Brokerage cites premium positioning and sector tailwinds, sees up to 25% upside, 45% in bull case
Jefferies has initiated coverage on WeWork India with a ‘Buy’ rating and a target price of INR 790 per share, flagging a multi‑year growth runway for the flex‑workspace operator amid rising adoption by large enterprises and Global Capability Centres (GCCs). The target implies about 25% upside from the CMP INR 635 per share. WeWork India share prices jumped as much as 7.8% intraday after the call.
Outlining five tailwinds, Jefferies described WeWork India as a “category‑defining leader” with premium centres, pricing power and self‑funded growth, and projected revenue and IGAAP EBITDA CAGRs of 22% and 28%, respectively, over FY25–FY28. In a bull case, the brokerage pegs fair value at INR 895 (about 41% potential upside), while cautioning that a sharp downturn in office demand is the key risk.
The firm’s optimism rests on operating metrics that outpace listed peers. Jefferies highlighted an FY25 revenue‑to‑rent ratio of 2.7x, average revenue per member around INR 20,000 per desk per month, and the ability to add 15,000–20,000 seats annually over the next three years, from 1,09,600 seats as of March 2025. The network spans roughly 68–70 centres across eight cities, largely in Grade‑A assets.
WeWork India last week reported its first quarterly results post‑listing: total income rose to INR 585.5 crore in Q2 FY26 from INR 499.5 crore a year earlier, but consolidated PAT fell to INR 6.4 crore versus INR 203.7 crore due to the absence of a one‑off deferred tax credit in the base quarter. The company operated 70 centres with about 1.14 lakh desks as of September.
“Our Q2 results signify a defining moment… with record revenue, expanding margins, and our first Ind‑AS PAT‑positive quarter,” said Karan Virwani, CEO & MD, noting improving operating leverage.
Some analysts urged balance. “Though company financials have improved, there are still corporate governance concerns that investors need to watch,” said SimranJeet Singh Bhatia, Senior Equity Research Analyst, Almondz Global, in a post‑listing review last month.
WeWork India, the Embassy Group‑controlled licensee of the WeWork brand, listed on 10 October via an INR 648‑per‑share offer for sale that valued the company at about INR 8,685 crore. Jefferies’ call comes as Nifty trades firm and investors rotate into select services names; the brokerage sees flex‑space penetration continuing to outpace traditional office stock growth (c.17% CAGR vs office stock at c.8–9%).
What’s Next
Jefferies expects seat additions, centre maturities and steady ARPM growth to lift margins; risks include a cyclical office slowdown and competitive intensity. Management has guided to further portfolio expansion in H2 FY26 with seats under fit‑out and LOIs ramping up.
Disclaimer: This article is for information purposes only and do not consider it as an investment advice.
