Transcript of Q1 FY27 Earnings Call

WEWORK INDIA MANAGEMENT LIMITED (Formerly known as WeWork India Management Private Limited) Regd. Office: 6th Floor, Prestige Central, 36 Infantry Road Shivaji Nagar Bengaluru, Karnataka, 560001 Email: cswwi@wework.co.in; Website: https://wework.co.in/ Telephone no.: 080-37880881 CIN: L74999KA2016PLC093227 July 23, 2026 Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Dalal Street, Bandra (East), Mumbai – 400 051 Fort, Mumbai – 400 001 Symbol: WEWORK Scrip Code: 544570 Dear Sir/ Madam, Subject: Transcript of Q1 FY27 Earnings Call Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the transcript of the Q1 FY27 Earnings Call held on July 17, 2026. The aforesaid transcript is also being made available on the website of the Company at https://wework.co.in/investors-relations/shareholders-information/#analysts. This is for your information and records. Yours faithfully, For WeWork India Management Limited Udayan Shukla Company Secretary & Compliance Officer Membership No.: F11744 Encl.: As above “WeWork India Management Limited Q1 FY27 Earnings Call” July 17, 2026 MANAGEMENT: MR. KARAN VIRWANI – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – WEWORK INDIA MANAGEMENT LIMITED MR. CLIFFORD LOBO – CHIEF FINANCIAL OFFICER – WEWORK INDIA MANAGEMENT LIMITED Page 1 of 20 WeWork India Management Limited July 17, 2026 Moderator: Ladies and gentlemen, good day and welcome to WeWork India Management Limited's Q1 FY27 Earnings Conference Call. The presentation in this call is a concise version of the presentation uploaded on the company's website and shared with the stock exchanges. This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Participants connected on webcast may click on the "Ask a Question" tab to join the question queue after the management's opening remarks. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Virwani, MD and CEO. Thank you, and over to you, sir. Karan Virwani: Thank you, Michelle. Good morning and thank you for joining us for our first quarter FY27 results. Before we get into the numbers, one frame of how to read this quarter: look at us on a year-over-year basis, not sequentially, for two reasons. We are in a growth cycle, and in a growth cycle, fixed costs arrive before revenue does. When we sign new centers, rent and operating expenses start immediately, the desks fill up over the quarters that follow. So any quarter where we are expanding hard will look softer sequentially, even as the business underneath it gets stronger. This is not a warning sign, it is a model working as it is designed. Second, Q4 of FY26 carried a one-time customization revenue that isn't a recurring feature of this business. Stack Q1 FY27 against the quarter sequentially, and you're not comparing it like- for-like. Year-on-year is the fair test. It measures us against ourselves at the same point in last year's cycle, before this year's capex and without last year's one-offs. And on that basis, every metric is compounding. Let's zoom out for a second because this is a good market to be compounding in. India's flex space keeps taking share from traditional leasing. Quarter after quarter, it is no longer an experiment for occupiers. It is core to how enterprises plan real estate. WeWork India sits at the forefront of that shift, the largest branded flex network in the country, concentrated in markets where the enterprise and GCC demand is growing the fastest. Everything I'm about to walk you through is what leading that market looks like. And with that, let's get into the operational performance. We closed the quarter at 79 centers across eight cities, 9.1 million square feet operational, and about 133.6 thousand desks. 11 more centers and nearly 20,000 more desks than a year ago, growth of just over 18.5%, right in line with the pace of the flex category itself. Page 2 of 20 WeWork India Management Limited July 17, 2026 We serve about 113,000 members today, up 26,000 over the year, close to a 30% growth. Members are growing faster than desks. We added roughly 7,000 more members than desks in this year. That's why occupancy climbed to about 84.9%, even as we keep adding space, more than 8 points higher than a year ago. Mature centers are running at 87.5%, and NPS stood strong at a +78. And the base is sticky; 52% of desk sales in the network come from existing members, with renewal rates up to 84% this quarter. That engine behind us -- that's the engine behind this year's expansion. Revenue for the quarter was up to INR698 crores, up 28.5% year-on-year. EBITDA was INR138 crores and a 19.8% margin, which is up 69% from last year. PAT was about INR 53.2 crores, which is against INR8.4 crores last year, roughly a 6.5x jump and a 608 bps margin expansion. One number needs context before Cliff walks you through the details. Q4 FY26 included a one- time customization revenue I mentioned a moment ago; it won't repeat this quarter. And the second reason year-on-year and non-sequential is the right lens today. On capital, ROCE was up 28.6% this quarter, more than 3x where we stood a year ago. Free cash from operations grew 176%, and net debt is down close to 90%, even as we nearly doubled our capex. FCFF came in negative INR46.1 crores simply because H1 is a growth- intensive quarter or growth-intensive half of the year. INR188 crores of that capex landed in this quarter alone. So growth costs come first and then returns follow. Just a closer look at the market that we operate in. Q2 calendar year '26 leasing hit 24.6 million square foot, a record quarter capping a record first half of 45.5 million square foot. Flex led that market for the third straight quarter, up 89% to 11.4 million square foot in the first half. Its share of all office leasing has more than doubled in five quarters into 27%. Roughly 55% of India's occupiers already use flex, and we're on track for about two-thirds by 2027. Domestic companies now account for 46% of leasing, and more than half of that goes to flex operators. Premiumization is riding alongside it; 76% of the quarter's completions were in green-certified and 70% of leasing went into buildings that are under 10 years old, exactly the class of assets that we operate in. Our footprint sits across the eight cities where India's business growth is concentrated. Bangalore remains home and our largest market, 30 centers and nearly 52,000 desks. Around it, new corridors are scaling fast, Hyderabad is up 68%, Chennai is up 66%, Delhi more than tripled off a smaller base, Gurgaon up 23%. We're consolidating in home and building where demand is moving the fastest. We operate 9.1 million square foot today, add signed leases and LOIs of another 2.9 million, and total contracted capacity is about 12 million square foot, about 179,000 desks. That's a 32% capacity growth and nearly 44,000 desks that are already locked in. First half additions are on track for 22,000 desks in this heavy opening stretch of the cycle. By March of 2027, we expect Page 3 of 20 WeWork India Management Limited July 17, 2026 to be operating about 10.3 million square foot and around 155,000 desks. Beyond that, FY28 and FY29 supply is already in negotiation. Demand is showing up in sales. We sold about 12,700 desks this quarter, which is up 28% year- over-year. April was our single biggest sales month with about 7,500 desks, and we did th [Showing first 8,000 characters — download PDF for full document]