WeWork India Management Ltd shares fell almost 10 percent in morning trading on Friday as the company posted good first quarter financial results. The sharp fall surprised investors as the coworking space provider saw revenue increase, operating margins improve and net loss fall sharply.
WeWork India reported a consolidated net loss of ₹4.3 crore in the June quarter compared to ₹14.1 crore loss in the same quarter last year. The revenue from operations grew 27.7% year-on-year to ₹684 crore and compared to ₹535 crore in Q1 FY26, which reflects the popularity of flexible workplace space in major Indian cities.
The company’s performance also showed strong performance. EBITDA increased 30.4 percent year-on-year to ₹438 crore and the EBITDA margin increased to 64% (from 62.7 percent a year earlier) from 62.7 percent. WeWork India benefits from growing enterprise demand, an increase in occupancy levels and cost control in a competitive commercial real estate market, the results showed.
In operation, the company continued to grow across the country. WeWork India's footprint grew to 79 centres across eight cities, a total of 9.1 million square feet of operational space. Almost 30% of its committed portfolio is now on track to reach 12 million square feet, and signed leases and letters of intent are now in place. It is a reflection of the company's confidence in the long-term demand for premium managed office space.
Despite these encouraging numbers, investors booked profits after the stock’s recent rally. Market analysts think that the decline was largely driven by valuation concerns and profit taking and not in the stock’s fundamentals. WeWork India shares prior to the earnings announcement had already jumped in recent months so there was little room to take the stock up immediately after the results were announced to see a significant rise in shares. Investors are also cautious about future expansion costs, occupancy trends, and market volatility.
The stock dropped as much as 9.64% at its low for the day before recovering some ground again later on in the day. At the same time, WeWork India’s robust financial performance is evidence of continuous growth in business based on growing demand from startups, global capability centres (GCCs) and large companies that demand a flexible office, analysts say.
Investors will watch closely for the company to maintain occupancy levels, maintain margins and execute on its expansion plan. While the share price dropped sharply, the results showed WeWork India’s underlying business is on a strong growth trajectory and hence a good stock in the flexible workspace segment.
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