Smartworks raises FY27 revenue growth guidance to 35% after Q2 revenue jumps
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Smartworks reported a revenue increase of 39% year-on-year during the July-September quarter. The company has raised its revenue growth guidance for FY27 to 33–35%. It continues to expand its contracted rental revenue to Rs 5,800 crore across 71 centers. Demand from enterprise clients remains strong, contributing 91% of the rental revenue. The company is focused on adding more campuses in prime locations to support client growth.
New Delhi: Managed office platform Smartworks has raised its FY27 revenue growth guidance to 33–35%, from the earlier 28–30% on the back of strong leasing activity during Q2 FY27.During July-September quarter, company’s revenue grows by 39% YoY to Rs 591 crore while normalised EBITDA rises 68% YoY to Rs 117 crore and normalised PAT more than doubled to Rs 43.4 crore, up 136% YoY.
It has posted six consecutive quarters of sequential revenue and margin growth with 360 bps expansion.
Company’s contracted rental revenue increased to Rs 5,800 crore, driven by expansions from existing clients and new enterprise wins as total footprint reaches 17.5 million sq. ft. across 71 centres, with two of the world’s largest campuses, Eastside in Pune and Eastbridge in Mumbai scheduled to become operational in H2 FY27.
The Company has maintained its normalised EBITDA margin guidance of 19–20% trending towards upper band and its target of adding 2.5–3 million sq. ft. annually.
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“Existing clients are expanding with us across cities, while new global businesses, Indian conglomerates and GCCs are choosing our platform for their infrastructure needs. Our increasingly diversified client portfolio and growing pipeline of large deals reinforce the strength of our business model,” said Neetish Sarda, Founder & Managing Director, Smartworks.
Smartworks continued to witness strong demand from large enterprises, with existing clients expanding their presence across campuses and new clients choosing its managed office platform.
Enterprise clients contribute 91% of rental revenue. Clients occupying more than 1,000 seats now account for 41% of rental revenue, up from 35% a year ago, while multi-city clients contribute 35%, compared with 31% in Q2 FY26.
The Company also continues to see growing demand from Global Capability Centres
(GCCs), which account for 22% of rental revenue.
“As large corporates expand across cities, they increasingly want the flexibility to grow teams, enter new markets and become operational quickly, without the complexity of building offices themselves - and large-format managed campuses are emerging as their preferred choice. We continue to add campuses in prime
locations across key business markets creating the capacity for corporates to scale and grow,” Sarda said.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
