WEWORK

WeWork India reported its strongest financial year in FY26, with revenue reaching ₹2,477 crores, a 23% year-over-year increase. EBITDA also grew by 23% to ₹499 crores, and PAT more than doubled to ₹180 crores, up 134%. The company's portfolio occupancy hit an all-time high of 86.9%, with mature centers at 88.9%. Q4 FY26 continued this momentum, with revenue at ₹709.9 crores (up 28.6% YoY) and EBITDA at ₹164.7 crores, reflecting a 23.2% margin.

The company highlighted significant industry tailwinds, including India's record office leasing in 2025 (83 million sq ft) and the flex stock surpassing 100 million sq ft. A proprietary study with Redseer concluded that AI will expand, not shrink, office demand, projecting 79-80 million sq ft of new net leasing office demand by 2030. Flex is expected to become structural, with AI-driven seats growing from 7% to one-third of all flex leasing by 2030, and the GCC leasing pipeline is projected to reach 55 million sq ft by 2030.

WeWork India achieved record occupancy levels, with its portfolio at 86.9% and mature centers at 88.9%. The company sold approximately 48,000 desks (3.3 million sq ft) in the last 12 months, a 20% increase year-over-year, driven by broad-based growth across WeWork branded and managed office spaces. A high Net Promoter Score (NPS) of 79 indicates strong member satisfaction, leading to high renewal and expansion rates within the network.

For FY27, WeWork India has approximately 1.6-2 million square feet of capacity already locked in, translating to about 46,000 signed seats over the next 18 months. Of the 28,000 seats planned for addition in FY27, about 40% are managed office spaces expected to open with 100% occupancy. The company plans to double down on premium and higher rental markets, with significant expansion in Bangalore, Gurgaon, Chennai, Hyderabad, and Pune.

The company achieved a net debt negative position of ₹11.7 crores in FY26, a significant improvement from ₹215 crores net debt a year prior. The cost of borrowing decreased by 225 basis points to 8.5%, and the credit rating was upgraded two notches to A+. FY26 capex stood at ₹456 crores, with a free cash flow after capex of ₹129 crores. For FY27, capex is projected to be in the range of ₹500-600 crores, primarily for business expansion and large managed office deals.

WeWork India launched Rivet, a stand-alone design and build business, leveraging its in-house capabilities without requiring WeWork center commitments. This segment is strategic, acting as a funnel to capture new clients and cater to existing ones who desire their own managed spaces. The market opportunity for this segment is estimated at $35-40 billion, with a focus on high-quality projects rather than mass scale, aiming to enhance the overall WeWork ecosystem.

The real estate market is experiencing a structural shift, with 75% of enterprises now planning their real estate within a three-year horizon, down from 40% for five-year-plus leases a few years ago. This trend positions flex spaces as a structural answer to workforce volatility. Management believes that with scale and a growing member base (currently 110,000 members), there will be increasing opportunities for new revenue lines and platform monetization.