The company has scaled up rapidly, from 6 million square feet to 11.5 million square feet in just a few years, and is now present in 15 cities with over 50 centres. “Just in the last three months since we declared this in our Red Herring Prospectus (RHP), we’ve signed an additional 1.5 million square feet,” Binani said. The company focuses on converting entire buildings into customised campuses for enterprise clients, primarily those requiring over 300 seats.
Smartworks has adopted a fully asset-light model, leasing rather than owning its properties. “With only ₹500 crore of equity infused, we’ve been able to scale up,” said Nitesh Sarda, Managing Director of Smartworks. The firm signs 15-year leases with landlords, with a five-year lock-in period, while enterprise clients usually commit to an average tenure of 50 months. “Our retention rate is as high as 86% even after that,” Sarda added.
Also Read: Smartworks Coworking Spaces IPO kicks off today: Should you subscribe to it?Financially, the company has demonstrated strong operational leverage. Adjusted EBITDA has risen from ₹35 crore in FY23 to ₹172 crore in FY25 — a 3.5x jump — while revenue rose only 1.7x from ₹700 crore to ₹1,174 crore. “While the revenue has increased by 1.57 times, our EBITDA has increased by 3.5 times,” said Sarda, pointing to efficient scaling and margin expansion. Last year’s EBITDA margin stood at 12.5%, with cash flow touching ₹240 crore.
Diversification has been key to Smartworks’ resilience. While 55–60% of India’s commercial demand traditionally comes from IT/ITeS, Smartworks draws just 42–45% from the sector, with a growing client base in manufacturing, BFSI, and healthcare. “We’ve distributed our client base across all sectors,” Sarda said, adding that even Indian startups are now taking large office spaces.
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