Managed office space provider Smartworks Coworking Spaces has raised its FY27 revenue growth guidance to 33-35% from the earlier 28–30%, following a strong second-quarter performance, with revenue from operations increasing 39% YoY to ₹591 crore.
The company also reported a 68% increase in normalised EBITDA to ₹117 crore in Q2 FY27, while normalised profit after tax (PAT) rose 136% to approximately ₹43.4 crore.
Founded by Neetish Sarda and Harsh Binani, Smartworks provides managed office spaces and enterprise-grade workplace infrastructure to businesses across India and international markets.
The revised guidance reflects sustained demand from large enterprises, expansion by existing customers and a growing pipeline of large managed-office deals.
Smartworks Records Strong Growth In Profitability
Smartworks reported a normalised EBITDA margin of 19.8% in Q2 FY27, compared with 16.4% in the corresponding quarter last year.
Normalised operating cash flow increased 74% YoY to ₹107 crore, while annualised normalised return on capital employed (ROCE) improved to 21.6% from 13.6% a year earlier.
It is important to distinguish the company's normalised performance metrics from its statutory financial results. Smartworks reported a consolidated net profit of ₹25.64 crore in Q2 FY27, compared with a net loss of ₹3.13 crore in Q2 FY26.
The company retained its normalised EBITDA margin guidance of 19-20%, with margins expected to trend towards the upper end of the range. It also maintained its annual expansion target of adding 2.5-3 million sq. ft. of workspace.
Enterprise Clients Drive Managed Office Demand
Enterprise customers continued to account for the largest share of Smartworks' business, contributing approximately 91% of rental revenue.
Clients occupying more than 1,000 seats contributed 41% of rental revenue, compared with 35% in Q2 FY26. Meanwhile, multi-city clients accounted for 35%, up from 31% a year earlier.
Global Capability Centres (GCCs) contributed approximately 22% of rental revenue, reflecting growing demand from multinational companies establishing or expanding their operations in India.
The company also reported contracted rental revenue of approximately ₹5,800 crore, providing visibility into future business revenues.
Smartworks currently serves more than 780 clients, including Fortune 500 companies, multinational corporations, Indian conglomerates and high-growth businesses.
Footprint Reaches 17.5 Million Sq. Ft.
Smartworks' total footprint reached approximately 17.5 million sq. ft. across 71 centres, including signed and upcoming properties, as of September 2026.
Its operational footprint stood at approximately 10.9 million sq. ft. Mature centres recorded occupancy of around 88%, while committed occupancy stood at approximately 91%.
The company's Singapore operations also expanded to four centres with approximately 1,600 seats.
Smartworks is preparing to operationalise two large managed-office campuses in the second half of FY27. These include Eastside in Pune, spanning approximately 863,000 sq. ft., and Eastbridge in Mumbai, covering approximately 815,000 sq. ft.
The upcoming campuses are expected to add substantial capacity as enterprise customers increasingly seek large, flexible office environments.
H1 FY27 Revenue Rises 41%
For the first half of FY27, Smartworks reported revenue from operations of ₹1,138 crore, up 41% YoY.
Normalised EBITDA stood at Rs 224 crore, with a margin of approximately 19.7%. Normalised operating cash flow for the six-month period reached ₹202 crore.
Commenting on the performance, Neetish Sarda, Founder and Managing Director of Smartworks, said the company was tracking ahead of its FY27 business plan and that strong first-half performance had supported the upward revision in revenue guidance.
The company's latest performance highlights the growing demand for managed office infrastructure among large enterprises and GCCs.
With a contracted rental revenue base of approximately ₹5,800 crore, expanding campuses and improving profitability, Smartworks is positioning itself to capture a larger share of India's organised flexible workspace market.
Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.
