WeWork India Shares Plunge 6% as Firm Slides into Net Loss Following Recent Profit Turnaround

WeWork India Shares Plunge 6% as Firm Slides into Net Loss Following Recent Profit Turnaround​

WeWork India shares witnessed a sharp sell-off on Friday, tumbling nearly 6 percent as the company reported a swing into negative territory for the June quarter.

The stock fell 5.64 percent to reach Rs 687 per share on the NSE. This reaction comes after the co-working giant reported a consolidated net loss of Rs 4.30 crore for the first quarter of the current financial year.

The poor performance marks a significant reversal for the firm, which had successfully returned to profitability in the preceding March quarter. During that period, the company posted a net profit of Rs 66 crore compared to a net loss of Rs 14.10 crore in the corresponding year-ago period.

Rising Operational Expenses Drive Quarterly Deficit​

The shift back into the red was primarily driven by a significant spike in operational expenses. According to regulatory filings, the company's operational costs surged to Rs 704.77 crore during the April-June quarter.

This represents a substantial increase from the Rs 559.46 crore reported in the year-ago period. Analysts suggest that these escalating overheads weighed heavily on the bottom line despite the firm's ongoing operations as a leader in the Indian co-working space.

Revenue and Total Income Dynamics​

While operational costs rose, the company saw a mixed performance in its revenue streams. Revenue from operations declined to Rs 684 crore in the June quarter from Rs 696 crore in the preceding quarter.

However, the company did report an increase in total income. The figures show that total income rose to Rs 700.74 crore during the April-June quarter, up from Rs 545.71 crore in the corresponding period of the previous fiscal year.