Company Overview
Smartworks Coworking Spaces is an office experience and managed campus platform, operating 8.99 million sq. ft. of Super Built-up Area (SBA) as of March 31, 2025. The company primarily targets mid-to-large enterprises, offering modern workspaces with premium designs, integrated proprietary technology, and amenities such as cafeterias, sports zones, convenience stores, gyms, crèches, and medical centres.
The company serves a wide clientele including Google IT Services India Pvt. Ltd., L&T Technology Services Ltd., Bridgestone India Pvt. Ltd., Groww, MakeMyTrip (India), and many more. As of June 30, 2025, Smartworks had 728 clients and 169,541 seats, catering to team sizes ranging from less than 50 to over 6,300 seats, with a focus on 300+ seat enterprise clients.
Key Highlights
Market leader in flexible office space for large enterprises.
Ability to lease and transform large properties into amenity-rich ‘Smartworks’ branded campuses.
Focus on enterprise clients with high seat requirements and emerging mid-to-large enterprises.
Strong execution backed by cost efficiency, process optimisation, and technology integration.
Risk-mitigating strategies fostering financial stability.
Objects of the Issue
Repayment/prepayment/redemption of certain borrowings – ₹114 Cr.
Capital expenditure for fit-outs and security deposits for new centres – ₹225.84 Cr.
General corporate purposes.
Offer for Sale of 33,79,740 equity shares (proceeds go to selling shareholders).
Our View
Smartworks employs a “managed campus” model, ideal for enterprises seeking fully managed office solutions without owning real estate. Its business rests on four pillars: asset-light scalability, enterprise revenue lock-ins, integrated service monetization, and operational tech leverage.
Between FY23–FY25, SBA grew at a CAGR of 20.80%, and revenue from operations grew at a CAGR of 38.98%. Serving a mix of large enterprises, SMBs, and startups reduces client concentration risk.
Risks: Competition, consistent losses over 3 years, reliance on commercial real estate, lease renewal risks, revenue concentration (~75% from top 4 cities), weaker negotiating power with large clients, and high debt (Debt-to-Equity ratio of 2.9x as of FY25).
Financials: FY23–FY25 CAGR – Revenue: 39%, EBITDA: 42%. FY25 EBITDA margin: 62%, ROCE: 42.3%. High P/BV (38.58) and stretched valuations compared to industry peers, with negative EPS.
Conclusion: Suitable for high-risk investors with a long-term horizon, provided the company achieves consistent profitability.
Brief Financials
PARTICULARS |
₹ in Million |
FY ‘25 |
FY ’24 |
FY ‘23 |
Total Income |
14,096.69 |
11,131.10 |
7,440.70 |
Total Expenditure |
14,891.28 |
11,807.32 |
8,802.96 |
EBITDA |
8,572.64 |
6,596.70 |
4,239.98 |
Profit before Tax |
(794.59) |
(676.22) |
(1,362.26) |
Profit after Tax |
(631.79) |
(499.57) |
(1,010.46) |
E.P.S. (Diluted) |
(6.18) |
(5.18) |
(10.57) |
P/E (x) (Diluted) |
- |
- |
- |
RONW (%) |
(58.76) |
(99.90) |
(321.13) |
PRICE CHART (@ ₹ 407) (Retail Category)
LOT SIZE |
Amount |
36 |
14,652 |
72 |
29,304 |
108 |
43,956 |
144 |
58,608 |
180 |
73,260 |
216 |
87,912 |
252 |
102,564 |
288 |
117,216 |
324 |
131,868 |
360 |
146,520 |
396 |
161,172 |
432 |
175,824 |
468 |
190,476 |
HNI Payment Chart
Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
Small HNI |
504 |
205,128 |
Big HNI |
2,484 |
1,010,988 |
Indicative Time Table
Tentative Events |
Indicative Dates |
Finalisation of Basis of Allotment with the Designated Stock Exchange |
15/7/2025 |
Initiation of refunds/unblocking ASBA Fund |
16/7/2025 |
Credit of Equity Shares to demat accounts of Allottees |
16/7/2025 |
Commencement of trading of the Equity Shares on the Stock Exchanges |
17/7/2025 |
Disclaimer:
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