Smartworks Locks In Hyderabad for Five More Years With a Rs 121 Crore Lease Renewal

When a company chooses to stay, that says as much as when it first arrives. Smartworks Hyderabad has just done exactly that, signing a renewed lease for 2.3 lakh sq ft of managed office space at Aurobindo Galaxy in the city's IT belt. The five-year commitment carries a total rental bill of Rs 121 crore, and the deal came with a 15 percent annual rent escalation clause built right in from day one.

That escalation clause is worth pausing on. No occupier accepts annual rent hikes voluntarily unless they believe the underlying demand for that space will hold. For Smartworks, this is not a defensive move. It is a confident one.

The Smartworks lease 2.3 lakh sq ft covers the eighth, ninth, and tenth floors of the Aurobindo Galaxy commercial tower in Raidurgam. The renewed arrangement kicked off on March 1, 2026, following the end of the earlier five-year term that ran from 2021 onwards. Back then, the monthly rent per square foot was around Rs 65. The fresh terms push that figure higher, bringing the monthly outgo to approximately Rs 1.75 crore. A security deposit of Rs 4.57 crore has also been placed with the landlord, Raidurgam Developers.

These are not small numbers for a flex space operator managing margins across dozens of locations. They reflect real confidence in the Hyderabad commercial market and in Smartworks' enterprise coworking model to absorb these costs sustainably.

The IT corridor stretching through Raidurgam, HITEC City, and Gachibowli has continued delivering for commercial landlords and operators alike. Grade A vacancy in this zone remains tight. Companies from banking, financial services, technology, and global capability centres have been expanding here consistently. Flex office space demand in Hyderabad's IT corridor has followed that corporate momentum rather than leading it, which makes lease renewals in this geography less risky than they might appear elsewhere.

Smartworks' managed workspace Hyderabad presence now spans multiple buildings across the city. The Raidurgam renewal strengthens an existing footprint rather than planting a new flag, which means the operational cost of serving existing clients here is already absorbed.

This renewal is one piece of a much bigger picture. Smartworks coworking expansion India 2026 is targeting roughly 30 percent growth in operational area during the current financial year. The company crossed a total portfolio of 16.1 million square feet across 66 centres in 15 cities by the end of FY26, including a presence in Singapore.

Two Mumbai deals underscore the ambition. The company secured the Hiranandani Eastbridge campus at 850,000 square feet, which is being positioned as the largest single managed workspace campus anywhere in the world. It also locked in 550,000 square feet at Tata Intellion Park along the Thane-Belapur Road in Navi Mumbai. Founder and Managing Director Neetish Sarda has been consistent about the thesis: with Grade A supply running behind corporate demand through the end of this decade, the companies that have secured long-term supply will be the ones that win.

Here is why this renewal carries extra weight in 2026 specifically. Smartworks enterprise coworking model profitability turned a corner in the financial year ending March 2026. The company posted a net profit of Rs 10.52 crore, swinging from a net loss of over Rs 63 crore the year before. Total revenue crossed Rs 1,849 crore, up from Rs 1,409 crore.

A business that just turned profitable renewing a major lease at escalating rates is telling you it believes its growth trajectory is real. Clients seem to agree. Large enterprise clients with 300 or more seats account for the dominant share of revenue, with an average lease tenure hovering around four years.

The Smartworks Aurobindo Galaxy Hyderabad renewal is a quiet endorsement of the city's commercial property fundamentals. Hyderabad has absorbed large corporate expansions repeatedly over the past five years without the kind of price volatility that has rattled Mumbai or Bengaluru at various points. That stability is precisely what operators like Smartworks need to price multi-year leases with any confidence.

For enterprise occupiers evaluating managed campuses in the city, a committed long-term operator at scale is a meaningful signal of location quality.

Smartworks renews lease for 2.3 lakh sq ft office space Hyderabad at Rs 121 crore over five years, anchoring its presence at Aurobindo Galaxy in Raidurgam from March 2026. With a 15 percent annual rent escalation accepted voluntarily, the deal reflects Smartworks' confidence in Hyderabad's flex office space demand and its own profitable growth. With 16.1 million square feet across 66 centres nationally, Smartworks coworking expansion India 2026 is targeting 30 percent area growth, making this Hyderabad commitment a cornerstone of its broader managed workspace strategy for enterprise clients.