India’s Flex Office Market Opens FY27 Strong with Revenue Growth Reaching 44%: myHQ Report

New Delhi, September 1, 2026: myHQ, India’s commercial real estate platform and marketplace for booking coworking spaces, has released its Q1 FY27 India Flex Office Quarterly Report, highlighting continued strong growth across India’s flexible workspace sector.

According to the report, revenue growth remained broad-based across the sector, reaching as high as 44% year-on-year in Q1 FY27. Growth was supported by sustained enterprise demand, continued expansion of Global Capability Centres (GCCs) and increasing adoption of flexible workspaces.

As operators scale their portfolios, the ability to translate growth into stronger utilisation, deeper enterprise relationships and improved operating efficiency is becoming increasingly important.

Five Flex Operators Record Over ₹2,250 Crore Revenue

All five flex office operators covered in the report recorded combined revenue of over ₹2,250 crore in Q1 FY27, with year-on-year revenue growth ranging between 26% and 44%.

Three operators reported profits during the quarter, while IndiQube and WeWork India significantly narrowed their losses.

The quarter also pointed towards improving operating leverage, with EBITDA growth outpacing revenue growth at several operators as the sector continues to scale.

WeWork India Remains Largest Operator by Revenue

WeWork India remained the largest operator by revenue, recording ₹698 crore in Q1 FY27, representing an increase of 28.5% YoY. Its Ind-AS loss narrowed significantly to ₹4.06 crore.

Smartworks recorded revenue of ₹546.2 crore, up 44.04% YoY, with normalized EBITDA of ₹106.9 crore and a margin of 19.57%. The company also reported a PAT of ₹13.1 crore, moving into profit from a loss in the year-ago quarter.

IndiQube grew its revenue by 36.74% YoY to ₹428 crore.

Awfis reported 26.87% YoY revenue growth to ₹425 crore and recorded a net profit of ₹24 crore.

Flex Office Market Enters a More Mature Phase

Commenting on the sector’s performance, Utkarsh Kawatra, Co-Founder & CEO, myHQ, said:

“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.”

Enterprise Customers Account for Up to 92% of Revenue

The report highlights the increasing importance of enterprise occupiers to the flexible workspace ecosystem.

Enterprise customers account for 64%–92% of revenue across the operators covered, underscoring the sector’s growing dependence on larger and longer-duration corporate relationships.

India’s continued GCC expansion is further strengthening this demand.

During H1 2026, GCCs accounted for 45% of gross leasing across the top seven cities, compared with 41% a year earlier. Flex operators contributed 25% of gross leasing, according to market data cited in the report.

Office Vacancy Declines and Average Rents Rise

The broader commercial real estate environment is also shaping the economics of flexible workspaces.

Office vacancy across the top markets declined to approximately 15.5% from 16.3%, while average rents across the top seven cities increased 9% YoY to ₹96 per sq. ft.

Crisil expects office vacancy to decline by a further 50 basis points this fiscal, alongside 6–7% growth in net leasing.

AI-Led Businesses Could Influence Future Workspace Demand

Looking ahead, myHQ expects AI-led businesses and global technology companies to increasingly influence workspace demand.

AI-native companies are expected to emerge as direct occupiers, while productivity gains could allow smaller teams to justify larger office footprints and scale rapidly.

As the sector enters its next phase of growth, the report suggests that flex workspace operators will need to strike a balance between scale, enterprise demand, utilisation and profitability while adapting quickly to changing customer requirements.

Key Q1 FY27 Highlights

• Five operators generated combined revenue of over ₹2,250 crore
• Revenue growth ranged between 26% and 44% YoY
• WeWork India revenue reached ₹698 crore
• Smartworks revenue reached ₹546.2 crore, up 44.04%
• IndiQube revenue reached ₹428 crore, up 36.74%
• Awfis revenue reached ₹425 crore, up 26.87%
• Enterprise customers account for 64%–92% of revenue
• GCCs contributed 45% of gross leasing in H1 2026
• Flex operators contributed 25% of gross leasing
• Average office rents increased 9% YoY to ₹96 per sq. ft.

About myHQ by ANAROCK

Founded in 2016 by IIT Delhi graduates Utkarsh Kawatra and Vinayak Agrawal, myHQ is a commercial real estate discovery platform for searching and booking workspaces.

The company offers hyperlocal and customised office leasing, managed offices and flexible workspace solutions. Its technology-led platform enables individuals, teams and enterprises to access scalable and flexible workspace solutions.

myHQ connects a network of 20,000+ landlords and 4,000+ flex spaces across more than 50 cities, serves over 20,000 enterprise customers, and manages more than 1.5 million sq. ft. of workspace.

The platform is also expanding its operations outside India.
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