Smartworks Q2 FY27: Revenue Guidance Raised to 33-35%, EBITDA Margin Strong at 19.8%
Smartworks raised FY27 revenue guidance to 33-35% and reaffirmed margin targets. Q2 FY27 revenue grew 39% YoY to ₹5,914 million. Normalised EBITDA rose 68% YoY to ₹1,169 million with a 19.8% margin. Normalised PAT surged 136% YoY to ₹434 million. Operational footprint increased 20% YoY. The company continues to invest in capex for future growth.
The announcement includes a raised revenue guidance for the full fiscal year, significant year-on-year growth in key financial metrics (revenue, EBITDA, PAT), expansion in operational footprint, and a strong outlook driven by market trends like GCCs and AI. These factors are material and are likely to influence investor perception and stock valuation.
The company has raised its revenue guidance and shown strong year-on-year growth in revenue, EBITDA, and PAT. Reaffirmation of margin and footprint targets, along with a robust balance sheet and increasing operational scale, indicates positive business performance and future outlook.
Smartworks Coworking Spaces Limited announced its unaudited financial results for the quarter and half-year ended September 30, 2026. The company raised its revenue growth guidance for FY27 to 33-35%, while reaffirming its margin and footprint targets. For the second quarter of FY27, revenue from operations stood at ₹5,914 million, a year-on-year increase of 39% and a sequential growth of 8%. Normalised EBITDA was ₹1,169 million, up 68% year-on-year and 9% quarter-on-quarter, with a margin of 19.8%. Normalised PAT was ₹434 million, a significant increase of 136% year-on-year.
The company's operational footprint expanded by 20% year-on-year to 10.9 million square feet, with mature occupancy holding steady at 88% and committed mature occupancy at 91%. The company highlighted its strong balance sheet, with net debt at ₹827 million and a practically unlevered position. Normalised RoCE (annualised) was reported at 21.6% for the quarter.
Smartworks emphasized its business model, which is designed for scale and supported by demand from large enterprises. The company's platform connects stakeholders including non-institutional landlords, vendor partners, enterprise clients, and client employees. They highlighted the growth in flex space and the increasing demand from GCCs and AI-driven industries. The company's technology platform, comprising Nexus, WorkBlock, and WorkCtrl, is instrumental in driving its growth and operational efficiency.
The presentation also detailed historical financials and key performance metrics, showing consistent revenue growth over the past six quarters. The company is investing heavily in capex for future growth, which has resulted in negative free cash flow in H1 FY27 (₹(1,044) million), but expects to turn free cash flow positive as centres mature.
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Smartworks Coworking Spaces Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Smartworks Coworking Spaces Limited. Read the original for the full detail.