Ladies and gentlemen, good day, and welcome to WeWork India Management Limited's Q4 FY 2026 earnings conference call. The presentation in this call is a concise version of the presentation uploaded on the company's website and shared with the stock exchanges. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Participants connected on webcast may click on the Ask a Question tab to join the question queue after the management's opening remarks. I now hand over the conference call to Mr. Karan Virwani, MD and CEO. Thank you, and over to you, sir. Thank you, Michelle. Good morning, everyone, and thank you for joining us. FY 2026 was our full year as a listed company, and we closed it with the strongest set of numbers in our history. Record occupancy, revenue, profit, and cash. One quick note, all financials are numbers in IGAAP equivalent, and the Ind AS reported adjustments are all in our investor presentation and shareholder letter, so you can refer to them. Let me start with the yearly performance. Revenue of INR 2,477 crore, up 23%. EBITDA of INR 499 crore, up 23%. PAT more than doubled to INR 180 crore, up 134%, with the margin expanding nearly 341 basis points. Our portfolio occupancy stood at 86.9%, and mature centers stood at 88.9%, both of them at all-time highs. ROCE at about 28.3%, up over 317 basis points, and free operating cash at about INR 586 crore, which is up 44%. The business is now self-funding and generating surplus cash of about INR 126 crore in FY 2026. We've exceeded Street's expectations on every meaningful metric this year. Every engine fired at the same time. Before going into the numbers, I want to spend a few minutes on the industry because context matters this year. 2025 was the third straight record year for Indian office leasing. 83,000,000 sq ft leased. India crossed 1 billion sq ft of office stock. Within that, flex stock surpassed 100 million sq ft for the first time, up three times from five years ago. Flex is now the single largest occupier category in India, having 23% share of all new leasing in Q1 of this calendar year, ahead of IT services. Two more shifts worth flagging. Domestic firms now lead demand with 43% of Q1 leasing, ahead of America-led demand for the first time. Within this, 70% of new leasing is in buildings under 10 years old and a Grade A portfolio, indicating the flight to quality is real. Flex is no longer the alternative to traditional real estate. It has become structural to how enterprises think about workspace. One major question we've been asked most this year in every single investor conversation is: What does AI do to office demand? This was important enough that we commissioned a deep proprietary study with Redseer to answer it rigorously. Covering the historical pattern, the AI demand wave, the GCC mechanism that turns hiring into office leasing, and resulting in the flex outcome. I want to give you the conclusions over the next few slides. Every prior tech wave, mechanization, mass production, computing, and cloud, has only expanded India's office stock, not shrunk it. We went from no office market at all to around 50 million sq ft during the IT era, to about 200 million sq ft by 2000, to almost 900 million sq ft or 1 billion sq ft now today. The pattern is the same every single time. More automation has actually led to more jobs, more offices, and greater value created in India. When people ask whether AI will shrink offices, history has already given us the answer four times in a row. Every tech wave has only expanded the office stock, not contracted it. The data on AI specifically is even stronger. AI hiring in India is up six times in six years. From 48,000 roles open to nearly 290,000 today, India is now ranked number two globally in the AI talent concentration, and 95% of enterprise plan to scale AI adoption over the next 18-24 months, with half having already established AI labs or centers of excellence in India. Three structural advantages converge here. Cost being the first. India remains the second cheapest large office market globally at about 5-11 times below that of cities where customers are headquartered. Talent, almost 2.1 million STEM graduates a year, roughly a quarter of all the global software engineering talent available at 60%-80% lesser cost than developed markets. Demographics. The median workforce age of about 28-29 against 38-40 in the U.S. and China gives us decades of runway ahead. Putting it all together, the study projects that 79 million sq ft or 80 million sq ft of new net leasing office demand by 2030, which was over and above the pre-AI baseline. GCCs remain one of the major mechanisms that's turning AI hiring into actual office leasing. The AI workforce within Indian GCCs is expected to grow fourfold by 2030 from about 181,000 today to over 700,000. The GCC leasing pipeline through 2030 is around 55 million sq ft, almost double that of 2025. One important nuance for our category, 93% of firms report that their teams are more collaborative because of AI. Meeting room demand for AI-augmented teams is up nearly 30%-50%. AI doesn't shrink the office, it changes how the office is used. Flex is a format that captures it. By 2030, nearly 1/3 of all flex leasing seats will be AI-driven from about 7% today. GCC flex leasing is already compounding at about 28% a year. The structural shift that ties it together is that 75% of enterprises now plan their real estate within a three-year horizon. Five-year plus leases have collapsed from 40% of enterprises a few years ago to only 8% today. The 10-year lease size for predictable headcount no longer fits. Flex has become the structural answer to workforce volatility, whatever form that volatility takes. Putting the study together, AI is hiring, GCCs are scaling, and Flex is winning. India's Flex stock grows about two and a half times to about 257 million sq ft by 2030. The point is simple. The category we operate in has multiple powerful tailwinds behind it. AI is one, the GCC build-out is another, the flight to quality is 1/3, and the structural shift away from long leases is a fourth. We don't depend on any one of them. The business is built to capture whichever combination plays out. With that backdrop, let me zoom in for the quarter. Cliff will walk you through all of this in detail shortly. I'll just leave you with three headlines that matter. Starting with a bigger platform, filling faster than we're building it. We have 76 centers, 8.6 million sq ft, and about 11.6 million sq ft of AUM, 110,000 members, and a portfolio occupancy that's at an all-time high of about 87%. Layer on top of that is a world-class NPS of about 79. This is something that has always been our North Star and fueling the flywheel. Getting into the quarter, revenue of about INR 710 crore, up 29% year-over-year. EBITDA at about INR 164.7 crore with a record margin of 23.2%, and a PAT of almost INR 80 crore with a margin of 11.2%. This is up almost 142% year-over-year. One of the key and most important metrics has been ROCE. ROCE exiting the year is at about 45.1%, and we have finally over-delivered on our net debt position. We actually ended net debt negative for the first time in our history, and a two notch credit upgrade to A+. Now on some of the operational KPIs. We concentrated or we are concentrated where demand is today, and we're growing wherever demand is headed next. Bangalore leads with about 50,000 seats. Mumbai and Gurgaon both grew in capacity over 20% year-over-year. The fastest growth came from our emerging top corridors, Chennai up 75% and Hyderabad up 34%. The takeaway I want to leave you on this slide is simple. From where we stand today, there is about 36% capacity growth already locked in, signed, and contracted before FY 2027 even begins. We have leases that are yet to be signed and LOIs that are still in discussion for time periods post that. From a sales perspective, this was one of our best years ever. This year, we sold close to about 48,000 desks, which is almost 3.3 million sq ft of leasing, our highest ever 12-month velocity, up 20% from last year. This is driven by broad-based growth across WeWork-branded as well as Managed Offices spaces. Every major sector grew with BFSI, telecom leading. That is the strength of running a platform that serves every sector and every format of work. When one wave slows, another picks up, and the overall growth keeps compounding. Even as volume scaled, pricing held. Revenue to rent at 2.6x and total revenue to rent at 3x, meaning we grew volumes without giving up pricing. Critically, more than half of these new desks came from existing members expanding within our network. Expansion, not acquisition. That is what a + 79-point NPS score translates to commercially. Members who rate us this highly renew, expand, and refer. Our revenue is anchored by enterprises and balanced across geographies and sectors. 77% of core revenue comes from enterprises, with Fortune 500 alone contributing 28%. 65% comes from global members headquartered outside of India. Across sectors, no single one dominates. With top 10 members taking up about 23% of our core revenue, this mix is the foundation of our revenue durability. It lets us serve demand across cycles and largely mirrors overall CRE activity in India. Just look at what enterprises are actually doing inside our spaces today. Our spaces have a 24 by 7 command center monitoring pan-India operations for a major broadcaster, one of only two industrial automation R&D labs in India, AI development centers with GPU-ready workstations, EV testing facilities with battery infrastructure, and broadcast studios, clean rooms for mobile product QA, and a management school training campus. These are not just standard offices. These are future-ready, purpose-built environments that are built for the next wave of enterprise work demands. With that, let me hand it over to Clifford to talk you through our financials. Thank you, Karan. Let me take you through the financials in greater detail. Portfolio occupancy moved from 76.8% a year ago to 86.9% today. The headline, members grow twice as fast as capacity. Capacity was up 16%, but members are up 31%. Our spaces are filling faster than we are building them. Mature centers, these are operational centers over 12 months, are 87% of our capacity, running at almost 90%. Growth centers, those that are under a year, are already at 73%, well ahead of where new centers typically ramp at this stage. Q4 FY 2026 total revenue stood at 709.9 crore, with a 10.9% growth sequentially and a 28.6% growth quarter-on-quarter. Revenue from operations of INR 700 crore grew by 10% sequentially and 29% year-on-year. Core operations that are Private Offices and Managed Offices are at INR 584 crore, 29% up year-on-year. Within that, Managed Offices itself has more than doubled its share to 21% in just two years. Value-added services came in at INR 95 crore. That's a 35% increase. Digital products encompassing All Access, Virtual Office, Workplace, and On-demand came in at INR 21 crore, up 15%. The annual view. Same story, just at greater scale. Full year total revenue was at INR 2,477 crore and grew 23.4% year-on-year. Revenue from operations of INR 2,454 crore, up 24%. Core operations at INR 2,077 crore are up 23%. VAS at INR 295 crore is up 36%. Digital revenue at INR 82 crore are up 24%. To the order book, the forward visibility of the business. Two things are happening at once. We're signing longer average commitment. We're signing longer with average commitment terms up from 26- 28 months and from 30- 33 months for large enterprises. We are locking in more value with remaining locked-in core revenue now at INR 2,940 crore, up 34% year-on-year against a locked-in rental cost of only INR 986 crore. That's a 3x positive multiple. FY 2027 opens with the strongest opening position of INR 1,885 crore of core revenue already locked in, growing at a CAGR of 36% over the last two years. Each of the past three years opened with a locked-in base that the platform then compounded through new business renewals and an expanding VAS and digital layer. Center level EBITDA in Q4 of INR 212 crore at a 31% margin is up 224 basis points year-over-year and 230 basis points sequentially. Rent per square foot only increased 0.9% over the year. Operating expenses per square foot stayed flat despite inflation. Portfolio break-even occupancy is 54.8%. With our growth cohort at 72.9%, we are comfortably over these break-even levels. Q4 EBITDA of INR 164.7 crore at 23.2%, up 42.8% year-on-year and 22.4% sequentially. EBITDA margin of 23.2% expanded by 231 basis points year-over-year and 218 basis points quarter-over-quarter. Q4 PAT of INR 80 crore at 11.2% is up 142% year-over-year and 53.1% quarter-over-quarter, with margin up 525 basis points year-over-year and 309 basis points quarter-over-quarter. For the full year, EBITDA stood at INR 499 crore at a 20.2% margin, up 23%. PAT of INR 179 crore is up 134%, more than 8x growth in just two years. EBITDA scales and PAT compounds. One slide that captures the rhythm of the business better than any other. Around 20,000 desks of capacity came online across Q3 FY 2025 to Q1 FY 2026, a concentrated rollout that landed in three back-to-back quarters. This resulted in margin bottoming to 15% in Q1 of FY 2026. From there, recovery in a single quarter to 20.3%. Every quarter since has stepped higher, 21%- 23.2%, a record in Q4. The full year average tantamounted to 20.2%. That is the number the business actually runs to this item. The mechanic is always the same. Fixed costs land on day one, revenue builds with maturity, margin recovers and then averages for the year. Q1 FY 2027 alone brings in 14,000 desks. The same mechanic applies. This time, over 40% of the new capacity is Managed Offices. As last year's curve demonstrates, whatever be the quarterly rhythm, the full year margin normalizes. On a side note, FY 2026 EBITDA margin of 20.2% includes a one-time cost of INR 9 crore for the IPO. Excluding those costs, the normalized margin is 20.5%. ROCE for Q4 is 45.1%, up over 1,832 basis points year-on-year. For the full year, 28.3%, up 317 basis points. Finally to cash and debt. Free operating cash for Q4 of INR 234 crore. That's up 57%, and a full year operating cash of INR 586 crore, up 44%. Our Q4 FY 2026 EBITDA to OCF conversion is 1.4x, indicating a strong working capital management. CapEx for the year was INR 456 crore. Free cash flow after CapEx was INR 129 crore for the year. That's up 286% year-on-year. On the balance sheet, we ended the year at a net debt negative of INR 11.7 crore against INR 215 crore of net debt a year ago. Cost of borrowing fell 225 basis points to 8.5%. Credit rating upgraded two notches from an A- to A+. The combination is simple. High EBITDA, disciplined CapEx, and compounding operating leverage. Our capital is working harder than it ever has. With that, I will hand it back to Karan. Thank you, Cliff. One thing to highlight before I close is Rivet. Rivet is a standalone design and build business for enterprises, landlords, and developers with no WeWork center commitment required. It is the same in-house capability that we have delivered our own 8.6 million sq ft, which is now offered to the market. The economics of this are clean and straightforward flow through of EBITDA to PBT, capital light, and no lease liability. Strategically, two things. It opens up every enterprise landlord and developer building workspace in India as a potential customer, not just those that are taking space with us. Second, we manage to retain growing customers within the WeWork ecosystem. Finally, sustainability. Sustainability sits at the core of how we operate. Across energy, water, waste, and renewables, we're committed to long-term targets that are amongst the most ambitious in our industry, backed by six globally recognized certifications across our portfolio. We are proud of the progress that we have made and even prouder of what it means building workspaces that give back to the environment and communities that we operate in. To close, FY 2026 was the best year in our history. We outperformed on every meaningful metric, occupancy, revenue, EBITDA, PAT, and ROCE. The category we operate in is being shaped by multiple powerful forces. The AI demand wave, the GCC build-out, flight to quality, and the structural shift to how enterprises think about real estate. The business has built to capture whatever combination of these play out and be ready for whatever comes next. FY 2027 marks a shift in what WeWork India represents. No longer just a workspace operator, but part of the backbone that powers India's growth engine as it scales. The order book is deep, the operating leverage is real, and we're beginning to monetize the platform itself across our technology stack, new adjacent services, and the new network effects of a 110,000 strong member base. We're building WeWork India for the future. Thank you for your continued trust, and now we're happy to take questions. Thank you very much, sir. Ladies and gentlemen, we will now begin the question- and- answer session. Participants connected on audio may press star one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star two. Participants connected on webcast may click on the Ask a Question tab. Before asking the question to the management, please introduce yourself, providing your name and your organization name. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take the first audio question from Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah. Good morning, everyone. Firstly, congratulations to the management for an excellent year. I may have missed it in the beginning, but if you could just help us understand in terms of the locked-in supply, you mentioned that we'll get to 150,000+ seats, right? Is this a number for operation seats we should get to by the end of March next year? Consequently, any revenue guidance for the coming year, and what is the expected CapEx for the next year? These are my questions. Yeah. Thank you. Thank you. Yeah, I'll quickly answer, and I'm not sure if you can see the slide, but today we're operating about 8.6 million sq ft. What's locked in till March 2025, which is for this next financial year, is roughly another 1.6 million or close to 2 million sq ft. We will end March roughly at about 10.3 million sq ft, 10.4 million sq ft, which will be about 155,000 desks from where we are today. There are potential of this sort of increasing based on some demand-back deals that happen through the year, or that might come through the year that I will add on top of this, if any. This is the visibility that we have till March 2027. Beyond that, also, we have visibility of another 1.4 million sq ft, 1.5 million sq ft, which is already signed, which will largely come on between FY 2028 and 2029. We're also continuously negotiating new deals, which we will update this group once those LOIs are signed. As of right now, we have visibility of basically another 46,000 seats from where we are over, let's say, the next 18 months, which is already signed. In terms of the CapEx, just for the coming year. This year, you'll see that we did close to about INR 460 crore, or we spent INR 460 crore of CapEx. A lot of that was driven by some really large Managed Offices deals, high-spend deals that we had to do this year as well. We have some of those coming next year. We believe the CapEx will be somewhere in the range of INR 500 crore-INR 600 crore for next year in terms of what we end up spending across all of the deals that we already have locked in. From a revenue guidance perspective, we cannot give any guidance. I think we've stuck with the fact that we will keep growing the business at over 20% year-over-year on a top-line basis, and you can already see the earnings growth is much, much higher. We will continue that. One good part, obviously, is that we're going into the year with a higher amount of locked-in revenue than we ever have. Historically, we always compound on top of this significantly by the end of the year. Okay. Sure. That was very helpful and pretty clear. I'll come back in the queue if I have more questions. Thank you, and all the best. Thank you. Thank you. We'll take the next question from Sourabh Gilda from JM Financial. Please go ahead. Yeah. Hi, good morning. Congratulations on a great set of numbers. I have a question on your design and build segment, which we have officially launched. Just wanted to get your sense on this thought process. On a core business, we definitely have a right to win, given our premium positioning and market leadership. Given that all other peers are competing in the design and build segment, so just wanted to get your sense on how you would like to differentiate, and also if you could quantify the size of the opportunity that you wish to capture in this segment. I think, as far as the size of the opportunity itself, which is set to be at roughly $35 billion-$40 billion in terms of entire market size. The reason that we got into design and build is slightly different. It's much more strategic. I think if you see how we've evolved the platform over the last nine years, we started as a co-working space. We've slowly progressed from being just co-working for startups to really a workspace as a service provider for all types of businesses and large enterprises. About two years ago, we got into Managed Offices as well to start catering to the companies that were already going with us and getting to a size and scale where they wanted their own office, but they still wanted us to operate it. Right? We also see there are companies that once they reach a certain size, they end up wanting to go take their own space on campus for whatever reason they want to operate the space themselves. A lot of them come to us and say, "Look, we love your design. You've executed so much space." They've seen the quality of our execution. They're asking us to see if we can execute for them when they're going and taking up their own space. That's how we looked at getting into it. The other part is that we look at it as a funnel or a net to the platform itself, where companies who have never used a flex operator, never used a WeWork space. If we're able to do the design build for them in their traditional workspace, we believe that for overflow requirements, any new cities, new business units, if they're expanding outside of that office, we will be able to hold that relationship and actually get that demand into the platform, and hopefully use it as a way to grow that account, grow that company. The way that we view this is more of a strategic net to continue to capture more companies within the platform itself and continue to cater to the existing companies that we have. Finally, in terms of right to win, I don't want to comment on other operators. I think one of the key differentiator that we've always created is our quality of design and quality of execution. That is really unmatched in the way that we deliver space. We're taking all of that to Rivet. It's the same exact team that has done this for many years. We've built systems behind it. We have a procurement team, we have an execution team, and we have a design team that will execute to the highest quality. Our focus with this is not to grow this to some mass scale, and it's become some 30% of our business or anything like that right now. It's to do some really high-quality projects. It's to try to capture our existing customers. For our Managed Offices business today, we use external design build consultants to deliver some of that, where we pay an additional cost, we're paying fees. With this unit, we'll maybe be able to cut down some of the costs that we have in executing those projects also by bringing it in-house rather than using an external design build company. Sure. Thank you. Thanks for the detailed answer. My second question is just a clarification. The 14,000 seats that are expected to become operational by end of Q1 FY 2027, is it fair to assume that they'll start operating at a very high occupancy from second quarter, or will that be a gradual momentum occupancy for the seats? There's a combination of both WeWork branded spaces and Managed Offices spaces as part of that 14,000 seats. As you can see, almost 40% is our Managed Offices spaces. Those will open with 100% occupancies on day one. The WeWork spaces will open with some occupancy, and will ramp up like we've done historically across all of these centers that within 12 months, we're seeing that we are able to get to that 85% sort of occupancy. Breakevens are happening within four to six months in most cases, which you can see from the growth portfolio even today, which is already at about 70%+. We try to cushion a little bit of the capacity addition with the Managed Offices business. Thank you so much. Those are my questions. All the best for the day. Thank you. The next question is from Abhinav Sinha from Jefferies. Please go ahead. Hi. Current strong performance, and congrats to you and the team. A few questions. Firstly, on the guidance for the year, on new builds, which is about 27,000 seats, what should be the year-end occupancy that we are looking at? I think, the endeavor is to keep the levels of occupancy as we sort of like exit. Through the year, as capacity comes on, there will be slight dips in occupancy and then sort of move back up. The goal and the idea is to remain higher than 85% even as we bring on all of these new buildings as we exit the year. We've been able to deliver that, I think with the strong Managed Offices pipeline, which are opening at high occupancies, and then some of the new centers that we have coming up in really prime locations, we feel like the ramp up should sort of get there. We've also planned some of the expansion to make sure there's not too much occupancy dips through the year as well. Will this year also have eventually predominantly managed, like it was last year in terms of new? No. This year we have a significant amount of WeWork branded spaces opening. Out of the 28,000 seats, roughly about 18 or 19,000 are going to be WeWork branded locations that we're opening, which is nearly double that which we did this year. Similar to what we did in the previous financial year, if you go back to FY 2025, that was the type of expansion. We used this year as a way to stabilize that portfolio, ramp it up, get the occupancies going, and now we're bringing in some new capacity. We'll go down that sort of process again over the next 12-18 months to ramp those up. Okay. The mix which is coming up for FY 2027, FY 2028, you've already hinted in your remarks that demand seems to be skewing a little more premium. How should we look at how the portfolio is going to change in the next six to eight quarters? I think, one, we'll be doubling down on some premium or higher rental markets. Bangalore is going to see some addition. We've already opened one location in Bangalore and in Aero City, which will see some further expansion within Gurgaon. We have the growth markets, which are basically Chennai, Hyderabad, and Pune, are seeing significant expansion in this coming year as well. I think it's a good mix between centers that would be priced, let's say, over $20,000 a desk, as well as centers in growth markets that are in the range of, let's say, $12,000-$18,000 also. That will scatter through the year. That's how we're looking at the expansion coming up for the coming year. Right. Thanks, sir. Lastly, with the company turning net cash, and it appears that CF should stay reasonably positive next year too, what are the use of cash that you're thinking about? Right now, we're just in a growth mode. The use of CapEx is really to just keep putting it back into the centers and actually expanding the business. We'll have peak periods of CapEx spend that happen through the year, depending on the rollout. You'll have some lighter periods where you'll see operating free cash may be higher than the quarters where we spent a decent amount of CapEx to deliver those new centers. We're also seeing an increased spend from these GCCs and Managed Offices businesses, maybe slightly higher than we would have expected in terms of what they want to put into their space. I think the dollar strengthening will also probably enhance that entire bit for us. The idea is to just keep a lot of this liquidity to keep pumping back into the business. We'll also build up the cash balance through the year to make sure that we're remaining in this net debt negative or close to net debt negative position even by the end of next year. Great. Thanks. All the best for the year. Thank you. Thank you. We'll take the next question from the line of Yashas Gilganchi from BOB Capital Markets Limited. Please go ahead. Good morning, team. Thank you for taking my questions. Occupancy has improved remarkably over the quarter and year. Please give me a sense of how much of this take-up was driven by GCC tenants. Was there a significant jump? There was a significant jump in the leasing by BFSI and telecommunication tenants. What drove this, and are these trends durable? Lastly, was the jump mostly driven by private office tenants? Sure. Yeah, the expansion, GCCs right now contribute roughly about 40% of our existing member base. I think of new sales may be closer to 50% in this last year. If we look at the sectors that have grown through with us, it continues to be driven by sectors like BFSI, technology, pharma, etc. These will continue and are reflective of the overall commercial leasing market in India. We're seeing that. As hiring changes or as different industries keep moving up and down in the hiring cycle, you see the mix that we have basically changing also, right? If you look at the member mix in what happened this year, which is the slide that we have up on the screen, you'll see something like telecommunications, which never was an industry that had taken space with us prior. That's seen significant growth with one large deal that we did. BFSI has, for the last few years, been growing quite significantly. Even last year, we saw almost a 200% growth over there. You'll see other sectors like IT services, have significantly reduced or come down in this last year. Even pharma, compared to last year, came down, but it was all taken up by other sectors, newer sectors and other sectors that continue to grow. This mix is going to keep changing, and I think that's really the beauty of our platform and our business. It's able to cater to every single segment, any type of format. The fact that we're doing Managed Offices and WeWork plug-and-play spaces gives us the ability to take any size, any contract term, and any industry, and you'll see from the spaces that we built out also in terms of use cases where we're not just building offices, which are just desks, right? We're able to build broadcast studios to AI labs to EV testing facilities. We're really future-ready for any type of transition or any type of work requirement that companies might have in the future. We'll continue to do that. Understood. Have you pre-leased any of the 1.6 million sq ft of leases signed with the landlords? Any pre-leasing of the space you have signed LOIs for? I understand from the answer you gave to my colleague a while before that Managed Offices are likely to be 100% occupied from day one. I am just trying to understand what drives the pace of expansion of leaseable area at WeWork. I think 40% of the deals just coming in Q1, which is actually the large part of our entire Managed Offices rollout for next year, is going to be fully demand backed. Out of the 28,000 seats, roughly about 11,000 are already signed Managed Offices deals that we have coming up, which will open with basically 100% occupancies. The remaining are WeWork locations that as we open, we pre-lease some portion of it or, as we've opened, they quickly ramp up, in terms of occupancy and flow through that ramp that we spoke about earlier as well. The uptick in velocity, the amount of customers that are within the platform itself who are looking for new space, and this Managed Offices portfolio are really the things that are giving us confidence of having all of this capacity underwritten with demand and quickly filled up through the year as well. That's how we balance. Our plan for the previous year is really understanding the underlying demand that's already sitting with us, understanding things that we have locked in from the previous year going into next year, the remaining bit is things that we've historically always done with sales velocity and move-ins, etc. Okay. Just one last one. Is there any scope for you to push revenue from VAS higher? I understand it was approximately 14% of revenue over the quarter. What's a good long-term level to achieve going forward? While it was 14% for this quarter, there was obviously a large customization revenue that came in in Q4. If you see for the year, I think we've been hovering at that 12%-13% of value-added services, almost INR 300 crore for this year, which is about 12%. I think you should always just assume that it is within this range itself. In the next few quarters, we'll probably talk about some stuff that we're working on from a services standpoint, it's not something that we want to discuss right now. The idea is to find these nonlinear ways of growing the business and growing the platform, find ways to go deeper into the wallet share, do adjacent businesses like the design-build business, which don't have lease liabilities and are slightly higher in terms of flow-through of cash and margin and incremental in terms of earnings, etc, for the business. We think that with scale, as members go from what we are at 110,000- 140,000, 50,000, 200,000, there's just going to be more and more opportunities for us to be able to create new lines of revenue and also scale this platform. You can imagine when this is 500,000 members or 1 million members, the type of opportunity scale and size of the different revenue streams that already exist, how large they could get, and how much they would add for more cash flow and EBITDA standpoint. I think that's how we look at the business over the next 5- 10 years. Understood. Thank you again for taking my questions and have a nice day. Thank you. Thank you. The next question is from Girish Choudhary from Avendus Spark. Please go ahead. Hi. Thanks for the opportunity, and congratulations on a very strong fiscal 2026 and also the fourth quarter. I would also just genuinely credit the team for a detailed investor deck. My first question, I just wanted to check on the margin sustainability. You had exit EBITDA margins of around 23% odd. Full year was around 20%, which is more or less identical to fiscal 2025. When I see the deck, you also mentioned about 14,000 desks coming in with 40% of that is managed. I assume there will be operating leverage there. Generally, in terms of trajectory, how should we look at the margins the next one to two quarters and also for fiscal 2027? Yeah. No, it's a great question. I think a lot of it, like we've said, always is a factor in timing of capacity coming in. If we just look at last year, the Q1 dip which we had in this year of about 15% and then exit at 23% is why the average ended up being the same or similar to last year. If that dip was closer to about 20%, we would have seen an average margin being much higher, or that margin expansion basically playing out throughout the year. With the demand-backed expansion coming in in Q1 or part of the expansion being demand-backed, we don't foresee as big a dip that we saw in the last year from Q4 into Q1. It will be less than it was, there will still be a slight dip, then it will again ramp up again. Hopefully by the end of the year, the margin will show that expansion from levels that we are today to what it'll average out for the entire year for next year as well. We added only 17,500 seats in this last financial year. We're going to be adding almost 28,000 seats in the coming year. It's more capacity, more seats, and all of that coming in while keeping the margin either at similar levels or slightly higher over through the year. Got it. Okay. Yeah. Obviously that really leads to compounding quantum of cash and EBITDA also. Got it. Nextly, on the cost side, if I see the landlord, the rent per square foot, which I see have increased only by close to 1% this year. What I'm trying to check is that, we all know that the commercial real estate market is pretty tight right now in terms of vacancy and the escalations which we are seeing. Going ahead, how much of your portfolio renewals will come up in the next one to two years, and what escalation should we expect? Just as a follow-up, in terms of passing on, spinning up the rentals from the clients, how should we think about that? Yeah, I think is definitely oh-- So this rental escalation that you're seeing obviously is of our already contracted rents that we have. The average increase that we see in both of contracted rents and signed rents that we have coming up. You'll see that consistently that our revenue to rent multiple remains at that 2.6x-3x. Really whatever rentals, whether market increase, micro market increase that we've been able to get in, we've been able to price deals and actually fill those up with the spread continuing, and that's leading to higher quantum and similar EBITDA margins or profitability margins as that new capacity comes on. It's important to note why those rental markets are moving or why the rents are moving up is because of the real constraint between supply and demand that exists in those micro markets. If we're able to capture that supply at the start of a 10-year cycle or this demand cycle, there's already so much pent-up demand that we see those seats filling up. You can see this year, we filled up seats like 2x faster than the capacity that we brought on, right? That's because we focus on these Grade A assets, Grade A properties, Grade A micro markets where the demand continues to remain strong. From a lease renewal perspective, I think this is definitely an exercise or a new part of our business that's going to come up through the year. We see that there are micro markets where obviously around us, the market rentals have moved up a lot. There will be some jumps over what we normally see in rental escalations as we do these renewals. It also will be a point where we evaluate which assets we continue for over a 10-year period. I think predominantly across our portfolio, I would say 95% of the assets we will likely continue into another 10-year period. Now, the added benefit that we get with this 10-year renewal, which is also a huge flip that the business is going to see over the next decade or so, is that the depreciation of the CapEx is completely off the books. Whatever EBIT or PAT that those assets are generating today will balloon by the factor of the depreciated amount and whatever flow-through comes from already sitting at high occupancies at the start of the 10-year because we've already filled it up. Even if there's some rental hit when we look at the escalation, you will still see a bigger PAT from all of those assets as well. Right? New deals will basically be repriced at the new rentals that we sign. You will see that repricing happen over a period of time in those assets, not necessarily on day one, but not so different from how you see new centers that we bring in, right, in a similar micro market. Got it. Got it. That was very useful. My last question, this is on the CapEx. While you have discussed this on the call, you've spent close to INR 460- odd crore. If I do a simple math, you added 17,000 desks for the year. That roughly implies around INR 2.6 lakh per desk, which is higher than the prior year. If you can help us understand two things. One is how much of that fiscal 2026 CapEx funded the fiscal 2027 incoming desks. In general, what is the underlying fit-out cost which you're doing and the current inflationary scenario, how are you coping with that? Thanks for that. I think the reason it is that high for this year, a lot of it is driven by two really large high-spend deals that we did. One for JP Morgan, Amazon, and then Sampath. I think those are the two really large deals that were super high spend that inflated the CapEx. Those deals are also bringing us higher returns on CapEx. I think overall our return on CapEx is roughly about 34% even with this higher spend because of the way those are priced and come in. Right now we're estimating, like I said, about INR 500 crore or INR 600 crore for the coming year. 20,000 of the 28,000 desks are WeWork branded spaces. There we have good control on whatever the cost per square foot is and whatever the cost for spend will be. The Managed Office is whatever we have locked in, we know what the spends sort of look like. We can estimate it to be in this range that we have already said. There are certain deals that are still in discussion, design still happening. If we extend or if those Asked to spend more CapEx, we will spend it, but you can assume that we will be recovering and getting a return on all of that CapEx trend to similar levels that we have today. Got it. Thank you so much. All the very best. Thank you. Thank you. you. The next question is from Raman K.V. from Sequent Investments. Please go ahead. Mr. Raman K.V., I have unmuted your line. Please proceed. Yes. Please proceed. I just have one question. Hello, can you hear me? Yes, sir. Please proceed. Hello. Yeah. I just want to understand with respect to Flex-lease, which you are aiming for GCC and AI, how is the model different from our existing model? What is edge in terms of ROCE from this model? Sorry, can you repeat that question? I didn't fully understand. Mr. Raman K.V. So I just want to under- mute your webcast, sir, because there is a follow-up on your line. Please mute your webcast first and then ask your audio question. Hello, can you hear me now? Yeah. Yeah. I just want to understand the flexi-lease model which you are aiming for the upcoming GCC and AI boom. How is it different from our existing model? Also, can you just talk about the ROCE in the Flex-lease model versus our existing model? Just to clarify, there's absolutely no new product or no change that we're doing for, let's say, AI businesses or GCCs. Today, the reason that the platform and our business is not just capturing the demand, but actually is ready for any future demand that comes from any disruption that happens because of AI and because of the GCC growth, we're able to already cater to it because we're the only scaled platform that span India in these premium locations that can do plug-and-play requirements where you can start with a small amount of seats and actually grow to large Managed Offices deals. The other thing that's come out through the study that we did is that almost 75% of enterprises can't even foresee five years out anymore. They're looking to sign only three year deals and three year leases, which is something our model already is doing and able to do more than, let's say, traditional real estate. That's why we believe there's going to be more transition from just companies signing traditional long-term leases, moving to WeWork spaces or the WeWork platform. That's really what we were talking about, that the WeWork business is the most future-ready real estate platform when it comes to this future of work and how we believe companies, enterprises, startups, entrepreneurs, all are going to work in the future from today. In terms of ROCE, I think that about 80% of our business today still is WeWork branded spaces, and our ROCEs are in that 25%-35% range, depending on occupancy, maturity of the center, and the margin that we create. It will flow in that similar range as well. Understood, sir. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. With that, we conclude the Q&A session. I now hand the conference back over to Mr. Karan Virwani for his closing remarks. Thank you and over to you, sir. Thank you. I just want to close by thanking everyone for joining the call. It has been a great year, a very new light for us with being a public market company, and our endeavor was to make sure that we deliver beyond what we promised when we actually went through this process. We hope that in the next year also, we're able to continue to over-deliver and make sure that we provide as much value to the shareholders as possible. We will continue to execute against the plan. Thank you very much, and we'll join you in our Q1 call. Thank you, members of the management. On behalf of WeWork India Management Limited, that concludes this conference. We thank you for joining us, and you may exit the meeting now. Thank you