WeWork India delivered a strong performance in the September 2025 quarter, logging double-digit growth in both revenue and EBITDA. The flexible workspace player is now gearing up for an accelerated expansion in FY26.
Key Highlights from Q2
- Revenue: Up ~22.4% year-on-year to ₹574.7 crore.
- EBITDA (Ind-AS): ₹390.9 crore, growing 19% YoY, with margins expanding to ~66.8%.
- Operating Efficiency: Under Ind-AS, WeWork’s cost structure has become more favourable, helping drive strong EBITDA.
- Net Debt: Reduced significantly — from ₹529.4 crore a year ago to ₹310.7 crore as of Sept 2025.
- Profit After Tax (PAT): ₹6.4 crore in Q2 FY26.
Growth Strategy & Outlook
- CapEx Plans: WeWork India plans to spend ₹80–100 crore in each of the remaining two quarters of FY26 to scale up operations.
- Desk Expansion: The company added an additional ~20,000 desks in the last 12 months, growing its capacity 21% YoY.
- Occupancy & Operating Leverage: The break-even occupancy for new centres has improved, reducing required occupancy from 55% to 51.7% — a sign of increasing efficiency.
- Revenue-to-Rent Efficiency: WeWork’s revenue-to-rent multiple stands at 2.9x, significantly higher than the 2.2x achieved by peers, which highlights operational strength.
- Debt Goal: Management aims to achieve near-zero net debt by March 2026.
Demand Trends & Market Position
- Enterprise & Managed Offices: About 20% of WeWork India’s revenue now comes from managed office solutions — a high-margin business that management expects to grow to ~30% of total revenue.
- High-Margin Services: Sales of digital and value-added services are rising quickly — contributing ~14% of revenue in Q2 vs. 8-10% for many competitors.
- Office Market Tailwinds: India’s office leasing remains strong, with 59.6 million sq ft leased in the first nine months of 2025 and growing demand for flexible spaces.
Analyst Views & Valuation
- ICICI Securities has initiated a coverage with a “buy” rating, estimating 22–26% annual growth in both revenue and EBITDA over FY25–28.
- Jefferies projects revenue growth of ~22% annually through FY28, highlighting WeWork India’s efficient business model and rising flex-space adoption.
Takeaway
WeWork India’s strong Q2 results reflect its growing scale, improving leverage, and sound capital structure. With aggressive capex, a clear path to reducing debt, and high-ROI expansion underway, the business is positioning itself for a faster growth trajectory in FY26. For investors, the story looks increasingly compelling — provided execution continues to deliver.
