JM Financial has issued a Buy rating for WeWork with a target price of ₹850, representing significant upside potential. According to reports from The Hindu BusinessLine, the brokerage values the stock at 15x FY28E EV/EBITDA and maintains its positive outlook on the company's growth trajectory.
The company is positioned for robust expansion with 28,000 seats planned for FY27, representing over 25% growth for the year. As reported by The Hindu BusinessLine, management is actively building an expansion pipeline to sustain this growth over the medium term, indicating strong confidence in market demand and operational capabilities.
The managed office segment has emerged as a significant growth driver, with managed office revenue growing 61% year-on-year to ₹480 crore. According to JM Financial's analysis, this vertical now accounts for over 20% of the topline, demonstrating successful diversification beyond the core WeWork-branded seats business. The company is positioning Managed Office to cater to GCC requirements for scalable, high-specification workplaces, potentially increasing exposure to larger enterprise-led demand pools.
Technology is evolving from a member experience tool into a key operating lever with increasing potential to enhance monetisation, customer stickiness and scalability. As reported by The Hindu BusinessLine, digital products revenue grew 23% in FY26, showcasing the company's successful digital transformation strategy and its impact on operational efficiency and revenue generation.
With 12 million square feet AUM and healthy expansion pipeline, WeWork is expected to report 22-24% CAGR in revenue and EBITDA driven by seat additions along with 4% annual growth in ARPM. According to JM Financial's assessment, the company is backed by a net cash balance sheet and healthy operating cash flow, enabling it to comfortably fund capex requirements for new centres without external funding constraints.
