The agency has also affirmed the company’s short term rating at 'CARE A1’.
CARE Ratings stated that the ratings assigned to bank facilities of Smartworks Coworking Spaces (SCSL) derive strength from continued improvement in scale of operations over the years through improving space under management and healthy occupancy levels.
CARE Ratings also notes SCSL’s listing on BSE and NSE from 17 July 2025, post a successful initial public offer (IPO), which subsequently improved SCSL’s financial risk profile leading to improved capital structure and debt coverage indicators.
CareEdge Ratings also notes that a major portion of IPO funds are to be utilised for future expansion.
The ratings also consider the company’s strong presence in the flexible, fully serviced workspace sector across India, and backing of reputable investors. The ratings further benefit from a diverse and reputed tenant profile, which reduces tenant concentration risk.
The presence of escrow mechanism and debt service reserve account (DSRA) and stable operating cash flows through timely collection of rent contribute to rating comfort.
However, ratings are constrained by continuous accounting losses in the past, resulting in leveraged capital structure till FY25, significant expansion plans in the near future that pose market risks, the potential risk of lease non-renewal after the lock-in period, exposure to macroeconomic conditions and cyclical nature of the competitive real estate industry.
Smartworks Coworking Spaces is engaged in flexible fully serviced workspace leasing business, with pan-India presence having total leasable areas of nearly 10.1 million square feet as on 30 June 2025.
The scrip fell 3.32% to currently trade at Rs 529.65 on the BSE.