WeWork India Management (WEWORK) Q2 25/26 earnings summary

Executive summary

• Achieved record revenue and profitability in Q2 FY2026, marking the first-ever PAT positive quarter under Indian GAAP and Ind AS, following the company's IPO and listing on NSE and BSE in October 2025.

• Operates 70 centers across eight cities, with 7.7 million sq ft and 115,000 desks, maintaining 80.2% portfolio occupancy.

• Enterprise clients account for 75% of business, with average membership tenure rising to 27 months, and over 50% of desk sales from existing members.

• Expanded digital revenue streams and launched the WeWork India app, enhancing member experience and digital engagement.

• All business activities are viewed as a single reportable segment as a managed workspace provider.

Financial highlights

• Q2 revenue from operations: INR 5,747.02 million (consolidated), up 7.4% QoQ and 22.4% YoY; total revenue including other income: INR 585.5 crore, up 7.3% QoQ and 17.2% YoY.

• IGAP-equivalent EBITDA: INR 118.4 crore, up 45% QoQ and 15.8% YoY; EBITDA margin expanded to 20.3% from 15% last quarter.

• PAT (IGAP-equivalent): INR 39.3 crore, up 3.7x QoQ and over 2x YoY; PAT under Indian GAAP: INR 6.4 crore; standalone net profit for Q2 FY26 was Rs. 73.87 million, with consolidated net profit of Rs. 62.91 million.

• Operating cash flow: INR 375 crore, up 16% QoQ and 11% YoY; net debt reduced to INR 311 crore from INR 529 crore YoY.

• Free cash flow from operations at ₹95.4 Cr, up 85.6% QoQ.

Outlook and guidance

• Capacity expected to reach 130,000 desks by March, with visibility to 145,000 desks and 10 million sq ft AUM.

• Annual desk additions projected at 20,000–25,000, aiming for growth above the industry’s 20% CAGR.

• Revenue growth targeted at 20%+ for the full year, with EBITDA margins expected to remain above 20%.

• Focus on innovation, technology, and expanding digital offerings to sustain momentum.

• CAPEX guidance: INR 100 crore per quarter, with annual spend aligning to desk additions and refurbishment needs.