Target: ₹630
CMP: ₹466.55
Smartworks Coworking Spaces has pioneered India’s managed office segment, achieving 6x growth in four years through an asset-light strategy centred on Grade-A properties across major cities. By leasing entire buildings and campuses – primarily from non-institutional landlords, such as HNIs and family offices (76 per cent of its portfolio) – the company secures favourable terms, cost-efficiency and economies of scale.
Smartworks has one of the lowest industry capex of ₹1,350 per sq ft and opex of ₹30-35 per sq ft, this cost advantage leads to faster breakeven and stronger returns. Its enterprise-focused model serving clients like Google, Groww and EY, clients with over 300 seats and over 1,000 seats contributing 65 per cent and 35 per cent, respectively, of H1FY26 revenue, supporting sustainable growth.
We initiate coverage on Smartworks with a Buy recommendation and target price of ₹630. On the upside scenario (10-20 per cent probability), the fair value is ₹720; on the downside scenario (5-10 per cent probability), the fair value is ₹547.
Key Risks: Smartworks relies heavily on GCCs and MNCs in IT and BFSI sectors, exposing it to sectoral slowdowns. Possible economic downturns or weaker start-up funding may further dampen demand. With about 94 per cent revenue from annuity rentals, it is highly vulnerable to demand shocks. Liquidity risk — trading volumes remain modest.
Published on December 2, 2025
