WeWork Shares Jumps Over 7% After Jefferies’ ‘Buy’ Call

Update | November 18, 16:17 IST

Shares of WeWork India ended the day’s trade 3.3% higher at INR 634.6 on the BSE, taking the company’s market capitalisation to INR 8,505.12 ( around $960 Mn).

Original | November 18, 15:43 IST 

Shares of coworking major WeWork India jumped 7.7% during intraday trading today to INR 661.95 after global investment firm Jefferies initiated coverage on the company with a bullish outlook.

At 15:04 IST, the stock was trading 3.82% higher at INR 637.45 on the BSE. Its market cap stood at INR 8,535.27 Cr (around $963.4 Mn) with nearly 8.4 Lakh shares traded by then. 

WeWork India made its stock market debut on October 10, listing with a slight discount at INR 646.5. Since listing, the company’s shares have declined by about 2%. 

Marking the first-ever brokerage coverage for WeWork India, Jefferies initiated the stock with a ‘Buy’ rating and a price target of INR 790, implying a 28.6% upside from the previous close.

In its note, the brokerage firm said that WeWork India remains the clear leader in India’s fast-expanding flexible workspace market, with portfolio size and revenue at least 40% higher than its closest domestic competitor in FY25. 

Compared with Smartworks, Awfis and IndiQube, the brokerage noted, the company also leads on revenue, margins and average revenue per member (ARPM).

While WeWork India’s top line for FY25 stood at INR 1,949 Cr, its closest competitor Smartworks reported an operating revenue of INR 1,374 Cr in the previous fiscal. Awfis and IndiQube reported an operating revenue of INR 1,208 Cr and INR 1,059 Cr in the fiscal under review, respectively. 

Meanwhile, WeWork India also reported its maiden profitable quarter in Q2 FY26, posting a net profit of INR 6.4 Cr versus a loss of INR 31.5 Cr a year earlier. Its losses stood at INR 14.2 Cr in Q1. 

For the quarter under review, WeWork India’s operating revenue rose 22% YoY to INR 574.7 Cr.

During the company’s first earnings call, WeWork India’s managing director Karan Virwani shared that the company would be targeting upwards of 20% YoY revenue growth for the full fiscal year FY26. 

“We’ve already hit this run rate in the first half of the year, which puts us close to 20% growth. With some incremental revenue expected next month, we’re hopeful of surpassing that,” he noted during WeWork India’s Q2 earnings call. 

Jefferies also forecasts a 20% revenue CAGR and 22% EBITDA CAGR over FY25–28, supported by premium pricing, operating leverage and steady demand from MNCs, GCCs and large Indian enterprises.

However, it also highlighted downside risks, including a potential slowdown in office demand, intensifying competition and delays in expansion. The brokerage cautioned that WeWork India’s model, built on long-term lease obligations and high operating leverage, remains vulnerable to rental market swings and broader macroeconomic pressures.

In a stress case, Jefferies pegged a lower price target of INR 650 per share if demand softens materially or competition rises. On the potential risks to WeWork India’s business, Virwani said the company remains alert to shifts in demand but is confident on the company’s future prospectus. 

“We are mindful of headwinds ranging from cost inflation to macro uncertainties; however, our flexible contracts, short payback cycle, staggered lease profile and a locked-in revenue-to-lease liability ratio of nearly 2.7x give us strong downside protection,” he said.