Buy WeWork India Management: target of Rs 933: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • WeWork India Management's Q2FY27 earnings showcased a 34% revenue growth and 38% IGAAP EBITDA surge, driven by high portfolio occupancy and new capacity additions.
  • The company plans to expand its operational area to 13.0msf in the medium term, with a phased ramp-up to 10.3msf by Mar'27, supporting a 22% revenue and EBITDA CAGR over FY26-29E.
  • Key drivers include premium products becoming a larger share of revenue, easing raw material costs, distribution expansion improving market penetration, and higher capacity utilization expected to improve margins.
  • Management has guided for 20%+ annual revenue growth in FY27, with locked-in supply and expected surpassing of 190,000 operational seats by Mar'28/29E.

Thesis Validation Checklist

  • Investors should watch for sustained demand momentum for premium flex spaces, successful expansion to 10.3msf by Mar'27, and maintenance of high portfolio occupancy.
  • Key signals to validate the thesis include revenue growth, EBITDA margin expansion, and the company's ability to execute its expansion plans without significant disruptions.
  • Risks include office leasing slowdown and weak flex demand, which could impact the company's growth trajectory.