Smartworks eyes 35% annual revenue growth by FY30, plans new-city entry

Coworking firm Smartworks plans 30-35% annual growth over the next few years, driven by capacity additions, enterprise demand and expansion into new Tier I markets

Gurugram-headquartered office space provider Smartworks Coworking Spaces is targeting about 35 per cent annual revenue growth over the next three to four years, backed by aggressive capacity additions, rising enterprise demand and improving operating metrics.

 

The company also plans to enter three to four new Tier I markets over the financial year 2027 (FY27), primarily driven by demand from existing enterprise clients. 

 

“Our growth trajectory of 30-35 per cent year-on-year is something we are fairly confident about for the next three to four years. The supply we have already blocked and the new space we continue to add is commensurate with that growth,” Neetish Sarda, founder and managing director, Smartworks, told Business Standard, following the firm’s December quarter results on Friday.

 

The company reported a profit for the first time after its listing in July 2025, earning ₹1.2 crore in the third quarter against a loss of ₹16 crore in the same period a year ago.

 

Its revenues from operations grew 34 per cent to ₹472 crore in the quarter ended December versus the same period a year ago.

 

Earnings took a hit as operational expenses including employee expenses rose by 25 per cent and 54 per cent in the December quarter versus the same period a year ago, according to data in the company’s investor presentation. 

 

The workspace operator currently operates across all nine major Indian office markets and has expanded into Tier-II cities such as Ahmedabad, Jaipur, Kochi, Coimbatore, and Indore. While Tier-I cities will continue to account for the bulk of growth, the company expects to add a few more Tier-II locations as demand emerges.

 

The company’s footprint has expanded from about 12 million square feet at the time of its IPO to over 15.3 million square feet as of December 2025. Smartworks plans to add 2.5 to 3 million square feet every year, translating into 45,000- 50,000 seats on an annual basis.

 

“We take large assets on long-term leases, certain accounting liabilities get created under Indian Accounting Standards, which reflect as depreciation and interest, even though these are not actual cash payouts,” he said on rising operating expenses.

 

Sarda added that the accounting adjustments are expected to reverse once the lease escalations kicks in.

 

Smartworks’ growth continues to be driven by large enterprises and global capability centres (GCCs), which are increasingly shaping India’s office absorption. To tap this demand, the company has launched ‘SmartVantage’ in September 2025, a platform aimed to streamline GCC operations.

 

While the company works via a straight lease model, it sees variable rental as an opportunity going ahead for emerging micro-markets.

 

“This is purely opportunistic and strategic. It helps us enter challenging or early-stage markets while partnering with landlords more closely,” Sarda noted.

 

In the straight lease model, Smartworks leases large empty office spaces from landlords and converts them into ready-to-use, tech enabled offices for clients. Under its asset-light model which is the variable rental model, it starts paying rent only after clients move in, using client deposits and landlord support to fund fit-outs, reducing upfront costs and increasing cash flow.

 

In a December report by Colliers, the real estate consultant noted that the market is poised to surpass 100 million square feet by 2027 from 72.3 million square feet in 2025.

 

Flexspace’s share of India’s total office stock is set to deepen, with penetration expected to rise from 8.5 per cent in 2025 to 10.5 per cent by 2027, driven by sustained operator expansion.