Smartworks Q4 FY26 Results: Revenue Crosses Rs 520 Crore, Profit Rises to Rs 16.6 Crore

Managed flexible workspace provider Smartworks Coworking Spaces on Thursday reported a 45% year-on-year jump in Q4 FY26 revenue to Rs 520 crore and posted a consolidated net profit of Rs 16.6 crore. The Smartworks Q4 FY26 results mark the company’s second consecutive profitable quarter and its first full year as a publicly listed Indian flex workspace platform.

Smartworks Coworking Spaces Posts Second Straight Profitable Quarter

Smartworks Coworking Spaces Ltd reported the strongest quarter in its operating history for the three months ended March 31, 2026. Revenue from operations rose 45% year-on-year to Rs 519.68 crore in Q4 FY26, compared with Rs 358.4 crore in the corresponding quarter of the previous fiscal.

Total income, including non-operating earnings of around Rs 13 crore, climbed 47% to Rs 532.70 crore from Rs 362.05 crore in Q4 FY25, according to the regulatory filing submitted to the National Stock Exchange.

The realty firm reported a consolidated net profit of Rs 16.62 crore in Q4 FY26, a sharp turnaround from the Rs 8.3 crore loss recorded in the same quarter last year. Pre-tax profit stood at Rs 22.24 crore against a pre-tax loss of Rs 4.94 crore in Q4 FY25, while normalised EBITDA grew 71% year-on-year to Rs 99 crore.

Full-Year Smartworks Revenue Climbs 31% to Rs 1,796 Crore in FY26

For the full fiscal year ended March 2026, Smartworks revenue from operations grew 30.69% to Rs 1,795.80 crore from Rs 1,374.05 crore in FY25. The company achieved its first full-year profitability under Ind AS, posting a consolidated net profit of Rs 10.52 crore against a loss of Rs 63.17 crore in the previous fiscal.

On the cost side, lease-related depreciation was the largest expense at around Rs 234 crore for the quarter, followed by operating expenses of Rs 139 crore. Total expenditure for the quarter stood at Rs 510 crore, compared to Rs 367 crore a year ago.

Normalised EBITDA for the full year jumped 75% year-on-year to Rs 314 crore, with margins expanding 440 basis points to 17.5%. Annualised return on capital employed more than doubled to 16% from 7.3% in FY25, signalling improved capital efficiency.

Founder Neetish Sarda on Smartworks Profitability and Flex Workspace Outlook

Smartworks founder and managing director Neetish Sarda said FY26 was the company’s strongest year on record. “FY26 was our first financial year as a listed company, and one where growth, profitability, and capital efficiency improved together,” Sarda said in a post-earnings statement.

He added that corporate demand is increasingly shifting toward larger managed campuses rather than smaller short-term coworking arrangements. “With more than Rs 5,200 crore of contracted rental revenue, 100% of FY27 supply secured, and around 75% visibility already in place for FY28, we enter the next phase with strong forward visibility,” Sarda said.

The company expects normalised EBITDA growth of around 19% in FY27 and aims to sustain the 30% revenue growth momentum recorded in FY26 into the next fiscal year.

Smartworks Crosses 10 Million Sq Ft as Flex Workspace Demand Surges

Smartworks became the first listed flexible workspace platform in India to cross 10.1 million square feet of operational area during FY26. The company’s total footprint, including letters of intent, stood at 16.1 million square feet across 66 centres in 15 cities — including Singapore — up 37% year-on-year.

Smartworks serves over 770 clients, including Fortune 500 companies, Forbes 2000 names, global capability centres, multinational corporations and high-growth Indian businesses. Around 90% of the company’s revenue comes from its annuity-based managed campus business, providing recurring cash flow visibility.

India’s flex workspace market absorbed a record 83 million square feet of office space in calendar 2025, with Q1 of 2026 marking the highest first-quarter gross leasing ever recorded, according to industry data.

What the Smartworks Q4 FY26 Results Mean for the Flex Workspace Market

The Smartworks Q4 FY26 results underscore the structural shift in India’s commercial real estate sector toward managed and serviced office spaces. The profitability turnaround validates the operating model adopted by listed flex players, which take long-term leases from developers and sub-license fitted-out workstations to enterprise clients.

Smartworks shares rose as much as 8.2% intraday to Rs 475 on the NSE following the earnings announcement before paring gains to trade around Rs 446. The company’s market capitalisation stood at approximately Rs 5,102 crore at the end of the trading session.

With Rs 5,200 crore in contracted rental revenue providing multi-year visibility and IPO proceeds of Rs 4,450 crore raised in July 2025 still being deployed for capital expenditure, Smartworks is positioned to consolidate its lead in India’s flex workspace category. The company said free cash flow is currently marginally negative and is expected to turn positive over the next few quarters, with no additional funding requirements anticipated in the near term.

Author

Sachin

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages...

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages KnowStartup's Digital Agency rankings of firms across multiple cities in India. You can reach him on Linkedin.

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