Operational Performance

  • Total AUM: 9.8 MSF (up 27.1% YoY, 7.6% QoQ)
  • Operational Desk Capacity: 145.3k desks across 85 centers in 8 cities (up 26.9% YoY, 8.8% QoQ)
  • Portfolio Occupancy: 83.7% (up 357 bps YoY, down 114 bps QoQ due to new capacity)
  • Members: 121.7k (up 32.5% YoY)
  • Q2 Desk Additions: 11.7k desks, the largest quarterly addition in company history
  • H1 Desk Additions: 18.4k desks, with ~4.5k more desks opened in first week of October
  • Pipeline: ~47k desks secured through signed leases and LOIs, representing 32% growth beyond current capacity
  • Mature Centers Occupancy: 87.7% (up 355 bps YoY)
  • New Centers Occupancy: Centers open less than one year at 64.8%, above 55.7% breakeven point

Financial Performance (IGAAP-equivalent)

Q2 FY27 Results:

  • Total Revenue: ₹768.7 Cr (up 31.6% YoY, 10.1% QoQ)
  • Core Operations growth: 31.7% YoY
  • VAS + Digital revenue: ₹108.8 Cr (up 38% YoY)
  • Digital revenue: up 45.6% YoY
  • EBITDA: ₹162.9 Cr (up 37.6% YoY, 17.8% QoQ)
  • EBITDA Margin: 21.2% (up 138 bps QoQ)
  • After ESOP costs of ₹5.7 Cr
  • PAT: ₹65.8 Cr (up 67.4% YoY, 23.7% QoQ)
  • PAT Margin: 8.6% (up 183 bps YoY)
  • Centre-level EBITDA: ₹214.0 Cr (up 38.4% YoY)
  • Centre-level EBITDA Margin: 28.4% (up 109 bps)
  • Order Book: ₹3,843 Cr of core revenue locked in (up 66% YoY)
  • Rent committed: ₹1,421 Cr (2.7x coverage ratio)

H1 FY27 Results:

  • Total Revenue: ₹1,466.7 Cr (up 30.1% YoY)
  • EBITDA: ₹301.2 Cr
  • EBITDA Margin: 20.5% (up 279 bps YoY)
  • After ESOP costs of ₹9.7 Cr
  • PAT: ₹119.0 Cr (up 149.5% YoY)
  • PAT Margin: 8.1%

Cash Flow and Balance Sheet

  • Q2 FCFO: ₹237.7 Cr (up 149.2% YoY, 1.5× EBITDA)
  • H1 FCFO: ₹379.8 Cr (up 156.6% YoY)
  • H1 Capex: ₹363.8 Cr (largest half-year investment)
  • H1 FCFF: ₹16.0 Cr (from outflow of ₹59.7 Cr in H1 FY26)
  • Net Cash Position: ₹23.1 Cr as of September 2026 (from net debt of ₹310.5 Cr a year ago)
  • ROCE: 34.5% (up 1,235 bps YoY, 590 bps QoQ)
  • H1 ROCE: 31.1% (up 1,571 bps YoY)
  • Cost of Borrowing: 8.5% (down 184 bps YoY)
  • Credit Rating: Moved from A− to A+ over the past year

Reported IndAS Financials

Q2 FY27 Standalone:

  • Revenue from operations: ₹767.8 Cr
  • Profit after tax: ₹20.5 Cr (from ₹4.2 Cr loss in Q1 FY27)

H1 FY27 Standalone:

  • Revenue from operations: ₹1,451.6 Cr
  • Profit after tax: ₹16.3 Cr

Reconciliation: Significant adjustments between IndAS and IGAAP primarily relate to lease accounting treatment, with IGAAP showing higher profitability.

Strategic and Market Context

  • The company positions itself as the category leader in branded flexible workspace in India
  • Flex workspace represents 24% of India's office leasing in Q3 2026
  • Demand drivers include AI uncertainty, talent competition, and companies preferring shorter commitments (60% now plan 1-3 years ahead vs 24% pre-2020)
  • 55% of occupiers targeting better buildings for employee experience
  • 16k+ accounts working with WeWork India, nearly 30% using multiple formats
  • Brand recall: 96% among non-customers, #1 brand awareness in Indian flex

Additional Financial Details

  • Brokerage Accrual: Q2 FY27: ₹29.1 Cr; H1 FY27: ₹54.6 Cr
  • Rent Payments: Q2 FY27: ₹298.2 Cr to landlords; H1 FY27: ₹576.6 Cr
  • Lease Liability Payments: Q2 FY27: ₹304.0 Cr (principal ₹149.5 Cr + interest ₹154.5 Cr)
  • Share Capital: ₹1,388.70 million as of September 30, 2026
  • ESOP Grants: Q2 FY27: 439,510 options; H1 FY27: 468,896 options

Capital Structure Impact

  • Paid-up equity share capital increased from ₹1,353.78 million to ₹1,388.70 million in H1 FY27 due to exercise of 3,492,205 employee stock options