Smartworks Coworking Spaces Ltd

- Smartworks Coworking Spaces Limited plans to continue being self-funded. - The INR 500 crores raised prior to the IPO is already generating healthy cash flows. - IPO proceeds are not yet fully utilized and will support capex capacity over the next few years. - Capex for adding 2.5 to 3 million square feet annually is estimated at INR 350 to 400 crores. - The company is well capitalized for this capex and does not require external capital raises. - No immediate plans for equity fundraising or external debt issuance mentioned. - Credit rating recently upgraded to A-Stable, leading to reduced borrowing costs and access to low-cost debt if needed. - Overall, Smartworks aims for self-sustained growth without the need for further fundraising in the near term.

- Smartworks plans a capital expenditure (capex) of INR 350 to 400 crores annually for adding 2.5 to 3 million square feet each year in FY’27 and FY’28. - The company is well-capitalized with IPO proceeds still available, enabling it to be self-funded without the need for external capital raises. - The expansion is primarily focused on Tier 1 cities where large campus buildings are available, aligning with Smartworks’ strategy of taking up full large campus buildings. - The pipeline includes about 4 million square feet under LOI or term sheets for FY’27 and FY’28, providing strong visibility on supply and growth. - Smartworks also invests in ancillary services like Fitout-as-a-Service, which supports revenue growth and margin expansion as scale deepens.

- Targeting 25% to 30% growth rate going forward (Page 17). - Planning to add 2.5 to 3 million square feet of space annually, supported by capex of INR 350-400 crores per year without external capital raise (Page 17). - Expansion focused mainly on Tier 1 cities consolidating leadership in Mumbai, Pune, Bangalore, Hyderabad; limited immediate expansion in Singapore (Page 17). - Pipeline secured for 4 million square feet growth over FY ’27 and FY ’28, covering almost entire growth needs through FY ’28 (Page 13). - Ancillary revenues expected to grow 30-35% year-on-year driven by footprint growth and Fitout-as-a-Service vertical (Page 11). - Mature centres' growing share will enhance margins and returns, supporting sustainable revenue and cash flow growth (Pages 4, 6, 7). - Structural margin expansion expected alongside revenue growth due to portfolio maturity and operating leverage (Page 14).

- Targeting consistent growth rate of 25% to 30% going forward (Harsh Binani, pg.17). - Margin expansion expected alongside growth, driven by portfolio maturity and operational excellence (Harsh Binani, pg.11; pg.8). - Incremental revenue from mature centres flows disproportionately to EBITDA, leading to steady margin expansion with low volatility (pg.8). - Operating cash flow (OCF) to EBITDA ratio expected to remain around 1.2x long-term, indicating strong cash generation (pg.4). - ROCE has expanded from 14.3% to just under 21%, with significant headroom for further expansion (pg.4). - No external capital raise planned for next 2-3 years; self-funded capex supports 2.5 to 3 million sq ft addition annually (pg.17). - Margin outlook stable with operating leverage and controlled corporate costs, margins likely to trend up steadily (pg.7). - Focus on enterprise clients with long-tenured deals supports earnings quality and stability (pg.16).

- The current orderbook includes about 4 million square feet under LOI or term sheet, covering growth plans for FY ’27 and FY ’28. - These deals are either signed or at advanced documentation stages with some pending condition precedents. - The orderbook provides visibility for nearly the entire requirement for FY ’27 and about 80%-85% for FY ’28. - Supply is secured through strong institutional partnerships and a developed network of developers, minimizing risk of deals falling off. - Approximately 1 million square feet is expected to become operational in the next quarter. - Expansion is supported by pre-committed enterprise movements constituting around 30% of incremental capacity. - The strategy focuses on deepening presence in micro-markets aligned with existing customer demand. - Execution ability is emphasized as the key factor for future growth realization.