WeWork India reported a notable turnaround in Q3 FY26, posting a consolidated profit after tax of ₹17 crore versus a loss of ₹83 crore in the same quarter last year. The recovery reflects stronger demand for flexible and managed office spaces and improved operational efficiency across the company’s portfolio.
Revenue growth and higher occupancy
Revenue from operations for Q3 FY26 rose 29% year‑on‑year to about ₹634 crore, up from roughly ₹492 crore in Q3 FY25. Including other income, total quarterly income was close to ₹644 crore, underscoring stronger top‑line momentum.
For the nine months ended, operational revenue reached nearly ₹1,744 crore, a 24% increase from ₹1,410 crore a year earlier. Management attributes this sustained growth to higher occupancy levels, better client retention and a diversified customer mix spanning startups, SMEs, domestic enterprises and multinational corporations.
Costs and margin dynamics
WeWork India continues to operate a cost‑intensive model. Total expenses in Q3 FY26 were around ₹624.5 crore. Depreciation related to leased properties was the largest single expense at approximately ₹246 crore for the quarter, reflecting the capitalised lease and fit‑out base.
Employee benefit expenses were about ₹52 crore, while finance costs stood near ₹152 crore. Despite these fixed and recurring costs, the company improved margins through higher space utilisation and tighter operating controls, enabling a return to profitability.
Drivers of demand for flexible offices
The company’s performance aligns with a broader shift in corporate real estate strategy: firms increasingly prefer short‑term, scalable leasing over long‑term commitments amid uncertain macroeconomic conditions. Hybrid work models, a rise in entrepreneurship and demand for premium managed offices have lifted occupancy and revenue for coworking operators.
WeWork India’s established presence in key business districts has helped it capture enterprise clients looking for flexibility and managed services, reinforcing its revenue stability.
Market outlook and strategy
Investors have closely watched WeWork India’s recovery given the global coworking sector’s challenges. Achieving profitability in Q3 FY26 signals strengthening fundamentals in the Indian market, which continues to be one of the fastest‑growing coworking ecosystems worldwide.
Going forward, the company is expected to prioritise optimisation of existing locations, improvement in occupancy and deeper enterprise partnerships rather than aggressive expansion. The focus appears to be on sustainable growth, cash‑flow resilience and long‑term profitability.
