Smartworks Coworking Spaces has signed a five-year deal to provide over 1,100 desks to L&T Technology Services in Pune. This agreement is expected to bring in ₹55 crore in rental revenue. It marks a deepening partnership, with the total number of desks provided to the technology firm now exceeding 2,750 across India.
Smartworks Coworking Spaces has secured a new office leasing agreement with L&T Technology Services (LTTS) in Pune, covering more than 1,100 seats. This contract is scheduled to run for five years and is expected to contribute approximately ₹55 crore to the coworking firm’s total rental income over that period.
This deal strengthens the business relationship between the two companies. Following this expansion, Smartworks now manages over 2,750 seats for LTTS across several Indian cities. For Smartworks, this move aligns with its strategy of securing long-term commitments from large-scale enterprise clients, which the company identifies as a core part of its revenue model.
Enterprise Focus and Revenue Impact
The company’s data as of March 31, 2026, highlights that large corporate clients, defined as those occupying more than 1,000 seats, are significant drivers for its financial performance, accounting for about 37% of its total rental income. By focusing on these mid-to-large enterprises, Smartworks aims to maintain steady occupancy levels and reduce the volatility often seen in smaller-scale flexible office leasing.
As of the end of March 2026, the company operated a portfolio of 16.1 million square feet, spanning 66 centers across 15 cities, including international operations in Singapore. The business model relies on leasing space from developers and redeveloping it into managed environments. This allows corporations to avoid the high upfront capital spending associated with traditional office setups, while Smartworks takes on the management of daily facility operations.
Market Context and Future Monitorables
The flexible office sector in India has seen a shift toward enterprise-grade, managed campuses as corporations look for ways to scale teams quickly without long-term real estate lock-ins. However, investors often track the occupancy levels across a company’s entire portfolio to gauge whether demand remains broad-based or if growth is limited to a few specific clients.
Because this business model involves high lease obligations to property owners, the ability of Smartworks to maintain high occupancy rates at its centers is critical. Any slowdown in corporate hiring or a shift toward hybrid work policies that reduce the need for physical desk space could potentially pressure profit margins. Moving forward, stakeholders will likely monitor the company’s ability to renew these enterprise contracts and its success in managing the capital pressure that comes with expanding its footprint into new office spaces.