WeWork India Management Limited – Investor Presentation Summary

Key Operational Highlights

  • Added 11.7k desks in Q2 FY27, completing the largest half-year of openings in company history
  • Total operational capacity: 85 centers across eight cities in India
  • 18.4k desks added in H1 FY27
  • Portfolio occupancy: 89.1% (Q2 FY27), up 357 bps YoY
  • Mature centers (>12 months) occupancy: 91.8%, up 355 bps YoY
  • Growth centers (≤12 months) performing above portfolio breakeven occupancy of 55.7%
  • Member growth of 32.5% YoY outpaced capacity growth of 26.9%
  • Key drivers: Flight to quality, immediate move-in capability, consistent standard across cities

Segment-wise Performance

  • Core revenue: Main workspace offering
  • Value-added services (VAS): Grew 35% YoY
  • Digital services: Grew 46% YoY
  • VAS + Digital reached ₹108.8 Cr in Q2 FY27, up 38% YoY
  • Nearly 30% of accounts in physical spaces use more than one format
  • 27% of accounts utilize services beyond the desk

Financial Highlights

Q2 FY27 Performance:

  • Revenue: ₹768.7 Cr (IGAAP equivalent), up 32% YoY and 10% QoQ
  • EBITDA: ₹162.9 Cr, up 38% YoY and 18% QoQ
  • EBITDA margin: 21.2%
  • PAT: ₹65.8 Cr, up 67% YoY and 24% QoQ
  • PAT margin: 8.6%

H1 FY27 Performance:

  • Revenue: ₹1,466.7 Cr, up 30.1% YoY
  • EBITDA: ₹301.2 Cr, up 50.6% YoY
  • EBITDA margin: 20.5%, up 279 bps YoY
  • PAT: ₹119.0 Cr, up 149.5% YoY
  • PAT margin: 8.1%, up 388 bps YoY

Drivers of financial performance:

  • Strong revenue growth across all segments
  • Operating leverage benefits as centers mature
  • Margin expansion through scale efficiencies
  • Value-added and digital services growing faster than core

Geographical Revenue Split

  • Domestic vs Export revenue breakdown: Not specified in presentation
  • Regional performance: Operations span eight cities that capture ~95% of India's Grade A absorption
  • All centers (~94%) are Grade A properties in right micro-markets

Balance Sheet Snapshot

  • Net debt: (₹23.1) Cr (net cash position) in Q2 FY27 vs net debt of ₹310.5 Cr in Q2 FY26
  • Gross debt: ₹390.2 Cr in Q2 FY27
  • Cash & cash equivalents: ₹413.3 Cr in Q2 FY27
  • Net debt/EBITDA: (0.04x) in Q2 FY27 vs 0.76x in Q2 FY26
  • Average cost of borrowing: 8.5% in Q2 FY27, down 184 bps YoY
  • Credit rating: A+ (up from A- in Q2 FY26)
  • ROCE: 31.1% for H1 FY27, up 1,571 bps YoY

Capex & Cash Flow Health

Q2 FY27 Cash Flow:

  • Cash flow from operations: ₹590.4 Cr
  • Free cash flow to firm (FCFF): ₹61.9 Cr (positive)
  • Free cash flow from operations (FCFO): ₹237.7 Cr, up 67.5% QoQ and 149.2% YoY
  • Capex: ₹175.8 Cr

H1 FY27 Cash Flow:

  • Cash flow from operations: ₹1,026.2 Cr
  • FCFF: ₹16.0 Cr (positive vs ₹(59.7) Cr in H1 FY26)
  • FCFO: ₹379.8 Cr, up 156.6% YoY
  • Capex: ₹363.8 Cr
  • First-half capex fully funded from operating cash flow

Investment Rationale: Focus on capacity expansion and new center openings

Strategic & R&D Initiatives

  • Building spaces designed for how India works with world-class hospitality standards
  • WeWork design know-how from 45M+ sq ft worldwide
  • Global network spanning 600+ locations across 37 countries
  • One in four Global Fortune 500 companies are WeWork members worldwide
  • Strategic partnership with Embassy Group for real estate backing
  • Expected impact: Continued market leadership in branded flexible workspace segment

Industry Trends & Business Environment

  • Flex leasing up 61% YoY in 9M 2026; now largest occupier segment in India
  • Flex share of office market doubled from 12% (Q1 2021) to 24% (Q3 2026)
  • GCCs (Global Capability Centers) represent ~41% of office take-up, ahead of BFSI (22%) and tech (15%)
  • ~75% of Q3 leasing in buildings under 10 years old; 61% in green-certified tech parks
  • Five-plus year leases have collapsed from 40% of enterprises to 8%
  • 55% of occupiers planning a move are targeting better buildings (flight to quality)

Management Commentary & Growth Outlook

Strategic Outlook: "Branded workspaces are relevant, resilient and becoming the way India's companies grow, and this is the category we built and lead." - Karan Virwani, Managing Director & CEO

Growth Drivers:

  • AI widening the market opportunity
  • Global companies establishing capability centers in India
  • Domestic companies scaling alongside global counterparts
  • Competition for world-class talent driving demand for quality workspace

Platform Compounding: Business model extending beyond desk revenue to higher-margin value-added and digital services

Contract Position:

  • Remaining locked-in core revenue: ₹3,843 Cr
  • Remaining locked-in rental cost: ₹1,421 Cr
  • Ratio of locked-in revenue to cost: 2.7x
  • Contract value grew 66.1% YoY to ₹3,843 Cr
  • Average commitment term: 28 months (up from 27 months)

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