Smartworks, which provides managed and serviced office spaces to enterprises, reported operating revenue of Rs 528 crore for the quarter ended June 2026 (Q1 FY27), up from Rs 365 crore in the corresponding quarter last year — a year-on-year increase of 45%.
The company also logged Rs 13.4 crore in non-operating income during the quarter, pushing its total income to Rs 560 crore for the period.
On a quarter-on-quarter basis, growth was more modest but still positive, with operating revenue rising 5% from Rs 520 crore in Q4 FY26.
EBITDA and Margins
Profitability metrics showed healthy improvement as well. Smartworks' EBITDA grew 37% year-on-year to Rs 346 crore in Q1 FY27, translating into a strong EBITDA margin of 63.4%.
The bulk of the company's revenue continues to come from designing, developing, and licensing serviced office spaces, supplemented by fit-out services and other ancillary offerings tied to its core workspace business.
Cost Structure
Smartworks' total expenditure for the quarter stood at Rs 542 crore, compared to Rs 394 crore in Q1 FY26. The breakdown of major costs included:
· Depreciation (lease-related): Rs 246 crore — the single largest cost item
· Operating expenses: Rs 154 crore
· Other costs: Finance charges, employee benefits, and overheads made up the remainder
Bottom Line: Back in the Black
After posting losses in the year-ago period, Smartworks turned profitable in Q1 FY27, reporting a net profit of Rs 13 crore. The swing to profitability was helped in part by the company's other income for the quarter.
Stock Performance
Shares of Smartworks were trading at approximately Rs 494 each as of 12:35 PM on the day of the results announcement, placing the company's market capitalization at around Rs 5,634 crore (roughly $593 million).
Key Takeaway
With revenue crossing the Rs 500-crore mark for a second straight quarter and margins holding above 60%, Smartworks appears to be consolidating its position as one of India's fast-growing managed office space players, even as depreciation from its lease-heavy business model remains its biggest cost pressure.
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