Smartworks Coworking Spaces Ltd. has decided to invest over Rs 600 crore this fiscal year in its current and future locations, as part of its expansion plan to fulfil the growing demand for managed workspace.
With a portfolio of 16.9 million square feet of office space spread across 70 locations in 15 cities in India and Singapore, Gurugram-based listed real estate company Smartworks reported a total revenue of Rs 1,850 crore in 2025–2026.
"Our capex estimate is between Rs 550 crore and Rs 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," Neetish Sarda, managing director and founder of Smartworks, said on a conference call with market analysts.
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 told analysts. The company had invested nearly Rs 400 crore last fiscal year in capital expenditure.
"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 company is providing a one-stop workspace solution to its corporate clients, he said. "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."
More than 1.5 lakh professionals work from its campuses daily, he informed. The clients typically sign long-tenure agreements of 4-5 years. "Committed contracted revenue today stands at approximately Rs 5,400 crores, and 87 per cent of our FY27 revenue is already contracted for," Sarda said.
Around 92% of Smartworks' revenue comes from enterprise clients.
"At 10.4 million square feet operational, we are the largest platform in the industry, and scale earns us preferred terms from landlords and lower unit costs across leasing and operations," Smartworks Executive Director Harsh Binani said.
Green initiatives, including solar adoption across campuses, have helped improve the economics for the company and its clients, he added. "Our larger centres continue to get filled by larger clients. The rising share of 1,000-plus seat cohort and multi-city clients shows the network effect strategy at work," Binani told analysts.
Additionally, he mentioned the growing income share from global capability centres.
For the quarter ending in June, Smartworks reported a consolidated net profit of Rs 13.14 crore, compared to a net loss of Rs 4.19 crore during the same period last year.
Between April and June of 2026–2027, total income increased by 44% to Rs 559.66 crore from Rs 387.98 crore during the same period the year before. With a total turnover of Rs 1,850 crore in 2025–2026, Smartworks reported a profit of Rs 10.52 crore.
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Colliers India, a real estate consultant, reports that coworking operators rented 8.6 million square feet of office space in the first half of this year, an increase of 32% year over year, to set up their facilities in response to corporate demand for flexible and controlled workspaces.
In the first half of 2026, these operators rented out 1,91,306 workstations to corporates, compared to 1,13,623 seats in the same period the previous year, according to real estate consultant Cushman & Wakefield.
(With PTI Inputs)
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