WeWork India adds 10,000 desks in Q3, plans up to 30,000 new seats in FY27
WeWork India achieved strong Q3 FY26 performance with 10,000 desk additions, revenue growth of 9.6% to ₹634 crore, and EBITDA increase of 13.7% to ₹134.6 crore. The company operates 121,000 seats with 84% portfolio occupancy and plans to add 25,000-30,000 seats in FY27. With net debt reduction from ₹310 crore to ₹110 crore and plans for zero net debt by FY26-end, WeWork India aims to fund its ₹300-400 crore annual capex through internal accruals while maintaining 20-21% operating margins.
*this image is generated using AI for illustrative purposes only.
WeWork India Management delivered robust performance in the October-December 2025 quarter, achieving one of its highest quarterly desk additions of approximately 10,000 desks through sales. Managing Director and CEO Karan Virwani highlighted that year-to-date desk sales have increased nearly 40% compared to the previous year, demonstrating strong market demand for flexible office spaces.
Financial Performance
The company reported strong sequential growth across key financial metrics during the quarter:
| Metric: | Q3 FY26 | Growth (QoQ) |
|---|---|---|
| Revenue (Adjusted): | ₹634 crore | +9.6% |
| Adjusted EBITDA: | ₹134.6 crore | +13.7% |
| Free Cash from Operations: | Over ₹200 crore | +150% |
| Market Capitalisation: | ₹7,869.18 crore | - |
Operational Capacity and Expansion
WeWork India currently operates 121,000 seats across 8.2 million square feet, with occupancy rates showing consistent improvement. Portfolio-level occupancy has reached approximately 84%, while mature buildings have crossed the 85% mark at around 87% for the quarter. Growth centres have also performed well, crossing the 66% occupancy mark.
Expansion Timeline
| Parameter: | Details |
|---|---|
| Current Operational Seats: | 121,000 |
| FY26 Target: | 130,000 seats |
| FY27 Planned Addition: | 25,000-30,000 seats |
| Long-term Target: | 177,000 seats (11.4 million sq ft) |
| Capacity Growth Rate: | Approximately 20% annually |
Financial Strategy and Debt Management
The company has demonstrated strong cash generation capabilities, with free cash from operations exceeding ₹200 crore in the quarter alone. Net debt levels have significantly decreased from approximately ₹310 crore to ₹110 crore in the last quarter, with plans to achieve zero net debt by the end of FY26.
Capital Expenditure Plans
- Annual capex requirement: ₹300-400 crore for new spaces
- Funding strategy: Majority through internal accruals
- Credit rating: Recently upgraded to Grade A
- Additional financing: Low-cost debt for large enterprise deals
Operational Excellence and Margins
WeWork India maintains its position as a mid-to-premium player with operations in Grade A assets. The company has achieved centre-level margins of approximately 28%, while maintaining portfolio margins in the 20-21% range despite continued expansion. The revenue-to-rent ratio remains strong at 2.8x, which is industry-leading.
Key Performance Indicators
| Metric: | Current Performance |
|---|---|
| Portfolio Occupancy: | 84% |
| Mature Buildings Occupancy: | 87% |
| Centre-level Margins: | 28% |
| Revenue-to-Rent Ratio: | 2.8x |
| ROCE: | 32.6% |
Market Positioning and Pricing
The company benefits from contractual escalations of approximately 6-7% built into all agreements, supporting consistent pricing growth. WeWork India's pricing strategy positions it at nearly double that of competitors while maintaining strong occupancy rates. The company continues to see premiumisation in demand, with enterprises seeking higher-quality flexible office spaces, particularly in super-prime locations like Aerocity.
Historical Stock Returns for WeWork India Management
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.96% | -4.05% | -0.40% | -6.90% | -6.90% | -6.90% |
15
