Smartworks Coworking Spaces Limited has informed the Exchange about Credit Rating
SMARTWORKS · price
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CARE Ratings Limited has reaffirmed Smartworks Coworking Spaces' credit ratings at CARE A; Stable for long-term bank facilities and CARE A1 for short-term bank facilities. The ratings were previously upgraded in November 2025 and have now been maintained. Key supporting factors include strong revenue growth with TOI increasing to Rs 1,795.81 crore in FY26 (from Rs 1,375.27 crore in FY25), healthy occupancy levels at 82%, and the company's first-ever net profit of Rs 10.53 crore. The capital structure has improved significantly with overall gearing reducing from 39.89x to 9.28x. The company has also prepaid Rs 114 crore of debt from IPO proceeds, bringing cash reserves of Rs 263 crore against gross debt of Rs 207 crore, making it net debt negative. Despite the positive outlook, the ratings remain constrained by leveraged capital structure and execution risks from expansion plans.
The reaffirmation signals financial stability and creditworthiness, which is positive for shareholders and bondholders. The company has demonstrated improving profitability and deleveraging post-IPO, which could support stock price appreciation. Investors should monitor occupancy levels and expansion execution as key risk factors.