Smartworks' consolidated Q2 FY27 (quarter ended September 30, 2026) results mark a year-on-year turnaround: the company swung to a consolidated net profit of ₹25.64 Cr from a ₹3.14 Cr loss in Q2 FY26, on consolidated revenue from operations of ₹591.37 Cr, up 39.2% YoY and 8.3% sequentially from ₹546.25 Cr in Q1 FY27. Profit before tax swung from a ₹43.87 Cr loss a year ago to ₹34.87 Cr this quarter. Standalone (parent-only) numbers were marginally ahead of consolidated — PAT of ₹27.86 Cr on revenue of ₹572.79 Cr — reflecting a modest drag from subsidiaries, including the newly acquired Singapore unit. No exceptional or one-off items were disclosed in either the current or year-ago P&L, so this is a clean swing to profit rather than a one-off-assisted one.
Net margin expanded to 4.24% of total income this quarter from 2.35% in Q1 FY27 and -0.71% a year ago, as revenue scale continued to outpace the largely fixed lease-driven cost base (depreciation of ₹259.06 Cr and finance costs of ₹97.56 Cr together still dominate the P&L, a function of Ind AS 116 lease capitalisation that also explains the business's unusually high reported operating margin). The improvement came from operating leverage rather than cost-cutting: total expenses grew 28.1% YoY to ₹570.43 Cr, well below the 39.2% revenue growth rate.
Management's FY27 guidance (reiterated at the Q1 FY27 call on July 28, 2026) calls for 28-30% 'normalised' revenue growth and a 19-20% normalised EBITDA margin; H1 FY27 consolidated revenue of ₹1,137.62 Cr is up 41.5% YoY, running ahead of the top end of that range — though the 19-20% margin guidance appears to sit on a different (centre-level, non-Ind-AS-116) basis than the ~60%+ operating margin visible in these reported figures, so the two are not directly comparable from this filing alone. No quarter-specific Street consensus for Q2 FY27 PAT or revenue turned up in public previews, so vsStreet is unknown; the only comparable figure found was a six-analyst FY27 full-year revenue consensus of roughly ₹2,330 Cr, which isn't a quarterly read. No management press release accompanied this filing. During the quarter the group completed its first overseas acquisition — Workstudio Spaces Pte Ltd, a Singapore coworking operator, for SGD 2.47 Cr (~₹18.07 Cr), adding ₹5.86 Cr of goodwill — and separately disclosed ₹305 Cr of new managed-office deal wins. The Board also approved, subject to pending NCLT sanction, writing off ₹385.6 Cr of accumulated losses against the Securities Premium Account, a balance-sheet cleanup not yet reflected in these unaudited results.
Going into H2 FY27, the quarter sets up a cleaner capital structure pending NCLT approval, an expanding overseas base via the Singapore acquisition, and a revenue trajectory comfortably outrunning the company's own growth guidance — the key factor to watch is whether operating leverage keeps translating that growth into margin expansion at the pace seen this quarter (NPM +1.89 points QoQ, +4.95 points YoY).
