WeWork India Management Private Limited, the Embassy Group-backed flexible workspace provider, has reported a net loss of ₹14.1 crore in Q1 FY26 (April-June 2025), marking a significant 51% reduction from ₹29.2 crore in the year-ago quarter. This improvement comes despite ongoing investments in expansion, as operating revenue grew 19% year-on-year to ₹535.3 crore from ₹448.7 crore, driven by capacity additions and higher occupancy. The results, detailed in the company’s Red Herring Prospectus (RHP) filed ahead of its ₹3,000 crore IPO opening on October 3, 2025, underscore a path to sustained profitability following FY25’s first full-year PAT of ₹128.2 crore.
For investors eyeing the IPO, real estate professionals in the co-working space, and market watchers in India’s $10,000 crore flexible workspace sector (growing at 20% CAGR), these quarterly figures highlight WeWork India’s operational resilience amid hybrid work trends. With 68 operational centers and 1.14 lakh desks as of June 2025, the company is scaling aggressively while narrowing losses. Let’s break down the financials, growth drivers, and IPO context.
Q1 FY26 Financials: Loss Narrowed, Revenue and EBITDA Surge
WeWork India’s Q1 performance reflects disciplined cost management and demand recovery, with revenue up 19.3% to ₹535.3 crore, propelled by a 15% rise in membership fees to ₹460.4 crore. EBITDA climbed 18.5% to ₹335.4 crore, though the margin dipped slightly to 62.7% from 63.1% due to higher operating expenses (up 13.8% to ₹130 crore).
Key metrics overview:
| Metric | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Change (%) |
|---|---|---|---|
| Operating Revenue | 535.3 | 448.7 | +19.3 |
| Membership Fees | 460.4 | 400.5 | +15.0 |
| EBITDA | 335.4 | 283.1 | +18.5 |
| EBITDA Margin | 62.7% | 63.1% | -0.4 pts |
| Net Loss (PAT) | 14.1 | 29.2 | -51.7 |
| Operating Expenses | 130 | 112 | +16.1 |
The net loss narrowing was aided by lower finance costs and depreciation, though investments in new centers (12 added to reach 68) weighed on expenses. Occupancy stood at 76.5% (down from 79.4% YoY), but desk capacity surged 24% to 1.14 lakh, signaling future revenue potential.
Growth Drivers: Capacity Expansion and Market Demand
WeWork India’s Q1 momentum stems from India’s flexible workspace boom, valued at ₹10,000 crore and growing 20% annually, fueled by hybrid models and startup influx. The company added 12 centers to 68 (up from 56 YoY), focusing on Bengaluru (47.7% of fees) and Mumbai, with plans for 100+ by FY26-end.
Key enablers:
- Membership Surge: Fees up 15%, reflecting premium pricing and enterprise deals (70% revenue mix).
- Geographic Focus: Bengaluru’s 79% occupancy leads, with Delhi-NCR and Mumbai at 73-75%.
- Enterprise Services: 30% revenue from custom solutions, up from 25% YoY.
This aligns with FY25’s turnaround: Revenue hit ₹1,949 crore (17% growth), PAT ₹128.2 crore (from ₹135.7 crore loss), excluding deferred tax gains.
IPO Context: Q1 Results Bolster October 3 Launch
The Q1 loss narrowing arrives just days before WeWork India’s ₹3,000 crore IPO opens on October 3, 2025, a pure OFS valuing the company at ₹9,000 crore at the upper band (₹615-648/share). Promoters Embassy Buildcon (74.5%) and WeWork Global (25.5%) will offload 4.63 crore shares, raising ₹2,294 crore and ₹706 crore respectively.
Q1 positives could drive subscriptions: 35% retail quota, GMP at ₹50 (8% premium), and peers like Awfis (₹4,075 crore mcap) trading at 40x P/E. Risks include high P/E (65x FY25 EPS) and occupancy dips, but 20%+ revenue guidance reassures.
Implications: Path to Scale in a Competitive Arena
For investors, Q1’s 51% loss cut signals IPO upside (10-15% listing gain est.), with 77 lakh sq ft under management targeting 100 lakh by FY26. Peers like Smartworks (₹1,496 crore FY25 revenue) face pressure from WeWork’s 62.7% EBITDA margin. Sector Outlook: Hybrid work sustains 20% CAGR, but economic slowdowns could cap occupancies at 75-80%.
Challenges: Finance costs and depreciation (key loss drivers) persist, but Embassy’s development pipeline mitigates.
Conclusion: WeWork India’s Q1 Resilience – A Strong IPO Prelude
WeWork India’s ₹14.1 crore Q1 FY26 loss—down 51%—belies robust 19% revenue growth to ₹535.3 crore, showcasing expansion amid profitability strides. As the ₹3,000 crore IPO opens October 3, these results could catalyze subscriptions in a sector primed for hybrid-driven demand. With 68 centers and 1.14 lakh desks, WeWork is scaling smart—watch for 20%+ FY26 growth. inc42
