Another recent listing is in focus. Jefferies has initiated coverage on WeWork India with a Buy rating and a target price of Rs 790. The brokerage said the company’s premium position in the flexible workspace market, strong enterprise client mix and sustained demand from GCCs support a clear multi-year growth cycle. At the current price of Rs 639.80, the target implies nearly 23% upside.
According to Jefferies, WeWork India is now the largest flex-workspace operator in the country by revenue, generating nearly 40% more than its closest peer in FY25. The brokerage added that the company’s combination of Grade A locations, mature centres and higher revenue per desk has helped it build one of the strongest margin profiles in the sector.
Below is a detailed look at Jefferies’ investment view on WeWork India.
Jefferies on WeWork India: Premium positioning supports pricing power
Jefferies said WeWork India stands out because of its presence in top micro-markets, access to Grade A buildings and concentration in major demand hubs such as Bengaluru, Mumbai and NCR. As of September 2025, the company had 68 operational centres and 114,077 desks with 7.67 million sq. ft. of leasable area.
The brokerage added that WeWork India commands around Rs 20,000 per desk per month, nearly twice that of listed peers, driven by a higher share of enterprise clients. In the June quarter of FY26, 76% of net membership fees came from enterprise customers, while Fortune 500 clients made up 25%.
Jefferies said this mix strengthens renewal trends and helps maintain stable occupancy across mature centres. Renewal rate in the quarter stood at 74%, while mature-centre occupancy was more than 80%.
Jefferies on WeWork India: Penetration rising in major cities
According to Jefferies, the flexible workspace sector is expanding at nearly twice the pace of the overall office market. Total flexible stock in Tier-1 cities is forecast to grow to 140 to 144 million sq. ft. by 2027, up from 62 to 64 million sq. ft. in 2023.
Demand from GCCs is a key growth driver. Jefferies cited CBRE data showing that GCC leasing rose from 19 million sq. ft. in 2022 to 29 million sq. ft. in 2024, with their share of total office leasing at 36%. Bengaluru remains the largest market, accounting for more than 30% of India’s flex capacity.
The brokerage said WeWork India benefits directly from these patterns because its centres are concentrated in clusters where GCCs and large domestic companies are expanding.
Jefferies on WeWork India: Revenue visibility
WeWork India has steadily expanded its footprint from 6 million sq. ft. in FY24 to 7.7 million sq. ft. in FY25, with additional fit-outs underway. Jefferies said the company should be able to add 15,000 to 20,000 new seats annually for the next three years.
Occupancy beyond the breakeven threshold flows directly to profitability because most costs are recovered early in a centre’s life. Jefferies highlighted that the company’s revenue-to-rent multiple of 2.7 times in FY25 is above the industry average of 1.9 to 2.5 times.
Membership agreements with annual fee escalations of 6% and lock-ins of up to 36 months further improve cash flow visibility.
Jefferies on WeWork India: Financial trajectory with rising margins
Jefferies expects WeWork India to deliver more than 20% revenue CAGR and nearly 28% EBITDA CAGR between FY25 and FY28. The brokerage projects revenue rising from Rs 1,965.8 crore in FY25 to Rs 3,597.4 crore in FY28.
IGAAP EBITDA is estimated to grow from Rs 377.6 crore to nearly Rs 800 crore over the same period. EBITDA margin is expected to improve from 19.2% to above 22% as more centres cross maturity and benefit from operational leverage.
Jefferies noted that ARPM has risen at an 8% CAGR since FY23 and should continue to increase due to contract escalations and premium-centre mix.
Jefferies on WeWork India: Funding adequate for expansion
Seat additions require around Rs 135,000 per desk in capex, translating to approximately Rs 250 to 300 crore annually for the planned expansion. Jefferies said this is fully supported by operating cash flow, which has been above Rs 300 crore for three straight years.
After the IPO, net debt stands at Rs 120 crore, which the brokerage said is healthy for a company of this scale.