Smartworks Coworking Spaces Limited, India’s largest managed office platform by area under management, has announced its results for the fourth quarter and full year ended March 31, 2026. FY26 marks the Company’s first financial year as a listed entity, and a stellar performance with revenue, margins, cash flows, and returns on capital all expanding together every quarter.

The company achieved three ‘first-evers’ in FY26. Smartworks became the first listed flexible workspace platform in India to cross 10 million square feet of operational area, delivered its first full year of reported PAT profitability 311 crore versus aloss of ¥63 crore in FY25, and crossed contracted rental revenue of INR 5,200 Cr+.

Full Year FY26 – Performance Overview

• Revenue from Operations: 21,796 Cr, up 31% YoY
• Normalised EBITDA: ¥314 Cr, up 75% YoY; margin expanded 440 bps to 17.5%
• Normalised Operating Cash Flow: 356 Cr, exceeding EBITDA – OCF-to-EBITDA at 1.1x Annualised ROCE: 16% for the full year, more than doubling from 7.3% in FY25 – an 870-bps expansion
• Cash ROCE: 41% for the full year, up from 35% in FY25
• Reported PAT: %11 Cr, first full-year profitability, versus a loss of ¥63 Cr in FY25
• Net debt: Negative ¥56 Cr ; Company ended FY26 with net cash, with gross debt down by more than 50% since IPO
• Cost of borrowing: below 9%, down approximately 180 bps year-on-year, supported by a two-notch CARE rating upgrade from BBB+ (Positive) to A (Stable)

Q4 FY26 – Key Financial Highlights

• Revenue from operations: ¥520 Cr, up 45% YoY and 10% QoQ – Strongest quarter in the Company’s history
• Normalised EBITDA: %99 Cr, up 71% YoY; margin at 19.0%, up 290 bps YoY
• Normalised Operating Cash Flow: 108 Cr, with OCF-to-EBITDA at 1.1x
• Annualised ROCE: 21.5%, up significantly from 15.4% a year ago
• Annualised Cash ROCE: 49% (vs 41% in Q4 FY25)
• Reported PAT: %17 Cr, the second consecutive quarter of reported profitability

Neetish Sarda, Founder and Managing Director, Smartworks, said, “FY26 was our first financial year as a listed company, and one where growth, profitability, and capital efficiency improved together. We delivered our strongest full-year performance, with revenue growing 31% to ¥1,796 crore, normalised EBITDA up 75%, and ROCE more than doubling to 16%. We also achieved full-year PAT profitability under Ind AS, reinforcing the durability of our model.

During the year, we became the first listed flex workspace platform in India to cross 10 million square feet of operational portfolio. With more than 5,200 Cr of contracted rental revenue, 100% of FY27 supply secured, and ~75% visibility already in place for FY28, we enter the next phase with strong forward visibility.

As enterprise demand continues to shift towards large, managed campuses, we are seeing sustained momentum in multi-city deployments. With supply secured ahead of demand and a platform built at scale, we are well positioned to sustain disciplined, capital-efficient growth.”

Q4 FY26 – Operational Highlights

• Total footprint (incl. LOIs): 16.1 million sq ft across 66 centres in 15 cities (including Singapore), up 37% YoY
• Operational area: 10.1 million sq ft – first listed flex platform in India to cross this mark e Mature centre occupancy: 89%; committed mature occupancy: 93%; overall occupancy: 82% (reflecting 1.0 Msf added in Q4)
• Client base: 770+ enterprise clients; 90%+ of rental revenue from enterprise clients
• 1,000+ seat cohort: 37% of full-year rental revenue (40% in Q4 FY26) – average tenure 49 months
• Multi-city client revenue: ~31% of rental revenue, reducing geographic concentration
• Top 10 client concentration halved over seven years – from 39% in FY19 to 20% in FY26
• Seat retention rate (FY26): 88%
• Committed rental revenue: ~ ¥5,200 Cr+, providing strong forward revenue visibility, ~82.5% of FY27 revenue already locked in

Self-funded Growth and Balance Sheet Discipline

Smartworks ended FY26 net-debt-negative, with cash and bank balances exceeding gross debt – confirming a capital structure that funds expansion entirely through internal accruals.

Gross debt has been reduced by more than 50% since the Company’s IPO in July 2025.

The creditrating upgrade to CARE A (Stable) from BBB+ (Positive) – a two-notch improvementin twelve months.

Outlook – FY27 and beyond: Smartworks enters FY27 with a strong multi-year contracted rental revenue visibility of more than ¥5,200 Cr. The structural backdrop remains strongly supportive. India’s office market absorbed a record 83 million square feet in 2025, with Q1 calendar 2026 clocking the highest first-quarter gross leasing ever recorded. Flex stock has tripled since 2020 to over 110 million square feet and is projected to grow to 140 million square feet by 2027, as per industry reports. With Grade A office demand running ahead of supply through 2030, secured supply is the single biggest moat in the industry and Smartworks has built it.