India’s flexible workspace sector continued to grow in the first quarter of fiscal 2027, with revenue rising between 26% and 44% year over year among five major operators.
The figures come from myHQ’s Q1 FY27 India Flex Office Quarterly Report. India’s fiscal year runs from April through March, so Q1 FY27 covers April through June 2026. The five companies generated more than $237 million in combined revenue during the quarter. Three operators were profitable, while the other two significantly reduced their losses, according to Construction Week.
Flex Operators Keep Growing
WeWork India remained the largest operator by revenue, reporting $73.6 million, up 28.5% year over year. Its Ind-AS loss narrowed to about $430,000.
Smartworks recorded the fastest revenue growth, increasing 44.04% to $57.6 million. Its normalized EBITDA reached $11.3 million, representing a 19.57% margin, while profit after tax reached $1.4 million, compared with a loss in the year-ago quarter.
IndiQube grew revenue 36.74% to $45.1 million, while Awfis increased revenue 26.87% to $44.8 million and reported a net profit of about $2.5 million.
The results suggest operators are beginning to gain more from their scale, with EBITDA growth outpacing revenue growth at several companies.
Enterprise Clients Are Driving Demand
Large corporate customers are becoming increasingly important to India’s flex workspace market. Enterprise clients accounted for between 64% and 92% of revenue among the operators covered in the report.
The expansion of global capability centers (GCCs) is adding to that demand. During the first half of 2026, GCCs accounted for 45% of gross office leasing across India’s seven largest cities, up from 41% a year earlier. Flex operators accounted for 25% of gross leasing during the period, according to market data cited in the report.
The broader office market is also supporting demand. Vacancy across the top seven markets fell to about 15.5% from 16.3%, while average rents rose 9% year over year to about $1.01 per square foot.
AI Could Add Another Source of Demand
myHQ expects AI-focused businesses and global technology companies to become increasingly important workspace customers as the sector grows. AI-native companies could become direct occupiers, while productivity gains from AI could allow smaller teams to support larger office footprints as they scale.
For flex operators, the next phase will depend on more than adding locations. The ability to turn portfolio growth into stronger utilization, enterprise relationships and sustainable profitability will become increasingly important as the market matures.
