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Shares of WeWork India fell as much as 9.6% to hit an intraday low of ₹657.85 on the BSE today after the coworking company slipped into the red in Q1 FY27, dampening investor sentiment.

The stock pared some of its losses later and was trading 5.4% lower at ₹688.75 at 12:43 PM IST, taking WeWork India’s market capitalisation to ₹9,545.4 Cr (about $990.6 Mn).

Notably, despite declining more than 6% over the past five trading sessions, the stock remains up nearly 13% year to date.

Yesterday, WeWork India reported a consolidated net loss of ₹4.1 Cr in Q1 FY27 against a loss of ₹14.2 Cr a year earlier. The company attributed the loss to its transition to Indian Accounting Standards (Ind-AS), while stating that it generated an IGAAP-equivalent net profit of ₹53.2 Cr during the quarter.

Revenue from operations rose 28% YoY to ₹683.8 Cr, although it slipped 2% sequentially. Total expenses climbed 26% to ₹704.7 Cr as the company accelerated investments to expand capacity.

In its post-earnings call, WeWork India sought to reassure investors by highlighting strong operating momentum despite the reported accounting loss.

CEO Karan Virwani said the company recorded its highest-ever monthly sales in April, selling about 7,500 desks, while quarterly seat sales jumped 88% YoY to 12,700. 

Occupancy improved to 84.9%, with more than half of new sales coming from existing customers expanding within the network. Renewal rates stood at 84%.

The company ended the quarter with 79 centres spanning 9.1 Mn sq ft and around 1.34 Lakh operational desks. It has signed leases for another 2.9 Mn sq ft, or nearly 44,000 additional desks, and expects its total operational capacity to reach about 1.55 Lakh desks by March 2027.

CFO Clifford Lobo said the company’s IGAAP-equivalent EBITDA rose 69% YoY to ₹138.3 Cr, while profit increased more than sixfold to ₹53.2 Cr. Cash flow from operations surged 176%, net debt-to-EBITDA fell to 0.06x and its credit rating was upgraded from A- to A+.

The management reaffirmed its guidance of more than 20% revenue and EBITDA growth in FY27, and said it expects margins to improve as new centres mature. 

The company plans to add about 28,000 desks during the fiscal year and said a change in the accounting treatment of large customer customisation revenue from upfront recognition to amortisation over the contract period would help smooth quarterly earnings.

Earlier this week, WeWork India also launched ‘Member Services’, a marketplace integrated into its app that offers services such as hiring, transport, IT, insurance and legal support, as it looks to diversify beyond flexible workspaces into enterprise services.

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