Smartworks Coworking Spaces Limited Earnings Summary — Q3 FY2026

• 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 is focused on transitioning from high-growth capital intensity to return-accretive growth, leveraging high operating margins (60-64%) to offset depreciation loads.

Improving

The company has crossed the threshold into consolidated profitability, a significant milestone after consecutive years of losses driven by high depreciation and interest.

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.