Operational Highlights

  • Total capacity increased by 6.7k desks quarter-on-quarter (QoQ) and 19.5k desks year-on-year (YoY)
  • Total members increased by 3.1k desks QoQ and 26.1k desks YoY
  • Portfolio occupancy rate reached 86.9% in Q1 FY27, up from 76.5% in Q1 FY26
  • April 2026 was the biggest sales month ever recorded with 7.5k desks sold
  • 52% of new desk sales came from existing members expanding within the network
  • The company added 6.6k desks in Q1 FY27 with a committed pipeline for future growth
  • Member growth rate was 1.7x of capacity addition at portfolio level

Financial Highlights (IGAAP Equivalent Basis)

  • Revenue from operations: ₹700.1 Cr in Q1 FY27 (vs ₹537.9 Cr in Q1 FY26)
  • EBITDA: ₹164.7 Cr in Q1 FY27, representing 23.2% margin (vs ₹81.7 Cr and 15.0% margin in Q1 FY26)
  • Absolute EBITDA grew 69% YoY
  • PAT: ₹79.6 Cr in Q1 FY27 (vs ₹8.4 Cr in Q1 FY26)
  • Free Cash Flow from Operations: ₹141.9 Cr, up 176.1% YoY
  • FCFF: (₹46.1) Cr due to capex investments
  • Net debt: ₹31.6 Cr, significantly reduced from ₹297.3 Cr in Q1 FY26
  • Gross debt: ₹402.6 Cr
  • Cash & cash equivalents: ₹370.9 Cr
  • Average cost of borrowing: 8.5% (improved 188 bps YoY)
  • Credit rating: A+

Capital Structure and Debt Position

  • Net debt/EBITDA: 0.06x
  • ROCE improved YoY even as capacity expanded
  • Lease liability outflow: ₹278.4 Cr in Q1 FY27
  • Brokerage outflow: ₹15.4 Cr in Q1 FY27
  • Capex investment: ₹188.0 Cr in Q1 FY27

Business Development

  • Launched Member Services on July 15, 2026 - a B2B service platform for members
  • Curated marketplace offering services across transportation, hiring, gifting, and payments
  • Platform provides enterprise-level pricing, centralized discovery, and consolidated billing
  • Expansion planned into finance & legal, marketing, sustainability & governance categories

Industry Context

  • Flex office segment drove ~57% of Q2 CY26 domestic leasing in India
  • Flex leasing grew 8.4x from 2.2 MSF in 2017 to 18.6 MSF in 2025
  • Flex share doubled from 12% in Q1 2025 to 27% in Q2 2026
  • 70% of Q2 2026 leasing occurred in buildings under 10 years old
  • Premium, green-certified, institutional-grade assets dominating supply

Contract Metrics

  • Portfolio average commitment term: 27 months (stable YoY)
  • Large enterprise commitment term: 33 months (up from 32 months YoY)
  • Ratio of locked-in core revenue to locked-in rental cost: 4.7x YoY growth
  • Remaining locked-in contract value significantly exceeds remaining locked-in rent cost

Portfolio Economics

  • Rent per sq ft remained stable YoY
  • Operating expenses per sq ft increased by 5.6% YoY
  • Portfolio breakeven occupancy at 56.6%
  • Growth centers performing above breakeven level

INDAS to IGAAP Reconciliation

  • Presentation includes detailed reconciliation between INDAS and IGAAP accounting standards
  • Key adjustments include removal of ROU asset depreciation and interest on lease liabilities
  • IGAAP equivalent EBITDA margin of 23.2% vs INDAS EBITDA margin of 65.6%

Additional Information

  • The investor presentation is available on the company website at https://wework.co.in/investors-relations/shareholders-information/#analysts
  • Contact provided for investor relations (Vinayak Parameswaran) and compliance (Udayan Shukla)