WeWork India has announced a strong performance in the second quarter of FY26, signaling a period of growth and strategic expansion for the company. The flexible workspace provider reported notable increases in revenue and has outlined plans for further expansion in the coming year.
Financial Performance
WeWork India has demonstrated significant financial progress in Q2 FY26. The company's revenue from operations surged to ₹574.7 crore, marking a 22.41% increase compared to ₹469.5 crore in the same period last year. Total income also saw a rise, reaching ₹585.54 crore, up from ₹499.47 crore in the corresponding quarter of the previous fiscal year. The company achieved a consolidated profit after tax (PAT) of ₹6.4 crore for the quarter.
WeWork India's performance has garnered positive attention from financial analysts. Jefferies initiated coverage on WeWork India with a "buy" call, projecting a Compound Annual Growth Rate (CAGR) of 22% in IGAAP revenues and 28% in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) over FY25-28. This growth is expected to be driven by increasing inventory and improved profitability.
Operational Highlights
WeWork India currently operates 70 centers across eight major cities, encompassing 7.8 million square feet. The company manages 1.15 lakh desks with an average occupancy of 80.2%. Enterprise clients, comprising large corporations and start-ups, contribute a significant 73% to the company's revenue.
A substantial portion of WeWork India's new sales, nearly half, comes from existing members expanding their footprint, highlighting customer satisfaction and long-term engagement. This reflects the growing trust in WeWork India's services and its ability to provide scalable office solutions.
Expansion Plans
WeWork India is preparing for further expansion in the second half of FY26. The company has approximately 11,000 desks currently under fit-out, with an additional 3,000 desks awaiting handover from landlords and 15,000 desks under letters of intent (LOIs). These additions will increase WeWork India's total managed portfolio to 10 million square feet.
The company intends to strengthen its presence in Tier-1 cities and Grade-A micro-markets. WeWork India also aims to deepen its digital ecosystem through value-added services and smart workspace technology.
Market Dynamics and Future Outlook
The flexible workspace market in India is experiencing rapid expansion, outpacing traditional office leasing. WeWork India's premium positioning, characterized by superior design, technology-enabled operations, and enterprise-grade services, allows the company to command higher average revenue per member (ARPM) and better margins than its competitors.
Looking ahead, WeWork India is focused on disciplined expansion and expects its net debt to decrease by the end of the year. The company anticipates a reduction in operating expenses in the coming quarters due to optimized operating leverage.
