong Q2 FY26 performance, underscoring its position as the country’s leading workspace solutions provider for enterprises and Global Capability Centres (GCCs).
The Company reported revenue of ₹4,248 Mn, a growth of 21% year-on-year and 12% sequentially, driven by robust enterprise demand, continued portfolio expansion, and disciplined execution. Normalised EBITDA rose 46% YoY to ₹696 Mn, with a healthy 16.4% margin, reflecting operating leverage from mature centres and consistent cost control. Normalised Profit before tax (PBT) increased 40% QoQ to ₹245 Mn, while annualised RoCE improved to 14.3%, the highest in the company’s history.
Smartworks continues to demonstrate strong financial discipline and self-funded growth, with net debt turning negative at ₹590 Mn and operating cash flow of ₹614 Mn. The Company has reduced gross debt by nearly 45% since the IPO, reinforcing its cash-efficient business model.
CareEdge Ratings, one of India’s leading credit rating agencies, has upgraded Smartworks’ rating to ‘A; Stable’ from ‘BBB+; Positive’ — a two-notch credit rating upgrade reflecting the Company’s strengthened financial position, prudent debt management, and consistent business growth. The improved credit rating reflects a combination of factors, including strong balance sheet, robust cash flow generation, reduced credit risk, improved debt servicing capability, and the strategic steps Smartworks has taken to ensure long-term stability and profitability.
Operational Highlights
- Total portfolio: 12.7 Mn sq. ft. (including LOIs), across 14 cities as of September 30, 2025
- Operational footprint: 9.1 Mn sq. ft. across 54 centres
- Enterprise clients: 760+ corporates; ~90% of rental revenue from large enterprises
- Occupancy: 81% overall; committed occupancy of 88% and 93% for mature centres
- Seat capacity: 235,000+ signed; 1,000+ seat cohort contributes ~35% of total revenue
- Landlord mix: ~24% institutional (DLF, Tata Realty, Panchshil, Hiranandani) and ~76% non-institutional developers
During the quarter, Smartworks signed a landmark 815,000 sq. ft. campus at Eastbridge, Mumbai – a marquee development by Regalia Business Parks (Hiranandani Group). The signing makes Eastbridge the world’s largest managed office campus operated by any flex-space company globally, marking another milestone in Smartworks’ leadership journey
Strategic & Sectoral Momentum
Smartworks’ growth is anchored in India’s expanding managed workspace market, which continues to outpace traditional office formats. The Company’s SmartVantage platform – designed for GCCs integrates workspace design, compliance, and plug-and-play tech infrastructure. GCCs now contribute 15% of total revenue and are expected to double their share over the next two years.
Non-IT sectors such as BFSI, consulting, manufacturing, and healthcare are also scaling rapidly, diversifying Smartworks’ demand base and strengthening long-term revenue visibility.
Neetish Sarda, Founder & Managing Director, Smartworks
“Our Q2 performance reflects the strength and scalability of our managed campus model. With double-digit revenue growth, expanding margins, and a negative net-debt position, Smartworks continues to deliver profitable growth at scale.
The addition of Eastbridge — the world’s largest managed office campus — is a testament to the trust large enterprises and developers place in our model. As enterprise and GCC demand accelerate, Smartworks remains focused on building responsibly, growing sustainably, and creating long-term value for all stakeholders.”
Smartworks expects momentum to accelerate through the second half of FY26, supported by upcoming supply across key clusters in NCR, Mumbai, Pune, and Hyderabad. With full visibility on supply for FY27 and FY28 and sustained enterprise demand, the company remains on track to scale profitably while strengthening margins and cash generation.