Wework India Management Ltd Management Discussions

The following discussion is intended to convey the managements perspective on our financial condition and results of operations for the three months ended June 30, 2025 and 2024, Fiscals 2025, 2024 and 2023. Unless otherwise stated or unless the context requires otherwise, the financial information in this section has been derived from the Restated Financial Information. Our fiscal year ends on March 31 of each year, and references to a particular Fiscal are to the twelve months ended March 31 of that year.

Ind AS differs in certain respects from Indian GAAP, IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. Please also see "Risk Factors - 70. Significant differences exist between Ind AS and other accounting principles, such as IFRS and U.S. GAAP), which may be material to investors assessments of our financial condition." on page 104. This discussion contains certain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, such as the risks set forth in the chapters entitled "Risk Factors" and "Forward-Looking Statements" on pages 45 and 43, respectively.

Only to the extent explicitly indicated, industry and market data used in this section has been derived from the report titled "Industry Report on Flexible Workspaces Segment in India" dated September 19, 2025, prepared and issued by CBRE (the "CBRE Report") and from the benchmarking study titled "Benchmarking Study For

Flexible Workspace Players In India" dated January 2025 read with amendment to the report titled

"Benchmarking Study for Flexible Workspace Players in India - Only amendment to the study with NPS and Google Search Volume Trends" dated July 15, 2025, prepared and issued by AGR Knowledge Services Private

Limited ("AGR") (the "AGR Benchmarking Study"), each commissioned by and paid for by our Company. Any reference to the CBRE Report and the AGR Benchmarking Study must be read in conjunction with the full CBRE Report and the full AGR Benchmarking Study, will be made available on the website of our Company at https://wework.co.in/investors-relations/ from the date of this Red Herring Prospectus until the Bid/Offer Closing

Date and have also been included in "Material Contracts and Documents for Inspection Material Documents" on page 617. The CBRE Report has been prepared and issued by CBRE pursuant to an engagement letter dated October 8, 2024, and the AGR Benchmarking study has been prepared and issued by AGR pursuant to an engagement letter dated October 15, 2024, each for the purpose of understanding the industry exclusively in connection with the Offer. Unless otherwise indicated, all financial, operational, industry and other related information derived from the CBRE Report and/or the AGR Benchmarking Study and included herein with respect to any particular fiscal or calendar year, refers to such information for the relevant fiscal or calendar year. For further details, see "Risk Factors 56. We have used information from the CBRE Report and the AGR Benchmarking Study which have been commissioned and paid for by our Company for industry related data in this Red Herring Prospectus and any reliance on such information is subject to inherent risks." and

"Industry Overview" on pages 96 and 181, respectively. Please also see, "Definitions and Abbreviations" on page 1 for certain terms and abbreviations used under this section.

Overview

Launched in 2017, we are, according to the CBRE Report, a leading premium flexible workspace operator in India, and have been the largest operator by total revenue in the past three Fiscals. According to the CBRE Report, we have played a significant role in the growth of the flexible workspace sector in India and been a key contributor for the evolution of flexible workspace products and services⁽¹⁾. We are the exclusive licensee of the WeWork Brand in India.

(1) According to the CBRE Report, WeWork India has progressively offered various products/solutions in the Indian flex market, with some key offerings including Private Offices, Office Suite, Serviced Floors, Managed Office (2017); WeWork All Access - membership offering access to WeWork centres globally, WeWork Labs platform for start-ups (2018); Events & Hospitality Services (2019); WeWork On Demand (Pay-per-use workspace offering, 2020); Virtual Office, WeWork Business Solutions services across HR, admin, IT, hardware, branding, marketing, etc. (2021); WeWork Workplace software for managing workspace operations and rostering (2024).

We provide flexible, high-quality workspaces to our customers (who we refer to as members) which include companies of all sizes: large enterprises, small and mid-size businesses, startups, as well as individuals. According to the CBRE Report, we have established multi-asset relationships with various prominent developers across major Tier 1 cities. We lease primarily Grade A office space from such developers and, according to the CBRE Report, we design, build, and operate them as flexible workspaces as per global standards⁽²⁾.

(2)According to the CBRE Report, we are able to operate our workspaces to global standards, due to our operations and management agreement with the global partner that outlines the standard guidelines to be followed around aspects such as procurement, construction, design, operations, products/services along with multiple ISO certifications. ISO 45001:2018 (Occupational Health & Safety Management Systems) and ISO 14001:2015 (Environmental Management Systems) for their portfolio since 2022 and 2023, respectively.

According to the CBRE Report, as at June 30, 2025, approximately 94%, or 7.07 million square feet, of our portfolio was in Grade A developments. According to the CBRE Report, we have one of the most extensive range of product and services. We offer flexibility to members by providing adaptable terms that allow companies to scale their workspace as their needs evolve. The strength of our brand and offerings along with the global network that we are a part of as the exclusive licensee of the WeWork Brand in India, has helped us attract and develop long-term relationships with global marquee brands, including Amazon Web Services India Private Limited, JP Morgan Services India Private Limited, Discovery Communications India, Deutsche Telekom Digital Labs Private Limited, CBA Services Private Limited and Grant Thornton Bharat LLP.

Our Scale

As at June 30, 2025, we operated in 68 Operational Centres across eight cities, with a Desks Capacity in Operational Centres of 114,077.

We launched our first Centre in 2017 and since March 31, 2018 through June 30, 2025, we have grown our Desks Capacity in Operational Centres at a CAGR of 42.51%. The expansion in the number of Operational Centres, Desks Capacity in Operational Centres, and Leasable Area in Operational Centres provides us with economies of scale and underscores our commitment to serving our growing customer base. Our approach is to consistently expand our capacity, focusing on unit economics and profitability. The following table shows our growth in Operational Centres, Desks Capacity in Operational Centres and Leasable Area for Operational Centres as at the dates indicated:

Particulars	As at June 30,			As at March 31,
	2025	2024	2025	2024	2023
Operational Centres	68	56	65	53	43
Desks Capacity in Operational Centres	114,077	92,033	109,572	89,154	74,240
Leasable Area for Operational Centres (sqft in million)	7.67	6.46	7.40	6.33	5.54
Net growth in number of Operational Centres	21.43%	-	22.64%	23.26%	-
Net growth in Desks Capacity in Operational Centres	23.95%	-	22.90%	20.09%	-
Net growth in Leasable Area for Operational Centres	18.61%	-	16.95%	14.27%	-

We invest in high performing key clusters across Tier 1 cities in India Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai. According to the CBRE Report, Tier 1 cities have witnessed healthy demand for office space due to their talent pools, infrastructure, job opportunities and relative business growth potential, and these markets have exhibited strong market dynamics with office absorption in 2024 at 78.9 million square feet, as compared to supply completion of 49.0 million square feet in the same year, according to the CBRE Report. Further, according to the CBRE Report, gross absorption for these markets in 2025 is forecasted to be 85.5 million square feet. Our largest presence is in Bengaluru which, according to the CBRE Report, was one of the largest office markets by absorption in Asia between 2018 and March 2025 and is one of the largest in terms of total office stock. According to the CBRE Report, Bengaluru is both the largest commercial office and flexible workspace market in India, accounting for around 30% of the flexible workspace stock amongst Tier 1 cities. The following graphic shows our scale and geographic distribution as at June 30, 2025.

Our Revenue Model

We generate revenue primarily from: (1) leasing workspaces to members under operating leases and charging a monthly membership fees per desk; (2) providing value-added services to our members, including access to conference rooms, space for events and advertising, food and beverage services, office infrastructure services and technology support; and (3) offering digital products including WeWork On Demand, WeWork All Access, Virtual Office and WeWork Workplace. WeWork On Demand allows users to book desks by the day and private offices or meeting rooms by the hour at any of our participating Centres. WeWork All Access provides users with a monthly membership to desks in participating WeWork locations around the world. Virtual Office enables users to instantly generate a virtual office without having to lease a physical space through our website.

We also generate revenue from the following:

Under our "operator model", where we operate properties on behalf of landlords as WeWork Centres and retain a portion of the revenues we collect from members as fees for operating the Centre. The landlords bear the expenses of operational costs and fit-outs in the Centre, and are paid the remainder of such revenue (except that, in one of our Centres, we have agreed to pay a minimum guaranteed license fee to the landlord). We operate three Centres under this model as at June 30, 2025.

We provide facility management and/or fit-out rental services to landlords, generally for a fixed fee. We provide such facility management and/or fit-out rental services for five Centres as at June 30, 2025.

We generate a small amount of revenue from the sale of products, including subscription revenue from our video conferencing product Zoapi.

The following table shows our Revenue from Operations for the periods/years indicated.

	For the three months ended June 30,			Fiscal
	2025	2024	2025	2024	2023
	( in million)
Revenue from Operations	5,353.10	4,486.51	19,492.11	16,651.36	13,145.18
Membership revenue - Ind AS 116	4,616.36	3,895.83	16,604.07	14,025.41	11,093.85
Revenue from Contract with Customers
Membership revenue - Ind AS 115	206.99	150.96	663.68	814.79	487.92
Service and Ancillary revenue - Ind AS 115	519.94	430.85	2,161.01	1,781.38	1,557.52
Sale of products - Ind AS 115	9.81	8.87	63.35	29.78	5.89

Notes:

(1) Membership revenue - Ind AS 116 represents revenue from operating leases with respect to specified workspaces.

(2) Membership revenue - Ind AS 115 Revenue from Contract with Customers represents revenue from workspaces subscribed under our digital products (including WeWork On Demand, WeWork All Access, Virtual Office and WeWork Workplace).

(3) Service and Ancillary revenue - Ind AS 115 Revenue from Contract with Customers represents revenue from value-added services, revenue from contractual projects, revenue generated under our operator model and revenue generated from our Facility Management and/or Fit-out rentals Operations. (4) Sale of products - Ind AS 115 Revenue from Contract with Customers represents revenue derived from subscription revenue from our video conferencing product Zoapi.

Our Economics

Our unit economics are driven by the maturity of our Centres. We classify our Centres as "Mature Centres" 12 months from the date they commence operations. Generally, a Centre achieves breakeven with respect to its operational costs by reaching a 55.70% Occupancy Rate, which is typically achieved within four to six months of opening, as illustrated in the diagram below. Most of the initial operational expenditure incurred for a Centre is recovered by this breakeven point. Any incremental utilisation beyond breakeven flows to our unit-level profitability, as most of the cost is already recovered. Separately, our corporate costs, which primarily comprise employee expenses and corporate overhead (such as business development and legal costs), create a source of operating leverage as they become spread over a higher area across our Centres. Below is an illustrative life cycle of a Centres economics.

Principal Factors Affecting our Financial Condition and Results of Operations

The paragraphs below discuss certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations.

Revenue drivers

Our revenue is primarily driven by general economic conditions, occupancy levels and capacity expansion, net average revenue per member ("Net ARPM"), our ability to maintain and grow member relationships, and ancillary revenue streams.

Economic conditions impacting India and the markets where we operate

Demand for the services and products that we offer is significantly affected by the general level of commercial activity and economic conditions in the regions in which we operate. Our results of operations are affected by the level of business activity of our members, which in turn is affected by the macroeconomic conditions in the economy and the industries in which they operate. The factors which make India an attractive destination for managed workspaces include low labour and operational costs and the availability of a skilled Indian workforce. Growth of the market also depends on domestic and global macroeconomic factors such as a GDP growth, infrastructure spending, the level of inflation, population demographics, job market demands and trends (for example, a shift to remote or hybrid practices), and job creation. We have benefited from positive trends in these factors, and our future results of operations will continue to be influenced by such factors.

Occupancy levels and balancing occupancy with expansion

One of the key drivers of our revenue is our occupancy rate. Occupancy levels depend on several factors, such as demand for, and comparable supply of, flexible workspace solutions in the micro-markets in which we operate, our pricing in comparison with competing properties, the attractiveness of our Centres, the range of amenities available at our Centres and the ability to provide space without significant delay. Our occupancy levels are also driven by our Centre vintage, with Centres of higher vintage typically having higher occupancies, which in turn leads to higher revenue generation.

The following tables set forth details of our Desks Capacity for Operational Centres and Occupancy Rate for our Core Operations and Digital Operations, further broken down by Centre vintage as at the dates indicated.

Centre vintage	Desks Capacity of Core Operations and Digital Operations			Occupancy Rate of our Core Operations and Digital Operations(1)
		As at March 31,			As at March 31,
	2025	2024	2023	2025	2024	2023
0-6 months	6,389	4,079	5,449	28.08%	33.75%	33.12%
6-9 months	5,141	4,393		60.69%	67.51%
9-12 months	6,231	3,642	2,299	76.42%	72.08%	74.05%
12-18 months	4,744	7,355	247	64.33%	72.74%	44.52%
18-24 months	14,152	2,727	1,780	76.73%	82.35%	100.00%
More than 24 months	70,955	65,119	63,980	82.58%	87.13%	88.02%
Total	107,612	87,315	73,755	76.37%	81.66%	83.68%

 

Centre vintage	Desks Capacity of Core Operations and Digital Operations		Occupancy Rate of our Core Operations and Digital Operations(1)
	As at June 30,		As at June 30,
	2025	2024	2025	2024
0-6 months	9,072	4,849	24.28%	33.43%
6-9 months	1,822	1,773	83.64%	56.08%
9-12 months	5,141	4,393	68.33%	55.28%
12-18 months	9,202	11,271	75.93%	63.68%
18-24 months	5,939	1,318	62.08%	98.73%
More than 24 months	80,941	66,469	83.24%	86.67%
Total	112,117	90,073	76.07%	78.97%

Notes:

(1) Occupancy Rate is the percentage of Occupied Desks divided by Desks Capacity.

Net ARPM

We calculate Net ARPM as Net Membership Fees per billed desk for our Core Operations.

Our results of operations are significantly driven by our Net Membership Fees and consequently, our Net ARPM. We define Net ARPM as average revenue per billed desk under our leases with members. Our Net ARPM depends on various factors, including the demand for, and comparable supply of, flexible workspace solutions in the micro-markets in which we operate, rates of competing properties, attractiveness of our Centres, the range of amenities available at our Centres and the ability to enter into new agreements with members without significant intervals of time or incurring significant costs. We have steadily increased our Net ARPM, achieving a CAGR of 7.73% from Fiscal 2023 to Fiscal 2025, reflecting our ability to optimize pricing, enhance member value, and capitalize on market demand for flexible workspaces. The increase in our Net ARPM was driven primarily by contractual escalations and our ability to charge a premium once a Centre reaches mature occupancy.

Our Membership Revenue - Ind AS 116 has increased to 16,604.07 million for Fiscal 2025 from 14,025.41 million for Fiscal 2024 and increased to 14,025.41 million for Fiscal 2024 from 11,093.85 million in Fiscal 2023. Our membership revenue - Ind AS 116 increased to 4,616.36 million for the three months ended June 30, 2025 from 3,895.83 million for the three months ended June 30, 2024.

The table below presents our Net ARPM for the periods/years indicated.

	For the three months ended June 30,					Fiscal
	2025		2024	2025		2024		2023
		% increase / (decrease) from prior period			% increase from prior Fiscal		% increase from prior Fiscal
Net	4,604.36	14.95%	4,005.54	16,863.81	15.58%	14,591.08	27.55%	11,439.57
Membership

 

	For the three months ended June 30,					Fiscal
	2025		2024	2025		2024		2023
		% increase / (decrease) from prior period			% increase from prior		% increase from prior
					Fiscal		Fiscal
Fees (A) ( in million)
Monthly average number of Billed desks for Core	80,417	18.91%	67,626	70,825	10.76%	63,947	14.68%	55,763
Operations (B)
Net ARPM	19,085	(3.33)%	19,744	19,842	4.35%	19,015	11.23%	17,096
(A)/(B)( )
Revenue to	2.61	(2.37)%	2.67	2.68	1.86%	2.63	11.62%	2.36
Rent Multiple
(1)

Note:

(1) Revenue to Rent Multiple is calculated as Net ARPM divided by Rent Cost per Desks Capacity in Operational Centres plus Warmshell Desks less Desks in our Facility Management and / or Fit-out rentals Operations.

The table below provides a summary of our growth in Net Membership Fees attributable to increases in billed desks (in existing Operational Centres and in new Centres), and to increases in Net ARPM.

		Amount		As a % of total increase in Net			Increase/(decrease) from
				Membership Fees (%)			prior Fiscal/period (%)
	Three months ended June 30, 2025*	Fiscal 2025*	Fiscal 2024	Three months ended June 30, 2025	Fiscal 2025	Fiscal 2024	Three months ended June 30, 2025	Fiscal 2025	Fiscal 2024
Increase in Membership Fees attributable increase billed desks existing Centres Net to in in	2,205.28	745.68	904.84	141.94%	32.81%	28.71%	13.08%	5.11%	7.91%
Increase in Membership Fees attributable increase billed desks new Centres Net to in in	78.50	823.85	774.05	5.05%	36.25%	24.56%	0.47%	5.65%	6.77%
Subtotal (A)	2,283.78	1,569.53	1,678.88	146.99%	69.06%	53.27 %	13.54%	10.76%	14.68%
Increase/(decre ase) in Net Membership Fees attributable to increase/(decre ase) in Net ARPM (B)	(730.13)	703.20	1,472.62	(46.99)%	30.94%	46.73%	(4.33)%	4.82%	12.87%
Total increase in Net Membership Fees (A) + (B)	1,553.65	2,272.73	3,151.51	100.00%	100.00 %	100.00 %	9.21%	15.58%	27.55%

*Annualised

Our ability to maintain and grow member relationships

Our business model relies on retaining business and growth from existing members, acquiring new members and expanding our member relationships. We maintained a Weighted Average Membership tenure with our members of 26 months as at June 30, 2025, 23 months as at June 30, 2024, 26 months as at March 31, 2025, 23 months as at March 31, 2024 and 22 months as at March 31, 2023. Further, for the three months ended June 30, 2025 and 2024, and in Fiscals 2025, 2024 and 2023, 45.39%, 55.76%, 51.79%, 57.84% and 34.49% respectively of the desks leased at our Centres during the period/year were leased to existing members that expanded their portfolio with us.

We believe that our member-centric approach combined with our performance, the quality of our flexible workspace solutions and our hospitality and community teams focused on member experience has positioned us well to grow long-term relationships with our existing members and increase our member base through new relationships. Our ability to increase sales to existing members depends on a number of factors, including members level of satisfaction with our flexible workspace solutions, pricing, effectiveness of our quality control systems and standard operating procedures, skill and experience of our personnel, economic conditions and our members overall budget and spending levels.

We believe our large product offering, which enables us to act as a one-stop shop for all of our members needs, promotes member retention and cross-selling. For further details, see "Our Business Our Competitive Strengths

One of the most extensive range of products and services in the industry" at page 268.

Other streams of revenue

Our ability to increase our revenues will depend, in part, on our ability to continue to offer value-added services and innovative digital products.

Value-added services (comprised in Service and Ancillary revenue Ind AS 115)

Our Service and Ancillary revenue Ind AS 115 comprises revenue from value added services, our operator model, facility management and fit-out rental services and design-build and fit-out services. Our Service and Ancillary revenue Ind AS 115 was 519.94 million, 430.85 million, 2,161.01 million, 1,781.38 million and 1,557.52 million for the three months ended June 30, 2025 and 2024, and in Fiscal 2025, 2024 and 2023, constituting 9.71%, 9.60%, 11.09%, 10.70% and 11.85% of our Revenue from Operations, respectively. Our Service and Ancillary revenue Ind AS 115 increased by 89.09 million, or 20.68%, to the three months ended June 30, 2025 from the three months ended June 30, 2024, and increased by 379.63 million, or 21.31%, to Fiscal 2025 from Fiscal 2024, and by 223.86 million, or 14.37%, to Fiscal 2024 from Fiscal 2023.

Digital products (comprised in Membership revenue Ind AS 115)

Our Membership revenue Ind AS 115 was 206.99 million, 150.96 million, 663.68 million, 814.79 million and 487.92 million for the three months ended June 30, 2025 and 2024, and in Fiscal 2025, 2024 and 2023, constituting 3.87%, 3.36%, 3.40%, 4.89% and 3.71% of our Revenue from Operations, respectively. Our Membership revenue Ind AS 115 increased by 56.03 million, or 37.12%, to the three months ended June 30, 2025 from the three months ended June 30, 2024, decreased by 151.11 million, or 18.55%, to Fiscal 2025 from

Fiscal 2024 and increased by 326.87 million, or 66.99%, to Fiscal 2024 from Fiscal 2023.

We reported 245.04 million and 65.99 million of revenue from private office usage in Membership revenue Ind AS 115 in Fiscal 2024 and 2023 respectively. With effect from April 1, 2024, we have reported private office usage under Membership revenue Ind AS 116 instead.

In addition to influencing Revenue from Operations, our value-added services and digital products are EBITDA accretive as most of the associated costs are fixed in nature and are absorbed by our Core Operations.

Cost Drivers

Sourcing and space procurement strategy

We primarily follow a straight lease business model, whereby we lease bare shell properties on a long-term basis. The lease agreements with our landlords typically have a lock in period ranging from three years to five years for a primary lease term of 10 years, with varying durations thereafter.

As at June 30, 2025, we had entered into long-term fixed cost lease agreements with landlords for an aggregate Leaseable Area in Operational Centres of 7.35 million square feet of workspaces across 60 of our 68 Operational Centres in eight cities. The following table provides a breakdown of our Operating Rental Payouts as a percentage of Revenue from Operations for the periods/years indicated:

Particulars	For the three months ended June 30,			Fiscal
	2025	2024	2025	2024	2023
Operating rental payouts(1)	2,422.87	1,950.90	8,430.72	7,285.38	6,221.72
Revenue from Operations	5,353.10	4,486.51	19,492.11	16,651.36	13,145.18
Operating rental payouts(1) as a percentage of Revenue from Operations	45.26%	43.48%	43.25%	43.75%	47.33%

Note:

(1) Operating rental payouts means fixed monthly payments made to landlords and excludes common area maintenance, real estate taxes, stamp duty and liquidated damages. For details in relation to reconciliation of non-GAAP financial measures, see "Managements

Discussion and Analysis of Financial Condition and Results of Operations -Non-GAAP Financial Measures - Reconciliation of Non-GAAP Measures" on page 467.

In addition, we operate three Centres under our operator model as at June 30, 2025. Under this model we operate properties on behalf of landlords as WeWork Centres and retain a portion of the revenues we collect from members as fees for operating the Centre. The landlords bear the expenses of operational costs and fit-outs in the Centre, and are paid the remainder of such revenue (except that, in one of our Centres, we have agreed to pay a minimum guaranteed license fee to the landlord).

Expenses

Our primary expenses include operating expenses, finance costs, employee benefits expenses, depreciation and amortization expenses, and other expenses.

Depreciation and amortisation expense: Depreciation and amortisation expense primarily comprises depreciation of property, plant and equipment and depreciation of right of use assets. Our depreciation and amortisation expense was 2,234.92 million, 1,917.73 million, 8,237.30 million, 7,441.74 million and 6,366.97 million for the three months ended June 30, 2025 and 2024, and for Fiscal 2025, Fiscal 2024 and Fiscal 2023, constituting 39.95%, 39.21%, 38.62%, 39.80% and 40.56% of our total expenses respectively.

Finance costs: Our finance costs primarily comprise interest expenses on lease liabilities, interest expenses on non-convertible debentures and term loan borrowings, interest on service retainer fee, interest on financial liabilities towards sale and leaseback, and interest on bank and financial institution loans. Our finance costs were

1,364.28 million, 1,329.24 million, 5,978.94 million, 5,077.08 million and 4,140.53 million, for the three months ended June 30, 2025 and 2024, and for Fiscal 2025, Fiscal 2024 and Fiscal 2023, constituting 24.39%, 27.18%, 28.03%, 27.15% and 26.38% of our total expenses respectively.

Operating expenses: Our operating expenses primarily comprise common area maintenance charges, power and fuel and other utilities, management fees, housekeeping, including consumables, repair and maintenance (building and others) and information technology expenses. Our operating expenses were 1,299.98 million, 1,120.00 million, 4,677.12 million, 4,072.48 million and 3,206.39 million, for the three months ended June 30, 2025 and 2024, and for Fiscal 2025, Fiscal 2024 and Fiscal 2023, constituting 23.24%, 22.90%, 21.93%, 21.78% and 20.43% of our total expenses respectively.

Employee benefits expense: Our employee benefits expense comprise salaries, wages and bonus, contributions to the provident fund, gratuity expenses, share based payments and staff welfare expenses. Our employee benefit expenses were 473.27 million, 368.22 million, 1,550.06 million, 1,339.08 million and 1,205.53 million, for the three months ended June 30, 2025 and 2024, and for Fiscal 2025, Fiscal 2024 and Fiscal 2023, constituting 8.46%, 7.53%, 7.27%, 7.16% and 7.68% of our total expenses respectively.

Other expenses: Our other expenses primarily comprise advertising and sales promotion expenses, legal and professional fees, travelling and conveyance, insurance expenses, among others. Our other expenses were 182.42 million, 146.48 million, 714.00 million, 752.89 million and 769.94 million, for the three months ended June 30, 2025 and 2024, Fiscal 2025, Fiscal 2024 and Fiscal 2023, constituting 3.26%, 3.00%, 3.35%, 4.03% and 4.91% of our total expenses respectively.

Sub-contracting cost: In the three months ended June 30, 2025 and in Fiscal 2025, we incurred sub-contracting cost of 36.02 million and 144.07 million respectively in relation to design fees and material costs for our design-build/fit-out services. We provided design-build/fit-out services for the first time in Fiscal 2025, and we did not provide design-build/fit-out services in the three months ended June 30, 2024.

Principal Components of Results of Operations

Results of Operations

The following table sets forth select financial data from our restated summary statement of profit and loss for the periods/years indicated, the components of which are also expressed as a percentage of total income for such periods/years.

	For the three months ended June 30,						Fiscal
	2025		2024		2025		2024		2023
		% of total income		% of total income		% of total income		% of total income		% of total income
			( in million, unless otherwise indicated )
Income
Revenue from	5,353.10	98.09%	4,486.51	97.26%	19,492.11	96.30%	16,651.36	95.85%	13,145.18	92.39%
Operations
Other income	5.91	0.11%	29.13	0.63%	282.52	1.40%	183.17	1.05%	772.24	5.43%
Finance income	98.12	1.80%	97.21	2.11%	465.38	2.30%	537.11	3.09%	310.32	2.18%
Total income	5,457.13	100.00%	4,612.85	100.00%	20,240.01	100.00%	17,371.64	100.00%	14,227.74	100.00%
Expenses
Sub-contracting	36.02	0.66%	-	-	144.07	0.71%
Cost
Cost of materials consumed	3.77	0.07%	8.95	0.19%	27.44	0.14%	15.89	0.09%	7.22	0.05%
Employee benefits expense	473.27	8.67%	368.22	7.98%	1,550.06	7.66%	1,339.08	7.71%	1,205.53	8.47%
Finance costs	1,364.28	25.00%	1,329.24	28.82%	5,978.94	29.54%	5,077.08	29.23%	4,140.53	29.10%
Depreciation and amortisation expense	2,234.92	40.95%	1,917.73	41.57%	8,237.30	40.70%	7,441.74	42.84%	6,366.97	44.75%
Operating expenses	1,299.98	23.82%	1,120.00	24.28%	4,677.12	23.11%	4,072.48	23.44%	3,206.39	22.54%
Other expenses	182.42	3.34%	146.48	3.18%	714.00	3.53%	752.89	4.33%	769.94	5.41%
Total expenses	5,594.66	102.52%	4,890.62	106.02%	21,328.93	105.38%	18,699.16	107.64%	15,696.58	110.32%
Restated profit/(loss) before share of loss in associate, exceptional item and tax for period/year	(137.53)	(2.52%)	(277.77)	(6.02%)	(1,088.92)	(5.38)%	(1,327.52)	(7.64)%	(1,468.84)	(10.32)%
Share of loss in associate (net)	(3.45)	(0.06%)	(11.62)	(0.25%)	(19.91)	(0.10)%	(33.11)	(0.19)%
Restated profit/(loss) before exceptional item and tax	(140.98)	(2.58%)	(289.39)	(6.27%)	(1,108.83)	(5.48)%	(1,360.63)	(7.83)%	(1,468.84)	(10.32)%
Exceptional Item	-	-	-	-	(459.06)	(2.27)%
Restated profit/(loss) before tax Tax expense	(140.98)	(2.58%)	(289.39)	(6.27%)	(1,567.89)	(7.75)%	(1,360.63)	(7.83)%	(1,468.84)	(10.32)%
Current tax charge	-	-	2.42	0.05%	7.64	0.04%	0.52	0.00%	0.09	0.00%
Deferred tax (credit) / charge	0.49	0.01%	(0.09)	0.00%	(2,857.38)	(14.12)%	(3.42)	(0.02)%	(0.83)	(0.01)%
Total Tax expense	0.49	0.01%	2.33	0.05%	(2,849.74)	(14.08)%	(2.90)	(0.02)%	(0.74)	(0.01)%
Restated profit / (loss) for the period/year	(141.47)	(2.59%)	(291.72)	(6.32%)	1,281.85	6.33%	(1,357.73)	(7.82)%	(1,468.10)	(10.32)%

 

	For the three months ended June 30,						Fiscal
	2025		2024		2025		2024		2023
		% of total income		% of total income		% of total income		% of total income		% of total income
			( in million, unless otherwise indicated )
Other comprehensive income Items that will not be reclassified to profit or loss in subsequent periods:
Re-measurement (loss) / gain on defined benefit plans	(4.42)	(0.08%)	(2.44)	(0.05%)	(7.89)	(0.04)%	(4.12)	(0.02)%	6.93	0.05%
Income tax effect on above	1.11	0.02%	0.61	0.01%	1.99	0.01%
Share of other comprehensive loss of an associate	(0.15)	(0.01)%	(0.11)	(0.00%)	(0.26)	(0.00)%
Other Comprehensive Income for the year (net of tax)	(3.46)	(0.06%)	(1.94)	(0.04%)	(6.16)	(0.03)%	(4.12)	(0.02)%	6.93	0.05%
Restated Total comprehensive profit/(loss) attributable to the equity shareholders for the period/year	(144.93)	(2.66%)	(293.66)	(6.37%)	1,275.69	6.30%	(1,361.85)	(7.84)%	(1,461.17)	(10.27)%

Three Months Ended June 30, 2025 compared to Three Months Ended June 30, 2024

Income

Our Total income increased by 18.30% to 5,457.13 million in the three months ended June 30, 2025 from

4,612.85 million in the three months ended June 30, 2024, primarily due to increase in our Revenue from Operations of 19.32% to 5,353.10 million in the three months ended June 30, 2025 from 4,486.51 million in the three months ended June 30, 2024.

Revenue from Operations

Our Revenue from Operations increased by 19.32% to 5,353.10 million in the three months ended June 30, 2025 from 4,486.51 million in the three months ended June 30, 2024.

Membership revenue: Membership revenue Ind AS 116 increased by 18.49% to 4,616.36 million in the three months ended June 30, 2025 from 3,895.83 million in the three months ended June 30, 2024. The increase was primarily due to capacity expansion and associated increase in number of billed desks. The number of Operational Centres increased by 12, to 68 Operational Centres as at June 30, 2025 as compared to 56 Operational Centres as at June 30, 2024, and our Desks Capacity in Operational Centres increased by 22,044 to reach 114,077 Desks Capacity in Operational Centres as at June 30, 2025 as compared to 92,033 Desks Capacity in Operational Centres as at June 30, 2024. Our Net Membership Fees increased by 14.95% in the three months ended June 30, 2025 to

4,604.36 million in the three months ended June 30, 2025 from 4,005.54 million in the three months ended June 30, 2024. Our Net Membership Fees increased despite our Occupancy Rates dropping marginally to 76.48% as at June 30, 2025 from 79.42% as at June 30, 2024, primarily due to the addition of Desks Capacity in Operational Centres which are newly opened and have not yet matured.

Revenue from contracts with customers:

Service and ancillary revenue: Our Service and Ancillary revenue Ind AS 115 increased by 20.68% to 519.94 million in the three months ended June 30, 2025 from 430.85 million in the three months ended June 30, 2024, primarily driven by an increase in value added services as a result of increased usage by members at high occupancy levels. Further, we also provided design-build and fit-out services which contributed 37.93 million in Service and Ancillary revenue Ind AS 115 for the three months ended June 30, 2025.

Membership revenue: Our Membership revenue Ind AS 115 increased by 37.12% to 206.99 million in the three months ended June 30, 2025 from 150.96 million in the three months ended June 30, 2024. This was primarily due to increases in revenue from (a) WeWork All-Access of 33.39 % to 100.90 million in the three months ended June 30, 2025 from 75.65 million in three months ended June 30, 2024 primarily due to a higher number of passes sold during the period, (b) Virtual Office of 55.80% to 48.66 million in three months ended June 30, 2025 from 31.23 million in three months ended June 30, 2024 primarily due to a higher number of subscriptions, and (c) WeWork Workplace of 28.01 million in three months ended June 30, 2025 for the first time.

Sale of products: Our revenue from Sale of products Ind AS 115 increased by 10.60% to 9.81 million in the three months ended June 30, 2025 from 8.87 million in the three months ended June 30, 2024, primarily due to increased hardware sales and implementation.

Other income

Our other income decreased by 79.71% to 5.91 million in the three months ended June 30, 2025 from 29.13 million in the three months ended June 30, 2024 primarily due to the profit on sale of investments of 18.34 million in the three months ended June 30, 2024, which did not reoccur in the three months ended June 30, 2025.

Finance income

Our finance income increased by 0.94% to 98.12 million in the three months ended June 30, 2025 from 97.21 million in the three months ended June 30, 2024 primarily due to an increase in interest income on financial assets at amortised cost to 43.17 million in the three months ended June 30, 2025 from 18.15 million in the three months ended June 30, 2024, which related to security deposits to landlord, partially offset by a decrease in interest on inter corporate deposit to 46.12 million in the three months ended June 30, 2025 from 56.76 million in the three months ended June 30, 2024 and a decrease in interest income on finance lease to 1.06 million in the three months ended June 30, 2025 from 14.56 million in the three months ended June 30, 2024.

Expenses

Our Total expenses increased by 14.40% to 5,594.66 million in the three months ended June 30, 2025 from

4,890.62 million in the three months ended June 30, 2024, primarily due to increases in our depreciation and amortisation expenses, employee benefits expense, operating expenses, and finance costs.

Depreciation and amortisation expense

Our depreciation and amortisation expense increased by 16.54% to 2,234.92 million in the three months ended June 30, 2025 from 1,917.73 million in the three months ended June 30, 2024, primarily due to an increase in the depreciation of property, plant and equipment and depreciation of right-of-use assets during the year, all of which increased as we acquired new assets for our operations during the period.

Finance costs

Our finance costs increased by 2.64% to 1,364.28 million in the three months ended June 30, 2025 from

1,329.24 million in the three months ended June 30, 2024, primarily due to an increase in interest on lease liabilities to 1,177.02 million in the three months ended June 30, 2025 from 997.10 million in the three months ended June 30, 2024, primarily as we opened new Centres, partially offset by the non-recurrence of interest on non-convertible debentures of 202.40 million in the three months ended June 30, 2024, which was redeemed.

Operating expenses

Our operating expenses increased by 16.07% to 1,299.98 million in the three months ended June 30, 2025 from

1,120.00 million in the three months ended June 30, 2024, primarily due to increases in the following expenses:

Common area maintenance charges: our common area maintenance charges increased by 46.73% to 332.77 million in the three months ended June 30, 2025 from 226.79 million in the three months ended June 30, 2024, primarily due to the increase in our number of Centres in the year.

Housekeeping, including consumables: our housekeeping, including consumables, expenses increased by 33.86% to 195.40 million in the three months ended June 30, 2025 from 145.97 million in the three months ended June 30, 2024, primarily due to the increase in our number of Centres.

Management fees: our management fees increased by 19.28% to 153.63 million in the three months ended June 30, 2025 from 128.80 million in the three months ended June 30, 2024, primarily to due increase in revenue. The management fees are paid to WeWork International as a fixed percentage of our Revenue from Operations.

Information Technology expenses: our Information Technology expenses increased by 28.97% to 72.47 million in the three months ended June 30, 2025 from 56.19 million in the three months ended June 30, 2024, primarily due to upgrades of internal systems and tools.

Power and fuel and other utilities: our power, fuel and other utility expenses increased by 5.24% to 259.01 million in the three months ended June 30, 2025 from 246.12 million in the three months ended June 30, 2024, primarily due to an increase in electricity expense due to the increase in our number of Centres and increased electricity tariffs.

Repair and maintenance (building and others): our repair and maintenance (building and others) expense increased by 11.45% to 161.44 million in the three months ended June 30, 2025 from 144.85 million in the three months ended June 30, 2024, primarily due to annual maintenance costs commencing for buildings opened in prior years and periodic repairs and replacement of equipment.

Security Charges: our security charges increased by 8.95% to 38.73 million in the three months ended June 30, 2025 from 35.55 million in the three months ended June 30, 2024.

Communication costs: our communication costs increased by 19.01% to 41.89 million in the three months ended June 30, 2025 from 35.20 million in the three months ended June 30, 2024, primarily due to increase in number of Centres.

These increases were partially offset by a decrease in our rent, which decreased by 62.18% to 34.78 million in the three months ended June 30, 2025 from 91.95 million in the three months ended June 30, 2024, primarily as one of our lease contracts was restructured to a fixed fee contract, and as such was no longer accounted for under rent.

Employee benefits expense

Our employee benefits expense increased by 28.53% to 473.27 million in the three months ended June 30, 2025 from 368.22 million in the three months ended June 30, 2024, primarily because of an increase in our average headcount of 12.89% to 578 in the three months ended June 30, 2025 from 512 in the three months ended June 30, 2024.

Other expenses

Our other expenses increased by 24.54% to 182.42 million in the three months ended June 30, 2025 compared to 146.48 million in the three months ended June 30, 2024, primarily due to an increase in provision for doubtful debts and advances to 35.26 million in the three months ended June 30, 2025 from 12.10 million in the three months ended June 30, 2024 and increase in miscellaneous expenses to 34.73 million in the three months ended June 30, 2025 from 16.19 million in the three months ended June 30, 2024

Tax expense

Our total tax expense for the three months ended June 30, 2025 was 0.49 million compared to 2.33 million for the three months ended June 30, 2024.

Restated profit/(loss) for the period attributable to the owners of the parent

As a result of the foregoing factors, our restated loss for the three months ended June 30, 2025 attributable to the owners of the parent was 141.04 million compared to a restated loss attributable to the owners of the parent of

295.02 million for the three months ended June 30, 2024. Fiscal 2025 compared to Fiscal 2024

Income

Our Total income increased by 16.51% to 20,240.01 million in Fiscal 2025 from 17,371.64 million in Fiscal

2024, primarily due to an increase in our Revenue from Operations of 17.06% to 19,492.11 million in Fiscal

2025 from 16,651.36 million in Fiscal 2024.

Revenue from Operations

Our Revenue from Operations increased by 17.06% to 19,492.11 million in Fiscal 2025 from 16,651.36 million in Fiscal 2024.

Membership revenue: Membership revenue Ind AS 116 increased by 18.39% to 16,604.07 million in Fiscal 2025 from 14,025.41 million in Fiscal 2024. The increase was primarily due to capacity expansion and an increase in Net ARPM. Our number of Operational Centres increased by 12 to reach 65 Operational Centres as at March 31, 2025 compared to 53 Operational Centres as at March 31, 2024, and our Desks Capacity in Operational Centres increased by 20,418 to 109,572 Desks Capacity in Operational Centres as at March 31, 2025 compared to 89,154 Desks Capacity in Operational Centres as at March 31, 2024. Our Net ARPM increased by 4.35% to

19,842 for Fiscal 2025 from 19,015 for Fiscal 2024 as a result of price increases primarily driven by increased business from existing members. This increase in Net ARPM contributed 703.20 million to the increase in our Net Membership Fees in Fiscal 2025. The marginal increase in our Net Membership Fees in the year was attributable to the reasons above, as well as a decrease in our Occupancy Rate in Operational Centres from 76.79% as at March 31, 2025 compared to 82.04% as at March 31, 2024. This decline was primarily due to the addition of 15,132 Desk Capacity in Operational Centres in the second half of Fiscal 2025 that had not yet matured.

Revenue from contracts with customers:

Service and ancillary revenue: Our Service and Ancillary revenue Ind AS 115 increased by 21.31% to 2,161.01 million in Fiscal 2025 from 1,781.38 million in Fiscal 2024, primarily driven by an increase in value added services as a result of increased usage by members at high occupancy levels. We also provided design-build and fit-out services for the first time in Fiscal 2025, which contributed 151.72 million in Service and Ancillary revenue Ind AS 115.

Membership revenue: Our Membership revenue Ind AS 115 decreased by 18.55% to 663.68 million in Fiscal 2025 from 814.79 million in Fiscal 2024. This was primarily as we had reported 245.04 million of revenue from private office usage in Membership revenue Ind AS 115 in Fiscal 2024. With effect from April 1, 2024, we have reported revenue from private office usage under Membership revenue - Ind AS 116 instead. The decrease was partially offset by increases in revenue from (a) WeWork All Access of 34.54% to 337.23 million in Fiscal 2025 from 250.66 million in Fiscal 2024 primarily due to a higher number of passes sold during the year, (b) Virtual Office of 25.52% to 138.00 million in Fiscal 2025 from 109.94 million in Fiscal 2024 primarily due to a higher number of subscriptions, and (c) WeWork Workplace of 76.81 million in Fiscal 2025 for the first time.

Sale of products: Our revenue from Sale of products Ind AS 115 increased by 112.72% to 63.35 million in Fiscal 2025 from 29.78 million in Fiscal 2024, primarily due to increased hardware sales and implementations.

Other income

Our other income increased by 54.24% to 282.52 million in Fiscal 2025 from 183.17 million in Fiscal 2024 primarily due to an increase in gain on termination of lease (net) to 177.31 million in Fiscal 2025 from 81.00 million in Fiscal 2024, primarily due to the buildings surrendered in Fiscal 2025.

Finance income

Our finance income decreased by 13.35% to 465.38 million in Fiscal 2025 from 537.11 million in Fiscal 2024 primarily due to a decrease in interest income on finance lease to 27.12 million in Fiscal 2025 from 76.94 million in Fiscal 2024 and a decrease in interest income on income tax refund to 32.76 million in Fiscal 2025 from 57.43 million in Fiscal 2024.

Expenses

Our Total expenses increased by 14.06% to 21,328.93 million in Fiscal 2025 from 18,699.16 million in Fiscal

2024, primarily due to increases in our depreciation and amortisation expenses, employee benefits expense, operating expenses, and finance costs.

Depreciation and amortisation expense

Our depreciation and amortisation expense increased by 10.69% to 8,237.30 million in Fiscal 2025 from 7,441.74 million in Fiscal 2024, primarily due to an increase in the depreciation of property, plant and equipment and depreciation of right-of-use assets during the year, all of which increased as we acquired new assets for our operations during the year.

Finance costs

Our finance costs increased by 17.76% to 5,978.94 million in Fiscal 2025 from 5,077.08 million in Fiscal 2024, primarily due to an increase in interest on lease liabilities to 4,444.57 million in Fiscal 2025 from 3,732.94 million in Fiscal 2024 due to capacity expansion. This was also driven by an increase in interest on non-convertible debentures to 898.60 million in Fiscal 2025, from 718.52 million in Fiscal 2024.

Operating expenses

Our operating expenses increased by 14.85% to 4,677.12 million in Fiscal 2025 from 4,072.48 million in Fiscal

2024, primarily due to increases in the following expenses:

Common area maintenance charges: our common area maintenance charges increased by 30.66% to 1,030.87 million in Fiscal 2025 from 788.95 million in Fiscal 2024, primarily due to the increase in our number of Centres in the year.

Power and fuel and other utilities: our power, fuel and other utility expenses increased by 18.15% to 901.16 million in Fiscal 2025 from 762.75 million in Fiscal 2024, primarily due to an increase in electricity expense due to the increase in our number of Centres and increased electricity tariffs set by the authorities.

Housekeeping, including consumables: our housekeeping, including consumables, expenses increased by 25.34% to 694.01 million in Fiscal 2025 from 553.71 million in Fiscal 2024, primarily due to an increase in our number of Centres, which require a proportionate number of staff, equipment and consumables to maintain the standard of experience we provide to our members.

Repair and maintenance (building and others): our repair and maintenance (building and others) expense increased by 18.95% to 618.68 million in Fiscal 2025 from 520.10 million in Fiscal 2024, primarily due to annual maintenance costs commencing for buildings opened in prior years and periodic repairs and replacement of equipment required for better functioning of our buildings.

Rent: our rent expense increased by 15.85% to 283.76 million in Fiscal 2025 from 244.94 million in Fiscal

2024, primarily due to the increase in our number of Centres in the year.

Security Charges: our security charges increased by 26.12% to 148.84 million in Fiscal 2025 from 118.01 million in Fiscal 2024, primarily due to the increase in our number of Centres in the year.

Communication costs: our communication costs increased by 38.92% to 161.13 million in Fiscal 2025 from

115.99 million in Fiscal 2024, primarily due to the increase in our number of Centres in the year.

These increases were partially offset by a decrease in our management fees, which decreased by 12.32% to

533.31 million in Fiscal 2025 from 608.24 million in Fiscal 2024. The management fees are paid to WeWork

International as a fixed percentage of our Revenue from Operations. We had renegotiated management fees payable to WeWork International pursuant to the restated and amended Operations and Management Agreement, effective April 1, 2024.Our management fees comprised 2.74% of our Revenue from Operations in Fiscal 2025, compared to 3.65% of our Revenue from Operations in Fiscal 2024:

Employee benefits expense

Our employee benefits expense increased by 15.76% to 1,550.06 million in Fiscal 2025 from 1,339.08 million in Fiscal 2024, primarily because of an increase in our average headcount of 6.97 % to 537 in Fiscal 2025 from 502 in Fiscal 2024.

Other expenses

Our other expenses decreased by 5.17% to 714.00 million in Fiscal 2025 compared to 752.89 million in Fiscal

2024, primarily due to a provision for doubtful debts and advances (net of reversals) of (15.12) million in Fiscal 2025 compared to 126.75 million in Fiscal 2024, which was partially offset by an increase in legal and professional fees by 34.39% to 254.92 million in Fiscal 2025 from 189.68 million in Fiscal 2024 in relation to compliance activities and an increase in rates and taxes by 110.21% to 47.36 million in Fiscal 2025 from 22.53 million in Fiscal 2024, primarily due to expenses incurred in connection with the increase in our authorised share capital.

Exceptional item

We had an exceptional item of 459.06 million in Fiscal 2025, which comprised the differential value between the book value and the amount paid in relation to our Companys prepayment of outstanding non-convertible debentures.

Tax expense

Our total tax expense for Fiscal 2025 was (2,849.74) million compared to (2.90) million for Fiscal 2024, primarily driven by a deferred tax credit of 2,857.38 million primarily due to unabsorbed depreciation and business losses and a timing difference on account of right of use asset and property, plant and equipment and lease liabilities.

Restated profit for the year attributable to owners of the parent

As a result of the foregoing factors, our restated profit for Fiscal 2025 attributable to owners of the parent was

1,273.94 million compared to a restated loss attributable to owners of the parent of 1,358.39 million for Fiscal

2024.

Fiscal 2024 compared to Fiscal 2023

Income

Our Total income increased by 22.10% to 17,371.64 million in Fiscal 2024 from 14,227.74 million in Fiscal 2023, primarily due to an increase in our Revenue from Operations of 26.67% to 16,651.36 million in Fiscal 2024 from 13,145.18 million in Fiscal 2023.

Revenue from Operations

Our Revenue from Operations increased by 26.67% to 16,651.36 million in Fiscal 2024 from 13,145.18 million in Fiscal 2023.

Membership revenue: Membership revenue Ind AS 116 increased by 26.43% to 14,025.41 million in Fiscal 2024 from 11,093.85 million in Fiscal 2023. The increase was primarily due to capacity expansion and an increase in Net ARPM. We added 10 Operational Centres to reach 53 Operational Centres as at March 31, 2024 compared to 43 Operational Centres as at March 31, 2023, and added 14,914 Desks Capacity in Operational Centres to reach 89,154 Desks Capacity in Operational Centres as at March 31, 2024 compared to 74,240 Desks Capacity in Operational Centres as at March 31, 2023. Our Net ARPM increased by 11.23% to 19,015 for Fiscal 2024 from 17,096 for Fiscal 2023 as a result of price increases primarily driven by increased business from existing members. The increase in Net ARPM contributed 1,472.62 million to the increase in our Net Membership Fees in Fiscal 2024. The increase in our Net Membership Fees for these reasons was partially offset by a decrease in our Occupancy Rate, as our Occupancy Rate in Mature Centres decreased to 85.55% as at March 31, 2024 compared to 88.18% as at March 31, 2023 , primarily due to an increase in our Desks Capacity in Mature Centres by 9,194 desks.

Revenue from contracts with customers:

Service and Ancillary revenue: Our Service and Ancillary revenue Ind AS 115 increased by 14.37% to 1,781.38 million in Fiscal 2024 from 1,557.52 million in Fiscal 2023, primarily driven by an increase in value added services as a result of increased usage by members at high occupancy levels.

Membership revenue: Our Membership revenue Ind AS 115 increased by 66.99% to 814.79 million in Fiscal 2024 from 487.92 million in Fiscal 2023, primarily due to an increases in revenue from (a) WeWork All-Access of 135.93% to 250.66 million in Fiscal 2024 from 106.25 million in Fiscal 2023 primarily due to a higher number of passes sold during the year and (b) Virtual Office of 34.16% to 109.94 million in Fiscal 2024 from

81.95 million in Fiscal 2023 primarily due to a higher number of subscriptions, partially offset by a decrease in revenue from WeWork On Demand as certain users of WeWork On Demand moved to leasing fixed workspaces.

Sale of products: Our revenue from Sale of products Ind AS 115 increased by 405.80% to 29.78 million in Fiscal 2024 from 5.89 million in Fiscal 2023, primarily due to a full year of revenue from Zoapi which was acquired on December 21, 2022 and therefore contributed less than four months of revenue in Fiscal 2023.

Other income

Our other income decreased by 76.28% to 183.17 million in Fiscal 2024 from 772.24 million in Fiscal 2023 primarily due to a reduction in gain on termination of lease (net) to 81.00 million in Fiscal 2024 from 713.71 million in Fiscal 2023. This was due to the Company surrendering fewer buildings in Fiscal 2024.

Finance income

Our finance income increased by 73.08% to 537.11 million in Fiscal 2024 from 310.32 million in Fiscal 2023 primarily due to an increase in interest on intercorporate deposits to 213.74 million in Fiscal 2024, due to our loan to a related party, which was advanced on March 22, 2023, and increases in interest income on financial assets at amortized cost, on bank deposits, and on income tax refund. This was partially offset by a decrease in interest income on finance leases.

Expenses

Our Total expenses increased by 19.13% to 18,699.16 million in Fiscal 2024 from 15,696.58 million in Fiscal

2023, primarily due to increases in our depreciation and amortisation expenses, employee benefits expense, operating expenses, and finance costs.

Depreciation and amortisation expense

Our depreciation and amortisation expense increased by 16.88% to 7,441.74 million in Fiscal 2024 from 6,366.97 million in Fiscal 2023, primarily due to an increase in the depreciation of property, plant and equipment, right-of-use assets and amortisation of intangible assets during the year, all of which increased as we acquired new assets for our operations during the year.

Finance costs

Our finance costs increased by 22.62% to 5,077.08 million in Fiscal 2024 from 4,140.53 million in Fiscal 2023, primarily due to an increase in interest on non-convertible debentures to 718.52 million in Fiscal 2024, from 136.94 million in Fiscal 2023 as we issued more non-convertible debentures during the year. This was also driven by increases in interest on lease liabilities, financial liabilities towards sale and leaseback, service retainer fees, and others, partially offset by decreases in bank charges and interest on bank and financial institution loans.

Operating expenses

Our operating expenses increased by 27.01% to 4,072.48 million in Fiscal 2024 from 3,206.39 million in Fiscal

2023, primarily due to increases in the following expenses:

Common area maintenance charges: our common area maintenance charges increased by 32.66% to 788.95 million in Fiscal 2024 from 594.70 million in Fiscal 2023, primarily due to the increase in our number of Centres in the year.

Power and fuel and other utilities: our power, fuel and other utility expenses increased by 34.02% to 762.75 million in Fiscal 2024 from 569.13 million in Fiscal 2023, primarily due to an increase in electricity expense due to the increase in our number of Centres and increased electricity tariffs set by the authorities.

Housekeeping, including consumables: our housekeeping, including consumables, expenses increased by 52.10% to 553.71 million in Fiscal 2024 from 364.04 million in Fiscal 2023, primarily due to an increase in our number of Centres, which require a proportionate number of staff, equipment and consumables to maintain the standard of experience we provide to our members.

Management fees: our management fee expense increased by 15.10% to 608.24 million in Fiscal 2024 from 528.46 million in Fiscal 2023. The management fees are paid to WeWork Global as a fixed percentage of our

Revenue from Operations. Our management fee expense comprised 3.65% of our Revenue from Operations in Fiscal 2024, compared to 4.02% of our Revenue from Operations in Fiscal 2023.

Repairs and maintenance (building and others): our repair and maintenance (building and others) expense increased by 35.90% to 520.10 million in Fiscal 2024 from 382.72 million in Fiscal 2023, primarily due to annual maintenance costs commencing for buildings opened in prior years and periodic repairs and replacement of equipment required for better functioning of our buildings.

Rent: our rent expense increased by 37.21% to 244.94 million in Fiscal 2024 from 178.52 million in Fiscal

2023, primarily due to the addition of Centres.

Security Charges: our security charges increased by 23.13% to 118.01 million in Fiscal 2024 from 95.84 million in Fiscal 2023, primarily due to the increase in our number of Centres in the year.

These increases were partially offset by a decrease in communication costs, primarily attributable to our ability to negotiate decreased rates with our service providers.

Employee benefits expense

Our employee benefits expense increased by 11.08% to 1,339.08 million in Fiscal 2024 from 1,205.53 million in Fiscal 2023, primarily because of an increase in our average headcount of 12.81% to 502 in Fiscal 2024 from 445 in Fiscal 2023.

Other expenses

Our other expenses decreased by 2.21% to 752.89 million in Fiscal 2024 compared to 769.94 million in Fiscal 2023, primarily due to a 34.22% decrease in our advertising and sales promotion expenses to 247.50 million in Fiscal 2024 from 376.25 million in Fiscal 2023. Following an aggressive brand campaign conducted during Fiscal 2023, we conducted a strategic optimisation of these activities in Fiscal 2024. We also had a 11.87% decrease in our travelling and conveyance expenses to 50.40 million in Fiscal 2024 from 57.19 million in Fiscal

2023 as we optimized our travelling spend.

These decreases were partially offset by an increase in provision for doubtful debt and advances (net of reversals) of 126.75 million in Fiscal 2024, as compared with 26.73 million in Fiscal 2023 due to default by one of our enterprise members, and a 24.27% increase in our legal and professional fees to 189.68 million in Fiscal 2024 from 152.63 million in Fiscal 2024 in line with our commitment to maintain a strong, compliant and competitive position in the market.

Tax expense

Our total tax expense for Fiscal 2024 was (2.90) million compared to total tax expense of (0.74) million for

Fiscal 2023.

Restated loss for the year attributable to owners of the parent

As a result of the foregoing factors, our restated loss for Fiscal 2024 attributable to owners of the parent decreased by 6.87% to 1,358.39 million from a restated loss attributable to owners of the parent of 1,458.61 million for

Fiscal 2023.

Liquidity and Capital Resources

Historically, our primary liquidity requirements have been for capital expenditures for our expansion. We have met these requirements through cash flows from operations, equity infusions from shareholders and borrowings. As at June 30, 2025, we had 87.71 million in cash and cash equivalents, 32.41 million in bank balances other than cash and cash equivalents, and 312.25 million in current investments. As of June 30, 2025, we had 3,892.26 million in Total Borrowings which primarily relate to secured term loan from banks, comprising 1,349.56 million in current borrowings and 2,542.70 million in non-current borrowings. We expect that our internal cash accruals would fund our growth capital expenditures. For further details, see "Financial Indebtedness" on page 443.

We believe our cash flows will be sufficient to meet our capital expenditure needs for at least the next twelve months and beyond. See "Risk Factors 5. We have incurred net losses, had negative Restated Earnings / (loss) per equity share Basic and negative Restated Earnings / (loss) per equity share - Diluted in the three months ended June 30, 2025, the three months ended June 30, 2024, Fiscals 2024 and 2023 and had net decrease in cash and cash equivalents in the three months ended June 30, 2025, the three months ended June 30, 2024 and Fiscal 2024, and may continue to do so in the future. If we are unable to generate and sustain increased revenues while managing our expenses to achieve profitability, our business, results of operations, cash flows and financial condition may be adversely impacted" on page 47.

Our future capital requirements will depend on many factors, including, but not limited to our growth, our ability to attract and retain members, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our brand, and the expansion of sales and marketing activities. Further, we may in the future enter into arrangements to strategically pursue inorganic growth opportunities to support our operations. We may finance our capital requirements through equity, debt, or a combination thereof. See "Risk Factors 48. We have substantial capital expenditure and if we are unable to recover our capital expenditure incurred, our results of operations, cash flows and financial condition could be adversely affected. In addition, we may require additional financing pursuant to our growth plan and to meet our working capital requirements. Continued increases in our working capital requirements or our inability to obtain financing at favourable terms, or at all may have a material adverse effect on our financial condition, results of operations and cash flows" on page 90.

Cash Flows

The table below summarises the statement of cash flows for the periods/years indicated:

( in million)

Particulars	For the three months ended June 30,			Fiscal
	2025	2024	2025	2024	2023
Net cash generated from operating activities	3,227.23	2,294.87	12,899.51	11,618.50	9,418.96
Net cash (used)/generated in investing activities	(1,613.52)	107.59	(3,036.77)	(3,934.12)	(3,864.72)
Net cash used in financing activities	(1,761.55)	(2,472.64)	(9,837.77)	(7,973.18)	(5,337.56)
Cash and cash equivalents at the beginning of the period/year	235.55	210.58	210.58	499.38	282.70
Net (decrease)/increase in cash and cash equivalents	(147.84)	(70.18)	24.97	(288.80)	216.68
Cash and cash equivalents at the end of the period/year	87.71	140.40	235.55	210.58	499.38

Operating Activities

Our net cash generated from operating activities for the three months ended June 30, 2025 was 3,227.23 million, while our operating profit before working capital changes was 3,431.69 million. Our restated loss before share of loss in associate, exceptional item and tax for the period of 137.53 million was adjusted primarily for depreciation and amortization expense of 2,234.92 million and finance costs of 1,364.28 million, partially offset by finance income of 98.12 million. Our changes in working capital for the three months ended June 30, 2025 were primarily due to an increase in trade receivables of 447.66 million, decrease in other liabilities of 136.79 million and decrease in other financial liabilities of 67.43 million, partially offset by a decrease in other financial assets of 433.67 million. Net income taxes paid were 41.98 million.

Our net cash generated from operating activities for the three months ended June 30, 2024 was 2,294.87 million, while our operating profit before working capital changes was 2,885.05 million. Our restated loss before share of loss in associate, exceptional item and tax for the period of 277.77 million was adjusted primarily for depreciation and amortization expense of 1,917.73 million and finance costs of 1,329.24 million, partially offset by finance income of 97.21 million. Our changes in working capital for the three months ended June 30, 2024 were primarily due to a decrease in trade payables of 416.13 million and an increase in other financial liabilities of 382.37 million, partially offset by an increase in other financial assets of 243.94 million. Net income taxes paid were 183.24 million.

Our net cash generated from operating activities for Fiscal 2025 was 12,899.51 million, while our operating profit before working capital changes was 12,464.21 million. Our restated loss before share of loss in associate, exceptional item and tax for the year of 1,547.98 million was adjusted primarily for depreciation and amortization expense of 8,237.30 million and finance costs of 5,978.94 million, partially offset by finance income of 465.38 million. Our changes in working capital for Fiscal 2025 were primarily due to an increase in other financial liabilities of 1,070.68 million, partially offset by a decrease in trade payables of 245.02 million and an increase in other financial assets of 466.15 million. Net income taxes paid were 61.33 million.

Our net cash generated from operating activities for Fiscal 2024 was 11,618.50 million, while our operating profit before working capital changes was 10,762.75 million. Our restated loss before share of loss in associate, exceptional item and tax for the year of 1,327.52 million was adjusted primarily for depreciation and amortization expense of 7,441.74 million and finance costs of 5,978.94 million, partially offset by finance income of 537.11 million. Our changes in working capital for Fiscal 2024 were primarily due to an increase in other financial liabilities of 770.43 million and a decrease in other assets of 195.83 million, partially offset by a decrease in trade payables of 304.19 million and an increase in trade receivables of 214.02 million. Net income taxes refunded were 284.91 million.

Our net cash generated from operating activities for Fiscal 2023 was 9,418.96 million, while our operating profit before working capital changes was 8,104.31 million. Our restated loss before share of loss in associate, exceptional item and tax for the year of 1,468.84 million was adjusted primarily for depreciation and amortization expense of 6,366.97 million and finance costs of 4,140.53 million, partially offset by gain on termination of lease (net) of 713.71 million and finance income of 310.32 million. Our changes in working capital for Fiscal 2023 were primarily due to increases in other financial liabilities of 969.84 million and in other liabilities of 356.62 million and decreases in other assets of 280.33 million and in other financial assets of 125.26 million, partially offset by an increase in trade receivables of 100.42 million and a decrease in trade payables of 95.60 million. Net income taxes paid were 328.29 million

Investing Activities

Our net cash used in investing activities for the three months ended June 30, 2025 was 1,613.52 million, which primarily consisted of acquisition of property, plant and equipment and intangible assets of 981.75 million and redemption made in bank deposits (having original maturity of more than three months) of 278.12 million and payment for acquiring right of use asset (stamp duty and brokerage) of 341.61 million.

Our net cash generated in investing activities for the three months ended June 30, 2024 was 107.59 million, which primarily consisted of acquisition of property, plant and equipment and intangible assets of 558.32 million and payment for acquiring right of use assets (stamp duty and brokerage) of 153.11 million. This was partially offset by proceeds from sale of current investments of 813.32 million.

Our net cash used in investing activities for Fiscal 2025 was 3,036.79 million, which primarily consisted of acquisition of property, plant and equipment and intangible assets of 3,722.82 million and payment for acquiring right of use assets (stamp duty and brokerage) of 828.59 million. This was partially offset by proceeds from sale of current investments of 1,381.14 million.

Our net cash used in investing activities for Fiscal 2024 was 3,934.12 million, which primarily consisted of acquisition of property, plant and equipment and intangible assets of 2,445.20 million, purchase of current investments of 1,010.05 million, payment for acquiring right of use assets (stamp duty and brokerage) of 553.77 million and payment for acquisition of subsidiaries (net of cash acquired) and associate of 178.63 million. This was partially offset by interest received of 315.10 million.

Our net cash used in investing activities for Fiscal 2023 was 3,864.72 million, which primarily consisted of acquisition of property, plant and equipment and intangible assets of 2,328.34 million, purchase of current investments of 527.71 million, inter corporate deposit given to related parties of 500.00 million and payment for acquiring right of use assets (stamp duty and brokerage) of 471.59 million. This was partially offset by interest received of 93.74 million.

Financing Activities

Our net cash used in financing activities for the three months ended June 30, 2025 was 1,761.55 million, and primarily included payment of principal portion of lease liabilities of 1,267.96 million, interest paid on lease liabilities of 1,177.02 million and repayment of long-term borrowings of 254.69 million. This was partially offset by proceeds from long-term borrowings of 1,047.69 million.

Our net cash used in financing activities for the three months ended June 30, 2024 was 2,472.64 million, and primarily included payment of principal portion of lease liabilities of 1,118.33 million, interest paid on lease liabilities of 997.10 million, interest, bank charges and processing charges paid on borrowings of 194.02 million, repayment of long-term borrowings of 185.20 million.

Our net cash used in financing activities for Fiscal 2025 was 9,837.77 million, and primarily included payment of principal portion of lease liabilities of 5,558.46 million, interest paid on lease liabilities of 4,444.57 million, interest, bank charges and processing charges paid of 750.58 million, repayment of long-term borrowings of 819.14 million and redemption of non-convertible debentures of 5,611.96 million. This was partially offset by proceeds from long-term borrowings of 2,339.36 million and proceeds from rights issue of equity shares of 5,012.81 million.

Our net cash used in financing activities for Fiscal 2024 was 7,973.18 million, and primarily included payment of principal portion of lease liabilities of 4,303.60 million, interest paid on lease liabilities of 3,732.94 million, interest, bank charges and processing charges paid on borrwings of 890.48 million, and repayment of long-term borrowings of 838.19 million. This was partially offset by proceeds from long-term borrowings of 2,000.26 million.

Our net cash used in financing activities for Fiscal 2023 was 5,337.56 million, and primarily included interest paid on lease liabilities of 3,464.14 million, payment of principal portion of lease liabilities of 3,279.61 million, repayment of long-term borrowings of 1,573.35 million and interest, bank charges and processing charges paid on borrowings of 447.33 million. This was partially offset by proceeds from long-term borrowings of 3,429.02 million.

Indebtedness

As of June 30, 2025, we had current borrowings of 1,349.56 million and non-current borrowings of 2,542.70 million. Our borrowings include the following:

As at June 30, 2025, term loans from banks secured (current and non-current) amounting to 3,252.40 million. The term loans from banks secured (current and non-current) comprise:

o term loans from banks amounting to 368.22 million carrying an interest rate ranging from

9.25% to 11.90% per annum, repayable in 48 to 72 monthly instalments. These loans are secured by hypothecation of movable fixed assets, current assets, immovable fixed assets, and a pledge of 26% of the shares in our Company by Embassy Buildcon LLP (pledge released w.e.f October 2022) and debt service reserve, and is further supported by a personal guarantee by our Promoter, Jitendra Mohandas Virwani.

o term loan from banks amounting to 2,057.77 million and carrying an interest rate of 10.50% per annum, repayable in 55 to 60 monthly instalments. This term loan is secured by an exclusive charge on cashflow of identified Centres and on fit-outs of identified Centres, and is further supported by a personal guarantee by our Promoter, Jitendra Mohandas Virwani.

o term loan from banks amounting to 826.41 million and carrying an interest rate of 9.90% to

10.15% per annum, repayable in 60 monthly instalments. This term loan is secured by an exclusive charge on cashflow of identified Centres and on fit-outs of identified Centres, and is further supported by a personal guarantee by our Promoter, Jitendra Mohandas Virwani.

As at June 30, 2025, overdraft from banks secured (current) amounting to 174.88 million. The overdraft from banks secured (current) carry interest rates of 10.30% per annum, repayable at the end of 12 months. This overdraft from banks is secured by exclusive charge on cashflow of identified Centres and on fit-outs of identified Centres and is further supported by a personal guarantee by our Promoter, Jitendra Mohandas Virwani.

As at June 30, 2025, loan for purchase of capital asset secured (current and non-current) amounting to 101.43 million. The loan for purchase of capital asset secured (current and non-current) carry interest rates from 7.80% to 9.50% per annum, repayable in monthly instalments ranging between 36 to 60 months, and secured against hypothecation of motor vehicles.

As at June 30, 2025, financial liabilities towards sale and leaseback secured (current and non-current) amounting to 363.55 million. The financial liabilities toward sale and leaseback secured (current and non-current) carry interest rates ranging from 12.78% to 25.48%, and are repayable in monthly instalments ranging between 36 to 108 months. We enter into the financial liabilities towards sale and