Smartworks Q1 FY26 net loss narrowed 82% to ₹4.2 crore from ₹23 crore YoY, aided by revenue growth and margin gains after IPO
Operating revenue rose 21% YoY to ₹379.2 crore; EBITDA up 25.5% to ₹241 crore with margin at 63.6%
Lease rentals grew 21% to ₹356.6 crore; average occupancy at 89%, ~90% revenue from enterprise clients
Expenses rose 11% YoY to ₹393.6 crore, led by higher depreciation and employee costs
Smartworks Narrows Q1 Loss by 82% as Lease Rental Revenue Jumps in First Quarterly Report Since IPO
Smartworks posts 82% fall in Q1 FY26 net loss to ₹4.2 crore as revenue climbs 21% to ₹379.2 crore; EBITDA margin widens to 63.6% after IPO
Neetish Sarda & Harsh Binani, Smartworks Cofounders
Summary
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Managed-workspace operator Smartworks reported a sharp 82% reduction in consolidated net loss for Q1 FY26, posting a loss of ₹4.2 crore versus ₹23 crore a year earlier, driven by double-digit revenue growth and improved margins in the quarter following its recent public listing.
Operating revenue rose 21% year-on-year to ₹379.2 crore in the June quarter from ₹313.4 crore in Q1 FY25 and climbed 5.9% sequentially from ₹358.4 crore. Including other income of ₹8.8 crore, total income for the quarter was ₹388 crore.
EBITDA grew 25.5% to ₹241 crore and the EBITDA margin expanded to 63.6% from 61.3% a year ago, reflecting stronger leasing yields and cost efficiencies.
Lease Rental Remains
Revenue from lease rentals, Smartworks’ core business, increased 21% to ₹356.6 crore, while other operating income from ancillary services, software and fit-outs rose modestly to ₹2.3 crore.
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The company reported an average occupancy of 89% for the quarter, with roughly 90% of revenue sourced from enterprise clients.
Total expenses for the quarter were ₹393.6 crore, up 11% year-on-year and 7.2% sequentially. Depreciation and amortisation accounted for the largest share at ₹173.9 crore (up 18% year-on-year), followed by operating expenses of ₹103.5 crore (up 3.1% year-on-year).
Employee benefit costs rose sharply to ₹23.3 crore from ₹13.9 crore a year earlier, reflecting growth investments and scale-up costs.
IPO, Listing & Market Reaction
This is Smartworks’ first quarterly result since its IPO, which carried a price band of ₹387–₹407 and included a fresh issue of up to ₹445 crore. The stock listed at ₹435 and has since traded higher, with a reported market capitalisation of about ₹5,332 crore after a recent close at ₹467 per share.
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For the full year ended March 2025, the company recorded revenue of ₹1,374 crore and a net loss of ₹62 crore.
Smartworks leases 56 centres across 15 Indian cities and two centres in Singapore, covering 12 million sq ft of leased super built-up area and about 232,000 seats. The company competes with listed peer Awfis, which reported ₹355 crore revenue and a ₹10 crore net profit in Q1 FY26, and other managed-workspace players preparing for public listings.
Management will now aim to convert the improved operating leverage into sustained profitability as occupancy and enterprise demand remain key drivers.
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