WeWork India's Q2 FY26: A Quarter of Record Profitability and Strategic Expansion

WeWork India Management Limited has announced its strongest quarter to date, marking a significant turning point with record revenue and profitability in Q2 FY26. The company reported a total revenue of ₹585.5 crore, demonstrating a robust 17.2% year-on-year growth and a 7.3% sequential increase. This impressive top-line performance translated into an IGAAP equivalent EBITDA of ₹118.4 crore, with margins expanding to 20.3%, a substantial 45.0% quarter-on-quarter jump. Notably, WeWork India achieved Ind AS PAT positivity for the first time, reporting a profit of ₹6.4 crore, a major milestone reflecting the inherent profitability and robust unit economics of its business model.

The company's performance was driven by broad-based growth across all its revenue streams. Core Operations, which encompass Workspace-as-a-Service, remained the largest contributor, generating ₹492.1 crore, a 23.4% year-on-year increase. Digital Products, including WeWork All Access and Virtual Office solutions, contributed ₹20.0 crore, growing 25% year-on-year as hybrid work adoption deepened. Value-Added Services, such as tech-led amenities and F&B offerings, saw an 18.2% quarter-on-quarter growth, contributing ₹62.6 crore and now accounting for nearly 11% of total revenue. This diversified growth profile underscores the strength of WeWork India's model, designed to capture both enterprise stability and flexible demand.

Strategic Expansion and Operational Excellence

WeWork India's strategic focus on disciplined and capital-efficient expansion has been pivotal. The company added approximately 20,000 desks over the last 12 months, expanding its capacity by 21% year-on-year. Despite this rapid growth, portfolio occupancy remained strong at 80.2% as of Q2 FY26. The mature portfolio, comprising about 100,300 desks, operated at an impressive 84.2% occupancy rate, while growth centres, with approximately 14,200 desks, achieved an occupancy rate of 51.7% and are operationally breakeven. This demonstrates the company's ability to stabilize new centres quickly and leverage its mature portfolio.

Operational efficiency continues to drive margin expansion. Centre-level EBITDA margins improved to 27.3%, up 420 basis points sequentially. The Q1 margin softness, attributed to front-loaded expansion costs for approximately 15,000 desks, has now reverted to healthy levels as occupancy rises and operating leverage kicks in. The company's revenue-to-rent multiple stands at approximately 3.0x, well above industry benchmarks, highlighting its ability to extract incremental value from every square foot operated.

Digital Innovation and Sustainability Commitments

Complementing its physical growth, WeWork India launched its unified digital platform, the WeWork India App, on October 6th, 2025. This app enhances member experience through seamless space access, community engagement, and real-time support, laying the foundation for future digital monetization opportunities. Since its launch, the app has seen over 14,000 downloads and nearly 10,000 bookings, boasting a 4.9-star rating.

Sustainability is deeply embedded in WeWork India's operations. The company is making steady progress towards ambitious environmental goals, including achieving 100% renewable energy by 2027 and 90% waste diversion by 2028. Energy efficiency initiatives aim to reduce Energy Performance Index (EPI) to 120 kWh/sqm/year by FY 2026-27, while water conservation efforts target a reduction to 20 LPD by 2027. Community impact projects, such as the Tarahunise Village Lake Restoration and Waste Management Centre support, further underscore its commitment to social responsibility.

Outlook and Investor Confidence

WeWork India enters the second half of FY26 with a clear focus on disciplined expansion, aiming to add 20,000 to 25,000 desks year-over-year. The company expects net debt to move closer to zero by the end of the year, supported by strong operating cash flows and efficient capital deployment. FY26 Capex is projected to remain in line with the current run rate, primarily for committed projects and refurbishments. Operating expenses are expected to reduce by 10-15% in the next few quarters due to optimizing operating leverage.

With a strong balance sheet, declining cost of borrowing, and a recent credit rating upgrade, WeWork India is well-positioned for sustained profitable growth. The company's commitment to innovation, operational excellence, and transparent governance reinforces its leadership in India's flexible workspace sector, building investor confidence for the future.