India’s Co-Working Market Analysis for FY26

India’s co-working market in this fiscal year illustrates a pronounced disparity in scale, profitability, and pricing strategy. Leading the sector in revenue, WeWork India faces challenges in translating its premium status into actual profits, while Awfis has demonstrated that smaller, cost-effective centres can successfully compete against larger firms.

Revenue Performance Among Major Players

With real estate costs soaring in major urban centres, the dynamics increasingly disadvantage high-priced operators. As a result, growth will largely depend on more strategic site choices and careful pricing. In Q2 FY26, WeWork India reported Rs 575 crore in revenue, followed by Smartworks at Rs 425 crore, Awfis with Rs 367 crore, and Indiqube at Rs 350 crore. Despite their sizeable operations, both WeWork India and Smartworks concluded the year facing slight losses of Rs 6.4 crore and Rs 3 crore, respectively. Awfis distinguished itself as the most profitable player with a profit of Rs 16 crore, whereas Indiqube noted the steepest loss at Rs 30 crore.

Physical Presence and Capacity

Awfis boasts the largest physical footprint with 237 centres, more than three times the 61 locations of Smartworks and over three times WeWork India’s 70 centres. However, Smartworks stands out in terms of seating capacity, offering 322,000 seats, while Indiqube provides 203,000, Awfis has 161,000, and WeWork India accommodates 114,500 seats.

Pricing Dynamics in Co-Working Spaces

WeWork India is positioned at a markedly premium price point, with an average seat cost of Rs 16,739 a month, more than double that of Awfis at Rs 7,598 and nearly four times the Rs 4,399 charged by Smartworks. This highlights WeWork’s orientation towards high-end enterprise clients and prime locations, whereas Smartworks continues to position itself as the least expensive provider in this market segment.

Market Challenges and Opportunities

During a time when real estate markets in tier 1 and many tier 2 cities are experiencing significant growth, the value proposition for these companies is being challenged. Many potential clients find the costs too steep. For instance, in the NCR area, a notable rental disparity exists between regions like Gurugram and Noida. While it is understood that convenience comes at a cost, for businesses with 6-8 employees, the economics of co-working spaces versus leasing their own offices are not favourable.

This is where Awfis has cleverly capitalised, opting for numerous smaller centres at lower costs compared to the WeWork model, which largely depends on the commercial projects of its parent company, Embassy Group. It is anticipated that profitability challenges will persist, with WeWork potentially struggling more than its competitors to enhance profit margins. Additionally, maintaining an average seat price above Rs 8,000 will likely stifle growth, compelling firms to pursue improved operational efficiencies and more advantageous real estate agreements.