While the stock has remained range-bound amid the impact of tax related adjustments on net profit, the company holds promise for the long term given its focus on capacity addition and making the balance sheet strong. Analysts have maintained ‘buy’ with 49% upside to Monday’s closing price of ₹612.2.
According to the company, India’s office space segment remained strong, with gross leasing reaching 59.6 million square feet between January and September 2025, a 10% year-on-year increase. Flexible spaces now represent 21% of new leasing and are projected to comprise 15% of total office stock by 2027.
WeWork has added 20,000 desks in the trailing 12 months to September 2025, a 21% year-on-year capacity expansion. It aims to add 20,000-25,000 desks annually. The occupancy rate at which the break-even in a centre’s operations is achieved has reduced to 51.7% for new spaces from 55%, indicating rising operating leverage.
AgenciesRoom for more: Co’s long-term outlook seen positive with lower debt and its focus on capacity addition and strengthening balance sheet
The company reduced net debt to ₹310.7 crore in September from ₹529.4 crore a year ago. It aims to achieve a near zero debt level by March 2026. The company reported traction in high-margin related services such as managed offices. Digital products and value-added services constituted around 14% of revenue in the September quarter compared with 8-10% for peers. About 20% of revenue comes from managed offices, which is expected to rise to 30% in the short to mid-term, driven by large deals and through the recently launched app WeWork India App for bookings & engagement.
In the September 2025 quarter, WeWork’s revenue from operations grew 22.4% year-on-year to ₹574.7 crore while net profit was ₹6.4 crore. In the year-ago quarter, net profit was ₹203.7 crore due to a deferred tax credit. Excluding this, it posted a net loss of ₹32 crore. The Indian Accounting Standards (Ind AS) Ebitda stood at ₹390.9 crore, up 19% year-on-year with margins expanding almost 100 basis points to about 66.8% whereas IGAAP-equivalent Ebitda was ₹118.4 crore, up 16% year-over-year, with margin declining 80 basis points to about 20.3%. The huge difference is due to reclassification of lease rent as depreciation and interest under Ind AS, unlike IGAAP where rent reduces Ebitda. ICICI Securities has initiated ‘buy’ rating on the stock with a target price of ₹914, while estimating 22-26% annual growth in revenue and Ebitda over FY25-28, led by 21% annual growth in new seats.
