Smartworks Coworking Spaces reported a strong Q2 FY27 with revenue rising 39% YoY to Rs 591 crore. Normalised PAT grew 136% to Rs 43 crore, driven by robust demand from GCCs and enterprise clients. Following these results, the company raised its FY27 revenue growth guidance to 33%-35%.
Smartworks Q2 FY27 Profit Jumps 136% on Robust Enterprise Demand
Q2 Revenue: Rs 591 crore (+39% YoY)
Q2 Normalised PAT: Rs 43 crore (+136% YoY)
Reader Takeaway: Strong enterprise revenue provides stability, while aggressive capex-driven expansion acts as a short-term pressure point on margins.
What just happened
Smartworks Coworking Spaces delivered a strong performance for the quarter ending September 2026. The company saw revenue climb to Rs 591 crore, a 39% increase compared to the same period last year. Normalised EBITDA reached Rs 117 crore, marking a 68% jump, while normalised PAT climbed to Rs 43 crore. This marks the company's sixth consecutive quarter of sequential growth.
Why this matters
The results highlight the company's ability to scale rapidly while improving profitability. Management has raised its FY27 revenue growth guidance to 33%-35%, up from the previous range of 28%-30%. The growth is largely fueled by demand from Global Capability Centres (GCCs), the BFSI sector, and large manufacturing firms, which now account for 91% of rental revenue.
Operational Performance
The company currently manages 17.5 million sq ft across 71 centers. While overall occupancy stands at 81%, management notes this reflects a temporary dilution caused by the recent addition of nearly 1 million sq ft of new space. Mature centers, however, show a healthy 91% committed occupancy, signaling strong underlying demand for established campuses.
Risks to watch
Investors should closely monitor the company's cash flow. Free cash flow for the half-year was negative at Rs 104 crore, reflecting heavy capital expenditure and security deposits required for the current expansion phase. Furthermore, the rapid rollout of new campuses will likely keep overall blended occupancy numbers lower until these sites reach maturity.
What to track next
Watch for the ramp-up speed of recently launched large campuses. Management expects these assets to contribute significantly to FY28 revenue and improve the overall Return on Capital Employed (ROCE) as they stabilize.