WeWork India bets on demand as premium office supply tightens

Mumbai: India's flexible workspace operators are facing a supply crunch just as demand for office space gathers pace.

Availability of Grade A offices - premium commercial properties with modern infrastructure, high-quality amenities and strong connectivity - in the country's eight largest cities, including Delhi, Mumbai, Bengaluru and Gurgaon, is likely to remain limited over the next two years, Clifford Lobo, chief financial officer of WeWork India Management, said. With fresh supply expected to pick up in 2029 and 2030, the shortage could shape operators’ expansion plans and drive up the cost of securing premium properties.

WeWork India’s September-quarter results underline the opportunity. Revenue rose 31.6% year-on-year to ₹768.7 crore, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 37.6% to ₹162.9 crore. Net profit surged 67.4% to ₹65.8 crore. The company added 11,700 desks during the quarter, its largest-ever quarterly capacity addition.

“There is very limited capacity becoming available, at least over the next couple of years,” Lobo told Mint in an interview, adding that WeWork had already secured about 80% of the capacity it plans to add next year.

The results point to a maturing business model in which rising occupancy and operating leverage are beginning to offset the costs of taking on new properties. Rent and fit-out expenses often precede revenue, leaving quarterly earnings vulnerable to the timing of expansion. The previous financial year highlighted how this can weigh on performance before new centres start generating income.

“The year-on-year view, because same period last year, where was I, where am I now? I think those have shown pretty significant growth,” Lobo said, arguing for a longer-term view of the company’s performance.

WeWork India’s first-half numbers reinforce the improvement. Revenue increased 30.1% to ₹1,466.7 crore, Ebitda rose 50.6% to ₹301.2 crore, and net profit climbed 149.5% to ₹119 crore. Free cash flow from operations reached ₹379.8 crore during the half year to 30 September.

The company added 18,400 desks in the first half, its largest 6-month addition, taking operational capacity to 145,300 desks across 85 centres in eight cities. Membership grew 32.5% year-on-year to 121,700, outpacing the 26.9% increase in operational desk capacity. Portfolio occupancy stood at 83.7%, while occupancy at mature centres was 87.7%.

The expansion comes as flexible workspaces gain a larger share of India's office market. According to Colliers’ India Office Snapshot Q2 2026 report, flex operators accounted for 24% of leasing across the top seven cities in the first half, taking up 8.6 million sq. ft.

CBRE Research, in its India Office Figures Q2 2026 report, said the office sector had recorded its “highest-ever half-yearly absorption of 45.5 mn. sq. ft.”, driven by sustained occupier demand and strong global capability centre (GCC) and flexible workspace activity.

GCCs are central to the next phase of growth. As multinational companies expand their technology, analytics and specialised operations in India, flexible workspaces allow them to establish teams quickly without immediately committing to large, long-term offices. WeWork India said GCCs contributed 40.8% of its core revenue in the September quarter.

Lobo said demand was also broadening beyond technology companies to manufacturers, pharmaceutical businesses and other traditional enterprises. Flexible offices give companies a presence across cities without requiring them to establish their own facilities, while allowing them to adjust capacity as business needs change.

The challenge is to convert this demand into sustainable returns rather than simply a larger leased portfolio. Lobo said that post-pandemic, WeWork shifted from pursuing capacity for its own sake towards demand-led expansion, higher occupancy and better utilisation of existing space.

“It's not enough to grow revenue just by adding more desks and we have to figure out a way to grow the wallet share,” he said, describing the focus on extracting more value from existing real estate through additional services and higher revenue per desk.

WeWork India estimates that its break-even occupancy has fallen to 56%, from 74% during the covid period. In the September quarter, Ebitda margin expanded to 21.2%, while free cash flow to firm turned positive at ₹61.9 crore. The company moved to a net cash position of ₹23.1 crore from net debt of ₹310.5 crore a year earlier.

About the Author

T. Surendar is a senior journalist at Mint with nearly three decades of experience covering business, markets, and corporate India. Since beginning his career in 1996, he has built a reputation for insight-driven reporting on corporate strategy, with a particular focus on India’s large, family-owned businesses and their evolution.<br><br>At Mint, he writes on corporate strategy, market trends, and regulatory developments, bringing depth and clarity to complex business stories. Over the years, he has worked with leading publications including India Today and Businessworld, and was part of the founding editorial teams of Forbes India and Fortune India. Most recently, he served as managing editor at The Morning Context, where he led long-form and investigative journalism.<br><br>Earlier in his career, Surendar served as national business features editor at The Times of India, India’s largest-circulated English daily, where he broke several important stories, including the one on the Apollo Hospitals chain losing out on their Sri Lankan venture and the guar gum trading scam.<br><br>Prior to his journalism career, Surendar worked across the pharmaceutical, industrial automation, and diamond jewellery sectors, and also as an equity analyst—experience that informs his nuanced understanding of corporate strategy and markets.<br><br>Surendar is known for breaking trend-defining stories and producing authoritative explainers on key corporate developments, including succession planning at Reliance Industries. He has interviewed some of India’s most influential business leaders, including Mukesh Ambani, Ratan Tata, Kumar Mangalam Birla, Anand Mahindra, and Dilip Shanghvi.<br><br>A Chevening Scholar in Journalism, he completed a specialised programme at the University of Westminster, and has also undergone a Newsroom Leadership Program conducted by Columbia University. He holds a bachelor’s degree in mathematics and has taught journalism courses at the University of Mumbai.<br><br>He has moderated and conducted high-profile discussions at forums such as Fortune India’s Most Powerful Women event. His work is defined by rigour, independence, and a commitment to helping readers understand the strategic forces shaping corporate India.