Smartworks Coworking Spaces Ltd has reported a strong Q2 FY26 performance, reinforcing its leadership in India’s flex-space sector. The company posted revenue of Rs 4,248 Mn, up 21% YoY, with normalised EBITDA rising 46% to Rs 696 Mn. Profit before tax grew 40% QoQ to Rs 245 Mn, while RoCE hit a record 14.3%.
Smartworks also turned net debt negative at Rs 590 Mn, backed by Rs 614 Mn in operating cash flow. Since its IPO, the company has reduced gross debt by 45%, underscoring its cash-efficient growth model.
CareEdge Ratings upgraded Smartworks to ‘A; Stable’ from ‘BBB+; Positive’, citing improved debt servicing, strong cash flows, and disciplined execution.
Operationally, Smartworks now manages 12.7 Mn sq ft across 14 cities, with 9.1 Mn sq ft operational across 54 centres. Occupancy stands at 81%, with mature centres reaching 93%. The company serves 760+ enterprise clients, with ~90% of rental revenue from large corporates.
A key highlight this quarter was the signing of an 815,000 sq ft campus at Eastbridge, Mumbai—a marquee development by Regalia Business Parks (Hiranandani Group). This makes Eastbridge the world’s largest managed office campus operated by any flex-space company globally.
Smartworks’ SmartVantage platform continues to scale, with GCCs contributing 15% of revenue and expected to double in two years. Demand from BFSI, consulting, manufacturing, and healthcare sectors is also rising, diversifying the company’s revenue base.
Founder & 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.”
With full visibility on supply for FY27 and FY28, and strong demand across NCR, Mumbai, Pune, and Hyderabad, Smartworks is poised to scale profitably while expanding margins and cash generation.
