WeWork India Management Limited has announced an upgrade in its credit rating by ICRA Limited. The rating for its long-term fund-based term loans, overdraft facilities, and unallocated facilities has been upgraded from [ICRA] A- (Stable) to [ICRA] A (Stable). The upgrade reflects an estimated increase in WeWork India's scale of operations and operating profits, driven by sustained healthy occupancy levels and comfortable debt protection metrics. The company's desk capacity increased by 20% year-on-year in FY2025 and 21% in H1 FY2026, with occupancy levels at 79% as of September 2025. Revenues are projected to grow by 20-25% year-on-year in FY2026 and FY2027. Leverage, measured by adjusted total debt to adjusted OPBITDA, is projected to improve to 0.8 times by March 2026 and is expected to remain below 1 time from FY2027 onwards. The company maintains a large and diversified presence with 1.12 lakh desks across 75 locations in eight major cities. Low customer concentration risk is also noted, with the top 10 clients contributing about 20% of total revenues. The extensive experience of its promoter, the Embassy Group, is also a supporting factor. However, the rating is partially offset by exposure to market risk due to significant capex plans in FY2027 and FY2028, high lease renewal risks (50-55% of leases are short-term), and cyclicality in the office leasing segment. Approximately 47% of customer leases are due for renewal in FY2027. The company's liquidity position is considered adequate, with free cash of ₹7.9 crore and undrawn overdraft limits of ₹4.7 crore as of September 30, 2025.
