Smartworks Posts 39% Revenue Growth In Q2 FY27 To ₹591 Crore; PAT Surges 136% To ₹43.4 Crore, EBITDA Up 68%

Mumbai: Smartworks Coworking Spaces Limited announced its financial results for the quarter and half year ended September 30, 2026, on October 30, 2026.

Financial Performance

Revenue from operations increased by 39% year-on-year to ₹591 crore for Q2 FY27. This marks the company's sixth consecutive quarter of sequential revenue growth since its listing. Normalised EBITDA rose 68% year-on-year to ₹117 crore, with margins improving to 19.8% from 16.4% a year ago.

Profitability and Cash Flow

Normalised profit after tax more than doubled to ₹43.4 crore, up 136% year-on-year. Normalised operating cash flow increased by 74% year-on-year to ₹107 crore. The annualised normalised return on capital employed (ROCE) stood at 21.6%, compared to 13.6% a year ago.

Revenue Guidance and Footprint

Smartworks revised its FY27 revenue growth guidance upward to 33–35% from the previous 28–30%. The company maintains its normalised EBITDA margin guidance of 19–20% and aims to add 2.5–3 million sq. ft. of space annually.

The total footprint reached approximately 17.5 million sq. ft. across 71 centres, including signed and upcoming properties. Operational footprint increased to approximately 10.9 million sq. ft. Contracted rental revenue is approximately ₹5,800 crore.

Management Commentary

Neetish Sarda, Founder and Managing Director, Smartworks, said the company delivered a strong performance in the first half and is ahead of its FY27 plan. He noted that revenue grew 39% and normalised profit after tax more than doubled during the quarter despite significant expansion.

Sarda added that sustained demand is translating into growth, with existing clients expanding and new global businesses, Indian conglomerates, and Global Capability Centres (GCCs) choosing their platform. He mentioned that large-format managed campuses are becoming a preferred choice for corporates.

H1 FY27 Overview

For the first half of FY27, revenue from operations was ₹1,138 crore, an increase of 41% year-on-year. Normalised EBITDA for H1 FY27 stood at ₹224 crore, with a margin of approximately 19.7%, and normalised operating cash flow was ₹202 crore.

Operational Highlights

Mature centres maintained an occupancy of approximately 88%, while committed occupancy was about 91%. Singapore operations expanded to four centres with approximately 1,600 seats. Two large managed office campuses, Eastside in Pune (approximately 863,000 sq. ft) and Eastbridge in Mumbai (approximately 815,000 sq. ft), are scheduled to become operational in the second half of FY27.

Client Contributions

Enterprise clients contributed approximately 91% of rental revenue. Clients occupying more than 1,000 seats accounted for approximately 41% of rental revenue, up from 35% a year ago. Multi-city clients contributed approximately 35%, compared with 31% in Q2 FY26. GCC clients accounted for approximately 22% of rental revenue.

Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.