India’s Flexible Office Market Sees 44 Percent Revenue Growth in First Quarter of FY27: myHQ
New Delhi, September 1, 2026: India’s flexible workspace sector recorded strong financial performance in the first quarter of FY27, with year-on-year revenue growth reaching up to 44 percent across major operators. According to the Q1 FY27 India Flex Office Quarterly Report released by commercial real estate marketplace myHQ, growth was supported by sustained enterprise demand, expanding Global Capability Centres (GCCs), and increasing corporate adoption of flexible real estate strategies, myHQ said in a press release.
The five leading flex office operators covered in the report generated a combined revenue exceeding Rs 2,250 crore in Q1 FY27, with individual year-on-year revenue growth spanning between 26 percent and 44 percent. Three of the operators turned a net profit during the quarter, while IndiQube and WeWork India significantly narrowed their net losses. Operational efficiency also improved, with EBITDA growth outpacing top-line growth at several firms.
WeWork India retained its position as the market’s largest operator by revenue, generating Rs 698 crore—up 28.5 percent year-on-year—while narrowing its Ind-AS net loss to Rs 4.06 crore. Smartworks posted revenue of Rs 546.2 crore, representing a 44.04 percent year-on-year increase, alongside a normalized EBITDA of Rs 106.9 crore and a net profit of Rs 13.1 crore. IndiQube grew its revenue by 36.74 percent to Rs 428 crore, while Awfis recorded a 26.87 percent revenue increase to Rs 425 crore with a net profit of Rs 24 crore.
Enterprise clients remain the primary growth driver for the industry, contributing between 64 percent and 92 percent of overall revenue across the surveyed operators. Market data in the report indicates that GCCs accounted for 45 percent of gross office leasing across India’s top seven cities during H1 2026, while flexible workspace providers accounted for 25 percent of gross leasing activity. Overall office vacancy across major markets contracted to 15.5 percent, with average monthly rents rising 9 percent year-on-year to Rs 96 per square foot.
Commenting on the sector’s trajectory, Utkarsh Kawatra, Co-Founder & CEO, myHQ, emphasized the shift toward operational discipline. “The flex market is entering a more mature phase. Growth will continue to be important, but the real differentiator will be how efficiently operators convert scale into sustainable margins. We expect enterprise demand, GCC expansion and new workspace formats to remain key growth drivers, while disciplined expansion will become increasingly critical,” Kawatra said.
