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Smartworks posted a consolidated net profit of ₹25.6 Cr in Q2 FY27 against a ₹3.1 Cr loss a year earlier, while operating revenue rose 39.2% to ₹591.4 Cr. Revenue growth outpaced the 28.1% increase in total expenses, helping the managed workspace provider swing to a pre-tax profit despite lower other income. Sequentially, net profit jumped 95% from ₹13.1 Cr, while operating revenue increased 8.3% from ₹546.2 Cr in the June quarter. Managed workspace provider Smartworks reported a consolidated net profit of ₹25.6 Cr in the September quarter of FY27 as against a loss of ₹3.1 Cr a year earlier. Sequentially, profit jumped 95% from ₹13.1 Cr. Operating revenue grew 39.2% to ₹591.4 Cr in Q2 FY27 from ₹424.8 Cr in the year-ago quarter. It increased 8.3% from ₹546.2 Cr in the preceding quarter. Revenue growth outpaced the increase in total expenses, helping Smartworks post a pre-tax profit of ₹34.9 Cr against a pre-tax loss of ₹4.4 Cr a year earlier. Total expenses rose 28.1% YoY to ₹570.4 Cr from ₹445.5 Cr. Smartworks recorded a tax expense of ₹9.2 Cr as against a tax credit of ₹1.2 Cr a year earlier. Following the first-half performance, Smartworks raised its FY27 revenue growth guidance to 33-35% from 28-30% earlier. It retained its normalised EBITDA margin guidance of 19-20%, saying it was trending towards the upper end of the range. “We have delivered a strong performance in the first half and are tracking well ahead of the plan we set for FY27,” founder and MD Neetish Sarda said. Founded in 2015 by Sarda and Harsh Binani, Gurugram-based Smartworks operates a managed office platform that transforms large commercial properties into fully managed workspaces for enterprises. Its campuses offer customised office spaces along with amenities such as cafeterias, gyms, recreation zones, convenience stores and creches. The company caters to Fortune 500 companies, multinational corporations, Indian conglomerates, Global Capability Centres (GCCs) and startups. Lease rental revenue, which forms the bulk of Smartworks’ business, grew 29% YoY to ₹489.7 Cr. Other operating revenue more than doubled to ₹101.7 Cr from ₹45.3 Cr. The latter includes ancillary services, termination income, software services, construction and fit-out projects, and sales of traded goods. The company reported normalised EBITDA of ₹116.9 Cr, up 68% YoY, with the margin increasing to 19.8% from 16.4%. Normalised EBITDA deducts lease liability repayments from reported EBITDA. Enterprise Demand Drives Expansion Smartworks said contracted rental revenue stood at around ₹5,800 Cr, supported by existing clients expanding across cities and new enterprise customers. Enterprise clients contributed around 91% of rental revenue during the quarter, while global capability centres (GCCs) accounted for around 22%. Clients occupying more than 1,000 seats contributed 41% of rental revenue, up from 35% a year earlier. Multi-city clients accounted for 35%, compared with 31% in Q2 FY26. The company’s client base increased to 785 from 767 a year earlier. Its operational footprint expanded to 10.9 Mn sq ft from 9.1 Mn sq ft. Overall occupancy remained at 81%, while committed occupancy stood at 86%, down from 88% a year earlier. Including signed and upcoming properties, Smartworks’ total footprint stood at 17.5 Mn sq ft. across 71 centres in 15 cities in India and Singapore. Smartworks expects its Eastside campus in Pune and Eastbridge campus in Mumbai to become operational in H2 FY27. The campuses span around 8.6 Lakh sq ft and 8.2 Lakh sq ft, respectively. Its Singapore business expanded to four centres with around 1,600 seats. During the quarter, subsidiary Smartworks Space completed the acquisition of Singapore-based coworking operator Workstudio Spaces for ₹18.1 Cr. The 100% stake purchase from a related party was completed in July. Shares of Smartworks ended today’s trading session marginally lower at ₹484 on the BSE.
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