Smartworks Coworking Spaces Limited Earnings Summary — Q3 FY2026
Smartworks Returns to Consolidated Profitability in Q3 FY26 Following IPO
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 9 consecutive quarters.
- Revenue of ₹546 Cr is 44.0% higher year-on-year.
- Revenue has compounded at 32.0% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹13 Cr is 413.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Operating margin stands at 63.3% in Q1 FY2027.
- Operating margin compressed by 23 bps year-on-year.
- Over the last two years operating margin has expanded by 204 bps.
- PBT margin is 3.2%.
- Expenses grew 44.9% against revenue growth of 44.0%.
- Operating profit of ₹346 Cr is 43.5% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 5 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 546 | 520 | 472 | 425 | 379 | 358 | 352 | 350 | 313 | — |
| Expenses | Improving | 200 | 181 | 167 | 155 | 138 | 126 | 134 | 136 | 121 | — |
| Operating Profit | Improving | 346 | 338 | 306 | 270 | 241 | 232 | 218 | 214 | 192 | — |
| Operating Margin | Stable | 63.3% | 65.1% | 64.7% | 63.6% | 63.6% | 64.8% | 62.0% | 61.2% | 61.3% | — |
| Other Income | Volatile | 13 | 13 | 16 | 16 | 9 | 4 | 12 | 10 | 10 | — |
| Interest | Stable | 96 | 95 | 97 | 93 | 81 | 80 | 85 | 86 | 86 | — |
| Depreciation | Improving | 246 | 234 | 223 | 198 | 174 | 161 | 167 | 160 | 147 | — |
| Profit Before Tax | Volatile | 18 | 22 | 2 | -4 | -6 | -5 | -22 | -21 | -31 | — |
| Tax | Volatile | 4 | 6 | 0 | -1 | -1 | 3 | -6 | -5 | -8 | — |
| Net Profit | Volatile | 13 | 17 | 1 | -3 | -4 | -8 | -16 | -16 | -23 | — |
| Net Margin | Volatile | 2.4% | 3.2% | 0.3% | -0.7% | -1.1% | -2.3% | -4.6% | -4.5% | -7.3% | — |
Key Takeaways
- Smartworks achieved a critical pivot to consolidated net profit of ₹12.30 million in Q3 FY26, compared to a loss of ₹160.25 million in the prior year's same quarter.
- Consolidated revenue from operations grew 34.2% year-on-year to ₹4,721.26 million, reflecting continued scaling of managed office campuses.
- The company successfully completed its IPO during the fiscal year, using proceeds to repay ₹1,140 million in borrowings to de-leverage the balance sheet.
- Depreciation and finance costs remain the primary drags on profitability, totaling ₹3,200.73 million in the current quarter due to Ind AS 116 lease accounting.
- The adoption of New Labour Codes resulted in a one-time employee benefit provision increase of ₹5.34 million recognized this quarter.
- Post-IPO liquidity remains strong with ₹1,726.94 million in unutilised fresh issue proceeds earmarked primarily for new center fit-outs and security deposits.
Management Guidance
Management is focused on transitioning from high-growth capital intensity to return-accretive growth, leveraging high operating margins (60-64%) to offset depreciation loads.
Sentiment Shift
Improving
The company has crossed the threshold into consolidated profitability, a significant milestone after consecutive years of losses driven by high depreciation and interest.
Outlook
The outlook is positive regarding top-line scaling and market leadership in managed offices, though bottom-line expansion will be constrained by the heavy depreciation schedule of new campuses.
From the Annual Report (Key Quotes)
“The Board considered and approved the Unaudited Financial Results for the quarter ended 31 December, 2025.”
“The net proceeds which are unutilised as at December 31, 2025 are temporarily deposited and invested in the escrow account.”
“The Group's primary business segment involves developing and licensing fully serviced office spaces... the CODM reviews performance as a single operating unit.”
Official Quarterly Documents
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This summary is AI-generated from Smartworks Coworking Spaces Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.