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.

WeWork India Management has achieved a significant milestone by crossing the 100,000 member mark across India, reinforcing its leadership position in the flexible workspace sector. The company announced this achievement through an official media release, highlighting sustained membership growth of 33.6% year-on-year between December 2024 and December 2025, driven primarily by strong enterprise adoption and Global Capability Centers demand.

Strong Growth Performance and Market Position

The company's robust performance demonstrates the transformation of flexible workspaces from alternative real estate options to core business infrastructure. WeWork India currently operates 68 centers across eight cities, supporting organizations ranging from high-growth startups to large enterprises including Chargebee, Aptia, Hasbro, and Edrington.

City-wise Market Leadership

South India has emerged as a major growth engine, with Bengaluru, Hyderabad, and Chennai each contributing approximately 25% to overall member growth in the past 12 months. The regional performance showcases distinct market characteristics and sector preferences.

Hyderabad has become the country's most GCC-intensive market at 52.4%, establishing itself as the preferred destination for global enterprises, particularly in technology and pharmaceutical sectors.

Enterprise Revenue Growth

Enterprise clients now contribute over 76% of WeWork India's monthly revenue, marking a significant shift from tactical alternative to strategic long-term choice for modern organizations. The Global Capability Centers segment has become a crucial growth driver, contributing 38% of total revenue, up from 28% a year ago.

Strategic Market Positioning

According to Managing Director & CEO Karan Virwani, the milestone represents validation of the future of work direction, with Indian enterprises embracing flexibility as a strategic advantage rather than merely experimenting with it. The achievement underscores WeWork India's role in making flexible workspaces integral to how enterprises build, operate, and grow in India.

WeWork India has been recognized as the largest operator by total revenue for the past three fiscal years and holds GPTW certification from November 2024 to November 2025, reinforcing its market leadership position in India's evolving commercial real estate landscape.