Smartworks Quarterly Results Show Strong Growth

Smartworks, a leading managed office space provider, has revealed its financial performance for the second quarter of the current fiscal year. In Q2 FY26, the company achieved a remarkable 81% decrease in losses while also experiencing significant revenue growth.

Revenue from operations for Smartworks increased by 21% year-on-year, reaching Rs 425 crore for the quarter ending in September 2025, up from Rs 350 crore in Q2 FY25. This information is based on its unaudited consolidated financial statements submitted to the National Stock Exchange (NSE).

Most of Smartworks’ revenue comes from the creation, design, and licensing of serviced office spaces and fit-out services, supplemented by additional income from various ancillary services. The company also reported Rs 16 crore from non-operating activities, which raised total income to Rs 441 crore for the quarter, compared to Rs 361 crore in the same period last year.

Half-Yearly Performance Overview

In terms of half-yearly performance, there was an almost 21% increase in revenue, totalling Rs 804 crore for H1 FY26, up from Rs 664 crore in H1 FY25.

Cost Analysis

On the expense side, depreciation was the largest cost, accounting for Rs 198 crore, followed by operating expenses at Rs 122 crore. Finance costs, employee benefits, and marketing expenses brought the total expenditure to Rs 445 crore, compared to Rs 382 crore during the same quarter last year.

Net Loss Reduction

The effective growth in scale alongside cost control strategies enabled Smartworks to reduce its net loss to Rs 3 crore in Q2 FY26, a substantial fall from Rs 16 crore a year prior. For the six months ending in September 2025, the company’s losses declined by 82% to Rs 7 crore in H1 FY26, down from Rs 39 crore in H1 FY25.

Stock Performance

Smartworks made its debut on the NSE earlier this year, listing at Rs 435 per share, reflecting a 7% premium over its IPO price of Rs 407. As of today, the stock closed at Rs 596, giving the company a market valuation of Rs 6,818 crore (approximately $769 million).

Competitive Landscape

In the competitive arena, Smartworks faces challenges from Awfis, which went public in May 2024 and currently trades at Rs 595. Awfis reported Rs 355 crore in revenue and Rs 10 crore in net profit for Q1 FY26. The company has yet to submit its results for the second quarter.