Nirmal Bang Institutional Equities has issued 'buy' ratings for four major players in India's flexible workspace sector: WeWork India, Smartworks Coworking Spaces, Awfis Space Solutions, and IndiQube Spaces. The brokerage's optimistic outlook is driven by the robust growth and evolving landscape of the country's coworking market, which it identifies as the largest and fastest-growing in the Asia-Pacific region.
India's Flex Workspace Market Poised for Substantial Growth
According to Nirmal Bang's report, India's flex workspace stock has nearly tripled since 2020, reaching approximately 107 million square feet (msf). This figure is projected to surge to about 257 msf by 2030. The brokerage highlights that demand for Grade-A office spaces has consistently outstripped new supply for four consecutive years, a trend expected to continue until at least 2030. India is a key driver of the APAC office cycle, contributing roughly 40 percent of Grade-A office supply and 68 percent of office leasing across the region for 2026.
The report notes that flex penetration, currently at 10-12 percent of the overall office market, is anticipated to rise to the high teens. Record flex leasing of about 19 msf in 2025 has firmly established flexible workspaces as a mainstream office format, now accounting for approximately 21 percent of total office leasing.
Shifting Landscape: Enterprise-Led Managed Offices
The industry is transitioning from a start-up-led coworking model to an enterprise-led managed office model. This shift is characterized by longer lease lock-ins, typically ranging from 33 to 49 months, minimal churn, and multi-city mandates from clients. The rising revenue mix from Global Capability Centers (GCCs), now accounting for 15-50 percent across the covered companies, is creating annuity-like platforms for these operators.
Managed offices, Design and Build services, and other value-added offerings are also contributing to increased wallet share and improved revenue quality. The next significant demand cycle is expected to be fueled by GCCs and enterprise outsourcing. Nirmal Bang estimates India's GCC base will expand from approximately 2,100 to over 2,500 by 2030, contributing 50 percent of incremental office demand.
Financial Projections and Company Spotlights
Nirmal Bang forecasts impressive financial growth for the sector, with revenue CAGR estimated at 23-27 percent and adjusted EBITDA CAGR at 26-38 percent across its coverage between FY26 and FY28E. Adjusted Return on Capital Employed (ROCE) is expected to improve significantly, ranging from 22-56 percent.
- WeWork India: Identified as the premium workplace leader, with a target price of Rs 884.
- Smartworks Coworking Spaces: Recognized as the largest managed-campus platform, with a target price of Rs 655.
- IndiQube Spaces: Positioned as a GCC-focused enterprise platform primarily in South India, with a target price of Rs 228.
- Awfis Space Solutions: Highlighted as a network leader utilizing a capital-light managed aggregation model, with a target price of Rs 402.
The brokerage suggests that current valuations, ranging from 7-16 times EV/adjusted EBITDA, offer substantial upside potential as cash generation and profitability continue to improve across these key players in India's flex workspace market.