WeWork India reported a 28% year-over-year revenue increase to ₹680 crore for the first quarter of FY27. The company's EBITDA grew by 69% to ₹140 crore, supported by improved office occupancy rates of 85%. The management now plans to expand its total operational footprint to 12 million square feet to meet the rising demand for flexible office spaces.
WeWork India has reported a strong start to the 2027 fiscal year, reflecting increased demand for flexible workspace solutions. In the first quarter, the company’s revenue climbed to ₹680 crore on an IND-AS basis, marking a 28% growth compared to the same period last year. Profitability also improved significantly, with IGAAP EBITDA rising 69% year-over-year to reach ₹140 crore. This growth resulted in an EBITDA margin of 20%, supported by a rise in portfolio occupancy to 85%, which is an improvement of 840 basis points over the previous year.
Strategic Expansion and Operational Growth
The company is focused on scaling its operations to capture the growing preference for flexible office arrangements. WeWork India currently operates across 9.1 million square feet with approximately 133,600 desks. The management has outlined plans to increase its total operational area to 12 million square feet, targeting a capacity of roughly 179,000 desks. This expansion strategy aims to leverage the consistent demand seen in the premium workspace segment.
Changes in Revenue Recognition
Starting in FY27, the company is adjusting how it accounts for revenue from Value Added Services (VAS) to better align with the duration of customer contracts. Previously, the company booked this customization revenue upfront. By choosing to amortize this revenue over the life of the contracts, the company aims to reduce the volatility in its reported quarterly and annual financial results. This accounting change is intended to provide a more stable picture of the company's financial health to stakeholders over time.
Financial Outlook and Valuation Context
Following these results, analysts at I-Sec have maintained a positive outlook on the company's financial trajectory. Their assessment values the company based on a projected enterprise value of ₹12,430 crore by September 2027, using a 17 times multiple of the estimated EBITDA. After adjusting for a projected net cash position of ₹130 crore, the estimated equity value stands at ₹12,560 crore, or ₹937 per share. As the company progresses toward its 12 million square feet goal, investors will likely focus on whether the 85% occupancy rate can be maintained alongside the new capacity additions and if the change in revenue recognition leads to more predictable earnings patterns.