Smartworks Shares Slump 9.6% After Q2 Results

SUMMARY

Shares of Smartworks recovered most of their intraday losses to end the session 3.7% lower at INR 576.75 on the BSE

The coworking space provider reported a net loss of INR 3.1 Cr in the September quarter of 2025, down 80% from INR 15.8 Cr in Q2 FY25

About 60% of the company’s demand comes from non-IT sectors like BFSI, consulting, and manufacturing

Update | November 7, 19:00 IST

Shares of Smartworks recovered most of their intraday losses to end the session 3.7% lower at INR 576.75 on the BSE. At this price, the company’s market capitalisation stood at INR 6,589.62 Cr (approximately $743 Mn).

Original | November 7, 12:08 IST

Shares of coworking space provider Smartworks slumped as much as 9.6% to INR 541.35 today, despite the company posting a strong top line growth and a sharp reduction in loss in Q2 FY26.

The coworking space provider reported a net loss of INR 3.1 Cr in the September quarter of 2025, down 80% from INR 15.8 Cr in Q2 FY25. Sequentially, loss declined 26% from INR 4.2 Cr. Improvement in margins and revenue growth led to the decline in loss.

Operating revenue surged 21% YoY and 12% QoQ to INR 424.8 Cr, led by robust enterprise demand, continued portfolio expansion and disciplined execution.

However, market sentiment remained cautious for the stock today. The company operates in the increasingly competitive coworking sector, along with peers like Awfis, WeWork India, IndiQube, and more.

The stock was down 7.9% at INR 551.50 on the BSE at 10:55 IST. The company’s market capitalisation stood at INR 6,311.41 Cr (around $711.5 Mn) and about 2.35 Lakh shares were traded by then.

Smartworks catered to over 760 corporate clients across 54 centres in 14 cities at the end of September 2025, with a total managed portfolio of 9.1 Mn sq ft and an occupancy rate of 81%. Its mature centres recorded occupancy levels of 88% to 93%, underscoring healthy demand trends.

About 60% of the company’s demand comes from non-IT sectors like BFSI, consulting, and manufacturing. Meanwhile, global capability centres account for over 15% of its rental revenue.

Looking ahead, Smartworks expects its business momentum to accelerate through the second half of FY26, buoyed by a strong enterprise pipeline and full supply visibility for FY27 and FY28.

Smartworks made its public market debut in July earlier this year. The IPO price band was set between INR 387 to INR 407 per share, and its shares got listed at INR 436.10 apiece on the BSE.

The shares are up 37% from the listing price but down 5% in the last month.