WeWork India Management IPO: Flexible Workspace Leader with Embassy Pedigree – Should You Subscribe?

About the Issue:

WeWork India Management Ltd, incorporated in May 2016 (originally “Halosaur Bengaluru Private Limited”, renamed in December 2016 and converted to public in November 2024), operates flexible workspaces across India under an exclusive licence of the WeWork brand. Its model spans leased centres and managed/asset-light formats, offering private offices, office suites, customised managed offices, serviced floors, coworking and hybrid digital products (On-Demand, All Access, Virtual Office, Workplace SaaS). Value-added services include fit-outs, parking, events and F&B. As at March 31, 2025, the portfolio covered ~65–68 centres and ~1.17–1.20 lakh seats across eight Tier-1 cities. Embassy Group is the majority promoter.

At a Glance

Objects of the Issue and Promoter Details

• Offer for Sale: Up to Rs 3,000.00 crore (no fresh issue).
• Company proceeds: Nil — entire proceeds to Selling Shareholders (Embassy Buildcon LLP and 1 Ariel Way Tenant Ltd) after offer expenses.

Industry Outlook 

India’s flexible workspace market is expanding rapidly as occupiers adopt hub-and-spoke and hybrid models. Per the CBRE Report cited in the RHP, India’s flexible stock is projected to rise sharply by FY27, with the flexible workspace industry growing near ~20 per cent CAGR over FY24–FY27, underpinned by enterprise demand, seat densification and cost optimisation. India’s TAM spans tens of millions of square feet, with rapid penetration in top office markets and increasing adoption by GCCs and MSMEs. Globally, mature markets continue to deepen flex penetration, supporting cross-border enterprise programmes that also benefit India’s Tier-1 cities

Financials (in Rs crores)

(a) Profit & Loss)

(Source – Company’s RHP)

(b) Balance Sheet Snapshot

(Source – Company’s RHP)

(c) Working Capital & Cash Flow

(Source – Company’s RHP)

Listed Peer Comparison 

RHP benchmarks WeWork India primarily against Awfis, Smartworks, IndiQube. Of these, only Awfis Space Solutions Ltd is listed (Smartworks/IndiQube unlisted).

(Data as of October 1, 2025)

SWOT Analysis

Strengths:
• Leadership in Indian flexible workspaces with multi-city presence; strong enterprise mix and long member tenures.

• Embassy Group backing and access to large corporate tenants; exclusive India brand licence from WeWork Global.

Weaknesses:
• High lease liabilities; EBITDA uplifted by Ind AS 116; profitability sensitive to occupancy and ARPM.

Opportunities:
• TAM growth (~20 per cent CAGR) and GCC expansion; shift to managed/asset-light models and digital products.

Threats:
• OFS means no primary capital; macro/office cycles; competition from Awfis/Smartworks/IndiQube; regulatory/lease renegotiation risk.

Outlook & Valuation

WeWork India rides structurally rising demand for flexible, managed offices in Tier-1 markets. FY23–FY25 revenue CAGR is 21.77 per cent with improving EBITDA margins, helped by enterprise adoption, GCC demand and Embassy relationships. That said, Ind AS 116 inflates EBITDA versus cash profitability; lease liabilities keep outcomes sensitive to occupancy/ARPM and landlord terms.

On valuation at the upper band (Rs 648), WeWork India screens at P/E 67.75x FY25 and EV/EBITDA 7.50x. Versus peers: Awfis (listed) trades richer on both P/E 82.10x and EV/EBITDA 10.60x; Smartworks and IndiQube are loss-making (P/E not meaningful) and higher on EV/EBITDA 11.40x/13.50x. Profitability quality is mixed—ROE 64.19 per cent is elevated, but ROCE 2.72 per cent and ROA 2.90 per cent reflect lease/asset intensity. Debt/Equity 1.55x is lower than Awfis (3.08x), yet leverage and lease obligations still matter. Net-net, WeWork looks reasonable on EV/EBITDA, but not cheap on earnings.

Recommendation: Subscribe (long term).
Rationale: Despite legacy headwinds, WeWork India has built an enterprise-led franchise (≈80 per cent corporate mix) with FY23–FY25 revenue up from Rs 1,314.00 crore to Rs 1,949.21 crore (CAGR 21.77 per cent) and a PAT swing to Rs 128.19 crore. Debt is ~Rs 389.00 crore; management targets near-zero net debt by March 2026. Management also expects US immigration policy shifts, including tighter H-1B visas, to retain talent locally and boost Indian workspace demand. On valuation, P/E 67.75x is full, but EV/EBITDA 7.50x compares well with the listed peer. Ind AS 116 reclassifies lease costs as depreciation + interest, affecting PAT optics; Adjusted EBITDA (~21 per cent margin) reflects cash rent and stacks up favourably versus peers. Monitors: occupancy/ARPM discipline, pledged shares and litigations.