Smartworks Q2 FY26 revenue rises 21% YoY; losses narrow 81% as enterprise demand surges

Smartworks

Managed office space provider Smartworks Coworking Spaces Limited reported a strong second quarter for FY26, marked by solid revenue growth and a sharp reduction in losses, according to its unaudited consolidated financial results.

The company’s revenue from operations increased 21% year-on-year to Rs 425 crore in the quarter ended September 2025, up from Rs 350 crore in the same period last year. The performance reflects continued expansion in enterprise demand and strong execution across its managed office portfolio.

Smartworks also reported that its net loss narrowed by 81% year-on-year, indicating improving profitability and operational leverage as its mature centres continue to deliver stronger margins.

Smartworks said it continues to demonstrate strong financial discipline and self-funded growth, with net debt turning negative at Rs 590 million and operating cash flow at Rs 614 million. The company has reduced its gross debt by nearly 45% since its IPO, underscoring its cash-efficient business model.

As of September 30, 2025, Smartworks managed a total portfolio of 12.7 million sq. ft. (including letters of intent) across 14 cities, with 9.1 million sq. ft. operational across 54 centres. The platform serves over 760 enterprise clients, with nearly 90% of rental revenue coming from large corporates. Overall occupancy stood at 81%, with committed occupancy at 88% and 93% for mature centres.

During the quarter, Smartworks signed an 815,000 sq. ft. managed campus at Eastbridge, Mumbai — a marquee project by Regalia Business Parks (Hiranandani Group). The company said the deal makes Eastbridge the world’s largest managed office campus operated by any flex-space company globally.

Neetish Sarda, Founder and Managing Director, Smartworks said, “Our Q2 performance reflects the strength and scalability of our managed campus model. With double-digit revenue growth, expanding margins, and a negative net-debt position, Smartworks continues to deliver profitable growth at scale. The addition of Eastbridge — the world’s largest managed office campus — is a testament to the trust large enterprises and developers place in our model.”