Smartworks Outlines ₹600 Crore Capital Expenditure Plan for FY27 to Support Managed Workspace Growth

Gurugram-based realty firm Smartworks Coworking Spaces Ltd has announced a planned capital expenditure of approximately ₹600 crore for the current fiscal year. The investment is directed toward expanding and refurbishing its existing and upcoming centers to accommodate increasing demand for managed workspaces.

During a conference call with market analysts, Founder and Managing Director Neetish Sarda stated that the capex estimate ranges between ₹550 crore and ₹600 crore. This expenditure covers fresh setup costs alongside regular refurbishment capex typically conducted every three years. The company previously invested nearly ₹400 crore in capital expenditure during the preceding fiscal year.

Smartworks operates a portfolio spanning 16.9 million square feet of office space across 70 centers in 15 cities in India and Singapore. Sarda noted that the firm has already signed up more than 3.5 million square feet of space that is currently under construction or scheduled for construction. The platform serves over 760 clients, including Fortune 500 companies, Forbes 2000 entities, multinational corporations, Indian conglomerates, and unicorns, supporting more than 1.5 lakh professionals daily.

According to the company, committed contracted revenue stands at approximately ₹5,400 crore, with 87 percent of its FY27 revenue already contracted. Enterprise clients account for roughly 92 percent of the company's total revenue, with clients typically entering into long-tenure agreements lasting four to five years.

Executive Director Harsh Binani highlighted the operational scale of the platform, noting that it manages 10.4 million square feet of operational space. Binani pointed to a growing share of revenue from Global Capability Centres and larger clients leasing spaces of 1,000 seats or more, supported by network-effect strategies and green initiatives such as solar adoption.

Financially, Smartworks reported a consolidated net profit of ₹13.14 crore for the quarter ended June, recovering from a net loss of ₹4.19 crore in the corresponding period of the previous year. Total income rose 44 percent to ₹559.66 crore for the April-June period, up from ₹387.98 crore year-on-year. For the full 2025-26 fiscal year, the company posted a total revenue of ₹1,850 crore with a profit of ₹10.52 crore.

The expansion plans align with broader market trends in the flexible workspace sector. Real estate consultants Colliers India reported that coworking operators rented 8.6 million square feet of office space in the first six months of the year, representing a 32 percent year-on-year increase driven by corporate demand. Additionally, Cushman & Wakefield noted that operators rented out 1,91,306 desks to corporates during the same period, compared to 113,623 seats in the prior year.

"Smartworks' planned capital expenditure of up to ₹600 crore reflects the growing institutionalization of the managed workspace sector in India. With strong enterprise backing, high pre-contracted revenue visibility, and expanding demand from Global Capability Centres, flexible office platforms are scaling rapidly. Capital efficiency and long-tenure client agreements will remain crucial drivers for sustainable profitability in this segment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes