Smartworks Announces 32% Growth in Operating Revenue to Rs 1,374 Crore in FY25

Smartworks, a prominent managed workspace provider, announced a remarkable 32% increase in operating revenue, reaching Rs 1,374 crore in FY25. However, the company also experienced a 26% rise in losses during the same period.

Financial Performance of Smartworks in FY25

According to financial data from the RHP, Smartworks’ revenue from operations rose by 32% to Rs 1,374 crore in FY25, up from Rs 1,039 crore in FY24. The company specializes in offering flexible office spaces for large enterprises, SMEs, and emerging startups, utilising its powerful phygital platform to provide fully serviced, technology-driven, flexible, and cost-effective workspaces.

Revenue Breakdown

Lease rentals made up over 93% of the operating revenue, which increased by 29% to Rs 1,289 crore in FY25. Other revenue streams included design and fit-out services at Rs 35 crore, ancillary services at Rs 49 crore, and a minor Rs 1 crore from software fees. Additionally, Smartworks garnered Rs 36 crore from non-operating sources, bringing the total revenue to Rs 1,410 crore in FY25.

Expense Analysis

Examining the expense structure, the primary cost was depreciation, which surged by 35% to Rs 636 crore, followed closely by operating expenses at Rs 416 crore. Finance costs remained largely unchanged at Rs 336 crore, while employee benefit expenses increased to Rs 65 crore. Overall, total expenses saw a 26% rise to Rs 1,489 crore in FY25, up from Rs 1,180 crore in FY24.

Profitability Metrics

Even with the revenue growth, Smartworks’ losses escalated by 26% to Rs 63 crore in FY25, compared to Rs 50 crore in FY24. Nevertheless, the company reported a positive EBITDA of Rs 893 crore in FY25, showcasing an EBITDA margin of 63.3% and a return on capital employed (ROCE) of 7.48%.

Unit Efficiency

Smartworks recorded a unit cost of Rs 1.08 to generate a rupee of operating revenue in FY25, slightly better than the previous year’s figure of Rs 1.14.

Current Assets and IPO Plans

Based in Gurugram, the company reported current assets amounting to Rs 255 crore in FY25, which includes Rs 69 crore in cash and bank balances. Smartworks is set to enter public markets with its Rs 583 crore IPO, scheduled to open on July 10 and close on July 14, 2025. The company has established a price range of Rs 387 to Rs 407 per share, with a lot size of 36 shares, requiring a minimum investment of Rs 14,652 for retail investors.