Six major co-working operators to invest ₹4,500 crore in current, next FY to expand biz: Crisil

India’s top-six co-working operators are likely to invest ₹4,000-4,500 crore in 2026-27 and the next fiscal year to expand their portfolio of managed office spaces amid rising demand from corporates, according to Crisil Ratings.

In a statement on Tuesday, rating agency Crisil noted that corporates are adopting flexible workspaces for agility and to save costs.

”Indian flexible workspace (flex) segment is set to increase its capacity by 16-18% over this and next fiscal years to 140-145 million square feet — after an expansion with 23 per cent CAGR over the past three fiscal years…,” Crisil said.

At present, the total capacity is around 100-105 million sq ft.

Flexible workspace segment refers to a fully serviced, operator-managed office solution that offers on-demand access to furnished workspaces, shared amenities, and support services under flexible and scalable terms, the rating agency said.

CRISIL said these workspaces provide lower upfront investment, offer flexible lease terms and enable teams to work from convenient locations closer to clients.

Manish Gupta, Deputy Chief Ratings Officer, Crisil Ratings, said, ”Flex operators are emerging as a key growth driver of net absorption in the commercial real estate (CRE) office segment, as reflected in an increase in their share from around 14-15 per cent in the fiscal 2024 to an estimated 20 per cent in fiscal 2026.” Their share is expected to increase to about 25% over the next two fiscal years, he added.

Crisil said it has analysed six major flexible space operators, which collectively accounted for approximately half of the industry’s capacity as of December 2025.

These six flexible space operators are expected to add capacity of 15-20 million sq ft across new geographies and micro-markets, including Tier-II cities, and incur capital expenditure (capex) of ₹4,000-4,500 crore over the next two fiscal years, the rating agency said.

Crisil has not named these six operators.

Snehil Shukla, Associate Director, Crisil Ratings, said, ”Despite large capex plans, leverage is expected to remain steady for flex operators, supported by healthy cash accruals, adequate to fund three-fourths of the total capex.” Commenting on the report, James Thomas, Co-founder & Marketing Director, SpazeOne, said the projected 16-18% growth in flexible workspace capacity signals a maturing industry, with flex becoming integral to core office portfolios.

Also Read: NSE Q4 profit rises 19% to ₹2,871 crore, declares ₹35 dividend on record trading volumes

”This momentum is increasingly fueled by GCC expansion, alongside enterprise demand for agility, asset-light growth, and portfolio optimisation in a rapidly evolving business environment,” he said.

Aashit Verma, Founder, Hanto Workspace, said the managed workspaces in India are rapidly transforming into vital strategic platforms, bridging critical infrastructure gaps and offering businesses the crucial flexibility, speed, and precise cost control.

”This presents an extraordinary opportunity for managed workspace operators to contribute significantly to India’s growth story, by delivering not just space, but these core operational advantages,” Verma added.

Also Read: Hyderabad KFC outlet flagged for poor oil quality during food safety check