WeWork India FY25: Posts INR 128 Cr Profit On Deferred Tax Gains

SUMMARY

As per the startup’s MCA filings, it turned profitable in FY25 on the back of a deferred tax gain of INR 285.7 Cr

Its operating revenue rose 17% to INR 1,949.2 Cr during the year under review from INR 1,665.1 Cr in FY24

Excluding gains on deferred tax, WeWork India would have reported a loss before tax of INR 156.7 Cr in FY25, an increase of 15% from INR 136 Cr in FY24

IPO-bound coworking startup WeWork India reported its first profitable year in FY25, posting a profit after tax (PAT) of INR 128.2 Cr as against a loss of INR 135.7 Cr in the previous fiscal year. Its operating revenue rose 17% to INR 1,949.2 Cr during the year under review from INR 1,665.1 Cr in FY24.

As per the startup’s MCA filings, it turned profitable in FY25 on the back of a deferred tax gain of INR 285.7 Cr. In the previous fiscal year, the same figure stood at INR 34.2 Lakh.

Excluding the gains on deferred tax, WeWork India would have continued its streak of being in the red. Importantly, the Embassy Group-owned startup recorded a loss before tax of INR 156.7 Cr in FY25, an increase of 15% from INR 136 Cr in FY24.

The startup’s FY25 report comes a month after the Securities and Exchange Board of India (SEBI) approved its draft red herring prospectus (DRHP). Its IPO will comprise solely an offer for sale (OFS) of up to 4.4 Cr equity shares.

While parent entity Embassy Buildon LLP plans to offload 3.3 Cr shares, the remaining shares will be sold by WeWork’s affiliate 1 Ariel Way Tenant Limited.

As per the DRHP, the startup had a deferred tax gain of INR 235.3 Cr in the first half of FY25. With the hefty tax gains, WeWork India had reported a net profit of INR 174.6 Cr in H1 FY25. Its revenue stood at INR 918.2 Cr during the period, while loss before tax was at INR 60.4 Cr.

WeWork India is looking to become the fourth listed coworking space provider in the country, behind Awfis, Smartworks, and IndiQube. Besides WeWork India, Ahmedabad-based DevX is also awaiting SEBI approval for its IPO.

The rush to the bourses comes on the back of a rapid surge in the Indian coworking space market, which is estimated to reach a size of almost $3 Bn by 2030 from $2 Bn in 2025 on the back of increasing adoption of hybrid work models and the rising demand from startups, freelancers, enterprises and global capability centres (GCCs).

Where Did WeWork India Spend?

Depreciation & Amortisation Expense: Being a real estate company, this was the biggest cost for WeWork India. Depreciation and amortisation expenses increased 11% to INR 823.7 Cr in FY25 INR 744.1 Cr in the previous year.

Finance Cost: The spending under this head rose 18% to INR 597.8 Cr from INR 507.7 Cr in FY24.

Operating Expenses: Expenses under this head increased 15% to INR 467.7 Cr during the year under review from INR 407.2 Cr in FY24.

Employee Benefits Expense: WeWork India’s employee cost jumped 16% to INR 155 Cr from INR 133.9 Cr in FY24.