Smartworks Posts Robust Q1 FY27 Results, Reporting 44% Year-on-Year Revenue Growth and Near Tripling of Normalised PAT

Smartworks Posts Robust Q1 FY27 Results, Reporting 44% Year-on-Year Revenue Growth and Near Tripling of Normalised PAT​

Smartworks Coworking Spaces Limited reported a strong performance for the first quarter of FY27. The company announced significant growth across key operational metrics and profitability indicators, highlighting its position as one of India's largest managed workspace providers.

The results show substantial expansion and efficiency gains, with revenue from operations reaching ₹5,462 Mn. This represented a 44% increase year-on-year (YoY) and a 5% rise sequentially. Normalised EBITDA grew by 74% YoY to ₹1,069 Mn, while the company's operational footprint expanded to 10.4 million square feet.

Normalised profitability also showed strong momentum. Normalised Profit After Tax (PAT) hit ₹388 Mn in Q1 FY27, marking a substantial increase compared to the previous year.

Operational Scale and Client Mix Shifts​

Smartworks continues to deepen its market penetration and secure long-term revenue visibility. The company’s operational footprint stands at 10.4 million square feet, with mature centers operating at a committed occupancy rate of approximately 92%. Overall occupancy stood at 81% during the quarter.

The business is showing strategic diversification within its client base. The proportion of rental revenue contributed by multi-city clients increased to approximately 35%, up from 31% in FY26. Similarly, the cohort of enterprise clients with 1,000+ seats rose to 41% of rental revenue, compared to 37% in FY26. GCC clients accounted for approximately 21% of revenue, increasing from roughly 15% in FY26.

The company has also secured a strong foundation for future operations. Contracted rental revenue stands at approximately ₹54,000 Mn, representing commitments for the next couple of years and covering 87.2% of FY27 revenue.

Strategic Investments and Future Growth​

Smartworks reported that FY27 and FY28 expansion is fully booked, with work commencing on capacity additions scheduled for FY29. The company operationalised 0.3 million square feet of new space during the quarter alone, and has a pipeline of an additional 2.2 to 2.7 million square feet secured for upcoming campuses.

Management highlighted that while capex expenditure stood at ₹1,510 Mn this quarter (66% higher than last year), incremental capital expenditure is not viewed as a source of margin dilution. This perspective is supported by the health of the portfolio, with mature centers operating at approximately 89% occupancy across 9.1 Msf of matured area, maintaining a Normalised Return on Capital Employed (ROCE) of 21.5%.

The company reiterated its guidance for the financial year, targeting between 28-30% revenue growth and 19-20% Normalised EBITDA margins by March 2027.

SMARTWORKS Stock Price Movement​

Smartworks Coworking Spaces Limited shares slipped by 2.00% to settle at ₹489.15 in post-market trading today. The stock saw significant activity, with over 1.9 million shares traded during the session.