WeWork India shares rise 2% after $66m quarterly revenue

Shares of WeWork India rose as much as 2% on November 10 after the company reported its Q3 results.

WeWork India, a co-working space operator based in India, posted revenue of 585 crore rupee (US$66 million) for the quarter, up 22% year-on-year.

EBITDA rose 26% to 390 crore rupee (US$44 million), and EBITDA margin improved to 66.7% from 64.4% a year earlier.

Profit before tax reached 6.2 crore rupee (US$700,000), compared to a net loss of 31.4 crore rupee (US$3.5 million) in Q3 last year, though the previous year’s profit was affected by a tax credit of over 230 crore rupee (US$25.9 million).

The company ended the quarter with 7.7 million square feet across 70 centers in eight cities, managing 1.15 lakh desks at 80.2% occupancy.

Renewal rate was 78%, and average membership tenure increased 17% to 27 months.

Shares traded at 644.3 rupee (US$7.27) following the announcement, near the company’s IPO price of 648 rupee (US$7.31).

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Lease rules likely inflate WeWork India’s 66.7% EBITDA margin

The 66.7% EBITDA margin looks unusual for a lease-heavy coworking operator, since Ind AS 116 moves rent into depreciation on right-of-use assets and interest on lease liabilities below EBITDA.
With long leases, Ind AS 116 can lift EBITDA, which weakens comparisons to operating margins and clouds the cash picture.
Investors need the lease liability schedule and interest expense. They also need ROU depreciation and operating cash flow to judge earnings quality as leases age or reprice.
A swing from ₹31.4 crore net loss last year to ₹6.2 crore profit before tax this quarter needs a cash flow check for durability beyond accounting effects.

Enterprise demand lifts workplace tech and aggregation platforms

Renewals hit 78%. Average membership tenure rose 17% to 27 months, while international enterprises took 72% of 2024 flex seat absorption in India.
Longer commitments help vendors of desk booking, access control, or space analytics, as deployments run longer and standardize.
Aggregation tools that manage space across providers stand to gain as the flex market nears 100 million sq ft by 2026 in India. Bengaluru is near 30% share, while Tier 2 expansion adds fragmentation that pushes buyers to unified procurement with central management.
Vendors should align go-to-market and city picks with 2025 demand forecasts. Prioritize Information Technology/IT-enabled Services (IT/ITeS) near 40% of flex demand. Banking, Financial Services, and Insurance (BFSI) is near 10% in 2025 after doubling.