Smartworks to invest Rs 600 Cr in FY27 to expand biz, meet rising demand for managed office spaces
The Gurugram-based listed realty firm has signed up more than 3.5 million square feet of space, which is either under construction or coming up for construction.
Smartworks Coworking Spaces Ltd will invest around Rs 600 crore this fiscal in its existing and upcoming centres as part of its expansion plan to meet rising demand for managed workspace.
Gurugram-based listed realty firm Smartworks, which has a portfolio of 16.9 million square feet of office space across 70 centres in 15 cities across India and Singapore, posted a total revenue of Rs 1,850 crore in 2025-26.
In a conference call with market analysts, Smartworks Founder and MD Neetish Sarda said, "Our capex estimate is between Rs 550 crore and Rs 600 crore for the year. This capex includes two sets: it includes refurbishment capex that we typically do in our centres after every three years and the fresh capex that will go in."
Smartworks has signed up more than 3.5 million square feet of space already which is either under construction or coming up for construction, he said, he told analysts.
The company had invested nearly Rs 400 crore last fiscal year in capital expenditure.
"Smartworks leases entire buildings from India's leading developers and non-institutional landlords in prime micro-markets and transforms them into fully managed, amenity-rich campuses with cafeterias, gyms, creches, convenience stores, recreation zones, and round-the-clock support for the client," Sarda said, while explaining the business model to the analysts.
The company is providing a one-stop workspace solution to its corporate clients, he said.
"Our platform has grown to almost 17 million square feet of total area and over 760 clients, from Fortune 500 to Forbes 2000 companies, MNCs, leading Indian conglomerates, and unicorns," Sarda said.
More than 1.5 lakh professionals work from its campuses daily, he informed. The clients typically sign long-tenure agreements of 4-5 years.
"Committed contracted revenue today stands at approximately Rs 5,400 crores, and 87 per cent of our FY27 revenue is already contracted for," Sarda said.
Around 92 per cent of Smartworks' revenue comes from enterprise clients.
Smartworks Executive Director Harsh Binani said, "At 10.4 million square feet operational, we are the largest platform in the industry, and scale earns us preferred terms from landlords and lower unit costs across leasing and operation."
Green initiatives, including solar adoption across campuses, have helped improve the economics for the company and its clients, he added.
"Our larger centres continue to get filled by larger clients. The rising share of 1,000-plus seat cohort and multi-city clients shows the network effect strategy at work," Binani told analysts.
He also noted that the share of revenue from Global Capability Centres (GCCs) is rising.
Smartworks has reported a consolidated net profit of Rs 13.14 crore for the quarter ended June as against a net loss of Rs 4.19 crore in the year-ago period.
Total income rose 44 per cent to Rs 559.66 crore in the April-June period of 2026-27 from Rs 387.98 crore in the corresponding period of the preceding year. During 2025-26, Smartworks posted a profit of Rs 10.52 crore on a total revenue of Rs 1,850 crore.
According to real estate consultant Colliers India, coworking operators rented 8.6 million sq ft of office space in the first six months of this year, up 32 per cent year-on-year, to set up their facilities for meeting the rising demand for flexible and managed workspaces from corporates.
Real estate consultant Cushman & Wakefield highlighted that these operators rented out 1,91,306 desks to corporates during the first six months of 2026 as against 1,13,623 seats in the year-ago period.