WeWork India occupancy hits 84.9%, revenue up 28.5%
Occupancy surged 8+ points, member base grew 30%, and EBITDA rose 69% as managed office and Member Services add new revenue layers.
What's new
- Portfolio occupancy reached 84.9%, up 8+ points YoY with 113,000 members.
- Revenue at ₹698 crore, up 28.5% YoY; EBITDA ₹138.3 crore, up 69%.
- Managed office shifts customization revenue to amortization, smoothing quarterly lumpiness.
- Member Services platform launched with 6-16% take rates, zero capex required.
Themes from the call
Demand
India flex space now 27% of office leasing, up from 13% five quarters prior; WeWork members grew 30% with 52% of desk sales from existing members.
Margins
EBITDA margin at 19.8% despite heavy H1 capex; management guided 19-20% margin through FY27 with sequential improvement after October.
Capital allocation
FY27 capex ₹550-600 cr maintained; net debt down 89% to ₹31.6 cr; ROCE tripled to 28.6%.
Guidance watch
- FY27 revenue and EBITDA growth both 20%+ – reiterated with conviction.
- Margin trajectory 19-20% through FY27, sequential improvement expected post-October.
- Capex maintained at ₹550-600 crore; revision possible only if large managed office deals require early deployment.
- Target 10.3M sq ft (155,000 desks) operational by March 2027.
Risk flags
- Managed office customization revenue normalized to ₹9.5 crore from ₹47 crore one-off in Q4; run-rate expected at ₹10-15 crore quarterly.
- Heavy H1 capex (₹188 crore in Q1 alone) could pressure near-term free cash flow if occupancy ramp slows.
Key quotes
-
"For every rupee of new rent that we committed to this year, we added almost 4.7 rupees of contracted revenue."
— Karan Virwani, MD and CEO -
"We added 7,000 more desks absorbed than added, driving organic fill. Our growth centers went from 45% occupancy to 65% in one year."
— Karan Virwani, MD and CEO
The brief
WeWork India delivered a standout quarter. Portfolio occupancy surged to 84.9%, up more than eight points year-on-year, while revenue hit ₹698 crore — a 28.5% increase. EBITDA rose 69% to ₹138.3 crore, and PAT jumped 6.5 times to ₹53.2 crore. The growth is not just about the cycle: India's flex market share of office leasing has nearly doubled to 27% in five quarters, and WeWork's locked-in contracted revenue of ₹3,063 crore — growing 2x faster than rent obligations — gives it two-year forward P&L visibility. Management confidently guided 20%+ revenue and EBITDA growth for FY27, with margins held at 19-20% despite heavy H1 expansion capex. The managed office shift to amortizing customisation costs over contract terms removes a source of quarterly lumpiness. The new Member Services platform, launched July 15, adds a capital-light margin layer with take rates of 6-16%. The only caution is H1 capex intensity: ₹188 crore spent in Q1 alone, but net debt has been cut 89% to ₹31.6 crore and ROCE tripled to 28.6%. This is a compounder executing well in an accelerating market.
WeWork India is compounding with occupancy gains and a new revenue layer, not just riding the flex cycle.