Shares of WeWork India Management Ltd. surged by 20% in Thursday's trading, reaching the upper circuit limit after the company announced its robust financial results for the March quarter. The significant rally was fueled by a substantial increase in profit and the achievement of a net debt-negative position for the first time in its history.
Strong Financial Performance Drives Growth
For the March quarter, WeWork India reported a remarkable 141.90% year-on-year (YoY) increase in profit, reaching Rs 79.6 crore. Sales also saw a healthy rise of 28.6% YoY, totaling Rs 709.9 crore. This growth was attributed to improved capacity utilization, strategic pricing, and overall operational efficiency across its centers.
The company demonstrated strong cash generation, with free cash flow (FCF) from operations standing at Rs 233.70 crore during the fourth quarter. This consistent performance allowed WeWork India to close the fiscal year with a net debt-negative position of Rs 11.70 crore, a significant turnaround from a net debt of Rs 215.3 crore recorded just a year prior.
Operational Efficiency and Enhanced Financial Health
WeWork India also generated Rs 126 crore in Free Cash Flow to Firm (FCFF), marking an 8.4% YoY increase. This was achieved despite considerable capital expenditure investments aimed at growth and expansion, highlighting the resilience of its recurring cash-generating business model and its capacity for self-funded growth while maintaining healthy cash reserves.
The company's financial strength was further underscored by a 225 basis points (bps) reduction in its cost of borrowing YoY, bringing it down to 8.5%. Reflecting this improved financial standing, its credit rating was upgraded from A− to A+. Return on Capital Employed (ROCE) for FY26 stood at 28.3%, an increase of 317 bps YoY, with the Q4 exit print even higher at 45.1%, up 1,832 bps.
Karan Virwani, Managing Director & CEO at WeWork India, commented on the results, stating, "FY26 was a defining year as it continued expanding our footprint with pricing discipline and strong occupancy across centres. What is increasingly visible now is the strength of the compounding flywheel we have built, where occupancy, premiumisation and operating leverage continue to reinforce profitability, cash generation and returns on capital quarter after quarter."
These results indicate a robust underlying business model, enhancing the company's resilience through various economic cycles and supporting a structurally lower cost of capital.