WeWork India Q2 Profit Jumps 219% To ₹20 Cr, Revenue Rises 34% YoY

Flexible workspace provider WeWork India reported a 219% increase in its consolidated net profit to ₹20.4 Cr in the September quarter of FY27 from ₹6.4 Cr in the corresponding quarter of the previous fiscal year, as revenue growth outpaced the rise in expenses. The company returned to profitability sequentially, compared with a net loss of ₹4.1 Cr in Q1 FY27. Operating revenue rose 33.6% to ₹767.8 Cr from ₹574.7 Cr a year earlier. Sequentially, it increased 12.3% from ₹683.8 Cr. Including other income and finance income, total income stood at ₹786.4 Cr. Total expenses increased 32.4% to ₹766.9 Cr from ₹579 Cr in the year-ago quarter. Separately, WeWork India reported an IGAAP-equivalent net profit of ₹65.8 Cr, up 67.4% from ₹39.3 Cr a year earlier. Total revenue on this basis increased 31.6% to ₹768.7 Cr. The company’s IGAAP-equivalent presentation adjusts the treatment of leases and certain other items under Ind AS. These figures differ from its statutory financial results. On the same basis, EBITDA increased 37.6% to ₹162.9 Cr, with its margin expanding to 21.2% from 20.3% a year earlier. Sequentially, EBITDA grew 17.8%. Record Desk Additions WeWork India added 11,700 desks during the quarter, its largest quarterly addition to date, taking operational capacity to 145,300 desks across 85 centres in eight cities. Capacity increased 26.9% from a year earlier. The company added 18,400 desks in the first half of FY27, with another approximately 4,500 desks becoming operational in the first week of October. In his letter to shareholders, MD and CEO Karan Virwani said the bulk of the company’s ongoing capital expenditure cycle was now operational. He expects these centres to support operating leverage as they mature. WeWork India’s expansion pipeline comprises more than 9,000 desks under signed leases and over 38,000 desks covered by letters of intent (LOIs). Including these, the company pegged its total planned capacity at 1,90,000-1,95,000 desks. Its member base increased 32.5% to 1,21,700, outpacing capacity growth. Portfolio occupancy stood at 83.7%, up 357 basis points (bps) from a year earlier. However, occupancy declined 114 bps sequentially, which the company attributed to newly added capacity that was still being filled. Global capability centres contributed 40.8% of core revenue during the quarter. Services Outpace Core Growth Beyond its core private office and managed office offerings, WeWork India earns revenue from value-added services (VAS), including events, food and beverages, office customisation, and technology services. Its digital offerings include on-demand workspace access and virtual offices. On an IGAAP-equivalent basis, combined VAS and digital revenue grew 38% to ₹108.8 Cr, outpacing the 31.7% increase in core revenue to ₹657.7 Cr. VAS revenue rose 35.2% to ₹79.6 Cr, while digital revenue increased 45.6% to ₹29.2 Cr. The company’s contracted core revenue stood at ₹3,843 Cr, up 66% from a year earlier, against corresponding committed rent of ₹1,421 Cr. WeWork India reported a net cash position of ₹23.1 Cr at the end of September as against a net debt of ₹310.5 Cr a year earlier.

Source: Inc42 (India)