WeWork India Shares Post 19% Gain Following 80% Increase in Q4 Net Profit

WeWork India Sees 80% Rise in Q4 Profit

WeWork India Management reported an 80% year-on-year rise in fourth-quarter profit, driven by strong demand from enterprise clients and higher occupancy. The flexible workspace provider posted a net profit of Rs 65.5 crore, up from about Rs 36.5 crore a year earlier.

WeWork India's revenue from operations rose 29% year-on-year to Rs 696 crore, driven by strong demand from enterprise clients. Earnings before interest, tax, depreciation, and amortisation (EBITDA) margins expanded by 231 basis points to 23.2% from a year earlier.

The company's strong performance was reflected in the stock market, with WeWork India shares closing 19% higher at Rs 580 apiece on May 21. This growth is attributed to the increasing adoption of flexible workspaces across enterprise segments, with WeWork India leading the market.

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The company's portfolio occupancy reached a record high of 86.9%, including 88.9% at mature centres. This, combined with expansion from existing clients, further supported demand, with over 50% of new desk sales during the fiscal year coming from current members.

However, total expenses rose 18.3%, driven by employee benefit cost, finance costs, and operating expenses. Despite this, WeWork India's strong financial performance has been evident throughout the year, with the company listing on the stock exchanges, more than doubling profit after tax (PAT), and turning net debt negative for the first time in its history.

WeWork India's Managing Director & CEO, Karan Virwani, stated that FY26 was a defining year for both the industry and the company. The company's strong performance is expected to continue, driven by the compounding flywheel of occupancy, premiumisation, and operating leverage.

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The stock is down about 7.5% so far this year, but the company's strong financial performance suggests a potential recovery in the near future.