Flexible workspace operator WeWork India reported a 219% year-on-year surge in consolidated net profit to ₹20.4 crore for the second quarter, up from ₹6.4 crore in the corresponding quarter of the previous fiscal year, as operational revenue growth outpaced expenses.
The performance marked a sequential turnaround to profitability from a net loss of ₹4.1 crore in the first quarter, according to financial reporting documented by Inc42. Consolidated operating revenue rose 33.6% to ₹767.8 crore from ₹574.7 crore a year earlier, and gained 12.3% quarter-on-quarter against ₹683.8 crore. Total income reached ₹786.4 crore when factoring in finance and other non-operating income, while total expenses expanded by 32.4% to ₹766.9 crore.
Operational Growth and Capacity Additions
During the quarter, WeWork India added a record 11,700 operational desks, bringing its nationwide footprint to 145,300 desks across 85 centres situated in eight major cities. Total operational capacity grew 26.9% year-on-year. While the influx of newly launched centres created a minor sequential drag on utilization, portfolio occupancy remained steady at 83.7%.
In the first half of the fiscal year, the company added a cumulative 18,400 desks, supplemented by approximately 4,500 additional desks entering service in early October. Managing Director and Chief Executive Officer Karan Virwani stated to shareholders that operating cash flow successfully funded the first-half capital expenditure cycle, noting that the operational ramp-up of these newer spaces will enhance operating leverage over upcoming quarters.
Financial Performance Comparison
| Financial & Operational Metric | Q2 FY (Current) | Q2 FY (Year-Ago) | Growth (% YoY) |
|---|---|---|---|
| Consolidated Net Profit | ₹20.4 Cr | ₹6.4 Cr | +219.0% |
| Consolidated Operating Revenue | ₹767.8 Cr | ₹574.7 Cr | +33.6% |
| Total Expenses | ₹766.9 Cr | ₹579.0 Cr | +32.4% |
| IGAAP-Equivalent Net Profit | ₹65.8 Cr | ₹39.3 Cr | +67.4% |
| IGAAP-Equivalent EBITDA | ₹162.9 Cr | ₹118.4 Cr | +37.6% |
| EBITDA Margin (IGAAP) | 21.2% | 20.3% | +90 bps |
| Total Operational Desks | 145,300 | ~114,500 | +26.9% |
IGAAP-Equivalent Performance and Pipeline
On an IGAAP-equivalent basis—which standardizes the accounting treatment of operational leases differently than Ind AS—WeWork India posted a net profit of ₹65.8 crore, an increase of 67.4% compared to ₹39.3 crore in the prior-year period. Revenue under this metric grew 31.6% to ₹768.7 crore, while EBITDA advanced 37.6% to ₹162.9 crore, lifting operating margins from 20.3% to 21.2%.
Looking ahead, the provider’s forward expansion pipeline includes over 9,000 desks secured under signed lease agreements and more than 38,000 desks covered by active letters of intent (LOIs), ensuring continued inventory delivery across key commercial hubs.
Frequently Asked Questions
Is WeWork India profitable now?
Yes. WeWork India reported a consolidated net profit of ₹20.4 crore for the second quarter, marking a 219% increase year-on-year and a sequential recovery from a ₹4.1 crore net loss in Q1.
What drove the 34% revenue growth for WeWork India?
The growth was primarily driven by higher workspace occupancy and a record addition of 11,700 operational desks during the quarter, taking total operational capacity to 145,300 desks.
What is WeWork India's current desk occupancy rate?
The portfolio reported an overall occupancy rate of 83.7% across 85 centres in eight Indian cities during the quarter.
