WeWork India bets on demand as premium office offering tightens | Today’s news
Mumbai: India’s flexible workspace operators are facing a supply crunch just as demand for office space gathers pace.
The availability of Class A offices — premium commercial properties with modern infrastructure, high-quality amenities and strong connectivity — in the country’s eight largest cities, including Delhi, Mumbai, Bengaluru and Gurgaon, is likely to remain limited over the next two years, said Clifford Lobo, chief financial officer of WeWork India Management. With new supply expected to increase in 2029 and 2030, the shortage could affect operators’ expansion plans and increase the cost of securing premium properties.
WeWork India’s September quarter results underscore this opportunity. Sales increased by 31.6% year-on-year. ₹768.7 million crowns, while earnings before interest, taxes, depreciation and amortization (Ebitda) increased by 37.6% to ₹162.9 million crowns. Net profit rose by 67.4%. ₹65.8 million. The company added 11,700 desks during the quarter, its largest quarterly increase in capacity.
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“There is very limited capacity available, at least over the next few years,” Lobo told Mint in an interview, adding that WeWork has already secured about 80% of the capacity it plans to add next year.
The results point to a mature business model in which increasing occupancy and operating leverage are beginning to offset the cost of taking on new properties. Rent and equipment costs often precede revenue, so quarterly earnings are susceptible to the timing of the expansion. The previous financial year highlighted how this can affect performance before new centers start generating revenue.
“A year-over-year view, because at the same time last year, where was I, where am I now? I think they’ve shown quite significant growth,” Lobo said, taking a longer-term view of the company’s performance.
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WeWork India’s H1 numbers reinforce this improvement. Sales increased by 30.1%. ₹Ebitda increased by 50.6% to 1,466.7 million crowns ₹301.2 million and net profit increased by 149.5%. ₹119 million. Achieved free cash flow from operations ₹379.8 crore during the half year to 30 September.
The company added 18,400 desks in the first half, the biggest increase in 6 months, bringing operating capacity to 145,300 desks across 85 centers in eight cities. Membership grew 32.5% year-on-year to 121,700, outpacing a 26.9% increase in operating capacity. Portfolio occupancy was 83.7%, while mature center occupancy was 87.7%.
The expansion comes as flexible workspaces gain a larger share of the Indian office market. According to Colliers’ India Office Snapshot Q2 2026 report, flex operators accounted for 24% of leasing in the top seven cities in the first half, taking up 8.6 million square feet.
In its India Office Figures Q2 2026 report, CBRE Research said the office sector saw “highest half-year absorption at 45.5 million sq ft”, driven by sustained user demand and strong global capability center (GCC) and flexible workspace activity.
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GCCs are critical to the next phase of growth. As multinational companies expand their technology, analytics and specialized operations in India, flexible workspaces allow them to quickly establish teams without immediately committing to large, long-term offices. WeWork India said GCCs contributed 40.8% to its core revenue in the September quarter.
Lobo said demand is also expanding beyond technology companies to manufacturers, pharmaceuticals and other traditional businesses. Flexible offices give companies a cross-city presence without requiring them to set up their own facilities, while allowing them to adapt capacity as business needs change.
The challenge is to translate this demand into sustainable returns rather than simply a larger leased portfolio. Lobo said that after the pandemic, WeWork has shifted from watching capacity for itself to demand-driven expansion, higher occupancy and better use of existing space.
“It’s not enough to increase revenue by just adding more tables, and we have to figure out a way to increase share of wallet,” he said, describing a focus on getting more value from existing properties through additional services and higher revenue per table.
WeWork India estimates that its breakeven occupancy has fallen to 56% from 74% during the covid period. In the September quarter, the Ebitda margin increased to 21.2%, while the company’s free cash flow turned positive ₹61.9 million. The company moved to a net cash position of ₹23.1 million from net debt ₹310.5 million a year earlier.
