WeWork India Q2 Results 2025: Revenue Jumps 22%, Profit Plummets 96% YoY

WeWork India’s second-quarter results for FY26 reflect a tale of two narratives: impressive revenue growth alongside significant profitability challenges. The company’s performance continues to attract investor attention in the Indian stock market, highlighting both the promise and the operational pressures of scaling managed workspace services.

Market Performance: Mixed Sentiment as Q2 Results Roll In

The stock market reacted to WeWork India’s Q2 numbers with cautious optimism. Revenue growth was applauded, reflecting strong operational execution. However, the sharp drop in net profit after tax raised questions about rising costs. Investors and market participants took a closer look at the balance between expansion and cost efficiency.

Main News: Revenue Up, Profitability Under Pressure

WeWork India posted robust top-line growth in Q2 FY26:

• Revenue from Operations: ₹5,730.30 million, up from ₹4,687.01 million in Q2 FY25 (+22%)
• Total Income: ₹5,838.20 million, up from ₹4,986.26 million
• Net Profit Before Tax: ₹73.87 million, turning positive from a loss of ₹146.08 million last quarter
• Net Profit After Tax: ₹73.87 million, down 96% from ₹2,038.89 million YoY

Company Details: Operational Growth and Rising Costs

WeWork India’s growth story is visible in both revenue and strategic investment:

• Total Expenses: ₹5,764.33 million, up ₹465.33 million YoY
  • Employee Benefits: Increased by ₹99.39 million
  • Depreciation & Amortization: Rose by ₹288.23 million
• Finance Costs: Reduced slightly by ₹39.84 million, reflecting better financial management

The increase in expenses reflects deliberate investments in human resources and infrastructure to support future growth.

Positive Takeaways: Cash Flow and Capital Efficiency

While profitability faced short-term pressures, WeWork India showed resilience in cash flow and capital management:

• Free Cash Flow from Operations: ₹9,540 million
• Return on Capital Employed (ROCE): 22.2%

These figures indicate a disciplined approach to growth, showing that even amid rising costs, the company maintains strong operational leverage and efficient use of capital.

Summary: A Quarter of Growth Amid Challenges

WeWork India’s Q2 FY26 numbers present a mixed picture:

• Revenue Growth: ₹1,043.29 million YoY (+22%)
• Profit Challenges: Net profit after tax down 96%
• Cost Pressures: Expenses rising due to employees and asset investments
• Cash Flow Strength: Free cash flow remains healthy at ₹9,540 million
• Capital Efficiency: ROCE improved to 22.2%

The quarter reflects the dual nature of WeWork India’s journey—rapid expansion and operational resilience, alongside the challenges of sustaining profit margins in a scaling environment. The company’s focus on long-term value, disciplined capital allocation, and operational leverage remains central to its story in the Indian stock market.