Why Did WeWork India's Q2 Net Profit Plummet 96% to Rs 6.4 Crore?
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Synopsis
WeWork India faces a significant challenge as its net profit plunges by an astonishing 96% in Q2 FY26, despite a notable increase in revenue. This article explores the reasons behind the drastic decline and what it means for the company's future.
Key Takeaways
- WeWork India reported a 96% YoY decline in net profit.
- Revenue rose by 22.4% YoY.
- Total expenses increased to Rs 579 crore.
- CEO Karan Virwani emphasizes flexibility and profitability can coexist.
- Company granted over 561,000 employee stock options.
Mumbai, Nov 10 (NationPress) On Monday, WeWork India disclosed a staggering 96% year-on-year (YoY) drop in its consolidated profit after tax (PAT), reporting only Rs 6.4 crore for the second quarter of FY26, a significant fall from Rs 203.7 crore during the same quarter last fiscal (Q2 FY25).
This dramatic decline in profitability occurred despite a consistent rise in revenue, suggesting that increased expenses or one-off costs adversely influenced margins for the quarter. Revenue from operations surged by 22.4% YoY to Rs 574.7 crore, compared to Rs 469.5 crore in Q2 FY25, as stated in a regulatory filing.
The premium flexible workspace provider reported total expenses for the reviewed quarter at Rs 579 crore, which is nearly 9% YoY higher than Rs 530.3 crore in the same quarter last year.
“Our Q2 results mark a pivotal point in WeWork India’s journey. With record revenue, expanding margins, and our first IndAS PAT-positive quarter, we’ve shown that flexibility and profitability can coexist at scale. This quarter reflects strong improvements in operating leverage and profitability, with IGAAP EBITDA increasing 45% QoQ and ROCE strengthening to 22.2%,” said Karan Virwani, Chief Executive Officer and Managing Director.
“We are evolving beyond just physical spaces to create a comprehensive ecosystem of workspace solutions, services, and technology. WeWork India is fostering sustainable environments that empower organizations and positively impact communities to achieve their best work. We are not only growing faster; we are growing smarter, driving record revenues and expanding margins while delivering long-term value,” he added.
During the quarter and the six months ending September 30, 2025, the company granted 561,324 and 575,561 employee stock options, respectively, to eligible employees under the Employee Stock Option Plan 2018 (ESOP 2018), as per the exchange filing.
Meanwhile, the company’s shares were trading lower during intra-day trading on Monday due to the disappointing Q2 earnings. At around 3:14 pm, the stock was priced at Rs 626.30, down 0.89%.
Point of View
It's crucial to present an unbiased perspective. WeWork India's substantial profit drop raises questions about sustainability and future growth. While revenue growth is promising, the increase in expenses highlights potential operational challenges. The company's ability to adapt and innovate in a competitive market will be vital for its ongoing success.
NationPress
11/11/2025
Frequently Asked Questions
What caused WeWork India's profit decline?
The significant profit decline was primarily attributed to increased expenses and one-off costs, despite a substantial growth in revenue.
How much did WeWork India's revenue increase?
WeWork India's revenue rose by 22.4% year-on-year, reaching Rs 574.7 crore in Q2 FY26.
What are the future prospects for WeWork India?
WeWork India aims to evolve into a comprehensive ecosystem of workspace solutions, focusing on sustainable environments to drive long-term value.
