WeWork, Smartworks, Awfis Space, Indiqube: Fresh targets for these coworking space players

India is the largest and fastest-growing flex workspace market in Asia-Pacific, with flex stock expanding about three times since CY20 to around 107 msf and projected by Nirmal Bang Institutional Equities to reach about 257 million square feet (msf) by CY30. India is driving the APAC office cycle, accounting for about 40 per cent of CY26 Grade-A office supply and about 68 per cent of APAC office leasing. 

In its report, Nirmal Bang said Grade-A office stock is set to cross 1 billion sq ft in CY26, while record flex leasing of about 19 msf in CY25 has pushed flex penetration to around 21 per cent of office leasing, making it a mainstream office format. It said the sector is entering a multi-year earnings inflection, supported by higher occupancy, centre maturity, operating leverage and premiumisation.

Gross absorption touched a record 83.5 msf in CY25 and is expected to grow 12-14 per cent in FY27. The report said flex remains the fastest-growing office segment, with penetration likely to rise from 10-12 per cent at present to the high teens, supported by premium tech park supply, a flight to quality and near-universal occupier acceptance in India.

The brokerage said Grade-A office demand has exceeded new supply for four straight years and the gap is expected to continue till CY30. It said this is strengthening the position of scaled listed operators with access to premium inventory, strong developer relationships, managed aggregation models and integrated service offerings.

Nirmal Bang said the industry has moved from start-up-led coworking to an enterprise-led managed office model. Longer lease lock-ins of 33-49 months, negligible churn, multi-city mandates and a rising GCC revenue mix of about 15-50 per cent across its coverage are creating annuity-like platforms. Managed offices, Design and Build, and value-added services are also increasing wallet share and improving revenue quality, it said.

The next demand cycle is expected to be led by GCCs and enterprise outsourcing. Nirmal Bang estimates India’s GCC base will rise from about 2,100 to more than 2,500 by FY30, contributing 50 per cent of incremental office demand. It forecasts revenue CAGR of about 23-27 per cent and adjusted EBITDA CAGR of about 26-38 per cent across its coverage during FY26-FY28E, with adjusted ROCE improving to about 22-56 per cent.

Among individual companies, the report described Wework India as the premium workplace leader, Smartworks as the largest managed-campus platform, IndiQube as a GCC-focused South India enterprise platform and Awfis as a network leader with a capital-light managed aggregation model. Nirmal Bang said valuations of 7-16 times EV/adjusted EBITDA offer meaningful upside as cash generation and profitability improve.

Nirmal Bang Institutional Equities has initiated coverage on four listed flex workspace operators with a positive sector view and has a 'buy' ratings on all four including Wework India (Target price: Rs 884), Smartworks Coworking Spaces (Target Price: Rs 655), Awfis Space Solutions (Target Price: Rs 402) and IndiQube (Target Price: Rs 228)   at Rs 402 and IndiQube Spaces at (Target Price: Rs 228).