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Company Reports Robust Q1 FY26 Performance with Notable Portfolio Growth

Increased pre-tax profit, normalized to INR 168 million, was reported, equating to a 4.4 percent margin. This stands in contrast to the normalised loss before tax of INR 102 million in the corresponding quarter of the previous year.

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Quarterly Financial Reporting: Q1 FY26 reveals increased normalized profit before tax to INR 168...
Quarterly Financial Reporting: Q1 FY26 reveals increased normalized profit before tax to INR 168 million, equating to a margin of 4.4%, in stark contrast to the normalised loss before tax of INR 102 million recorded in the same period last year. Smartworks experiences substantial portfolio growth.

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.

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