WeWork India Q2 Results: Revenue rises to record high; profit declines sharply as tax gains fade

WeWork India Management Limited has released its financial results for the quarter ending September 30, 2025, showcasing a significant year-on-year increase in revenue but also highlighting challenges in maintaining profitability.

The company reported a robust increase in revenue from operations, reaching ₹5,730.30 million for the quarter ended September 30, 2025, compared to ₹4,687.01 million in the same period last year. This marks a substantial growth of ₹1,043.29 million or 22%, reflecting the company's successful efforts in expanding its managed workspace services.

Total income for the quarter also saw a notable rise, amounting to ₹5,838.20 million, up from ₹4,986.26 million in the previous year.

Profitability challenges remain

Despite the revenue growth, the company faced challenges in profitability. The net profit before tax for the quarter stood at ₹73.87 million, a positive shift from a loss of ₹146.08 million in the preceding quarter of FY26. However, the net profit after tax decreased significantly by 96% YoY. The figure stood at ₹2,038.89 million in the previous year quarter, driven by a deferred tax credit.

WeWork India experienced an increase in total expenses, which rose by ₹465.33 million to ₹5,764.33 million. Key contributors to this rise included employee benefits expenses, which increased by ₹99.39 million, and depreciation and amortization expenses, which grew by ₹288.23 million. These rising costs reflect the company's investments in human resources and capital assets to support its growth strategy.

On a positive note, finance costs slightly decreased by ₹39.84 million, indicating improved financial management and cost control measures.

The company said its free cash flow from operations stood at ₹ 9540 million, and Return on Capital Employed improved to 22.2%, underscoring WeWork India’s disciplined growth strategy, financial resilience, and efficient capital deployment.

Karan Virwani, Chief Executive Officer & Managing Director, said, “Our Q2 results signify a defining moment in WeWork India’s journey. With record revenue, expanding margins, and our first IndAS PAT-positive quarter, we’ve demonstrated that flexibility and profitability can coexist at scale. This quarter reflects strong improvement in operating leverage and profitability, with IGAAP EBITDA up 45.0% QoQ and ROCE strengthening to 22.2%."

Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.