WEWORK - Wework India

📊 NSE: WEWORK 🏢 Diversified Commercial Services 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Workplace-as-a-service: INR 492.1 Cr (+23.4% YoY, +6.6% QoQ); Digital Products (All Access, Virtual Office): INR 20 Cr (+25% YoY, flat QoQ); Value-added services: INR 62.6 Cr (+14.4% YoY, +18.2% QoQ). Total revenue from operations reached INR 574.7 Cr in Q2 FY26, up 22.4% YoY.

Geographic Revenue Split

Bangalore is the highest contributor to revenue and desk sales. The Southern region (Bangalore, Chennai, and Hyderabad) represents the largest portion of the portfolio and new desk sales, though specific percentage splits per city were not disclosed.

Profitability Margins

IGAAP equivalent PAT stood at INR 39.3 Cr in Q2 FY26, a 3.7x increase from INR 8.4 Cr in Q1 FY26. IndAS PAT turned positive for the first time at INR 6.4 Cr compared to a loss of INR 31.5 Cr in the same period last year. Operating PAT is scaling as incremental revenue converts to profit at an 82% flow-through rate.

EBITDA Margin

IGAAP equivalent EBITDA margin was 20.3% in Q2 FY26, up 530 basis points from 15% in Q1 FY26. IndAS EBITDA margin stood at 66.8% (INR 390.9 Cr), representing an 18.9% YoY growth. Center-level EBITDA margins improved to 27.3%, up 420 basis points sequentially.

Capital Expenditure

Q2 FY26 CAPEX was INR 109 Cr, primarily for new center fit-outs and refurbishments. Average CAPEX per desk is at an all-time low of INR 1.3 lakhs. Total planned CAPEX for FY2026 is expected to be funded 70-75% through internal accruals.

Credit Rating & Borrowing

Credit rating upgraded 2 notches from BBB to A- in the last 12 months. Average cost of borrowing declined by 500 basis points from 15.4% to 10.4% following the retirement of high-cost debt via a rights issue.

⚙️ Operational Drivers

Raw Materials

Leased Office Space (Rent): 34.5% of revenue (implied by 2.9x revenue-to-rent multiple); Fit-out materials/Construction: INR 1.3 lakh per desk; Corporate Overheads: 8% of revenue.

Import Sources

Not disclosed in available documents; however, real estate is sourced across 62 locations in 8 Indian cities including Bengaluru, Mumbai, and Gurgaon.

Key Suppliers

Embassy Group (Promoter/Landlord); 1 Ariel Way Tenant Limited (WeWork Inc affiliate); various Grade A commercial developers.

Capacity Expansion

Current capacity: ~100,000 desks as of December 2024. Planned expansion: Adding approximately 20,000 desks over the next 12 months to reach a run rate of 50,000 desks sold annually.

Raw Material Costs

Rent per RSF (Rentable Square Foot) increased 1.8% YoY, while operating costs per RSF improved (decreased) by 5.3% YoY, indicating high efficiency in managing the primary cost base.

Manufacturing Efficiency

Portfolio occupancy reached a high of 80.2% in Q2 FY26. Mature centers maintain higher stability, while growth centers are ramping up. Revenue-to-rent multiple is 2.9x.

Logistics & Distribution

Not applicable; service delivery is localized to the 62 physical coworking locations.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Expansion of Managed Office (MO) deals (17 deals signed for next year); execution of 15,000 desk LOI; increasing monetization of value-added services (currently 11% of revenue); and leveraging the WeWork India app for digital product sales.

Products & Services

Coworking desks, Managed Office spaces, WeWork All Access (subscription), Virtual Offices, On-demand workspace, and Design & Build services.

Brand Portfolio

WeWork India, WeWork All Access, WeWork Workplace.

New Products/Services

WeWork India App for on-demand booking; expanded 'Value-Added Services' which grew 18.2% QoQ and now contribute 11% of total revenue.

Market Expansion

Focus on Tier 1 cities: Bengaluru, Hyderabad, Mumbai, Delhi, Gurgaon, Noida, Chennai, and Pune. Targeting 20,000 new desks in the next 12 months.

Market Share & Ranking

Largest and most profitable flex space operating platform in India; first to achieve IndAS PAT positivity in the category.

Strategic Alliances

Joint Venture/Partnership between Embassy Group (72.4% stake) and WeWork Inc (22.28% stake).

🌍 External Factors

Industry Trends

Shift toward 'Workplace-as-a-Service'; hybrid work adoption driving 25% YoY growth in digital products; enterprises moving from CAPEX-heavy traditional offices to OPEX-based flex spaces.

Competitive Landscape

WeWork India is the 'profitability leader' in the flex space category; competes with other coworking operators and traditional commercial landlords.

Competitive Moat

Scale (1 lakh desks), Grade A portfolio, and 2.7x asset-liability cover. The 'full-stack' model (from 1 day to full bespoke office) creates high switching costs for enterprises.

Macro Economic Sensitivity

Exposed to cyclicality in the office leasing segment; vulnerability to external economic factors affecting corporate hiring and GCC (Global Capability Center) setups.