WeWork India Shares Drop 10% After Reporting Net Loss
WeWork India's stock fell as much as 9.6% after the coworking company reported a net loss for the first quarter of fiscal year 2027, dampening investor sentiment. The company attributed the loss to accounting standard changes.
Shares of WeWork India experienced a significant decline, dropping up to 9.6% on the Indian stock exchange following the announcement of its first-quarter fiscal year 2027 results. The coworking company reported a net loss, which negatively impacted investor sentiment, despite the stock having previously seen a nearly 13% increase year-to-date.
The company registered a consolidated net loss of ₹4.1 crore for Q1 FY27. This contrasts with a net profit of ₹53.2 crore, which WeWork India stated it achieved under Indian Generally Accepted Accounting Principles (IGAAP)-equivalent standards. The company attributed the reported loss to its transition to Indian Accounting Standards (Ind-AS). Revenue from operations increased by 28% year-over-year to ₹683.8 crore, though it saw a 2% sequential decrease.
Despite the accounting loss, CEO Karan Virwani emphasized strong operational performance. April marked the company's highest-ever monthly sales, with approximately 7,500 desks sold. Quarterly seat sales surged 88% year-over-year to 12,700. Occupancy rates improved to 84.9%, with a notable trend of existing customers expanding their leased spaces within the WeWork India network.
WeWork India is actively expanding its physical footprint. The company operates 79 centers covering 9.1 million square feet, with around 1.34 lakh operational desks. It has secured leases for an additional 2.9 million square feet, projecting a total operational capacity of approximately 1.55 lakh desks by March 2027. In a move to diversify, the company also launched 'Member Services,' a marketplace integrated into its app, offering various business support services.