Smartworks Achieves Profitability in Q3 FY26, Posts INR 1.2 Cr Profit

REAL-ESTATE

Overview

Coworking space provider Smartworks has turned profitable, reporting a net profit of INR 1.2 Cr for the quarter ended December 31, 2025. This marks a significant turnaround from a INR 16 Cr loss in the prior year. Operating revenue surged 34% year-over-year to INR 472.1 Cr, indicating strong demand and operational efficiency.

Smartworks Returns to Profitability

Smartworks, a prominent coworking space provider, has officially exited its loss-making streak. The company announced its financial results for the quarter ended December 31, 2025, revealing a net profit of INR 1.2 Crore. This achievement stands in stark contrast to the INR 16 Crore net loss recorded in the same period last fiscal year. Furthermore, the company demonstrated sequential improvement, narrowing its loss from INR 3.1 Crore in the preceding September quarter.

Revenue Surge Drives Growth

This financial turnaround was powered by substantial revenue growth. Operating revenue for the third quarter of fiscal year 2026 climbed an impressive 34% year-over-year, reaching INR 472.1 Crore. On a quarter-over-quarter basis, revenue saw an 11% increase. Total income for the period was bolstered by an additional INR 16 Crore in other income, pushing the aggregate to INR 488.2 Crore.

Expense Management Under Scrutiny

While revenue climbed, total expenses also saw an increase, rising 26% year-over-year to INR 486.6 Crore. The company's ability to convert higher revenues into sustained profitability will be closely watched in subsequent quarters, especially given the overall costs of operating a flexible workspace model.

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