India’s flexible office sector has exceeded the 100 million sq ft mark, finishing FY26 on a strong commercial note with notable revenue growth, enhanced profitability, and increased enterprise adoption, according to a report by myHQ. Global Capability Centres accounted for 45.5% of all office leasing in Q1 CY26, with enterprise clients being the primary revenue contributors for every listed operator.
This transition has shifted the industry from a growth-oriented model to a profit-focused phase, driven by larger contracts, extended customer tenures, and a growing demand for managed workspace solutions. All five listed operators experienced double-digit revenue growth in the quarter, signaling a positive trend for the sector.
The flexible office sector saw continuous expansion in major business hubs, with operators establishing new centers and large-format campuses while maintaining healthy occupancy rates. Utkarsh Kawatra, co-founder & CEO of myHQ, highlighted that the industry’s long-term fundamentals and profitability path were validated in FY26, with Global Capability Centres emerging as the primary demand driver.
Revenue growth remained robust for listed flexible workspace companies throughout the quarter and the fiscal year, accompanied by significant improvements in EBITDA margins due to enhanced operational efficiencies and a maturing business model. The report revealed that approximately 73% of office searches in India now target flexible workspace, with coworking searches surpassing traditional leasing queries by nearly five times.
Searches for meeting rooms have increased by 187% over three years, virtual offices by 99%, and day passes by 20%. Besides established players, emerging operators also demonstrated strong operational progress, setting a positive outlook for FY27. The sector’s growth in the upcoming year is anticipated to be supported by India’s expanding GCC ecosystem, sustained corporate demand for flexible workplace solutions, and favorable policy and economic conditions.
