1.At a Glance
WeWork India just pulled off one of the most dramatic IPOs of the year — a ₹3,000 croreOffer for Saleextravaganza that debuted on October 10, 2025. The stock, now at₹625, is valued at a bold₹8,357 croremarket cap, trading at a premium P/E of47.4×, because apparently, “space” is still a luxury.
InQ2FY26, the company reportedRevenue of ₹585.5 croreand anInd-AS PAT of just ₹6.4 crore— down96% QoQ, proving that profitability in coworking is still the ultimate yoga pose: possible, but painful. Yet, withoccupancy at 80.2%andOperating Margins of 63.7%, the WeWork India story continues to sell the dream of “collaboration” — even if the profits seem shy about joining the party.
The parentage underEmbassy Group, access to premium real estate, and client base featuringAmazon, JP Morgan, and Deutsche Telekomgive it that “premium-chai” brand image. But with₹4,794 crore debtanda current ratio of 0.30, the caffeine rush may need a refill soon.
2.Introduction
If real estate were a Bollywood film, WeWork India would be that stylish cameo — all aesthetics, all attitude, and just enough mystery to keep you watching. Founded in 2016, and freshly listed in 2025, the company has quickly become India’s flex-workspace show-stopper.
While the original US-based WeWork was busy burning billions and starring in a Netflix documentary, the Indian franchise quietly became the grown-up sibling — operating 68 centres across eight Tier-1 cities, covering7.67 million sq ftand over1.14 lakh desks. The difference? No tequila-fuelled vision boards, just solid occupancy and desi jugaad economics.
But let’s face it — coworking is the stock market’s favourite “fancy loss-maker” sector. Margins look juicy at first glance, until you rememberinterest and depreciationtake half the buffet away. For Q2FY26, despite₹380.7 cr operating profit, bottom-line PAT barely managed₹7.39 cr. That’s like throwing a wedding for ₹2 crore and giving the guests ₹7 samosas each.
Still, investors love the story: modern work culture, flexible leases, and enterprise clients committing for an average of 31 months. In the post-pandemic office revival, WeWork India is selling an experience — not just a desk. The question is: can the vibe pay the bills?
3.Business Model – WTF Do They Even Do?
Let’s decode this. WeWork India isn’t just “a place to work.” It’s anasset-light operatorrenting premium office spaces (mostly fromEmbassy GroupandEmbassy REIT), designing them into Instagram-worthy hubs, and then sub-leasing to enterprises, SMEs, startups, and freelancers on flexible tenures.
Think of it as anoffice aggregator: leasing long-term, renting short-term, adding Wi-Fi, coffee, and community managers in hoodies. It’s a real-estate sandwich — and they sell the toppings at a margin.
Their portfolio is skewed towardsGrade A properties (94%), ensuring high rentals but also hefty deposits and fit-out costs. Revenue comes mainly from:
- Membership
- fees (75%+ from enterprise clients)
- Event spaces and food & beverage
- Value-added serviceslike facility management and customization
Bangalore contributes the most desks (41.5% of capacity) and drives the bulk of revenue (two-thirds of total). Mumbai follows at 19%. Together, they’re the company’s economic spine.
So yes, WeWork India sells “community,” but at its heart — it’s a well-dressed rent-margin machine.
4.Financials Overview
Quarterly Snapshot (Standalone, ₹ crore)
| Metric | Q2 FY26 | Q2 FY25 | Q1 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 573.0 | 468.7 | 533.9 | 22.3 % | 7.3 % |
| EBITDA | 380.7 | 298.1 | 334.7 | 27.7 % | 13.8 % |
| PAT | 7.4 | 203.9 | -14.6 | -96.4 % | — |
| EPS (₹) | 0.55 | 37.2 | -1.09 | -98.5 % | — |
Annualised EPS = ₹ 0.55 × 4 = ₹ 2.2 → P/E ≈ 625 / 2.2 = 284× (true, not “meaningful”)
So yes, the “47× P/E” looks modest only because it’s based on FY25 PAT, not the latest quarter carnage.
Commentary:The company’sEBITDA marginis hotter than a Bengaluru startup cafe at 66 %, but interest + depreciation eat it alive. This quarter’s PAT collapse (-96 %) is a not-so-gentle reminder that “occupancy ≠ profitability.”
5.Valuation Discussion – Fair Value Range (Educational)
Method 1: P/E BasedFY25 EPS = ₹ 9.74. Industry P/E ≈ 22.6×.→ Fair Value Range = ₹ 220 – ₹ 300 per share.
Method 2: EV/EBITDAEV = ₹ 13,143 cr; EBITDA (FY25) ≈ ₹ 1,237 cr → EV/EBITDA ≈ 10.6×.Peer average (NESCO ~ 12×, IGL ~ 8×).→ Fair EV/EBITDA range ≈ ₹ 12,000 – ₹ 14,000 cr.Translates to equity value per share ≈ ₹ 550 – ₹ 650.
Method 3: DCF ApproximationAssume 15 % revenue CAGR next 5 yrs, terminal growth 4 %, discount rate 12 %.→ Implied value ≈ ₹ 580 – ₹ 680 per share.
🎯Educational Fair Value Range: ₹ 500 –
