Smartworks Coworking Spaces Ltd intends to allocate approximately 600 crore rupees in the current fiscal year for the development of existing and new centers as part of an expansion strategy aimed at meeting the growing demand for managed workspace services.
The regional real estate firm Smartworks, based in Gurugram, possesses a portfolio of 16.9 million square feet of office space across 70 centers in 15 cities in India and Singapore. During the reporting period of 2025-26, the company generated a total revenue of 1,850 crore rupees.
During a conference call with market analysts, Smartworks' founder and CEO, Netesh Sarda, stated that the company's projected capital expenditure is between 550 and 600 crore rupees annually. These expenses comprise two components: capital expenditure on renovations, which are typically conducted in centers every three years, and new capital investments.
He also specified that the company has already signed lease agreements for over 3.5 million square feet of space that is either under construction or being prepared for construction. In the previous fiscal year, the company invested nearly 400 crore rupees in capital expenditures.
Explaining its business model to analysts, Sarda noted that Smartworks leases entire buildings from leading developers and non-institutional landlords in prime micro-markets, transforming them into fully managed campuses equipped with various amenities such as cafeterias, gyms, nurseries, shops, and 24-hour customer support. The company provides its corporate clients with a comprehensive working solution.
According to Sarda, the company's platform has grown to a total area of nearly 17 million square feet and serves over 760 clients, including companies from the Fortune 500, Forbes 2000, multinational corporations, leading Indian conglomerates, and unicorn startups. More than 150 thousand professionals work in its campuses daily, with clients typically signing long-term agreements ranging from 4 to 5 years.
Sarda also reported that the guaranteed contracted revenue currently stands at approximately 5,400 crore rupees, with 87 percent of the company's revenue for the 2027 fiscal year already reserved through contracts. Furthermore, about 92 percent of Smartworks' revenue comes from corporate clients.
Smartworks Executive Director, Harsh Binani, stated that with an operational area of 10.4 million square feet, the company is the largest platform in the industry. He added that this scale allows it to secure preferential terms from landlords and reduce unit costs for both rent and operations. Green initiatives, including the installation of solar panels on campuses, have contributed to improving the economic situation for both the company and its clients.
Binani also noted that major centers continue to fill up with larger clients, and the growing share of clients with over a thousand seats and multi-city clients demonstrates the effectiveness of the network effect strategy. He also pointed out the increase in the share of revenue derived from Global Capability Centers (GCCs).
The company's financial performance shows that consolidated net profit for the quarter ending in June was 13.14 crore rupees, contrasting with a net loss of 4.19 crore rupees for the same period last year. Total revenue for the April-June 2026-27 period increased by 44 percent to 559.66 crore rupees compared to 387.98 crore rupees in the corresponding period last year. In 2025-26, Smartworks recorded a profit of 10.52 crore rupees on a total revenue of 1,850 crore rupees.
According to real estate consultant Colliers India, coworking operators leased 8.6 million sq. ft. of office space in the first six months of the current year, which is 32 percent more than last year, to prepare their properties to meet the growing corporate demand for flexible and managed workspaces. Consultant Cushman & Wakefield emphasized that in the first six months of 2026, these operators leased 191,306 workspaces to corporations, compared to 113,623 spaces in the previous year.