WeWork India has approached the NCLT, Bengaluru Bench, seeking permission to use ₹2,050.16 crore from its Securities Premium Account to fully offset accumulated losses. The move comes as the flexible workspace operator reports stronger Q1 FY27 performance, with revenue and EBITDA rising sharply.
WeWork India Management Ltd has filed an application with the National Company Law Tribunal (NCLT), Bengaluru Bench, seeking approval for a proposed reduction of its share capital by utilising its Securities Premium Account.
The company filed Form RSC-1 on September 11 under Section 66, read with Section 52, of the Companies Act, 2013, and the applicable NCLT rules governing the reduction of share capital.
The proposal follows approval from the company’s board on July 16, 2026, and shareholders on August 25. If approved, WeWork India will use ₹2,050.16 crore from its Securities Premium Account to fully set off accumulated losses of the same amount as of March 31, 2026.
₹2,050 Crore to Be Used From Securities Premium
WeWork India had ₹2,158.99 crore in its Securities Premium Account at the end of March 2026. The proposed adjustment would leave around ₹108.83 crore in the account after setting off the accumulated losses.
The company said the move would eliminate accumulated losses from its books and help present a “true and fair view” of its financial position.
Importantly, the accounting exercise does not represent a cash infusion into the business. Instead, it is a balance-sheet restructuring aimed at adjusting accumulated losses against an existing reserve.
For a flexible workspace operator, the development comes at a time when demand for managed and coworking office solutions is supporting business growth.
Revenue and EBITDA Show Strong Improvement
WeWork India’s financial performance improved significantly in the first quarter of FY27. Net loss narrowed to ₹4.3 crore from ₹14.1 crore in the same quarter a year earlier.
Revenue increased 27.7% year-on-year to ₹705 crore, compared with ₹535.3 crore previously. EBITDA rose 30.4% to ₹438 crore from ₹336 crore, while the EBITDA margin improved to 64.04% from 62.7%.
The stronger numbers indicate improving operating leverage, as occupancy, desk additions, and demand for flexible office solutions support the company’s growth.
Network Expands Across Eight Cities
WeWork India also continued to scale its physical footprint during the quarter. Its network reached 79 centres across eight cities, covering 9.1 million sq ft of operational space.
Its total committed footprint stood at 12 million sq ft, including signed leases and letters of intent. The company added around 7,000 desks during the quarter, taking total operational capacity to 133,600 desks, up 17.1% year-on-year.
The expansion reflects the broader shift in India’s office market toward flexible and managed workspace models, particularly among enterprises seeking scalable workplace solutions.
The NCLT process and the operating recovery therefore mark two important developments for WeWork India. While the proposed ₹2,050 crore adjustment addresses its accumulated losses, rising revenue, improving margins and expanding capacity suggest that the underlying flex workspace business is moving in a stronger direction.
