WeWork India Management has reported strong financial performance in the third quarter, with revenue reaching ₹6.4 billion compared to ₹4.9 billion in the same period of the previous year. This represents a notable year-on-year growth of approximately 31%, reflecting the company's continued expansion in India's coworking sector.

Financial Performance Overview

The company's quarterly results demonstrate significant momentum in its business operations. The revenue growth from ₹4.9 billion to ₹6.4 billion indicates strong demand for flexible workspace solutions in the Indian market.

Market Position

The substantial revenue increase positions WeWork India Management favorably in the competitive coworking space market. The company's ability to achieve such growth reflects its market penetration and the increasing adoption of flexible workspace solutions among businesses in India.

Business Outlook

The strong quarterly performance underscores the resilience and growth potential of WeWork India's business model. The significant year-on-year revenue improvement suggests effective operational strategies and market positioning in the evolving workspace sector.

WeWork India Management has received a significant credit rating upgrade from ICRA Limited, reflecting the co-working space provider's improved financial performance and operational metrics. The rating agency upgraded the company's credit rating to [ICRA]A (Stable) from [ICRA]A- (Stable) across all its rated facilities totaling ₹800.00 crore.

Rating Upgrade Details

The upgrade covers three categories of facilities maintained by WeWork India Management Limited:

Operational Performance Drivers

ICRA's rating upgrade is primarily driven by WeWork India's strong operational metrics and growth trajectory. The company maintained healthy occupancy levels of 79.00% as of September 2025, supported by an expanded desk capacity of 1.12 lakh desks across 75 locations. The desk capacity witnessed significant growth of 20.00% and 21.00% year-on-year in FY2025 and H1 FY2026 respectively.

The rating agency projects revenue growth of 20-25% for both FY2026 and FY2027, driven by the addition of new desk capacities at healthy occupancy levels. This growth is supported by sustained demand for co-working spaces and consequent improvement in operating profits.

Financial Metrics and Leverage

WeWork India's leverage position has shown marked improvement, with adjusted total debt to OPBITDA projected to improve to 0.80 times as of March 2026, compared to 1.00 times in the previous year. The ratio is expected to remain below 1.00 times from FY2027 onwards. Given the low leverage, debt service coverage ratio is estimated to remain comfortable in the medium term.

Key financial indicators demonstrate the company's improving performance:

Market Position and Risk Factors

The rating takes comfort from WeWork India's large and diversified presence across eight cities including Bengaluru, Mumbai, Delhi, Gurgaon, Noida, Pune, Chennai, and Hyderabad. The company maintains low customer concentration risk, with the top 10 clients contributing approximately 20.00% of total revenues in FY2025 and H1 FY2026.

However, ICRA noted certain risk factors including exposure to market risk due to large capex plans in FY2027 and FY2028, which will be funded largely through internal accruals (70-75%) and the balance through debt. The company faces high lease renewal risks, with short-term leases (less than 2 years) accounting for 50-55% of overall leases, and around 47.00% of customer leases coming up for renewal in FY2027.

Liquidity and Future Outlook

The company's liquidity position is adequate with free cash of ₹7.90 crore and undrawn overdraft limits of ₹4.70 crore as of September 30, 2025. The stable outlook reflects ICRA's expectation that the company will sustain healthy occupancy and operating profits, supported by its large and diversified presence across key markets and comfortable debt protection metrics.