Operational Area
10.1M sq ft
+24% YoY
Crossed 10 million sq ft operational milestone; total footprint 16.1M sq ft.
SMARTWORKSCOWORKINGSPACE
Other
15 May 2026
Smartworks Coworking Spaces Ltd — Q4 FY26
Smartworks delivered a strong Q4 FY26, with revenue of ~₹520 crore (+45% YoY) and normalized EBITDA of ~₹99 crore (+71% YoY), exiting at a 19% EBITDA margin.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Smartworks delivered a strong Q4 FY26, with revenue of ~₹520 crore (+45% YoY) and normalized EBITDA of ~₹99 crore (+71% YoY), exiting at a 19% EBITDA margin. Full-year revenue grew 31% YoY to ~₹1,796 crore, with EBITDA margins expanding 440 bps to 17.5%. The company crossed 10 million sq ft operational and reported its first full year of PAT profitability. Growth was driven by enterprise flex adoption, GCC tailwinds, and larger deal sizes (1,000+ seat cohort now 37% of revenue). Management guided FY27 revenue growth of 28-30%, EBITDA margin of 19-20%, and operational footprint of 12.5-13 million sq ft. Key risk: rapid supply addition could pressure occupancy and margins if demand softens.
Key Numbers
Contracted Rental Revenue
₹5,200 Cr
N/A
Signed annuity-like contracts with avg tenure >44 months, locking 82.5% of FY27 revenue.
Seat Retention
88%
N/A
High retention reflects enterprise stickiness and multi-city expansion.
GCC Revenue Share
15%
+8pp YoY
GCC revenue doubled from 7% to 15% of rental revenue; expected to double again.
Management Guidance
FY27 revenue growth of 28-30%
Revenue growth anchored on 82.5% already locked in via signed contracts.
Management guidance revenueFY27 EBITDA margin of 19-20%
200-300 bps expansion over FY26 consolidated margin of 17.5%.
Management guidance marginsOperational footprint of 12.5-13 million sq ft by March 2027
Addition of ~2.5-3 million sq ft operational area during FY27.
Management guidance growthCapex of ~₹450 crore for FY27 expansion
Fresh capex for ~3 million sq ft; self-funded from internal accruals.
Management guidance capexKey Risks
Supply-demand imbalance in micro markets
Rapid supply addition could lead to oversupply in certain micro markets, pressuring occupancy and pricing.
medium · analyst_questionRental inflation from landlords
Steep rental increases in some markets (e.g., Hyderabad, Chennai) may compress margins if not passed on.
medium · analyst_questionCompetitive intensity from peers
Aggressive expansion by peers could lead to pricing pressure, though management claims 10-15% cost advantage.
low · analyst_questionMacroeconomic slowdown impacting office demand
A broad economic downturn could reduce enterprise hiring and space requirements, affecting occupancy.
low · data_observationNotable Quotes
We have transitioned from a scaling phase to a cash compounding phase. Our supply is secured. 82.5% revenues locked and the portfolio is maturing in a way that will keep expanding both margins and returns.
Our margin expansion is structural. It's not pricing. It's largely because a lot of our portfolio has now matured.
We do not see AI as a headwind. We see it as a tailwind. Offices are essential infrastructure where companies build cultures, mentor talent, run R&D and protect IP.
Frequently Asked Questions
What was Smartworks Coworking Spaces's revenue in Q4 FY26?
Smartworks Coworking Spaces reported revenue of ₹520 Cr in Q4 FY26, representing a +31% change compared to the same quarter last year.
What guidance did Smartworks Coworking Spaces management give for FY27?
FY27 revenue growth of 28-30%: Revenue growth anchored on 82.5% already locked in via signed contracts. FY27 EBITDA margin of 19-20%: 200-300 bps expansion over FY26 consolidated margin of 17.5%. Operational footprint of 12.5-13 million sq ft by March 2027: Addition of ~2.5-3 million sq ft operational area during FY27. Capex of ~₹450 crore for FY27 expansion: Fresh capex for ~3 million sq ft; self-funded from internal accruals.
What are the key risks for Smartworks Coworking Spaces in FY27?
Key risks include Supply-demand imbalance in micro markets — Rapid supply addition could lead to oversupply in certain micro markets, pressuring occupancy and pricing.; Rental inflation from landlords — Steep rental increases in some markets (e.g., Hyderabad, Chennai) may compress margins if not passed on.; Competitive intensity from peers — Aggressive expansion by peers could lead to pricing pressure, though management claims 10-15% cost advantage.; Macroeconomic slowdown impacting office demand — A broad economic downturn could reduce enterprise hiring and space requirements, affecting occupancy..
Did Smartworks Coworking Spaces meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Smartworks Coworking Spaces Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.