WeWork India tops peers in revenue, profitability despite smaller footprint

WeWork India

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26 Aug, 2025 12:21

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WeWork India, one of the country’s leading premium flexible workspace operators, has remained the largest player by revenue for the past three years. However, as the workspace player is set to make its entry onto Dalal Street, how does it stack up against its competitors?

Earnings: 

Its total income grew 22 percent from Rs 1,423 crore in FY23 to Rs 1,737 crore in FY24, and rose another 17 percent to Rs 2,024 crore in FY25.

Revenue from operations climbed 27 percent from Rs 1,315 crore in FY23 to Rs 1,665 crore in FY24, and further increased 17 percent to Rs 1,949 crore in FY25. In the June quarter of FY26, revenue from operations stood at Rs 535 crore, up 19 percent year-on-year.

Peer comparison:

Smartworks Coworking Spaces, Awfis Space Solutions and Indiqube Spaces are WeWork India’s benchmarked peers, according to the realty player’s red herring prospectus.

Relative to peers, WeWork India achieved 1.42 times the operational revenue and 2.45 times the adjusted EBITDA of the next largest operator. Its average portfolio revenue-to-rent multiple of 2.7 in FY25 outperformed the industry average of 1.9 to 2.5.

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Further, WeWork India leads the sector with the highest revenue of Rs 19,492 million, EPS of Rs 9.93, and a strong RONW of 63.8 percent, reflecting solid profitability. Awfis Space Solutions follows with Rs 12,075 million in revenue and a P/E of 55.6 but a lower RONW of 14.8 percent.

Further, despite having a smaller geographic footprint, WeWork India reported the highest profit among its peers. The company operates 70 centers across eight cities with a total leasable area of 7.8 million sq ft and an occupancy rate of 76.8 percent.

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It reported the highest profit of Rs 1,282 million, outperforming peers Awfis, Smartworks, and IndiQube. In comparison, both Smartworks and IndiQube remained loss-making, even as they operated in more cities with higher occupancy rates.

Cases for investment:

Analysts noted that the firm’s revenue and EBITDA have grown at a CAGR of 21.8 percent and 24.7 percent respectively, to achieve profitability in FY25. In general, the Indian flexible workspace sector is experiencing strong growth, driven by the adoption of hybrid work models and increasing demand for scalable, cost-efficient office solutions.

Further, WeWork India is majority owned and promoted by Embassy Group, a leading real estate developer in India with a portfolio exceeding 85 million square feet. Embassy Group sponsors Embassy REIT, which is Asia’s largest office REIT by leasable area.

This provides it with deep industry insight and access to premium office spaces, noted HDFC Securities, adding, “This partnership differentiates WeWork as one of the few flexible workspace operators in India backed by major real estate developers.”

Additionally, WeWork India has maintained a weighted average membership tenure with members of ~26 months, owing to the strength of its brand and offerings. Additionally, the company’s weighted average membership tenure with Large Enterprise Members was 31 months, as of June 2025, noted SBI Securities.

Valuation:

At the upper price band of Rs 648, the issue is valued at FY25 P/E multiple of 50.1x based on the post-issue capital. According to SBI Securities, the issue is fairly valued. “We maintain a ‘neutral’ view on the company and would like to monitor the performance of the company post listing,” added the brokerage.

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