WeWork Turns Profitable In Q2, Posts INR 6.4 Cr PAT

Coworking space provider WeWork India attained profitability in Q2 FY26, posting a consolidated profit after tax (PAT) of INR 6.4 Cr as against a net loss of INR 31.5 Cr in the year-ago quarter. The company had posted a net loss of INR 14.2 Cr in the preceding June quarter.

Operating revenue surged 22% YoY and 7% QoQ to INR 574.7 Cr during the quarter under review. Including other income of INR 10.8 Cr, total income for the quarter stood at INR 585.5 Cr. Meanwhile, total expenses rose 9% YoY to INR 579 Cr.

The coworking space provider’s Ind-AS EBITDA for the quarter rose 19% YoY to INR 390.9 Cr. The company said it “delivered record profitability” in the quarter on the back of a strong demand. 

“With record revenue, expanding margins, and our first IndAS PAT-positive quarter, we’ve demonstrated that flexibility and profitability can coexist at scale. This quarter reflects strong improvement in operating leverage and profitability, with IGAAP EBITDA up 45% QoQ and ROCE strengthening to 22%,” WeWork India MD and CEO Karan Virwani said.

The company segregates its revenue across three segments — core operations, value added services, and digital products. Here’s how these services performed in the quarter: 

• Core Operations: The segment, which comprises WeWork India’s workspace as a service, workspace leasing and private offices and managed offices, remained the key driver for its top line, bringing in about 86% of the revenue. It raked in a revenue of INR 492.1 Cr in the quarter, up 23% YoY. 
• Value Added Services: This segment brought in a revenue of INR 62.6 Cr in the quarter under review, up 14% YoY. The segment comprises offerings like events, food and beverages, workspace customisations and other tech solutions. 
• Digital Products: The segment brought in a revenue of INR 20 Cr, growing 25% YoY. It includes revenue generated from WeWork India’s tech-driven solutions like virtual offices, on-demand, all access workplaces. 

The company’s operational portfolio at the end of the quarter stood at 7.7 Mn sq. ft. across 70 centres in 8 cities like Delhi, Mumbai, Bengaluru, among others. At the end of September, the company had 1.15 Lakh desks under its management with an occupancy of 80.2%.

WeWork India plans to double down on penetrating tier I cities for the remainder of the fiscal year. The company would focus on expansion in H2 FY26, with about 11,000 desks under fit-out, a further 3,000 desks awaiting landlord handover, and 15,000 desks under letter of intent, to take its AUM to 10 Mn sq ft. 

“The company will continue to deepen its presence in tier I Grade-A micro-markets while scaling its digital ecosystem and value-added services to drive sustainable growth,” it noted.

Shares of WeWork India were trading 1.28% lower at INR 625 on the BSE at 15:25 IST.