Financial Performance Summary
Revenue Performance:
- Q1 FY27 Revenue: ₹698.0 Crore
- Year-over-Year Growth: +28.5%
Profitability Metrics:
- EBITDA: ₹138.3 Crore (+69.3% YoY)
- EBITDA Margins: 19.8% (+478 basis points YoY)
- Profit After Tax (PAT): ₹53.2 Crore (+533.3% YoY)
- PAT Margins: 7.6% (+608 basis points YoY)
Cash Flow & Returns:
- Free Cash Flow from Operations: ₹141.9 Crore (+176.1% YoY)
- EBITDA to FCFO Conversion: 1.03×
- Return on Capital Employed (ROCE): 28.6%
- Cost of Borrowing: 8.5%
- Credit Rating: A+
Operational Metrics
Portfolio Expansion:
- Operational Centers: 79 centers across 8 cities
- Operational Area: 9.1 million sq. ft.
- Total Committed Footprint: 12 million sq. ft. (including signed leases and LOIs)
- Year-over-Year Growth: +29.9% in committed footprint
Capacity & Occupancy:
- Operational Desk Capacity: 133,600 desks (+17.1% YoY)
- Occupied Members: 113,400 members (+29.9% YoY)
- Overall Portfolio Occupancy: 84.9%
- Mature Center Occupancy: 87.5%
- Net Promoter Score (NPS): +78
Expansion Activities:
- Desks Added in Q1: Approximately 7,000 desks
- FY27 Planned Desk Addition: Nearly 28,000 desks
- Sales Velocity: Increased 28.3% YoY from 9.9k to 12.7k desks sold
New Service Launch
Member Services Platform:
- Launch Date: July 15, 2026
- Description: Industry-first platform connecting members with enterprise-grade business solutions through a trusted partner ecosystem
- Value Proposition: Extends platform beyond workspace, providing single destination for curated business partners and exclusive commercial benefits
Management Commentary
Karan Virwani, Managing Director & CEO:
- Entered FY27 from position of strength with healthy demand visibility and growing enterprise pipeline
- Q1 marked start of next growth cycle with investments ahead of demand
- Investments moderate near-term sequential comparisons but strengthen ability to support long-term customer demand
- Maintained healthy occupancy, resilient margins and strong cash generation despite expansion investments
- India emerging as global hub for GCCs and AI-led innovation, creating strong structural tailwinds for flexible workspaces
Portfolio Developments
New Center Launches in Q1 FY27:
- WeWork Embassy Vertex, Bengaluru
- WeWork Embassy Tech Village Zinnia 8C, Bengaluru
- WeWork Bharti Worldmark 6, Gurugram
Managed Office Business:
- Over 5.1 lakh sq. ft. of managed office mandates delivered and signed
- Includes delivery of bespoke workspace in Hyderabad for global technology and engineering company
- New mandates signed with American multinational IT company and leading compliance intelligence firm
Market Context
Industry Position:
- Flexible workspace sector emerged as largest contributor to office leasing in India during quarter
- Accounted for 27% of total absorption (Source: CBRE)
- WeWork India leading this momentum
Financial Reporting Basis
All financial figures presented on IGAAP-equivalent basis, calculated under Indian GAAP framework without benefit of non-cash rent straight-lining under Ind AS 116, and net of ESOP costs.