Smartworks cuts losses by 81% in Q2 FY26; posts Rs 425 Cr revenue

Managed office space provider Smartworks has posted its quarterly results for the second quarter of the ongoing fiscal year. The firm recorded a sharp 81% cut in losses during Q2 FY26 alongside double-digit revenue growth.

Smartworks’ revenue from operations rose 21% year-on-year to Rs 425 crore in the quarter ending September 2025 from Rs 350 crore in Q2 FY25, according to its unaudited consolidated financial statements filed with the National Stock Exchange (NSE).

Smartworks generated most of its revenue from developing, designing, and licensing serviced office spaces and fit-out services, with additional income from other ancillary offerings. It also booked Rs 16 crore from non-operating activities, pushing total income to Rs 441 crore in the quarter, compared to Rs 361 crore in Q2FY25. 

On a half yearly basis, revenue was up nearly 21% to Rs 804 crore in H1 FY26 from Rs 664 crore in H1 FY25.

On the cost front, depreciation remained the largest expense at Rs 198 crore, followed by operating expenses of Rs 122 crore. Finance costs, employee benefits, and marketing took the total expenditure to Rs 445 crore, compared to Rs 382 crore in the same quarter last year.

The decent growth in scale and cost control mechanisms helped the firm narrow its net loss to Rs 3 crore in Q2 FY26 from Rs 16 crore a year ago. For the six months ended September 2025, its losses were down by 82% to Rs 7 crore in H1 FY26 from Rs 39 crore in H1 FY25.

Smartworks listed on the NSE earlier this year at Rs 435 per share, a 7% premium to its IPO price of Rs 407. The stock closed today at Rs 596, valuing the company at Rs 6,818 crore (approximately $769 million).

Smartworks competes with Awfis, which went public in May 2024 and currently trades at Rs 595. Awfis posted Rs 355 crore in revenue and Rs 10 crore in net profit in Q1 FY26. The company is yet to file its return for the second quarter.