Smartworks Sets Rs.600 Crore Expansion Plan for FY27
Smartworks Coworking Spaces Ltd plans to allocate approximately Rs.600 crore this fiscal year for its current and new centers as part of its growth strategy to address increasing demand for managed workspaces.
Smartworks, a publicly listed real estate company based in Gurugram, has a portfolio encompassing 16.9 million square feet of office space expanded across 70 centers in 15 cities in India and Singapore, and reported total revenue of Rs.1,850 crore for the fiscal year 2025-26.
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In a conference call with market analysts, Smartworks Founder and MD Neetish Sarda says, "Our capex estimate is between ₹550 crore and ₹600 crore for the year. This capex includes two sets: it includes refurbishment capex that we typically do in our centres after every three years and the fresh capex that will go in." Smartworks has signed up more than 3.5 million square feet of space already which is either under construction or coming up for construction, he said, he told analysts.
The firm invested almost Rs.400 crore in capital expenditures during the last fiscal year.
"Smartworks leases entire buildings from India's leading developers and non-institutional landlords in prime micro-markets and transforms them into fully managed, amenity-rich campuses with cafeterias, gyms, creches, convenience stores, recreation zones, and round-the-clock support for the client," Sarda said, while explaining the business model to the analysts.
The firm is offering a comprehensive workspace solution to its business clients, he mentioned. He informed that over 150,000 professionals operate from its campuses each day. The clients usually enter into long-term contracts lasting 4-5 years.
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"Our platform has grown to almost 17 million square feet of total area and over 760 clients, from Fortune 500 to Forbes 2000 companies, MNCs, leading Indian conglomerates, and unicorns," Sarda said.
Approximately 92 percent of Smartworks' income is derived from corporate clients.
"Committed contracted revenue today stands at approximately ₹5,400 crores, and 87 per cent of our FY27 revenue is already contracted for," Sarda says.
He also observed that the percentage of revenue from Global Capability Centres (GCCs) is increasing.
Smartworks has announced a consolidated net profit of Rs 13.14 crore for the quarter that concluded in June, compared to a net loss of Rs 4.19 crore during the same quarter last year.
Total income increased by 44 percent to Rs.559.66 crore in the April-June quarter of 2026-27 compared to Rs.387.98 crore in the same quarter of the previous year. In the fiscal year 2025-26, Smartworks recorded a profit of Rs.10.52 crore with total earnings reaching Rs.1,850 crore.
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Real estate consultant Colliers India reports that coworking operators leased 8.6 million sq ft of office space in the initial half of this year, a 32 percent increase compared to the previous year, to establish their facilities to meet the growing demand for flexible and managed workspaces from corporations.
Real estate advisor Cushman & Wakefield noted that these operators leased 1,91,306 desks to businesses in the initial half of 2026 compared to 1,13,623 seats in the same timeframe last year.