Annual Financial Performance (FY26)

  • Revenue: INR2,477 crores, up 23% YoY
  • EBITDA: INR499 crores, up 23% YoY
  • PAT: INR180 crores, up 134% YoY with margin expansion of 341 basis points
  • Portfolio occupancy: 86.9% (all-time high)
  • Mature centers occupancy: 88.9% (all-time high)
  • ROCE: 28.3%, up 317 basis points
  • Free operating cash: INR586 crores, up 44%
  • Net debt negative: INR11.7 crores (first time in history)
  • Credit rating upgraded two notches to A+
  • Business generated surplus cash of INR126 crores in FY26

Quarterly Financial Performance (Q4 FY26)

  • Total revenue: INR709.9 crores, up 28.6% YoY and 10.9% QoQ
  • Revenue from operations: INR700 crores, up 29% YoY and 10% QoQ
  • Core operations (private offices + managed offices): INR584 crores, up 29% YoY
  • Value-added services: INR95 crores, up 35% YoY
  • Digital products: INR21 crores, up 15% YoY
  • EBITDA: INR164.7 crores at 23.2% margin, up 42.8% YoY and 22.4% QoQ
  • PAT: INR80 crores at 11.2% margin, up 142% YoY and 53.1% QoQ
  • Center level EBITDA: INR212 crores at 31% margin, up 224 basis points YoY
  • Free operating cash: INR234 crores, up 57% YoY
  • EBITDA to OCF conversion: 1.4x
  • ROCE: 45.1%, up 1,832 basis points YoY

Operational Metrics

  • Portfolio: 76 centers, 8.6 million square feet, 11.6 million square feet AUM
  • Members: 110,000
  • Capacity growth: 16% YoY
  • Members growth: 31% YoY
  • Mature centers occupancy: 90% (operational over 12 months)
  • Growth centers occupancy: 73% (under 1 year)
  • Portfolio breakeven occupancy: 54.8%
  • Desks sold in FY26: 48,000 (3.3 million square feet leasing), up 20% YoY
  • Revenue to rent multiple: 2.6x
  • Total revenue to rent multiple: 3x
  • NPS score: 79

Geographic Distribution

  • Bangalore: 50,000 seats
  • Mumbai and Gurgaon: both grew capacity over 20% YoY
  • Chennai: up 75% capacity
  • Hyderabad: up 34% capacity

Customer Base

  • Enterprise revenue contribution: 77%
  • Fortune 500 contribution: 28%
  • Global members (outside India): 65%
  • Top 10 members: 23% of core revenue
  • No single sector dominates

Order Book and Forward Visibility

  • Locked-in core revenue: INR2,940 crores, up 34% YoY
  • Locked-in rental cost: INR986 crores
  • FY27 opening locked-in revenue: INR1,885 crores
  • Average commitment terms: 26-28 months (increased from previous)
  • Large enterprise commitment terms: 30-33 months

Capacity Expansion Plans

  • FY27 planned capacity addition: 28,000 seats
  • Already signed for FY27: 1.6-2 million square feet (to reach 10.3-10.4 million square feet)
  • Target seats by March 2027: 155,000 (from current 110,000)
  • Additional visibility beyond FY27: 1.4-1.5 million square feet (FY28-FY29)
  • Q1 FY27 capacity addition: 14,000 seats (40% managed office)

Capex and Investments

  • FY26 capex: INR456 crores
  • FY27 expected capex: INR500-600 crores
  • Return on capex: approximately 34%

New Business Initiatives

  • Rivet: Stand-alone design and build business for enterprises, landlords, and developers
  • Capital-light model with no lease liability
  • Full EBITDA to PBT flow-through
  • Strategic objective to capture growing customers within WeWork ecosystem

Industry Context and Market Study

  • Commissioned proprietary study with Redseer on AI impact on office demand
  • AI hiring in India up 6x in six years (48,000 to 290,000 roles)
  • India ranked #2 globally in AI talent concentration
  • 95% of enterprises plan to scale AI adoption in next 18-24 months
  • Projected 79-80 million square feet of new net office leasing demand by 2030 (above pre-AI baseline)
  • AI workforce in Indian GCCs expected to grow 4x by 2030 (181,000 to 700,000)
  • GCC leasing pipeline through 2030: 55 million square feet (double 2025)
  • 93% of firms report teams more collaborative due to AI
  • Meeting room demand for AI teams up 30-50%
  • 75% of enterprises plan real estate within 3-year horizon (5+ year leases collapsed from 40% to 8%)
  • Flex stock projected to grow 2.5x to 257 million square feet by 2030

Management Commentary

  • FY26 was "best year in our history" with outperformance on every metric
  • Business is "self-funding and generating surplus cash"
  • Multiple tailwinds: AI demand wave, GCC build-out, flight to quality, structural shift from long leases
  • Company positioned as "part of the backbone that powers India's growth engine"
  • Focus on monetizing platform across technology stack, adjacent services, and network effects

Q&A Session Highlights

  • No formal revenue guidance, but management committed to >20% YoY top-line growth
  • Managed office deals open with 100% occupancy on day one
  • WeWork branded spaces typically reach breakeven within 4-6 months
  • Goal to maintain occupancy above 85% throughout FY27 despite capacity additions
  • VAS revenue expected to remain in 12-13% range of total revenue
  • Lease renewals expected to see higher escalations due to market conditions
  • 95% of assets likely to continue into another 10-year period
  • Depreciation roll-off expected to significantly boost PAT from mature assets