1. Opening Hook
Remember when people said “offices are dead”? Smartworks clearly missed the memo — and instead built a 12.7 million sq. ft. empire that’s busier than an airport lounge. In a world where employees want flexibility and bosses want them back at desks, Neetish Sarda has turned “managed campuses” into corporate catnip.
Revenues jumped, margins expanded, and even the rating agencies are cheering. But wait — there’s also a Rs. 800 crore revenue sprint, GCC gold rush, and India’slargest coworking campusin the making. Buckle up — this “office OS” story’s about to get interesting.
2. At a Glance
- Revenue up 21% YoY:Coworking isn’t dead; it’s billing rent.
- EBITDA +46% YoY:Efficiency met enterprise obsession.
- EBITDA Margin 16.4%:Still enough to pay the espresso machine bills.
- ROCE 14.3%:Doubled in a year — someone’s CFO is sleeping well.
- Net Debt Negative ₹59 Cr:A coworking unicorn that actually makes cash.
- Occupancy 88% (mature centers):Almost full house — they’ll need standing desks soon.
- CareEdge Rating: A (Stable):Upgraded — clearly, optimism’s contagious.
3. Management’s Key Commentary
Neetish Sarda:“We’ve grown to 12.7 million sq. ft. across 14 cities with 760+ clients.”(Translation: We’re basically India’s second-largest landlord — minus the property tax 😎.)
Sarda:“We’re the world’s largest standalone managed campus with Hiranandani in Mumbai.”(Translation: WeWork who?)
Sarda:“GCCs contribute 15% of rental revenue and rising.”(Translation: Multinationals are now addicted to our WiFi.)
Harsh Binani:“Our 1,000+ seat clients form 35% of rental revenue.”(Translation: No freelancers with lattes — only Fortune 500s with headcounts.)
CFO Sahil Jain:“We reduced gross debt by 45% post-IPO.”(Translation: For once, ‘growth with discipline’ wasn’t just a tagline.)
Anirudh Tapuriah:“Corporate costs dropped from 13.8% to 7.9% of revenue.”(Translation: They Marie Kondo’d the P&L — kept what sparks ROI.)
Sarda:“Our ROCE hit 14.3% and will double in two years.”(Translation: The landlord doesn’t sleep, he compounds.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Commentary |
|---|---|---|---|
| Revenue | ₹425 Cr | +21% | Coffee, rent, and optimism — all up |
| EBITDA | ₹70 Cr | +46% | Margin magic, powered by occupancy |
| EBITDA Margin | 16.4% | +300 bps | More scale, less leakage |
| PBT | ₹25 Cr | +40% QoQ | Profit joins the party |
| ROCE | 14.3% | 2x YoY | Asset-light & cash-bright |
| Occupancy (Mature Centers) | 88% | — | The office party’s packed |
| Net Debt | -₹59 Cr | — | Coworking, but cash-flow positive |
| Committed Rentals | ₹4,400 Cr | — | Locked, loaded, and leased |
Quick Take:This isn’t “shared space” anymore — it’s an enterprise machine. Smartworks built scale without buying walls. Margins rising, debt shrinking — capitalism’s coworking darling just flexed hard.
5. Analyst Questions
Q:What’s this Eastbridge deal?A:8.15 lakh sq. ft in Mumbai; ₹120/sq. ft rent; ₹110 Cr phased CAPEX.(Translation: They’re building a corporate Disneyland with rentable desks.)
Q:Retention dipped from 94% to 74% — red flag?A:“Healthy churn, re-leased at higher yields.”(Translation: We fired old tenants and got richer ones.)
Q:GCC strategy?A:“SmartVantage – workspace + compliance + onboarding.”(Translation: One-stop shop for global corporates who hate paperwork.)
Q:Why partner with institutional landlords?A:“Because now they callus.”(Translation: From tenants to trendsetters.)
Q:Margin outlook?A:“Center-level EBITDA ~26–30%; corporate drag 8%.”(Translation: Profitability’s moving in before the next lease.)
6. Guidance & Outlook
Smartworks aims to grow revenue30%+annually with EBITDA margins expanding steadily as new
