Smartworks Coworking Spaces Limited – FY26 Results

key financial highlights

• Revenue from Operations:
  • Revenue (Q4 FY26): ₹5,196 Cr
    • QoQ Change: +10.1%
    • YoY Change: +45%
  • Previous Quarter (Q3 FY26): ₹4,721 Cr
  • Previous Year (Q4 FY25): ₹3,584 Cr
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹166 Cr
    • QoQ Change: +1,240%
    • YoY Change: Turnaround
  • Previous Quarter (Q3 FY26): ₹12 Cr
  • Previous Year (Q4 FY25): – ₹83 Cr Loss

Margin Analysis

Key Drivers:

• Strong operating leverage (fixed cost absorption)
• Revenue growth outpacing cost growth
• Stabilization in operating expenses
• Slight control in finance cost vs revenue growth

Key Signal: Margins are improving but Still thin vs asset-heavy model, Sensitive to occupancy rates.

Segment insight

Business Model:

• Managed office / coworking spaces
• Long-term lease → short-term rental arbitrage

Key Economics:

• High fixed lease liabilities
• Occupancy-driven profitability
• Capex-heavy expansion

Earning quality check

Observations:

• Operating Cash Flow (CFO): ₹11,971 Cr (strong)
• Positive working capital contribution
• Profit supported by actual cash generation

Red Flag:

• High depreciation + lease accounting impact
• Accounting profit may differ from real economic profit

balance sheet Analysis

• Total Assets: ₹64,636 Cr
• Total Equity: ₹5,306 Cr
• Total Liabilities: ₹59,329 Cr

Critical Observations:

• Extremely leveraged structure
• Lease liabilities dominate:
  • Non-current lease liabilities: ₹39,083 Cr
• Borrowings reduced YoY (positive sign)

key risks

1. High leverage / lease obligations
2. Occupancy risk → direct impact on profitability
3. Economic slowdown → office demand falls
4. Fixed cost heavy model
5. Cash flow mismatch risk

management strategy signals

Focus Area:

• Aggressive expansion across cities
• Scale-driven profitability model
• Improving occupancy rates
• Capital raising via equity (₹4,450 Cr inflow)

Conclusion