Smartworks Q1: Loss Narrows 82% YoY To INR 4.2 Cr

Recently listed Smartworks’ consolidated net loss narrowed 82% to INR 4.2 Cr in Q1 FY26 from INR 23 Cr in the same quarter a year ago on the back of growth in its top line and improvement in margins. Sequentially, loss declined 49% from INR 8.3 Cr. 

The coworking space provider’s operating revenue zoomed 21% to INR 379.2 Cr during the quarter under review from INR 313.4 Cr in Q1 FY25. On a quarter-on-quarter basis, revenue increased 5.9% from INR 358.4 Cr.

Its revenue from lease rentals increased 21% to INR 356.6 Cr in the June quarter of 2025 from 296.2 Cr a year ago. Other operating revenue, which includes revenue from ancillary services, software services, construction and fit-out projects, and the sale of traded goods, was at INR 2.3 Cr in Q1 FY26 against INR 1.7 Cr in Q1 FY25. 

Including other income of INR 8.8 Cr, the company’s total income for the quarter stood at INR 388 Cr. On the other hand, expenses rose 11% YoY to INR 393.6 Cr.

EBITDA zoomed 25.5% YoY to INR 241 Cr, while EBITDA margin improved to 63.6% from 61.3% in the year-ago period.

Smartworks’ average occupancy stood at 89% during the quarter under review. Notably, 90% of the company’s revenue comes from enterprise clients. 

This is the first quarterly results announced by Smartworks after it got listed on the bourses last month. The company set a price band of INR 387 to INR 407 for its IPO, which comprised a fresh issue of shares of up to INR 445 Cr and an OFS component of up to 33.79 Lakh shares.

Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks is a managed workspace provider. It leases large buildings from landlords, converts them into campuses, and then rents them out to large enterprises. 

Smartworks currently operates 56 leased centres across 15 cities in India and 2 centres in Singapore, totalling 12.0 Mn sq ft leased super built-up area (SBA) and 2.32 Lakh seats. 

Where Did Smartworks Spend? 

Smartwork’s total expenses 11% to INR 393.5 Cr in Q1 FY26 from INR 354.2 Cr a year ago. Sequentially, expenses rose 7.2% from INR 366.9 Cr.

Operating Expenses: The spending under this head increased 3.1% YoY to INR 103.5 Cr 

Employee Benefit Expenses: The company’s employee expenses rose 67% to INR 23.3 Cr from INR 13.9 Cr in Q1 FY25. 

Depreciation & Amortisation: This head accounted for the largest chunk of the company’s expenses. It rose 18% to INR 173.9 Cr from INR 147.2 Cr in Q1 FY25. 

Shares of Smartworks closed today’s trading session 2.6% higher at INR 466.25 on the BSE.