WeWork India's Strong Revenue Growth Masked by Quarterly Profit Dip
Revenue rose 27.7% year-on-year, but profit turned negative sequentially as net profit margin compressed sharply.
WeWork India posted robust 27.7% YoY revenue growth in Q1 FY27, yet profit swung to a loss from the previous quarter's high, highlighting margin volatility.
WeWork India's first-quarter results for FY27 present a mixed picture: robust revenue growth was overshadowed by a sharp sequential decline in profitability. While the company's top line continued its upward trajectory, profit slipped back into negative territory, marking a significant reversal from the strong performance in the preceding quarter.
The company's revenue for the quarter ended June 2026 stood at ₹683.83 crore, a healthy 27.7% increase compared to the same period last year. However, this was a slight 1.8% dip from the March 2026 quarter. The more pronounced shift was in the bottom line, where profit fell to a loss of ₹4.06 crore. This represents a 71.3% decline year-on-year and a stark 106.2% drop from the ₹65.87 crore profit posted in Q4 FY26. Consequently, the net profit margin turned negative at -0.6%, a sharp contraction from 9.5% in the previous quarter, though still an improvement from the -2.6% margin a year ago.
A look at the recent quarters reveals the volatility in the company's earnings path.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 683.83YoY +28% | 696.06 | 535.31 |
| Profit (₹ Cr) | -4.06YoY +71% | 65.87 | -14.15 |
| Net Profit Margin (%) | -0.6YoY +77% | 9.5 | -2.6 |
Despite the quarterly profit dip, the trailing twelve-month (TTM) picture remains positive, with a profit of ₹85 crore on revenue of ₹2,588.7 crore, translating to a 3.3% net profit margin. This suggests the latest quarter may be an outlier in an otherwise improving annual trend.
Key Points
- The company maintains a high return on equity (ROE) of 39.76% and an exceptionally high return on capital employed (ROCE) of 114.7%.
- Its valuation, with a P/E of 84.6, trades at a slight discount to the industry average P/E of 92.5.
With the net profit margin swinging from a recent high back into negative territory, the focus shifts to whether WeWork India can stabilize its profitability in the coming quarters while sustaining its revenue momentum.
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· WEWORK
(BSE)
ISIN: INE085001019
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