Gurugram-based Smartworks Coworking Spaces has delivered a strong debut year as a listed company, posting robust growth across revenue, profitability, and cash flows, while building clear visibility for the next phase of expansion.

FY26 marked a milestone year for the country’s largest managed office platform by area under management, which listed in July 2025. The company achieved three key milestones: it became the first listed flexible workspace platform in India to cross 10 million sq ft of operational area, turned PAT-profitable with ₹11 crore versus a ₹63 crore loss in FY25, and built a forward pipeline of over ₹5,200 crore in contracted rental revenue.

“We are the first listed flex workspace platform in India to cross 10 million sq ft of operational portfolio. Including committed inventory, our total footprint is close to 16 million sq ft, giving us strong visibility for the next two years,” said Neetish Sarda, founder and managing director, Smartworks, in an exclusive interview with Fortune India.

The company reported revenue from operations of ₹1,796 crore, up 31% year-on-year (YoY), led by strong demand from large enterprises. Profitability improved sharply, with normalised EBITDA rising 75% to ₹314 crore and margins expanding 440 basis points to 17.5%. It also reported its first full year of profitability under Ind AS, with net profit at ₹11 crore.

As per the release, Smartworks has over ₹5,200 crore in contracted rental revenue, with 100% of FY27 supply already secured and 75-80% visibility for FY28. “With supply locked in and demand strengthening, we are entering a phase of compounding growth,” Sarda said.

A key highlight of FY26 was strong cash generation. Operating cash flow stood at ₹356 crore, exceeding EBITDA, signalling high-quality earnings. The company ended the year with a net cash position of ₹56 crore, with gross debt reduced by over 50% since the IPO. Borrowing costs also declined to below 9% following a credit rating upgrade.

Smartworks’ enterprise-focused strategy continues to anchor performance. Over 90% of rental revenue comes from large enterprises, including Fortune 500 firms, global capability centers (GCCs), and leading Indian corporates. Clients with more than 1,000 seats contribute 37% of revenue, with average tenures of nearly four years, ensuring stable, annuity-like income.

Q4 FY26 delivers record revenue of ₹520 crore

The March quarter capped a strong year, with revenue rising to around ₹520 crore, up 45% YoY and 10% sequentially. Normalised EBITDA stood at ₹99 crore, up 71% YoY, with margins improving to 19%. The company reported its second consecutive profitable quarter, with net profit at ₹17 crore.

Operationally, Smartworks expanded its total footprint to 16.1 million sq ft across 66 centres in 15 cities, including Singapore, marking 37% YoY growth. Occupancy remained healthy, with mature centres at 89% and committed occupancy at 93%, while overall occupancy stood at 82%, reflecting recent capacity additions.

The client base crossed 770 enterprise clients, contributing over 90% of rental revenue. The 1,000+ seat cohort accounted for 37% of full-year revenue (40% in Q4), with average tenures of 49 months. Multi-city deals now contribute about 31% of revenue, while concentration risk has reduced, with the top 10 clients’ share falling from 39% in FY19 to 20% in FY26. Seat retention remained strong at 88%.

Enters FY27 with ₹5,200 crore contracted revenue visibility

Smartworks’ performance comes amid strong tailwinds in India’s office market, driven by GCC expansion, MNC demand, and domestic corporates. Flexible workspace continues to outpace traditional office leasing, with industry estimates projecting flex stock to reach 140 million sq ft by 2027.

“GCCs are a significant opportunity. Their contribution to our revenue has doubled in a year and will continue to rise as global firms expand in India,” Sarda said.

With over ₹5,200 crore in contracted revenue already locked in, a large part of FY27 growth is pre-booked. The company is also seeing rising demand for multi-city deployments and large managed campuses.

Despite global uncertainties, demand remains resilient. “Periods of uncertainty typically benefit India’s office market as companies look to optimise costs and prefer flexible, managed solutions,” Sarda noted.

As per the company, India’s office market absorbed a record 83 million sq ft in 2025, while Q1 2026 saw the highest-ever first-quarter leasing activity. Flexible workspace has been a key growth driver, with total stock tripling since 2020 to over 110 million sq ft and expected to reach 140 million sq ft by 2027. With demand for Grade A office space likely to outpace supply through the decade, securing inventory ahead of time has emerged as a critical advantage, one that Smartworks has steadily built.