Wework India Q1 FY27 Results (NSE: WEWORK)
Signal: Loss narrowed
The read
WeWork India's Q1FY27 consolidated net loss narrowed to ₹4.31 Cr from ₹14.10 Cr a year ago, driven by 27.7% revenue growth and EBITDA margin expansion of ~180bps to 66.5%. However, the company remains loss-making due to high finance costs (₹176.14 Cr, +29% YoY) and depreciation (₹282.78 Cr, +26.5% YoY) from aggressive desk expansion. The board approved a capital reduction to wipe out accumulated losses and altered the objects clause to include e-commerce, signalling a strategic pivot. The trajectory of margin improvement is positive, but the path to profitability hinges on absorbing the current capex cycle.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹683.83 Cr | 27.7% | -1.75% |
| EBIT | ₹172.11 Cr | 40.3% | |
| Net profit | ₹-4.31 Cr | 69.5% | |
| EPS | ₹-0.31 | 70.5% | |
| EBIT margin | 66.5% |
P&L walk
Revenue grew 27.7% YoY, EBITDA margin expanded 180bps to 66.5% on operating leverage, but net loss persists due to high finance costs and depreciation.
Key positives
- Revenue grew 27.7% YoY to ₹683.83 Cr, maintaining strong double-digit growth.
- EBITDA margin expanded ~180bps YoY to 66.5%, marking the fourth consecutive quarter of YoY margin expansion.
- Net loss reduced by 69.5% YoY from ₹14.10 Cr to ₹4.31 Cr, improving bottom-line trajectory.
Key concerns
- Net loss persists despite strong revenue growth; high finance costs (₹176.14 Cr, +29% YoY) and depreciation (₹282.78 Cr, +26.5% YoY) weigh on profitability.
- Revenue QoQ declined 1.75% from Q4FY26, possibly seasonal or due to slower desk additions.
Research and educational content only. Not investment advice.