Wework India Management Ltd Management Discussions

Management discussion and analysis

Operating environment

The Companys operations are based in India, one of the worlds fastest- growing large economies. This section outlines the macroeconomic backdrop, the structural evolution of Indias office and flexible workspace market and the factors that are reshaping how organisations occupy and utilise workspace. This section concludes with an overview of the Companys outlook, which has guided its strategic growth plans.

Indian macroeconomic environment Indian economy

In FY26, Indias performance as the worlds fourth-largest economy was characterised by robust nominal GDP growth, thereby outpacing every other major economy. Real GDP growth for the year is estimated at approximately 7.7%, underpinned by resilient services activity, sustained public capital expenditure and gradual private capex recovery.

Headline inflation moderated, with food prices easing and the currency remaining stable. The Reserve Bank of India (RBI) maintained policy rates and adopted a neutral stance during the second half of the year, supporting corporate planning and investment decisions.

Indias demographic and services-led growth model creates a favourable environment for premium office and flexible workspace solutions. The countrys white-collar workforce is growing consistently while services exports, including IT, business services and Global Capability Centre (GCC) output are driving urban employment progress.

Indias Grade A office market delivered another record year in CY25, with gross leasing of ~83 Million square feet. This was the third consecutive year of record growth. The market demonstrates sustained structural growth, with total stock expected to surpass 1 Billion square feet in 2026. This momentum was reinforced in Q1 CY26 performance, with a gross leasing of 20.7 Million square feet, the highest ever recorded in the first quarter. GCCs accounted for approximately 31 Million square feet of absorption during CY25, a record annual figure, with a further 9.1 Million square feet added in Q1 CY26.

The market composition has evolved as the market has grown in size. Flex stock in India surpassed 110 Million square feet in CY25, approximately three times its CY20 level. Flexible workspace leasing reached around 17 Million square feet, its highest annual level on record. In Q1 CY26, flexible workspace accounted for 23% of total office leasing, emerging as the single largest occupier category in India, ahead of technology and BFSI.

Flex stock in India: sustained upward trajectory

From ~103 MSF today to ~236 MSF by CY30P, representing, an ~18% CAGR.

Flexible workspaces has become a strategic pillar of long-term workforce planning, evolving beyond its traditional role as tactical capacity buffers.

The forces that are shaping the flex market

• Accelerating office market growth: Indias commercial office market is expanding rapidly. Q1 CY26 recorded the highest Q1 absorption ever, following three consecutive record annual years. This growth is creating significant opportunities for flexible workspace operators.

• Enterprise-led demand: Flex is recognised as a core component of enterprise real estate strategy across both global occupiers, GCCs and Indian companies, with 82% of enterprises planning to increase their flex allocation over the next two years and 75% of enterprises planning real estate decisions within a three-year horizon.

• Premiumisation and flight to quality: Occupiers are consolidating into higher-quality assets, with 70% of leasing in Q1 CY26 occurring in buildings less than ten years old and 68% in green-certified tech parks with better amenities and experience.

• Transition towards single integrated operators: Enterprises increasingly prefer a single trusted partner across markets to deliver consistent quality and cost advantages, consolidating their real estate spend into end-to- end workspace solutions, ranging from flexible workspace offerings to bespoke Managed Office solutions and Value-Added Services.

The structural shift towards flexible workspaces

The Company recognises the growth of flexible workspace in India as a sustained structural transformation rather than a cyclical rebound. The four key growth drivers include-

1. Indias cost, talent and demographics advantage

India is well positioned for sustained growth, supported by an expansive young workforce, a highly skilled, expanding talent pool and a cost structure that remains competitive relative to other major economies. These factors have positioned India as a reliable partner for global companies establishing Global Capability Centres (GCCs) and for domestic companies expanding white-collar employment.

Why global capital chooses India

India offers cost-efficient office space, a deep STEM talent pool and a young, cost-competitive workforce. With costs incurred in rupees and returns reported in US dollars, India offers one of the most cost-competitive operating environments among major global talent markets, a competitive advantage that has continued to strengthen over time.

2. GCC-led demand

GCCs have transformed from being cost-arbitrage back-offices into strategic hubs for engineering, product, analytics and enterprise operations. The number of GCCs in India has expanded substantially and their demand for Grade A office space has increased significantly. GCCs typically prefer premium assets, longer commitment terms and enterprise-grade service delivery, aligning with the Companys strategic positioning.

GCC growth by segmentation

Mega centres anchor; mid-market and sub-mid-market drive the growth and the orientation toward flex.

3. AI is reshaping the workforce and workspace

Rapid AI adoption is transforming workforce alignment. Companies are reorganising teams based on Al-augmented workflows, introducing new roles in AI engineering and reassessing their real estate footprint in response to these changes. Flexible workspace is emerging as the preferred solution for organisations that require the acquisition, reconfiguration or relocation of teams at short notice. The expected outcome is an additional 79 Million square feet of net-new knowledge-economy office demand in India by CY30. Within this, the AI-specific workforce driving demand for flexible workspaces is projected to scale from approximately 14,000 employees in CY25 to 120,000 by CY30.

FLEX SEAT LEASING • CY25 VS CY30P

Indias flex seat leasing roughly doubles by 2030. ~1/3 is AI-led, across every scenario.

AI workforce inside flexible workspace: CY25 to CY30

4. Shorter planning cycles are driving flexible workspace adoption

Large enterprises have transitioned from long-term leases due to shorter planning cycles. Headcount plans have become increasingly dynamic. Enterprises are prioritising a portfolio that balances core (long-term owned or leased) and flexible workspace (Managed Office and enterprise flexible space) operations, thereby reducing demand for capital-intensive fit-out investments that cannot be easily reallocated. This has increased the share of enterprise real estate investment towards operators such as the Company.

Five-plus year leases have collapsed from 40% of enterprises to 8%. One to three year horizons are now the default for 60%.

Real estate planning horizon

• share of enterprises (N=272)

What this means for WeWork India

The Company is well positioned to capitalise on these four structural drivers. As Indias largest premium flexible workspace platform by revenue, profitability and market capitalisation, it has a diversified member mix comprising large enterprises and Global Capability Centres. Its portfolio is concentrated in the top eight Tier-1 cities where office demand and flex adoption remain the strongest, while its comprehensive product suite (WeWork-branded flexible workspace and Managed Office) aligns with the fastest-growing segments of the market.

The Company continues to align its growth strategy with evolving market dynamics by deepening its footprint in existing cities, expanding its Managed Office business and broadening its Value-Added Services and Digital Products.

Outlook

The macroeconomic backdrop for FY27 is expected to remain supportive, with Indias real GDP projected to grow 6.5-7.0% and accommodative policy conditions. Grade A office absorption is well positioned for another record year following the ~83 Million square feet of gross leasing in the previous year. Total Grade A stock is predicted to exceed 1 Billion square feet by CY26 and flexible workspace will continue to gain share. Flexible workspace stock in top seven cities is projected to grow from ~103 Million square feet in CY25 to 236 Million square feet by CY30, registering an 18% CAGR, with GCC-driven flex leasing accelerating at an estimated 28% CAGR. Indias structural advantages, a young workforce, deep STEM talent pool and a significant cost competitiveness over developed markets, are expected to remain strategic tailwinds for premium workspace demand.

Source:

1: CBRE, India Office Figures Q4 2025 2: CBRE, India Office Figures Q12026

3: CBRE Research, Flex-plosion: Indias Flexible Workspaces Era, March 2026

4: Redseer, AI and the Future of Flexible Workspaces in India, 2026

5: Press Information Bureau (PIB), Government of India — Annual GDP Estimates. FY26

Company overview

WeWork India Management Limited is Indias largest flexible workspace platform in terms of revenue, profitability and market capitalisation. The Company designs, builds and operates workplaces that Indian and multinational organisations utilise to expand their teams and businesses, combining premium Grade A locations with a hospitality-led operating model and comprehensive product portfolio.

Established in 2016, the Company operates under an exclusive franchise agreement with WeWork Inc. and is promoted by the Embassy Group, one of Indias leading real estate developers. It established its first centre in 2017 in Bengaluru and has since developed one of Indias most recognised workspace platforms. As the exclusive licensee of the WeWork brand in India, the Company designs, establishes and operates its centres in alignment with the global standards associated with a global network of more than 600 WeWork locations across 37 countries.

The Companys operations span key business districts in Indias Tier-1 cities. Its member base includes Fortune 500 companies, major enterprises, mid-sized institutions, GCCs, emerging startups, small businesses and independent professionals. Fortune 500 companies, large enterprises and mid-sized enterprises accounted for approximately 77% of the Companys core revenue in FY26.

The Companys business model prioritises securing long-term leases in Grade A office assets across key micro-markets while providing flexible workspace solutions tailored to diverse business requirements. Its operations are guided by four fundamental pillars: Core Workspace memberships, Value-Added Services, Digital Products and Rivet, its recently launched design and build business. Offerings range from single-desk memberships to customised Managed Office solutions in line with global operating standards.

On 10 October 2025, the Company completed its Initial Public Offering (IPO) and was listed on the National Stock Exchange of India Limited (NSE) and BSE Limited. The Company has maintained a long-term credit rating of CRISIL A+ and operates a self-sustaining business with a net debt-negative balance sheet and growth capital expenditure largely funded through operating cash flows.

The Company delivered its strongest operational and financial performance in FY26. It enters FY27 with the strongest opening position in its history, with approximately Rs.18,854 Million of core revenue already committed for the year.

FY26 at a glance Operational Metrics

Metric	FY26	FY25	Movement
Operational Area	8.6 MSF	7.4 MSF	+1.2 MSF (+16.2%)
Total Area (incl. LOI signed)	11.6 MSF	8.3 MSF	+3.3 MSF (+39.0%)
Operational Desk Capacity	1,26,860	1,09,572	+17,288 (+15.8%)
Desks Sold	47,965	39,773	+8,192 (+20.6%)
Members	1,10,230	84,139	+26,091 (+31.0%)
Portfolio-Level Occupancy	86.9%	76.8%	+1,010 bps
Mature Centre (>12M) Occupancy	88.9%	82.8%	+617 bps
Core Revenue to Rent	2.60x	2.68x	-0.08x
Revenue to Rent	2.94x	2.96x	Held flat
Portfolio Commitment Term	28 months	26 months	+2 months
Large Enterprise Commitment Term	33 months	31 months	+2 months

Total Area includes signed leases and letters of intent signed with landlords. MSF = Million square feet. Mature centres are those operational for more than 12 months.

Financial performance Basis of presentation

The financial performance of the Company is presented on a consolidated basis and prepared in accordance with Indian Accounting Standards (Ind AS) as notified under the Companies Act, 2013. All figures are in Indian Rupees (H) Million unless stated otherwise.

Under Ind AS 116, operating leases are capitalised as Right-of-Use (ROU) assets with a corresponding lease liability, converting rental expense into two non-cash accounting components: depreciation on the ROU asset and interest on the lease liability. These adjustments do not impact the Companys cash flows or underlying operational performance but reclassify rental expenditure into accounting line items in compliance with the standard. The resulting expense recognition pattern is front-loaded: the combined Ind AS depreciation and lease interest expense exceeds the actual cash rent paid to landlords in the first half of a typical ten-year lease term and reverses in the later years. This artificially lowers reported profit under Ind AS during the front-loaded period, without changing the economic cash rent the Company pays.

Brokerage costs paid to property consultants for member acquisition are paid upfront in cash as a percentage of the total contract value for the entire lock-in period. In the statement of profit and loss (P&L), they are recognised over the members lock-in period, matching the expense against the related membership revenue, in accordance with the matching principles of accounting. The amount recognised in the P&L in any given period is equivalent under both views; only the classification differs. Under Ind AS, brokerage is capitalised to the ROU asset and is recognised as depreciation. Under the pre-Ind AS 116/IGAAP-equivalent view, the identical amount is recognised on a straight-line basis as an operating expense. The entire cash outflow is recognised in the year of payment (see Cash Generation table below).

For these reasons, this section also presents a supplementary view on a pre-Ind AS 116/IGAAP-equivalent basis, which the Company considers a more accurate representation of its underlying business and cash generation. Under this view, rent is recognised as an operating expense, reflecting the actual cash outflow to landlords and brokerage is expensed on a straight-line basis over the lock-in period rather than capitalised through ROU depreciation. Together, this makes the IGAAP-equivalent view the closest reflection of operating profitability.

Internally, the Company relies on this view as its primary benchmark for core cash profitability. This is consistent with generally accepted industry practice, where listed peers and global operator-led flexible workspace platforms follow a similar disclosure approach. Presenting both views enables readers to distinguish accounting impacts from underlying cash returns and better understand the fundamentals of the business.

The growth drivers, margin trends and unit economics discussed in the commentary that follows are best analysed using the pre-Ind AS 116/IGAAP-equivalent view, as it reflects the operational strategies adopted by management. Statutory headline tables, key financial ratios and earnings per share have been presented on the Ind AS basis. A reconciliation between the two views is provided at the end of this section, together with commentary on the key line items.

Ind AS reported P&L

Particulars	FY26	FY25	YoY
Revenue from Operations	24,401.8	19,492.1	25.2%
Finance and Other Income	502.5	747.9	(32.9)%
Total Revenue	24,904.3	20,240.0	23.0%
Operating and Other Expenses	8,666.2	7,112.7	21.8%
EBITDA	16,238.1	13,127.3	23.7%
EBITDA Margin	65.2%	64.9%	30 bps
Depreciation and Amortisation	9,674.6	8,237.3	17.4%
EBIT	6,563.4	4,890.0	34.2%
Finance Costs	6,012.6	5,978.9	0.6%
Profit / (Loss) Before Share of Profit / (Loss) in Associate, Exceptional Item and Tax for the Year	550.9	(1,088.9)	(150.6)%
Share of Profit/(loss) in Associate	21.4	(19.9)	(207.5)%
Profit/(Loss) Before Exceptional Item	572.2	(1,108.8)	(151.6)%
Exceptional Item	(43.3)	(459.1)	(90.6)%
Profit / (Loss) Before Tax	529.0	(1,567.9)	(133.7)%
Tax Expense	(220.2)	(2,849.7)	(92.3)%
Profit After Tax	749.2	1,281.9	(41.6)%

The following table shows the Companys Revenue from Operations for the years indicated.

Particulars	FY26	FY25	YoY
Revenue from Operations	24,401.8	19,492.1	25.2%
Membership Revenue - Ind AS 116	20,561.3	16,604.1	23.8%
Membership Revenue - Ind AS 115	819.7	663.7	23.5%
Service and Ancillary revenue - Ind AS 115	2,731.9	2,009.3	36.0%
Revenue from Construction and Fit-out Projects	225.2	151.7	48.5%
Sale of Products - Ind AS 115	63.7	63.4	0.5%

Total revenue:

The Company delivered robust revenue growth of 23.0% during FY26, with total revenue increasing to Rs.24,904.3 Million from Rs.20,240.0 Million in FY25, primarily due to higher revenue from operations.

Revenue from operations:

The Companys revenue from operations increased by 25.2% to Rs.24,401.8 Million, compared with Rs.19,492.1 Million in the previous year. This growth was primarily driven by significant portfolio expansion and improved occupancy across its centres.

Membership revenue - Ind AS 116

Membership revenue - Ind AS 116, which represents the Companys core workspace revenue from Private Office and Managed Office solutions, increased by 23.8% to Rs.20,561.3 Million in FY26 from Rs.16,604.1 Million in FY25, primarily due to portfolio expansion and a significant improvement in occupancy. The number of operational centres increased to 76 as at 31^st March 2026 and operational desk capacity expanded to 126,860 from 109,572 over the same period. Portfolio-level occupied members increased to 110,230 from 84,139, while the occupancy rate improved to 86.9% from 76.8%, reflecting strong demand and improved portfolio utilisation.

Service and ancillary revenue - Ind AS 115 (Value added services)

Service and ancillary revenue (Ind AS 115) comprises revenue from Value-Added Services, the Operator model, facility management and fit-out rental services. It increased by 36.0% to Rs.2,731.9 Million in FY26, reflecting broad-based growth across the Companys ancillary and Value-Added Services portfolio.

Membership revenue - Ind AS 115 (Digital Products)

Membership revenue - Ind AS 115 includes revenue from WeWork On-Demand, WeWork All Access, Virtual Office and WeWork Workplace and increased by 23.5% to Rs.819.7 Million in FY26 from Rs.663.7 Million in FY25, indicating consistent growth in the Companys digital workspace solutions.

In addition to their contribution to Revenue from Operations, the Companys Value-Added Services and Digital Products are highly EBITDA accretive, as the associated costs are primarily fixed in nature and are absorbed within the Companys core operations, thereby enhancing overall operating leverage and margin profile.

Revenue from construction and fit-out projects

Revenue from construction and fit-out projects, comprising design-build and fit-out services, increased by 48.5% to Rs.225.2 Million in FY26, compared with Rs.151.7 Million in FY25. During the fiscal year, the Company officially launched these services under the Rivet brand, thereby strengthening the Companys integrated workplace solutions portfolio and expanding its service offerings.

Sale of products - Ind AS 115

Sale of products under Ind AS 115 (revenue from contracts with customers) primarily comprises subscription revenue from the video conferencing product, Zoapi. This revenue remained broadly stable at Rs.63.7 Million in FY26, compared with Rs.63.4 Million in FY25.

Total expenses:

Total expenses increased by 14.2% to Rs.24,353.4 Million in FY26 from Rs.21,328.9 Million in FY25. The increase was significantly lower than the 23.0% growth in total revenue, demonstrating the Companys ability to achieve operational efficiency and scalability while accelerating business expansion.

Operating expenses:

The Companys operating expenses increased by 18.2% to Rs.5,530.0 Million in FY26 from Rs.4,677.1 Million in FY25, primarily due to the following-

i) Common area maintenance (CAM) charges increased by 32.9% to Rs.1,370.0 Million in FY26, compared with Rs.1,030.9 Million in FY25, primarily driven by the Companys operational portfolio expansion and the addition of new centres.

ii) Housekeeping expenditure, including consumables, increased by 27.7% to Rs.886.5 Million in FY26 from Rs.694.0 Million in FY25.

iii) Management fees increased by 20.0% to Rs.640.2 Million in FY26 from Rs.533.3 Million in FY25.

iv) Repairs and maintenance costs increased by 12.4% to Rs.695.5 Million in FY26, compared with Rs.618.7 Million in FY25. Other expenses:

Other expenses increased by 26.9% to Rs.905.9 Million in FY26 from Rs.714.0 Million in FY25, primarily due to the following-

i) Advertising and sales promotion expenses increased by 36.5% to Rs.305.1 Million in FY26, compared with Rs.223.5 Million in FY25.

ii) Miscellaneous expenses increased by 77.3% to Rs.105.7 Million in FY26 from Rs.59.6 Million in FY25.

Employee benefit expense:

Employee benefit expenses increased by 28.0% to Rs.1,984.7 Million in FY26 from Rs.1,550.1 Million in FY25. The Companys workforce increased from 552 to 578 employees as at 31^st March 2026, primarily to support business growth and strengthen its technology and engineering team in line with its focus on product and technological innovation.

Further, share-based payment expense increased by 91.7%, from Rs.90.9 Million to Rs.174.3 Million in FY26, supported by the issuance of additional stock options during the year.

Finance costs:

Finance costs remained stable at Rs.6,012.6 Million in FY26, compared with Rs.5,978.9 Million in FY25, representing a marginal increase of 0.6%. This was primarily due to a 17.6% increase in interest on lease liabilities, which increased to Rs.5,227.2 Million from Rs.4,444.5 Million and an 82.1% increase in interest on borrowings from banks and financial institutions, which increased to Rs.326.3 Million from Rs.179.2 Million, largely on account of additional borrowings. This increase was primarily offset by the redemption of high-cost non-convertible debentures in FY25, which previously incurred an interest expense of Rs.898.6 Million, thereby maintaining overall finance costs broadly stable during the year.

Depreciation and amortisation expense:

Depreciation and amortisation expense increased by 17.4% to Rs.9,674.6 Million in FY26 from Rs.8,237.3 Million in FY25. This was primarily due to capital expenditure incurred towards the expansion of additional centres and operational area, resulting in an increase in depreciation on property, plant and equipment by 33.5% to Rs.2,301.6 Million in FY26 from Rs.1,724.0 Million in FY25. Depreciation on ROU assets increased from Rs.6,479.0 Million to Rs.7,331.0 Million during the year, representing an increase of 13.2%.

EBITDA and PAT:

EBITDA increased by 23.7% to Rs.16,238.1 Million in FY26 from Rs.13,127.3 Million in FY25. This growth was driven by higher operating revenue and improved operational efficiency.

Profit after tax (PAT) in FY26 stood at Rs.749.2 Million, compared with Rs.1,281.9 Million in FY25. However, the previous years value included a one-time deferred tax credit of Rs.2,857.4 Million. PAT improved on a year on year basis, reinforcing the Companys progress.

Balance sheet highlights

Particulars	As on 31 Mar 2026	As on 31 Mar 2025
Total Assets:	70,921.6	53,916.7
Right-of-Use Assets	45,939.0	33,946.7
Property, Plant and Equipment	11,765.1	9,084.7
Cash and Cash Equivalents	626.5	235.6
Investments	2,555.9	327.6
Other assets	10,035.1	10,322.1
Total Equity and Liabilities:	70,921.6	53,916.7
Total equity	2,992.1	2,004.6
Lease Liabilities	52,175.3	39,626.8
Borrowings	3,327.7	3,102.2
Other Liabilities	12,426.5	9,183.1

Assets overview:

The Companys balance sheet strengthened materially during the year. Total assets stood at Rs.70,921.6 Million in FY26, compared with Rs.53,916.7 Million in FY25. This growth was mainly driven by an increase in property, plant and equipment, which increased from Rs.9,084.7 Million to Rs.11,765.1 Million and right-of-use (ROU) assets, which increased to Rs.45,939.0 Million from Rs.33,946.7 Million, primarily reflecting the expansion of the Companys portfolio through the addition of new centres.

Further investments increased to Rs.2,555.9 Million in FY26 from Rs.327.6 Million in FY25, while cash and cash equivalents stood at Rs.626.5 Million in FY26 compared with Rs.235.6 Million in FY25, representing an increase of 165.9%, mainly due to improved cash liquidity and efficient working capital management during the year.

Liabilities overview:

The Companys liability profile reflected its accelerated growth. Lease liabilities increased by 31.7% to Rs.52,175.3 Million in FY26 from Rs.39,626.8 Million, driven by the Companys continued operational expansion through the addition of new centres.

The Companys total equity increased by 49.3% to Rs.2,992.1 Million in FY26 from Rs.2,004.6 Million in FY25, driven primarily by sustained profitability, thereby reinforcing the Companys enhanced earnings performance.

Total borrowings stood at Rs.3,327.7 Million in FY26, compared with Rs.3,102.2 Million in the previous year, predominantly due to additional borrowings, partially offset by repayment of borrowings during the year.

Cash flow summary

Particulars	FY26	" FY25	YoY
Net cash generated from operating activities	17,341.3	12,899.5	34.4%
Net cash used in investing activities	(6,472.4)	(3,036.8)	113.1%
Net cash used in financing activities	(10,478.0)	(9,837.8)	6.5%
Total Cash and Cash Equivalents	626.5	235.6	165.9%

Cash generated from operating activities increased by 34.4% to Rs.17,341.3 Million in FY26 from Rs.12,899.5 Million in FY25. This growth was driven by revenue and EBITDA growth, an expanding member base, improved operating leverage and disciplined working capital management. Net cash used in investing activities increased to Rs.6,472.4 Million from Rs.3,036.8 Million, driven by increased investment in new centres. Net cash used in financing activities primarily reflects payments of lease liabilities. Overall cash and cash equivalents (CCE) increased substantially by 165.9% to Rs.626.5 Million in FY26 from Rs.235.6 Million in FY25, reflecting the underlying cash-generative strength of the business and continued discipline in liquidity and working capital management, even as the Company executed a year of significant expansion.

IGAAP-equivalent P&L

Particulars	FY26	FY25	YoY
Revenue from Operations	24,544.0	19,731.7	24.4%
Finance and Other Income	230.3	349.3	(34.1)%
Total Revenue	24,774.3	20,081.0	23.4%
Operating and Other Expenses	19,781.5	16,025.1	23.4%
EBITDA	4,992.8	4,055.9	23.1%
EBITDA Margin	20.2%	20.2%
Depreciation and Amortisation	2,720.7	2,213.1	23.0%
EBIT	2,272.1	1,842.8	23.3%
Finance Costs — Borrowings and Others	417.5	883.9	(52.8)%
Finance Costs — Interest on Finance Lease Liability	83.7	165.0	(49.3)%
Profit / (Loss) Before Share of Profit / (Loss) in Associate, Exceptional Item and Tax	1,770.9	793.9	123.1%
Share of Profit/(Loss) in Associate	21.4	(19.9)	—
Profit Before Exceptional Item and Tax	1,792.3	774.0	131.6%
Exceptional Item	(43.3)	(1,119.7)
Profit/(Loss) Before Tax	1,749.0	(345.7)
Tax Expense	1.5	7.6
Profit/(Loss) After Tax	1,747.5	(353.3)
PAT Margin (Before Exceptional Item)	7.2%	3.8%	340 bps

The IGAAP-equivalent view excludes the impact of Ind AS 116 lease capitalisation. Rent is shown as an operating expense (subsumed within operating and other expenses) and lease interest is not included in finance costs. FY25 exceptional items of Rs.1,119.7 Million relate to the IGAAP-equivalent view (refer to the reconciliation with the Ind AS table).

On an IGAAP-equivalent basis, revenue from operations grew by 24.4% to Rs.24,544.0 Million in FY26. Growth was driven by portfolio expansion, mature centre occupancy gains and sustained momentum in Value-Added Services and Managed Office solutions.

Centre-level EBITDA grew by 27.9% to Rs.6,823.3 Million in FY26 from Rs.5,333.5 Million in FY25, with the margin expanding by 80 basis points to 27.8% (FY25: 27.0%). This growth was driven by continuing portfolio maturity and disciplined pricing, with the Companys revenue to rent multiple standing at 2.9x during the year. This translated into an overall EBITDA growth of 23.1% to Rs.4,992.8 Million from Rs.4,055.9 Million, with the EBITDA margin remaining stable at 20.2%, despite the expansion of its portfolio capacity.

Profit before exceptional items and tax grew by 131.6% to Rs.1,792.3 Million in FY26. This was driven by revenue and margin expansion, together with a 52.8% reduction in finance costs relating to borrowings. Profit after tax (PAT) stood at Rs.1,747.5 Million, compared with a loss of Rs.353.3 Million in FY25. The PAT margin (before exceptional items) expanded by approximately 340 basis points to 7.2%.

Cash generation

Particulars	FY26	FY25	YoY
Cash flow from operations	17,341.3	12,899.5	34.4%
Less: lease liability outflow	(10,143.7)	(8,121.2)
Less: actual brokerage outflow	(1,342.9)	(722.0)
Free Cash Flow from Operations	5,854.7	4,056.3	44.3%
Less: capex	(4,564.4)	(3,722.8)
Free Cash Flow to Firm (FCFF)	1,290.3	333.5	286.9%

Free Cash Flow from Operations increased by 44.3% to Rs.5,854.7 Million in FY26, demonstrating the Companys ability to generate healthy operating cash flows after meeting lease liability payments and brokerage cash outflows. The growth reflects the strength, scalability and robust cash-generative characteristics of the operating model.

Free cash flow to firm (FCFF) grew by 286.9% year on year to Rs.1,290.3 Million in FY26, after funding capital expenditure of Rs.4,564.4 Million largely through operating cash flows. The increase highlights the Companys ability to self-fund its expansion while maintaining financial flexibility to support future growth.

Rent payments - reconciliation with cash flow statement

Particulars	FY26	FY25
Payment of principal portion of lease liabilities (A)	5,137.2	5,558.5
Interest paid on lease liabilities (B)	5,227.2	4,444.5
Total payment + interest on lease liabilities (from cash flow statement) (A+B)	10,364.4	10,003.0
Rent paid to Landlords (C)	10,143.7	8,121.2
Principal + Interest payout on Finance Lease (D)	220.7	1,881.8
Total (C + D) (IGAAP basis)	10,364.4	10,003.0

The Companys total rent-related cash outflow for FY26 amounted to Rs.10,364.4 Million. As presented in the consolidated Ind AS cash flow statement, this comprised principal repayments of lease liabilities of Rs.5,137.2 Million and interest payments on lease liabilities of Rs.5,227.2 Million.

From an IGAAP-equivalent perspective, the total cash outflow included lease rentals of Rs.10,143.7 Million paid to landlords across the portfolio, while Rs.220.7 Million related to principal and interest payments on finance lease obligations for fit-out assets.

Capital position

	As on 31 Mar 2026	As on 31 Mar 2025	YoY
Gross debt	3,327.7	3,102.2
Cash and Cash Equivalents (including fixed deposits and current investments)	3,444.8	948.8
Net Debt	(117.1)	2,153.4
Net Debt / EBITDA	(0.02x)	0.53x
Avg. Cost of Borrowing	8.5%	10.8%	(230) bps
Credit Rating	A+ (CRISIL)	A- (ICRA)

The Company ended FY26 in a net cash position, with cash and cash equivalents of Rs.3,444.8 Million exceeding gross debt of Rs.3,327.7 Million. This was achieved largely through internally generated cash flows, as the Companys IPO in October 2025 was structured as a 100% Offer for Sale (OFS) by existing shareholders and did not result in a primary capital infusion. This reflects the underlying cash-generative strength of the business and disciplined financial management.

The Companys credit profile also strengthened during the year. CRISIL assigned the Company a long-term rating of A+ (Stable), compared with the earlier A- (Stable) rating assigned by ICRA, reflecting improved operating performance, growing scale, a stronger balance sheet and a positive net worth.

Reconciliation: Ind AS to IGAAP-equivalent view

The table below reconciles reported Ind AS EBITDA and PAT to the IGAAP-equivalent view for FY26 and FY25. The primary reconciling items relate to Ind AS 116 lease accounting.

	FY26			FY25
Particulars	Reported Ind AS	Ind AS adjustment	IGAAP Equivalent	Reported Ind AS	Ind AS adjustment	IGAAP Equivalent
Revenue from operations	24,401.8	142.2	24,544.0	19,492.1	239.6	19,731.7
Finance and Other Income	502.5	(272.1)	230.3	747.9	(398.6)	349.3
Total Revenue	24,904.3	(129.9)	24,774.3	20,240.0	(159.0)	20,081.0
Operating and Other expenses	8,666.2	11,115.3	19,781.5	7,112.7	8,912.4	16,025.1
EBITDA	16,238.1	(11,245.2)	4,992.8	13,127.3	(9,071.4)	4,055.9
Depreciation and amortisation - Fit-outs	2,652.8	67.9	2,720.7	2,108.4	104.7	2,213.1
Depreciation and amortisation - ROU	7,021.8	(7,021.8)	-	6,128.9	(6,128.9)	-
EBIT	6,563.4	(4,291.3)	2,272.1	4,890.0	(3,047.2)	1,842.8
Finance costs - Borrowings & Others	785.4	(367.9)	417.5	1,437.3	(553.4)	883.9
Finance costs - Finance lease	83.7	-	83.7	165.0	-	165.0
Finance costs - ROU Lease liability	5,143.5	(5,143.5)	-	4,376.6	(4,376.6)	-
Profit / (Loss) before share of Profit / (Loss)	550.8	1,220.1	1,770.9	(1,088.9)	1,882.8	793.9
in associate, exceptional item and tax
Share of profit / (loss) in associate	21.4	-	21.4	(19.9)	-	(19.9)
Profit / (Loss) before exceptional item and tax	572.2	1,220.1	1,792.3	(1,108.8)	1,882.8	774.0
Exceptional item	(43.3)	-	(43.3)	(459.1)	(660.6)	(1,119.7)
Profit / (Loss) before tax	529.0	1,220.1	1,749.0	(1,567.9)	1,222.2	(345.7)
Tax - Deferred tax credit	(220.2)	221.7	1.5	(2,849.7)	2,857.4	7.6
Profit / (Loss) after tax	749.2	998.4	1,747.5	1,281.9	(1,635.2)	(353.3)
EBITDA Margin	65.2%		20.2%	64.9%		20.2%
Profit / (Loss) after tax before exceptional item			1,790.8			766.4
PAT Margin before exceptional item			7.2%			3.8%

Key financial ratios (Consolidated, Ind AS basis)

Ratio	FY26	FY25	% Change	Reason for Variance
Current Ratio	0.33	0.33	-	NA
Debt-Equity Ratio	18.55	21.32	(12.98)%	NA
Debt-Equity Ratio (Adjusted)	1.11	1.55	(28.13)%	Refer note (i) below
Debt Service Coverage Ratio	1.43	2.25	(36.45)%	Refer note (ii) below
Return on Equity Ratio	0.30	(1.08)	(127.74)%	Refer note (iii) below
Trade Receivable Turnover Ratio	29.09	23.87	21.87%	NA
Trade Payable Turnover Ratio	10.19	10.45	(2.43)%	NA
Net Profit Ratio	0.03	0.07	(53.31)%	Refer note (iv) below
Net Capital Turnover Ratio	(2.29)	(2.31)	(0.76)%	NA
Return on Capital Employed	0.12	0.17	(29.50)%	Refer note (v) below
Return on Investment	0.07	0.11	(35.35)%	Refer note (vi) below

Notes:

(i) Increase in Total equity as at 31^st March 2026 as compared to Total equity as at 31^st March 2025 has resulted in variance in Debt-equity ratio (adjusted).

(ii) The decrease was primarily attributable to higher lease principal repayments and interest payments associated with the Companys expansion and addition of new centres during the year.

(iii) Increase in average shareholder equity for the year ended 31^st March 2026 as compared to average shareholders equity for the year ended 31^st March 2025 has resulted in a variance in Return on equity ratio.

(iv) Decrease in Net profit after tax for the year ended 31^st March 2026 as compared to net profit after tax for the year ended 31^st March 2025 has resulted in a variance in Net profit ratio.

(v) Increase in capital employed as at 31^st March 2026 as compared to capital employed as at 31^st March 2025 has resulted in a variance in return on capital employed.

(vi) Increase in average investment/deposits as at 31^st March 2026 as compared to 31^st March 2025 has resulted in a variance in Return on Investment.

Opportunities and threats

Opportunities

The Company recognises five principal opportunities across its operating markets. These have guided its growth strategy and investment priorities for the year ahead.

1. Companies adopting flexible workspace at an accelerating pace

Enterprise real estate models are being restructured around flexibility. 75% of enterprises now plan their real estate decisions within three years, while traditional leases of five years or more have fallen from 40% of new signings to 8% and 82% of enterprises plan to increase their flex allocation over the next two years. Domestic Indian enterprises are driving this transition, accounting for 43% of Q1 CY26 office leasing, up from 38% in the previous year. The Coreplus-Flex model is increasingly being preferred for new enterprise workspace decisions.

How the Company is positioned: The Company is one of the most recognised brands in Indias flex market. Its comprehensive offering serves enterprises from a single desk to fully bespoke Managed Office solutions, all under one brand and one operating standard. Combined with a balanced member base of approximately 65% global occupiers and 35% domestic occupiers, this positions the Company to capitalise on emerging opportunities across Indian and multinational organisations as the market consolidates around scaled operators. In FY26 more than 50% of the Companys new desk sales came from existing members expanding their footprint, indicating increased adoption.

2. Quality-led demand is driving workspace decisions

Companies increasingly view the office as a tool to attract and retain talent and demand is concentrating in Grade A inventory. 70% of Q1 CY26 office leasing went into buildings less than ten years old and 68% into green- certified tech parks.

How the Company is positioned: The Company operates premium workspaces in Grade A office buildings across Indias key markets. Long-standing relationships with Indias leading real estate developers ensure early access to the most sought-after assets in these markets. Its in-house design and build capability delivers premium fit-outs while adhering to consistent global standards, while its hospitality-led operating model and community-driven experience create a distinct day-to-day member experience. Premium asset, premium design and premium experience together position the Company to capture the flight to quality.

3. GCCs continue to drive demand for enterprise-grade flexible space

GCCs accounted for approximately 38% of CY25 office absorption and are projected to reach 48% by CY30. The GCC leasing pipeline through CY30 is estimated at around 55 Million square feet, with GCC flex leasing expanding at a 28% CAGR, approximately 1.7 times the broader market.

How the Company is positioned: As the exclusive licensee of the WeWork brand in India, the Company benefits from the global recognition of the WeWork brand among multinationals expanding their operations in the country. GCCs enter India at different scales and grow at different speeds: some establish fully Managed Offices on day one, while others begin with a small private office at a WeWork-branded centre, which gives them the ability to scale up as their teams grow and eventually expand into dedicated Managed Office space as their India operations expand. The Companys product architecture is designed to serve GCCs throughout their India lifecycle under a consistent operating standard in the geographies where GCC demand is concentrated. GCCs contributed 36.7% of the Companys core revenue in FY26, up from 30.8% in FY25.

4. Indias talent base and cost competitiveness continue to drive demand

Indias median age of 28-29 years, its 2.1 Million fresh STEM graduates annually and premium office rent at approximately US$ 1 per square foot per month provide underlying support for sustained white-collar and enterprise workspace demand over decades.

How the Company is positioned: The Company operates across eight Tier-1 cities that account for the majority of Indias white-collar workforce, in Grade A assets built to a consistent operating standard. This positions it to serve the enterprise, GCC and technology occupiers that drive premium workspace demand as Indias talent base expands.

5. Enterprises consolidating with a single integrated operator, creating cross sell opportunities

As enterprises consolidate their real estate expenditure with integrated partners, cross-sell across products is emerging as an avenue for revenue expansion. Enterprises are increasingly preferring to work with a single integrated partner to manage their workspace requirements, with 84% indicating a preference for such solutions.

How the Company is positioned: The Company operates one of the most comprehensive workspace platforms in India. Its four product pillars, including core workspace memberships, Value-Added Services, Digital Products and Rivet, are designed to collaborate as an integrated platform across the entire workspace lifecycle. Members can access Private Offices, Managed Office solutions, meeting and event spaces, food and beverage, parking, Workplace technology, managed services,Digital Products and design-and-build capability. This range of services enables enterprises to consolidate their workspace requirements with a single operator, positioning the Company to grow its wallet share among enterprises, strengthen member retention and further diversify its revenue mix.

Threats

The Company identifies four principal threats in its operating markets.

1. Macroeconomic and global demand cyclicality

A material portion of the Companys demand depends on global corporate spending cycles and cyclical dynamics in the individual sectors it serves. Slowdowns in source markets and escalation in geopolitical conflicts may affect trade and capital flows, while sector-specific downturns could defer or reduce leasing decisions and impact occupancy and pricing.

How the Company addresses this: The Company mitigates this exposure through a diversified member base spanning multiple sectors and a balanced geographic mix of domestic and global occupiers (approximately 35% domestic and 65% global occupiers). This diversification extends across the account base itself. The Company serves approximately 2,500 accounts, with its top 10 accounts contributing only around 23.1% of revenue, meaning no single client relationship is material to overall performance. The Company has also progressively extended its member commitment terms, with portfolio commitment term increasing to 28 months from 26 months and large enterprise commitment terms extending to 33 months from 31 months, providing greater revenue visibility and cushioning against near-term demand volatility. This is reinforced by a strong forward order book, with approximately Rs.18,854 Million of core revenue already committed for FY27. Further, the Company has consistently maintained centre level occupancies significantly above break-even levels, providing a further buffer against cyclical downturns.

2. Competitive intensity in select markets

As flex adoption accelerates, new operators are entering select high-demand markets and existing operators are scaling their portfolios in the same geographies where the Company operates. Increased competition in these markets could pressure pricing and margins on new take-ups.

How the Company addresses this: The Company competes on scale, brand and operational depth. Its 11.6 Million square feet of AUM in key demand markets provides a robust footprint that new entrants take years to replicate, while long-standing relationships with leading real estate developers give it early access to prime assets. As a category-defining brand, listed operator and the exclusive licensee of the internationally recognised WeWork brand, the Company operates with a high level of credibility and brand recall that new entrants cannot match. This is backed by a comprehensive range of products and services in the market, ranging from single desks to Managed Office solutions, Value-Added Services and Digital Products, consistently strengthened through ongoing investment in technology and member experience. Consequently, in FY26, this translated into a revenue to rent multiple of 2.9x and mature centre occupancy of 88.9%, indicating sustained pricing power and the capability to attract and retain members in a competitive market. This is underpinned by steady balance sheet strength with capex funded largely from operating cash flows, with Free Cash Flow to Firm increased by 286.9% year on year, while the Company is net- debt-negative and prioritising growth.

3. Absorption outpacing new Grade A supply

Grade A office absorption in India has consistently outpaced new construction through the current cycle. While a tighter supply-demand balance generally favours established operators in premium micro-markets, it can exert pressure on lease terms for new take-ups and extend deal timelines for expansion into new micro-markets.

How the Company addresses this:

The Company maintains a strong forward pipeline over the next 18-24 months, with 11.6 Million square feet of AUM already secured through signed leases and letters of intent (LOIs). As one of the largest lessees of Grade A office space in India, it maintains portfolio-level relationships with all major landlords, ensuring early visibility on new supply.

The Company maintains strong market intelligence tools that provide data on upcoming lease renewals, underconstruction properties and new supply well ahead of the wider market. This gives the Company the ability to secure anchor tenant positions on assets two to three years prior to completion at more attractive commercial terms and structure deals flexibly, including operator-led arrangements, based on each micromarkets dynamics. As a result, the Company retains access to premium assets even as supply-demand conditions become tighter.

4. Regulatory and policy changes

Regulatory or policy changes in commercial real estate, labour and taxation could affect the Companys cost base, operating model or expansion economics. As a listed entity, non-compliance with applicable regulations could result in financial penalties and reputational impact.

How the Company addresses this:

The Company operates a dedicated compliance function that proactively monitors regulatory developments across the jurisdictions in which it operates. Regular gap analyses, audits and periodic assessments identify emerging exposures early while ensuring the implementation of necessary measures across operations. This is supported by the proactive and predictive analysis of policy direction, ongoing compliance training for employees and engagement with industry bodies to anticipate and shape policy developments.

Risks and concerns

The Companys risk management approach is anchored in a Board-level Risk Management Committee, constituted as per SEBI LODR requirements, which oversees the Companys risk landscape, formally reviews the risk register at least twice a year and monitors emerging or escalated risks on an ad-hoc basis. Risk considerations are integrated into strategic and operational decision-making across the organisation, supported by an enterprise risk management framework that identifies, assesses, monitors and reports principal risks. The principal risks and their mitigation approach are detailed below.

1. Sectoral cyclicality and geopolitical environment

A substantial portion of the Companys demand is dependent on global corporate spending cycles and cyclical dynamics within the individual sectors and industries it serves. This includes the technology sector, which accounts for a significant share of demand across the flexible workspace industry. Market slowdowns and geopolitical uncertainties may affect trade and capital flows, while sector-specific downturns could adversely impact the Companys financial performance and long-term growth.

Mitigation: The Company mitigates this exposure through a diversified member base with no specific sector representing a major share of demand, a balanced geographic mix (approximately 65% global and 35% domestic), longer-tenor member commitments and a strong forward order book that provides revenue visibility for the year ahead. Financial resilience is further supported by robust free cash flow from operations and a net-debt-negative balance sheet, giving the Company the flexibility to navigate cyclical downturns. Regular monitoring of market indicators and account-level renewal patterns enables early identification of emerging demand risks.

2. Project execution and delivery

The Companys ability to execute its growth strategy depends on the timely development, fit-out and operationalisation of new centres. Delays arising from landlord handovers, design finalisation, procurement, vendor performance or construction activities may postpone centre openings, escalate project costs, delay revenue generation and adversely impact member experience and the Companys reputation.

Mitigation: The Company has established a robust project governance framework, backed by a track record of 76+ delivered centres, which enables seamless execution across design, procurement, construction and commissioning. Technical and other due diligence is routinely conducted even before building finalisation, thereby promoting stronger execution outcomes. Technology-enabled tools facilitate end-to-end project monitoring to identify potential delays early, while further supporting the team in location selection as well as design decisions that draw on historical data. The Company works with empanelled vendors and contractors, following comprehensive diligence, who offer multi-product capabilities; this ensures consistent service quality. Contractual safeguards and clearly defined handover conditions with landlords further support execution. Each centre undergoes independent technical certification and quality checks before becoming operational.

3. Lease renewal risk

The Company operates its centres under long-term lease agreements with landlords, which are typically renewed at the end of the term. Renewals require negotiation of commercial terms and there is a possibility that some leases may not renew on terms consistent with the Companys expectations.

Mitigation: The Company maintains long-standing relationships with leading real estate developers across India, ensuring early visibility of renewal timelines and enabling portfolio-level negotiations across multiple assets rather than a deal-by-deal basis. Its lease maturity profile is staggered across years to manage renewal exposure. The landlord base is strategically diversified across cities and micro-markets and where a specific renewal is not commercially attractive, the Company can relocate its operations to alternative assets within the same market in accordance with its growth strategy.

4. Competition and market positioning

The flexible workspace industry is characterised by increasing competition from established operators, new market entrants and real estate developers offering managed office and flexible workspace solutions. Intensifying competition, evolving customer preferences, technological advancements and pricing pressures may affect the Companys ability to maintain market share, attract and retain members and sustain profitability.

Mitigation: The Companys response to competitive intensity is anchored in continuous investment in its portfolio, product, brand and market intelligence. It continues to scale its footprint in premium locations across Indias eight Tier-1 cities, with 11.6 Million square feet of committed Grade A AUM. The Company has one of the widest products and services portfolio in the Indian flex market and is one of the most recognised brands in the segment. Dedicated commercial teams monitor competitor activity, customer preferences and pricing dynamics on a continuous basis, informing product innovation, pricing strategy and expansion decisions. The Company consistently evaluates strategic growth opportunities, including expansion into adjacent business segments and selective, value-accretive acquisitions and investments aligned with its strategic priorities.

5. Cybersecurity and data privacy

The Company relies extensively on digital platforms and technology systems to support its operations and member services. Cyber-attacks, information security incidents, unauthorised access to systems, data breaches or noncompliance with applicable data privacy requirements, including the Digital Personal Data Protection Act, 2023, could disrupt business operations, result in regulatory action, financial loss and adversely affect stakeholder trust and the Companys reputation.

Mitigation: The Company has established and continuously strengthens its comprehensive cybersecurity and data privacy governance framework developed to protect its information assets, support business resilience and ensure compliance with applicable regulatory requirements. This framework comprises information security policies, cyber incident response procedures, access management controls, endpoint protection, consistent security monitoring and cyber insurance coverage.

During the year, the Company commenced implementation of its Digital Personal Data Protection Act, 2023 ("DPDP Act") compliance programme, comprising a comprehensive privacy gap assessment, development of a data protection governance framework and adoption of a formal data privacy charter to support continuous monitoring, periodic reviews and ongoing regulatory compliance. The framework incorporates structured processes for data lifecycle management, privacy impact assessments, records management, vendor due diligence and sustained evaluation of third-party data processing arrangements to ensure that privacy obligations are appropriately embedded across business operations and the supply chain.

The Companys cybersecurity and privacy controls are further reinforced through periodic internal and external audits, regular vulnerability assessments and penetration testing, continuous security reviews and adherence to internationally recognised information security standards, including ISO certifications, to maintain the effectiveness of its control environment. In addition, the Company conducts periodic information security and data privacy awareness programmes for employees and relevant stakeholders to foster a strong culture of cyber resilience, responsible data handling and regulatory compliance.

6. Environmental and sustainability performance

Increasing stakeholder expectations, evolving environmental regulations and sustainability reporting requirements may require the Company to continuously enhance its environmental performance and sustainability practices. Failure to effectively respond to these evolving expectations and regulatory requirements could adversely affect the Companys reputation, brand perception and stakeholder confidence.

Mitigation: The Company operates a sustainability governance framework, supported by its Environmental, Social and Governance Management System (ESG-MS), which integrates sustainability into business strategy and operations. The Company has implemented a structured ESG reporting framework, with defined data ownership, standardised protocols, internal controls and validation mechanisms, to support the integrity, accuracy and consistency of sustainability data.

Periodic materiality assessments identify and prioritise key ESG issues. Ongoing initiatives focus on energy efficiency, renewable energy adoption, water conservation, responsible waste management, green-certified buildings and sustainable building practices across the portfolio.

Progress is tracked through supporting policies, compliance processes and periodic management reviews aligned with the Companys sustainability objectives and evolving reporting requirements.

Growth strategy

The Companys growth strategy is anchored in six principles that guide how it will strengthen its leadership in Indias flexible workspace market.

1. Deepen presence in existing cities and expand in key micro-markets

The Companys growth focuses on expanding its footprint in the eight Tier-1 cities where it already operates and in the specific micro-markets where enterprise demand is concentrated. The same disciplined approach governs entry into new markets, with the Company entering an emerging city only once demand crosses a validation threshold, as demonstrated by its entry into Chennai in FY25, which has since become a high-performing market.

Each new centre is selected through a demand-validation framework drawing on portfolio performance, member pipeline and micro-market analysis. The Companys right to win rests on its 11.6 Million square feet of committed AUM, its portfolio-level relationships with major landlords, which ensure early visibility into new supply and deep operational capability across its portfolio. In FY26, the Company added 17,288 desks. Members grew at roughly twice the pace of new capacity, taking portfolio-level occupancy to 86.9%.

2. Strengthen managed office capability to serve GCC and enterprise demand

Demand from GCCs and enterprise occupiers for end-to-end Managed Office solutions is growing faster than the broader flexible workspace market. The Company is scaling its Managed Office capabilities, which provide enterprises with dedicated, fully customised office spaces on an end-to-end basis. Its right to win is anchored by its position as the most recognised brand in Indias flex market, in-house design, procurement, project management and operations capabilities, delivered to consistent global standards and a product architecture that serves the full lifecycle from a few desks at a WeWork-branded centre to a fully bespoke Managed Office solution. In FY26, Managed Office revenue grew 60.6% year on year to Rs.4,809 Million, with several flagship organisations added to the portfolio.

3. Broaden Value-Added Services and enhance member retention

Value-Added Services (VAS) extend per-member revenue beyond core workspace memberships and deepen member relationships. The Company continues to broaden its VAS suite across office customisation, hospitality, technology support and event services and invests in a hospitality-led and community-driven operating model that keeps members engaged and supports acquisition and retention.

Its right to win stems from the depth of its 110,000-plus-member network, which provides a strong cross-sell platform. In FY26, VAS revenue increased by 36.0% year on year and stood at Rs.2,731.9 Million and the Net Promoter Score reached an all-time high of +74.

4. Sustained focus on unit economics

The Company continues to extend operating leverage across its portfolio, converting revenue growth into margin expansion as centres mature. Unit economics improve through three levers: non-linear revenue growth as existing members expand their footprint with the Company, both in space taken and in the products they consume; disciplined operating expense control that allows every new centre cohort to deliver improving margins over time; and design and space-planning capabilities that create additional monetisable area within each centre without compromising member experience. In FY26, centre-level EBITDA increased to Rs.6,823.3 Million at a full-year margin of 27.8%, up 80 basis points year on year. The Company also delivered a revenue to rent multiple of 2.9x in a year of substantial volume growth, indicating that growth came through occupancy gains and desk sales while pricing remained firm.

5. Member-facing and operational technology as a key differentiator

The Company operates a technology stack comprising two layers: member-facing products that shape how members book, use and expand their workspace footprint and operational systems that provide real-time visibility into centre-level performance and translate that data into decisions on operations, member experience, pricing and capacity expansion. Few operators in Indias flex market operate technology capabilities at this depth. The Companys technological depth is a growing competitive advantage, both in meeting member expectations for a technology-enabled experience and in providing the Company with an operating edge. Its right to win is built on a proprietary data platform developed over multiple years, a digital product suite that extends the Companys reach beyond physical spaces and an integrated technology stack. In FY26, Digital Products revenue grew 23.5% year on year to approximately Rs.819.7 Million.

6. Drive sustainable growth through innovation and capital discipline

The Company drives innovation in products and services organically while maintaining balance sheet capacity for selective acquisitions and strategic investments. Its approach is disciplined: organic development where new capabilities extend the existing product architecture and selective M&A where opportunities align with strategic priorities and meet the Companys product quality standards. Its right to win is grounded in a self-sustaining business model with growth capex largely funded from operating cash flows, a net-debt-negative balance sheet that keeps capital deployment options open and demonstrated in-house execution capability. This allows the Company to invest in new revenue streams and adjacent categories from a position of financial strength.

Human resources

As at 31^st March 2026, the Company employed 578 permanent employees while consistently fostering a diverse and inclusive workplace. Women represented a significant 45% of its total workforce. Additionally, women accounted for 34% of leadership positions, while 5.9% of employees identified as LGBTQIA+ employees. The Company invested Rs.14 Million to promote learning and development initiatives during the year, with 72% of employees engaged with more than 21,000 e-learning courses, reinforcing its sustained focus on building a future-ready workforce. Engagement outcomes remained steady, with an employee engagement score of 87 and an Employee Net Promoter Score (eNPS) recorded at +71 at the close of the year. In recognition of its people-centric practices, the Company was certified as a Great Place To Work across four categories in FY26.

Internal control systems and their adequacy

Internal control systems are considered essential for the Companys efficient operations. These controls are specifically designed to align with the nature of the Companys activities. The Company maintains an internal control framework commensurate with the size, scale and complexity of its operations. The framework provides reasonable assurance over the safeguarding of assets, the accuracy of financial reporting, the prevention and detection of frauds and errors and compliance with applicable laws and regulations.

The internal control system is supplemented by an extensive programme of internal audits, periodic management reviews and established policies and procedures. The Audit Committee oversees the internal audit function, which follows a risk-based audit plan. During FY26, these controls were tested and no material weaknesses in their design or operations were observed. The Companys internal control over financial reporting is additionally reviewed by the Statutory Auditors as part of the annual audit and the Chief Executive Officer and Chief Financial Officer have provided the certification prescribed under Regulation 17(8) of SEBI LODR Regulations. The Board, through the Audit Committee, is satisfied that the internal control systems are adequate and operating effectively.

Cautionary statement

This Management Discussion and Analysis report contains forward-looking statements regarding, among other things, the Companys financial performance, growth prospects, strategy and market opportunities. These statements involve known and unknown risks, uncertainties and other factors, including macroeconomic conditions, competitive pressures, regulatory changes, technological developments and execution challenges, that could cause actual results, performance or achievements to differ materially from those expressed or implied in such statements. These forwardlooking statements are made only as of the date of this report and financial information is presented under both the IND AS reported basis and the Pre-IND AS 116/IGAAP-equivalent basis as set out in the Financial Performance section.

The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Any forward-looking statements or projections attributed to third parties contained in this report are not endorsed by the Company, which accepts no responsibility for such third-party information.