WeWork India Management Limited has released the transcript of its Q3 FY26 Earnings Conference Call, which was held on January 28, 2026. The call featured insights from Managing Director and CEO Karan Virwani, CFO Clifford Lobo, and Chief Investment Officer Vinayak Parameswaran, with Murtuza Arsiwalla from Kotak Institutional Equities moderating. Karan Virwani highlighted the company's continuous operational excellence, deepened adoption, and effective monetization of its product suite. WeWork India now serves over 100,000 members across 73 centers in eight cities. The company added 20,000 desks in the last 12 months, a 20% year-over-year increase, with occupied desks growing nearly 30% and portfolio occupancy reaching 84%. Revenue for Q3 FY26 was a record ₹640 crores, up 10% quarter-on-quarter and 27% year-over-year. The Managed Office business has scaled to 26,000 desks, contributing 21% of total revenue with an annualized run rate exceeding ₹530 crores, growing at 63% CAGR over the last two years. Operationally, sales velocity surged 41% year-over-year to nearly 38,000 desks in the first nine months. EBITDA pre-ESOP was approximately ₹141 crores, and post-ESOP was around ₹135 crores, up 14% quarter-on-quarter and 48% year-over-year, with margins expanding to 21%. Profit After Tax (PAT) surged to ₹52 crores, up 32% quarter-on-quarter and 512% year-over-year. ROCE reached a high of 33%. Future capacity plans include reaching 8.7 million square feet by March 2026 and 10.3 million square feet by March 2027. Clifford Lobo detailed the financial performance, noting that Q3 FY26 revenues stood at ₹640.3 crores, driven by higher capacity, improving utilization, and sustained price resilience. Core operations contributed ₹532.3 crores, digital products ₹19.8 crores, and value-added services ₹85.9 crores. Post-ESOP EBITDA was ₹134.6 crores with a 21% margin. PAT was ₹52 crores, a margin of 8%. Free cash flow from operations increased to ₹203.8 crores. Capex outflow for the quarter was ₹141.1 crores. Net debt stands at ₹110.4 crores, and the company received a full settlement of ₹153 crores in ICD from the promoter group. The average cost of borrowing declined to 9.9%, and the credit rating was upgraded from BBB to A. During the Q&A, management discussed expansion plans, with a significant portion front-ended towards Q1 and Q2 of the next financial year. The managed office share is expected to incrementally move up to around 30% in the next 24 months. Capex for FY26 is estimated between ₹300-400 crores for the speculative business, with managed office capex dependent on client requirements. Drivers for the increase in ROCE include operating leverage and cash from managed office deals. EBITDA margins were impacted by one-time expenses, including IPO costs. The company is experimenting with a 'fit-out-as-a-service' business with potential margins of 10-15%. Deferred tax assets were recognized on an annual evaluation basis. Revenue per seat is approximately ₹22,000, with a capex breakeven period of around three years. Operational breakeven across the portfolio is at 54.8% occupancy. Enterprise clients contribute approximately 74% of revenue, with managed offices making up 21%. The top 10 customers contribute about 21% of revenue, indicating diversification. Retention rates are in the 75%-80% range, with NPS at a record high of 73 points. Managed office commitment terms are typically three to five years, with capex recovery within this timeframe. Value-added services are expected to contribute 12%-14% of overall revenue.
