Synopsis:- With operational utilisation at 82 percent and a first profitable quarter now on record, Smartworks Coworking Spaces Limited has announced an addition of 4,02,200 sq ft to its Gurugram capacity at an investment of approximately Rs.60 crore, funded through internal accruals and IPO proceeds, with delivery targeted within May 2026.
India’s largest managed office campus operator is expanding its Gurugram presence, filing a capacity addition disclosure on May 20, 2026. The announcement comes as the company’s operational occupancy has reached 82 percent, providing the clearest demand signal yet for further buildout in its home market.
With a market capitalisation of Rs. 5,030.96 crore, the shares of Smartworks Coworking Spaces Limited were last trading at Rs.440.3 per share, down 0.58 percent from its previous close of Rs.442.85. The stock trades at a P/E of 480.63.
Smartworks has disclosed the addition of 4,02,200 sq ft of space in Gurugram, taking its total leased capacity to approximately 14.1 million sq ft once this tranche is operational. The company’s existing leased portfolio stood at 13.7 million sq ft as of March 31, 2026, of which 10.1 million sq ft is operational. The new capacity is to be absorbed within May 2026, implying an imminent transition from fitout to revenue-generating status.
The investment outlay is approximately Rs.60 crore, to be financed through a mix of internal accruals and proceeds from the company’s IPO. At roughly Rs.149 per sq ft in capital deployment, the fit out cost is consistent with managed office conversions of bare-shell leased properties, which form Smartworks’ standard operating model. The company leases large campuses from landlords, fits them out to enterprise grade, and sub-leases seats to mid-to-large corporate clients on managed terms.
The 82 percent utilisation figure on operational capacity is the more telling number in this filing. For an asset-heavy, lease-obligated model where rental outflows are fixed regardless of occupancy, crossing the 80 percent threshold materially shifts unit economics in favour of profitability.
The December 2025 quarter, during which the company posted its first-ever consolidated net profit of Rs.1.24 crore, coincided with a period of sequential revenue growth from Rs.379 crore in June 2025 to Rs.472 crore in December 2025. The Gurugram addition, targeted for full handover by month-end, would layer incremental seat inventory onto a demand base that appears capable of absorbing it.
That said, the company’s debt profile warrants attention alongside the expansion narrative. Borrowings rose from Rs.3,737 crore as of March 2025 to Rs.4,778 crore by March 2026, and each new capacity tranche extends the window before the balance sheet begins deleveraging. Operating cash flow remained healthy at Rs.1,197 crore in FY26
Business Overview
Incorporated in 2015, Smartworks Coworking Spaces Limited operates as India’s largest managed office campus platform, providing enterprise-focused, fully serviced workspace solutions across major cities. The company lists on both BSE and NSE.
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