Company Reports Robust Q1 FY26 Performance with Notable Portfolio Growth
In the bustling world of managed office spaces, Smartworks Coworking Spaces Limited continues to make its mark, with a capacity exceeding 230,000 seats and a focus on long-term enterprise relationships. The company, an international franchise of the brand Media, recently announced robust first quarter results for the financial year 2026.
The latest financial performance shows strong revenue growth, improved profitability, and significant portfolio expansion.
Revenue from operations reached INR 3,792 million (Rs 379.2 crore), up about 21% year-over-year, driven by higher occupancy and new space additions.
Profitability improved markedly. Normalised EBITDA surged 109% year-over-year to INR 607 million, with the EBITDA margin expanding to around 16%. Normalised profit before tax turned positive at INR 168 million, a significant turnaround from a loss in the previous year. On a reported basis, loss before tax narrowed substantially. Normalised operating cash flow rose 71% year-over-year to INR 855 million.
Portfolio expansion is robust. Operational area increased to 8.3 million square feet, with occupancy at 83%, and Smartworks added approximately 5,900 seats in the quarter, reaching a total of 158,500 occupied seats. The company aims to expand operational seats from 190,000 to 275,000 over the next 4-5 quarters.
Additional context: Smartworks debuted on the NSE and BSE stock exchanges on July 17, 2025, with shares performing modestly. IND-AS EBITDA was INR 2,410 million with a margin of 63.6%, while normalised EBITDA adjusts for provisions, providing a more operationally focused view. Post-IPO, Smartworks is net debt-negative and expects to reduce debt to negligible levels within two years.
In summary, Smartworks Coworking Spaces Limited is exhibiting robust double-digit revenue growth, a clear shift to profitability, strong cash flows, and aggressive portfolio growth plans, positioning it well in the managed office space sector as of mid-2025.
Investors looking towards the managed office space sector could find interest in Smartworks Coworking Spaces Limited's vision for growth, as the company's financials suggest continuous revenue growth, effective financial management, and a focused business strategy aimed at expanding its market share. The company's aggressive portfolio expansion plans indicate a strong commitment to growth, and its recent improved profitability and strong cash flows position it well for long-term success.
In terms of finance, Smartworks' strong revenue growth and positive normalized profit before tax demonstrate a positive shift from a loss in the previous year. Its reduction in debt following the initial public offering (IPO) and expectation of reaching a net debt-negative status in the near future highlight a responsible financial management approach.
With a focus on long-term enterprise relationships and an international franchise background, Smartworks Coworking Spaces Limited is positioned to continue driving growth and investing in the expansion of its managed office space business.
