Smartworks Boosts FY27 Revenue Forecast to 33-35% Amid Rising Demand

Smartworks Coworking, a leading provider of managed office spaces based in Gurugram, has increased its full-year revenue growth projection for fiscal year 2027 to between 33 and 35 percent. This is a significant rise from its earlier forecast of 28 to 30 percent, driven by robust demand from enterprise clients and an expanding pipeline of large-scale deals.

Harsh Binani, cofounder of Smartworks, shared with Business Standard that this revision could result in an additional revenue boost of approximately ₹90-100 crore for the company. Over the past three months, the firm secured more than ₹540 crore in new multi-year rental contracts, with existing customers contributing over 40 percent of these agreements.

The company’s total contracted rental revenue has now climbed to nearly ₹5,800 crore. For the quarter, Smartworks reported a 39 percent year-on-year increase in revenue from operations, reaching ₹591 crore, compared to ₹425 crore in the same period last year. This growth marks the sixth consecutive quarter of sequential revenue gains since the company went public in July 2025.

Smartworks also posted a net profit of ₹25.6 crore during the quarter, recovering from a loss of ₹3.1 crore recorded in the second quarter of fiscal year 2026. Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 68 percent year-on-year to ₹117 crore. Correspondingly, profit margins improved to 19.8 percent from 16.4 percent a year earlier.

Neetish Sarda, founder and managing director of Smartworks, highlighted the company's balanced focus on growth and profitability. He stated, “This quarter, revenue grew 39 percent and normalised profit after tax more than doubled over last year, even as we invested through our heaviest expansion phase. Based on this performance, we have raised our full-year revenue growth guidance. It reflects what we have always believed: At scale, our growth and profitability compound together.”

Binani also commented on the impact of geopolitical shifts, noting that uncertainty in West Asia is prompting global firms to consider India as an alternative destination for their operations. This trend is creating new opportunities for managed office space providers like Smartworks.

Looking ahead, Smartworks plans to open two of its largest campuses during the second half of the current fiscal year. The Eastside campus in Pune will offer around 863,000 square feet, while the Eastbridge campus in Mumbai will cover approximately 815,000 square feet. These additions will further expand the company’s overall footprint, which stood at 17.5 million square feet across 71 centres at the end of the recent quarter.

Smartworks operates within the growing flexible workspace market, which has seen increased demand as companies seek adaptable office solutions that support hybrid working models. The firm’s steady contract wins and expanding leasing portfolio demonstrate confidence among enterprises in flexible office environments as they plan for long-term operational needs.

As the managed workspace sector continues to evolve, Smartworks’ strategic expansions and strong financial results position it well to capitalize on shifting corporate real estate preferences. The company’s ability to attract large multi-year contracts and maintain profitability through rapid growth phases offers insight into its operational resilience and market appeal.