Smartworks has signed a five-year agreement to provide over 1,100 desks to L&T Technology Services in Pune. This deal expands their total partnership to 2,750 seats and is set to generate ₹55 crore in rental revenue. The move reflects a broader trend of large enterprises increasingly choosing flexible, managed workspace solutions to scale operations quickly.
Smartworks Coworking Spaces Ltd has entered into a new agreement to lease more than 1,100 desks to L&T Technology Services in Pune. This five-year deal is expected to bring in ₹55 crore in rental income, strengthening the business relationship between the two companies.
Scaling Enterprise Partnerships
This latest lease is part of a growing trend where large companies are turning to managed office providers rather than traditional long-term leasing. With this addition, L&T Technology Services now occupies over 2,750 seats across various locations provided by Smartworks. For Smartworks, securing large-scale clients is a central part of its revenue model. The company has stated that enterprise clients leasing more than 1,000 seats currently account for roughly 37 percent of its total rental revenue, making these high-volume deals critical for financial stability.
Operations and Market Focus
As of March 31, 2026, Smartworks manages a portfolio of 16.1 million square feet across 66 centers in 15 cities, including locations in India and Singapore. The company operates on a model where it leases space from developers and converts them into managed campuses. This approach is designed to cater to the specific infrastructure and security needs of large corporations, which often require faster deployment than traditional office buildings can provide.
While the demand for flexible office space has grown, this business model requires significant ongoing investment in infrastructure and technology to maintain standards. Because the company depends on leasing properties to then sublease them, its profit margins can be sensitive to fluctuations in both rental costs from developers and the occupancy rates of its clients. Investors typically monitor how effectively the company manages these costs while expanding its footprint across different cities.
Moving forward, the primary monitorable for investors will be the occupancy rates at these new centers and the company’s ability to renew large enterprise contracts as they come up for expiration. The success of this strategy will depend on whether the shift toward flexible office spaces continues to gain momentum among major IT and engineering firms that require scalable, short-to-medium-term real estate solutions.