Managed office space provider Smartworks delivered a strong operational performance in the third quarter of FY26, reporting double-digit revenue growth and turning profitable during the period.
According to its unaudited consolidated financial statements filed with the National Stock Exchange (NSE), Smartworks’ revenue from operations rose 34% year-on-year to ₹472 crore in Q3 FY26, compared with ₹352 crore in the corresponding quarter last year.
Core Office Services Drive Growth
Smartworks derives the bulk of its revenue from the development, design, and licensing of managed and serviced office spaces, along with fit-out services. The company also earns income from ancillary offerings linked to workspace management.
During the quarter, Smartworks reported non-operating income of ₹16 crore, taking total income to ₹488 crore, up from ₹364 crore in Q3 FY25.
Nine-Month Performance Remains Strong
For the nine months ended December 2025, Smartworks reported 26% year-on-year growth in revenue to ₹1,276 crore, compared with ₹1,016 crore in the same period last year, reflecting sustained demand across its portfolio.
Costs Rise, But Operating Leverage Improves
On the expense side, depreciation remained the largest cost component at ₹223 crore, reflecting the asset-heavy nature of the managed workspace model. This was followed by operating expenses of ₹132 crore.
Finance costs, employee benefit expenses, and marketing spend pushed total expenditure to ₹486 crore, up from ₹445 crore in Q3 FY25. Despite higher absolute costs, improved scale and tighter controls helped support profitability.
Company Turns Profitable
Smartworks reported a net profit of ₹1.2 crore in Q3 FY26, marking a sharp turnaround from a loss of ₹16 crore in the year-ago quarter. The shift underscores improving operating leverage as occupancy levels and revenue density rise.
Market Performance
Smartworks listed on the NSE in July last year at ₹435 per share, a 7% premium to its IPO price of ₹407. The stock last closed at ₹474, valuing the company at approximately ₹5,416 crore ($599 million).
Outlook
With consistent revenue growth, improving cost efficiency, and a return to profitability, Smartworks appears to be entering a more stable operating phase. Investors will closely track margin expansion and cash flow sustainability as the managed office space market continues to evolve.
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