Smartworks Coworking Spaces Ltd Q1 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 6 Aug 2026 | Commercial Services & Supplies | Market Cap: ₹5.4K Cr
Smartworks aims for steady growth with a 30%-35% CAGR year-on-year in seat additions. Smartworks is in a high growth stage, showing robust margin improvement: EBITDA margin increased from 5.1% (INR 36 crores) three years ago to 12.5% in FY '25 (INR 172 crores), further to 16% in Q1 FY '26.
From Smartworks Coworking Spaces Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹523
Market Cap
₹5.4K Cr
P/E Ratio
193.5
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Smartworks Coworking Spaces Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹520 Cr, net profit ₹17 Cr.
Full financials →📊 Revenue & Sales Performance
- →Smartworks aims for steady growth with a 30%-35% CAGR year-on-year in seat additions.
- →Plans to add about 2.5 to 3 million square feet annually, achieved by signing a few large buildings each year.
- →Target to increase seat count from 190,000 to 275,000 seats within 4 to 5 quarters.
- →Revenue per square feet stood at approximately INR 173 in Q1 FY'26, with a 5% year-on-year price escalation on contracted revenues.
- →Occupancy expected to rise from pre-commitments of 20%-25% to 65%-70% within 12 months per new center.
- →Normalized Profit Before Tax (PBT) was INR 155 million in FY'25 and improved to INR 168 million in Q1 FY'26, indicating robust underlying business performance.
- →EBITDA margin improved from 5.1% three years ago to 12.5% in FY'25 and further to 16% in Q1 FY'26.
- →IndAS losses have significantly reduced, from INR 63 crores last year to INR 4 crores in Q1 FY'26, supporting margin expansion.
📈 Profitability & Margins
- →Smartworks is in a high growth stage, showing robust margin improvement: EBITDA margin increased from 5.1% (INR 36 crores) three years ago to 12.5% in FY '25 (INR 172 crores), further to 16% in Q1 FY '26.
- →Normalized Profit Before Tax (PBT) rose from INR 155 million in FY '25 to INR 168 million in Q1 FY '26, indicating strong underlying business performance.
- →The company expects consistent margin expansion driven by matured centres and operating leverage.
- →Growth strategy targets adding 2.5 to 3 million sq ft annually, with steady seat additions (30,000 to 40,000 seats per year).
- →Revenue growth guidance is around 25%-30% year-on-year, driven by increased occupancy and price escalations (~5%).
- →Cost efficiencies and standardized operations are expected to sustain margin improvements.
- →Normalized cash flow from operations is growing rapidly, with an 80% CAGR from FY '20 to FY '25.
- →Overall, Smartworks anticipates continued earnings growth, margin expansion, and sustainable profitability in coming years.
🏗️ Capital Expenditure Plans
- →Smartworks plans significant expansion with 2.5 to 3 million square feet of new space added annually going forward.
- →Currently, 10 million sq. ft. operational with additional 1.9 million sq. ft. contracted to come live by year-end; aims to grow from 190,000 to 275,000 seats over next 4-5 quarters.
- →Expansion capital expenditure (capex) is approximately INR 60,000 per seat, fully borne by Smartworks.
- →Fitouts are done only after pre-leasing to customers, minimizing idle capex deployment.
- →The company aims to be self-sustaining in capex from 12 million sq. ft. scale, supporting 25%-30% growth annually without extra funding.
- →Efficient large building leases enable optimized capex/opex through economies of scale and standardization.
- →Strategic investments include proprietary platforms like BuildX to shorten office delivery time to 2 months.
- →Net debt is negative post-IPO; future capex to be supported by strong cash flow and minimal borrowing.
💰 Fundraising & Capital Structure
- →Smartworks has efficiently worked with private international banks and PSUs to raise debt through cash flow-based lease rental discounting.
- →Current borrowing cost stands at a competitive ~9%, with interest expenses decreasing.
- →Post-IPO, Smartworks repaid some high-cost debt, saving about INR 21 crores.
- →The company is currently net debt negative following the IPO.
- →Gross borrowings have been decreasing year-on-year.
- →Over the next 2 years, Smartworks expects debt levels to become very negligible.
- →There is no mention of any planned new fundraising through debt or equity in the near future.
- →The company plans to fund growth via strong cash flow generation and self-sustaining capex without additional funding.
📋 Order Book & Pipeline
- →As of June 30, 2025, Smartworks has a signed-up square footage of approximately 10 million square feet ready to go live.
- →Currently, 0.7 million square feet is under fitout.
- →An additional 1.07 million square feet is yet to be handed over in the coming quarters.
- →The company has visibility to expand its total footprint to 12 million square feet considering Letters of Intent (LOIs) and term sheets signed.
- →Pre-commitments for new spaces are typically 20%-25% before launch, with current new assets having around 25%-30% pre-committed occupancy.
- →Strong pipelines exist for further expansions, particularly for three assets adding around 1 million square feet in the next two quarters.
- →The committed revenue backlog stands in excess of INR 40,000 million, reflecting robust orderbook visibility.
Key Metrics
Frequently Asked Questions
What were Smartworks Coworking Spaces Ltd Q1 FY26 results?
Smartworks aims for steady growth with a 30%-35% CAGR year-on-year in seat additions. Smartworks is in a high growth stage, showing robust margin improvement: EBITDA margin increased from 5.1% (INR 36 crores) three years ago to 12.5% in FY '25 (INR 172 crores), further to 16% in Q1 FY '26.
What is Smartworks Coworking Spaces Ltd share price analysis?
Smartworks Coworking Spaces Ltd currently shows a neutral. The stock trades at a P/E of 193.5 with a market cap of ₹5,393 Cr. Investors should review the full earnings analysis for detailed insights.
Is Smartworks Coworking Spaces Ltd planning capital expenditure?
Smartworks plans significant expansion with 2.5 to 3 million square feet of new space added annually going forward. - Currently, 10 million sq.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.