Ladies and gentlemen, good day, and welcome to WeWork India Management Limited's Q2 FY 2027 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 beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Virwani, MD and CEO. Thank you, and over to you, sir. Thank you, Michelle, and good morning, everyone. Thank you for joining us for our Q2 and first half FY 2027 results. As always, the financials we discuss today are on an IGAAP equivalent basis. The reconciliation to reported Ind AS is in the presentation and our shareholder letter. Before we turn to the numbers, I want to start where everything we build starts. WeWork is the brand India's companies look for first when they choose where to work. We pioneered this category in India. We lead it today, and that brand is the foundation of everything that we do. Our vision is an ecosystem where people feel supported, energized, and inspired to do their best work. Our mission is to build spaces that don't just enable work, they elevate it. It shapes how we design WeWork spaces, how we operate it, and how our members experience it to the same standard day one in any city. The market around us has had another strong quarter. India absorbed 21 million sq ft of office space in Q3, up 6% year-over-year, with GCCs taking about 41% of it. Flex took 24% of all leasing. About 5 million sq ft, which is up 21% ahead of BFSI at 22%, and tech at 15%. It has now been India's largest occupier segment for three quarters running. Two nuggets from the quarter that stand out for us. Domestic companies took 47% of all leasing, and flex operators drove half of that. Hyderabad led the country with 25% of Q3 leasing, a market where we have doubled down this year. The move to quality also continued, with 80% of completions in green certified, and about three quarters of leasing in buildings under 10 years old, the same segment our portfolio sits in. Flex has gone mainstream, and branded workspaces are the most relevant form. Of India's billion-plus square foot of office space, flex is about 123 million square foot, organized flex about 83 million square foot, and organized branded workspace, a category we pioneered, about 29 million square foot. We operate about 10 million square foot of WeWork branded spaces. By our estimate, about 26% of the space and 34% of the revenue. That premium reflects how deeply our members build around us. Once a company's inside the ecosystem, WeWork becomes part of how it runs, not just where it sits. The demand, it comes from a change in how companies plan. Few can say how many people they will need or where a year from now they are going to be and 5+ year leases have collapsed from 40% of enterprises to just 8%. A new hire joins in 45- 60 days, while a team can be live in a WeWork space on day one with no fit-out and no CapEx. Companies are trading up to keep their people, with 55% of those planning a move to targeting better buildings. Loyalty in flex, it's never locked in. It's earned at every renewal. Companies choose WeWork first because the brand defines the category. 96% of companies that are not yet members already know us, against a 51% median for other operators. We bring a global network of more than 600 locations in 37 countries, with one in every four Global Fortune 500 companies as a WeWork member worldwide. The backing of The Embassy Group and our relationship with India's leading developers put us in the right buildings, with about 94% of our portfolio in grade A across eight cities. That takes roughly 95% of the country's grade A absorption. They stay because the network grows with them. Our NPS is +79. More than 16,000 accounts work with us. Of those using our physical spaces, nearly 30% work across more than one format, moving from a Day Pass to a managed office floor without ever leaving the network. 27% already buy from us beyond the desk. This is where the platform begins. This is the category we created and the one that we own. AI and macro uncertainty are reshaping how companies grow, and they now commit to teams before they commit to buildings. Branded workspaces and WeWork branded workspaces are the most relevant answer to that. WeWork is the most future-ready form, one standard in every city life from day one and able to grow and shrink or move with the business. That's the story of this quarter. Demand is keeping pace with our largest openings. Our platform is compounding beyond the desk and margins, returns, and cash all strengthening throughout the build. We added nearly 11,700 desks in Q2, more than we have ever opened in a quarter, taking us to 145,300 desks across 85 centers in eight cities, which is up 27% year-over-year. With about 18,400 added in the first half and about 4,500 more added in October. We are past the 22,000 mark that we set out for in Q1. Members grew 32.5% to about 121,700 ahead of capacity, and occupancy grew 357 basis points year-over-year to about 83.7%, with mature centers at nearly 88%. The 114 basis points dip from Q1 is new capacity ramping up, and mature centers have edged up over the same period. Demand carried straight through to the numbers. Revenue grew nearly 31.6% year-over-year and 10.1% quarter-over-quarter to about INR 768.7 crore. EBITDA grew faster at about 37.6% to about INR 162.9 crore, with a margin up 138 basis points over Q1 to about 21.2%. PAT grew to about INR 67.4 crore. Sorry. PAT grew 67.4% to about INR 65.8 crore, and pricing held with revenue to rent at all-time highs of 2.7x. Returns and cash moved the same way. ROCE reached 34.5%, which is up more than 12 points in a year. We closed September with a net cash of about INR 23 crore from a net debt of about INR 310 crore a year ago, and with an A+ rating and borrowing costs down 184 basis points to 8.5%, we are investing more and earning more on what we invest. The first half tells the same story at greater scale. Revenue grew 30% to about INR 1,466.7 crore. EBITDA, 51%, with a margin up 279 basis points and PAT more than doubled to INR 119 crore. H1 ROC doubled to about 31.1% through the heaviest first half of investment in our history. Over half of what we opened in Q2 was full from day one. Chennai added about 3,600 desks through a fully demand-backed managed office deal with an extension of one of our best performing mature WeWork branded spaces. Hyderabad added about 2,700 desks, all branded WeWork spaces, in a market that has led India's leasing over in Q3, and Pune added another 2,600 desks, which are all managed offices. Today, Bangalore remains our anchor at 54,000 desks. Hyderabad has overtaken Mumbai to become our second-largest market at 20,000, and Pune is close behind at 17,000. The next phase is already secured. More than 9,000 desks under leases signed in fit-out. About 38,000 seats under LOIs, which gives us about 47,000 seats of incremental desks, 32% beyond what today's capacity is. We expect to reach about 150,000- 155,000 by March 2027, and on the way to about 190,000- 200,000 seats with supply for FY 2028 and FY 2029 already under negotiation. The base we are growing into is high quality and well-balanced. Enterprises contribute 77% of core revenue and Fortune 500 companies about 30%. GCCs account for nearly 41% of the overall mix, and with other global companies, about 26%. No sector or customer dominates, and our top 10 members together are 23% of overall revenue. Commitments are also well-matched. Locked-in core revenue grew nearly 66% to about INR 3,843 crore, covering the INR 1,421 crore of rent locked in against it, which is about 2.7x. Over the year, we added nearly INR 3 of contracted value to every rupee of rent. Members are committing for longer, with the average term up to about 28 months, that gives us strong visibility into quarters ahead. With that, I will hand it over to Cliff to go in more detail. Thank you, Karan, and good morning, everyone. Let me start with how our new capacity is being absorbed, because everything else rests on it. Year-over-year, we added 30,800 desks and 29,800 members, nearly a member for every desk. Our growth centers, those open for less than 12 months, are at 64.8% occupancy, up from 51.4% a year ago on a cohort nearly 80% larger and well above our portfolio breakeven of 55.7%. Mature centers are at 87.7%, up 355 basis points. The highlight of this quarter is the platform. VAS grew 35% year-on-year to INR 79.6 crore, and digital 46% to INR 29.2 crore. Together, they reached INR 108.8 crore, up 38%, well ahead of 31.7% growth in our core business, which grew to INR 657.7 crore. Revenue from operations grew 32.5% to INR 766.5 crore. These are also our highest margin revenue lines. Digital operates at close to 80% EBITDA margin, and VAS is margin accretive. As both keep growing faster than the core, they will continue contributing disproportionately to our profitability all the way down to PAT. The events, food, technology, customization, and digital access around our members' working day can all come from us, and every service they take deepens the relationship ahead of renewal. In H1, revenue from operations was INR 1,453.8 crore, up 30.2%, with growth across every segment. Our mature base continues to absorb the cost of growth while widening margins. Center-level EBITDA grew 38.4% year-on-year to INR 214 crore, with margin up 109 basis points to 28.4%. In H1, center-level margin expanded 284 basis points to 28.1%. This was delivered with 25,000 desks still in growth centers. EBITDA grew 37.6% year-on-year and 17.8% quarter-on-quarter to INR 162.9 crore, with margin expanding 138 basis points sequentially to 21.2%. The comparison with our previous expansion is instructive. When around 20,000 desks came online between Q3 FY 2025 and Q1 FY 2026, margins fell to 15% before recovering. This cycle has been more concentrated, with nearly as many desks added in a single half, yet margin held at 19.8% in Q1 and grew to 21.2% in Q2. The operating leverage we have been building is already visible in our margins while the cycle is still underway. Growth is carrying through to the bottom line. PAT grew 67.4% year-on-year to INR 65.8 crore, with margin up 183 basis points to 8.6%. In H1, EBITDA grew 50.6% to INR 301.2 crore and PAT 149.5% to INR 119 crore, more than three times our H1 profit two years ago. Returns grew through our largest investment cycle. ROCE reached 34.5%, up 590 basis points quarter-on-quarter and 1,235 basis points year-on-year. H1 ROCE doubled to 31.1% in a half in which CapEx grew 75%. The business is a cash-generating engine, and that cash is compounding. Free cash flow from operations, or FCFO, was INR 237.7 crore this quarter, up 149% year-on-year and 68% on Q1 at 1.5x EBITDA. In H1, FCFO more than doubled, up 157% to INR 379.8 crore, which is already nearly 2/3 of the INR 586 crore we generated in all of FY 2026. That cash is funding our growth in full. After INR 175.8 crore of CapEx in the quarter, we still generated INR 61.9 crore of free cash flow to the firm. In H1, that FCFO funded our entire INR 363.8 crore of CapEx, the largest we have ever deployed, and left a surplus of INR 16 crore. That surplus has strengthened the balance sheet. We closed September with a net cash of INR 23.1 crore, compared with a net debt of INR 310.5 crore a year ago. Our credit rating was upgraded from an A- to A+ over the year, and our average cost of borrowing fell 184 basis points to 8.5%. Our reported Ind AS basis PAT was INR 20.5 crore, compared to a loss of INR 4.2 crore in Q1. The difference from our IGAAP equivalent figures is lease accounting, while Ind AS 116 and brokerage lease accounting under Ind AS 116 and brokerage. The full reconciliation is set out on slides 29- 32. Margins, returns, and cash all strengthened through the largest investment cycle in our history. With that, I will hand it back to Karan. Thank you, Cliff. We have spent this year building. Our largest CapEx cycle is now live, and as these centers mature, our base becomes larger, stronger, and more resilient, unlocking operating leverage and delivering superior returns and a more profitable growth. Alongside it, the platform keeps widening. We are becoming the infrastructure companies run their workplace on, not the space that they sit in. That gives us more ways to grow and gives our members more reasons to stay. All of this is powered by a business that generates more cash than it needs to grow. India's companies are planning around teams, not buildings, and WeWork branded spaces are built for exactly that. This is how India works, and we build the category for it. Thank you for your continued trust, and we are happy to take your questions. Thank you very much, sir. We will now begin the question- and- answer session. Anyone who wishes to ask questions may please press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants connected on webcast may click on the Ask a Question tab and use the Raise Hand option. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Girish Choudhary from Avendus Spark. Please go ahead. Yeah. Hi, good morning. Thanks for the opportunity. Firstly, on the expansion and then let us say some of the new properties which you are signing today, just wanted to get a sense on how are the underwriting in terms of economics versus, let us say, what you would have done for centers two, three years ago. Because one is obviously competition is increasing for the same new supply, and then also what we have seen is the capital requirements going up. So I just wanted to get a sense on the underwriting, how are you seeing in terms of payback period or if looking at the revenue to rent multiples, are we seeing improving returns or is there some pressure which is coming in? So yeah, that is the first question. Sure. Thanks. I'll try to address that. In terms of the actual identification itself of the assets specifically for the next 12 months or even the next financial year, that's already been done. I think there are a few things that we are definitely doing differently. One, there's definitely an increase in the size and scale of the take-up that we are doing, specifically in assets where we have super high conviction or are really the grade A assets across the country. We are looking to take larger positions. We're also underwriting and signing up buildings that are still under development with a lot of these landlords. Also with a lot of the landlords, talking about multiple properties under one transaction and no longer leasing just one asset at a time from some of these landlords. That is definitely change, which is giving us some speed of getting the right supply, and also getting the right stack, the right size in that supply. Now, the other thing that we're definitely looking at doing is almost bifurcating some of this capacity between managed office and WeWork— I'm sorry, sir, you're not audible. Sir, we can't hear you. Ladies and gentlemen, kindly hold the line while we check the connectivity for the management's team. We continue to see return profiles of the business expanding. You'll see that in the ROCE numbers and the profit numbers that you're seeing today, even after a large expansion is happening. With that, we continue to sort of see pricing kind of hold good. We are seeing more efficiency when it comes to how we design the spaces. Also finally controlling the CapEx spend, which is leading to these better returns. Payback periods continue to improve. Ramp-up of occupancy timelines are continuing to improve. With that, I think that in terms of underwriting of new assets, we're getting smarter at it, but I wouldn't say that we've drastically changed anything from the underwriting that we've done even two years ago in evaluation of the assets. Great. Secondly, if you could talk about how renewals are trending across the portfolio. Are you seeing some improvement in customer retention? Also, in terms of pricing, what sort of price increases are you achieving, as and when the renewal comes up, and how does it compare with pricing on new customer contracts? I think in terms of contracted escalations, you will see that the average commitment terms also of each account has gone up to about 28 months. Larger accounts are about 32 months. On average, across the member base, we are getting our 6%-7% contracted escalations on the existing contracts today. As we continue to do some of these larger managed office deals, you will see that with the CapEx spend going up, the actual revenue to rent multiple on these deals is actually higher than what we have delivered in the past. So closer to about 3x versus 2.7x or whatever we have previously. In terms of renewal and all of that, you will see that our renewal percentage is around 80%-85%, even for the first half of this year, w e continue to see a lower than expected churn in the business over the first half of the year. That is all leading to the occupancy tick-up that you are seeing, both in the mature cohorts as well as the growth cohorts. That is why in a period that of just this last quarter itself, occupancy has moved up the way that it has. Even our growth centers, like Clifford mentioned, have moved up nearly 20% in just one quarter, while adding nearly 10,000 seats within that. Almost about, if you just look at the member count versus capacity, we have added 30,800 capacity, but we have also added 30,000 members in that same period. Even the growth centers, just in the last quarter, moved from about 15,000 seats to about 25,000 seats. But the members grew from about 10,000 to about 16,000, so n early 60% of anything that we opened in this first half is already leased up within a weighted average period of, let us say, three months across all of these assets that we have opened. If you look at the same cohort in the next year, we will definitely hit and be crossing the mature building occupancy on that cohort, and we will all start compounding and driving cash flow through the business. Great. Finally, more capital allocation kind of this thing. Given the scale we are at and also the expansion which we have taken up or which is under process, how should we think about the balance between further accelerating capacity expansion and, let's say, maybe generating free cash flow? How are you thinking about that going ahead? I think with the demand indications that we have, we definitely feel the need to expand the amount of expansion that we have coming up for FY 2028. That is definitely one thing that we're working on right now to grow beyond the growth that we've had this year. Some additional CapEx will get allocated towards that additional growth. We also, I think like you mentioned earlier, see that some of the requirements on managed office, specifically from some of these large enterprises, the per square foot CapEx numbers have definitely increased, which is a good sign. We're able to deliver on higher spec spaces for a lot of these customers and even larger spaces. We've signed one of probably our largest deal ever, which we'll announce in the next quarter. That is a significant amount of CapEx that we'll have to deploy to that one single asset itself. We hope there'll be few of those in the coming year for us to do. Now, over and above that 100%, there's going to be some more cash that we have. Like we mentioned in Q1, we've embarked on this corporate action of getting rid of our book losses or creating the ability for us to pay dividends or do buybacks. That is definitely one option that we're looking at if the business has excess cash. I think that we are right now also looking at how we expand the platform completely. We definitely want to invest into adjacent businesses that kind of complement the strengths that we have and the right to win that we have. We want to build businesses around helping companies grow in India to make scaling easier. Anything that allows for talent to become much more productive. I think to take away all of the inconvenience for Indian businesses to be able to scale and become these global businesses, we want to be able to build businesses that help enable that. Some amount of capital will go into investing into those new ideas and new businesses as well. Got it. Thank you so much, Karan, for the clarity, and I wish you all the best. Thank you. Thank you. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah. Good morning, everyone. Thank you for the opportunity. A couple of questions. Firstly, sir, if you could clarify on the VAS revenue, what would be the customization revenue which was booked for the quarter and the flow-through to EBITDA? That is the first question. Secondly, more on a longer term, as you said, GCC is now 40% of the demand for us. So in your conversations with GCCs, how are they looking at headcount addition right in India, maybe for the next two to three years a nd where does flex fit in all of that as part of their expansion strategy? Yeah, those are the two questions. Thank you. Sure. On customization, I think, like we've mentioned in the past, we've now normalized any large lumpiness. I think in the quarter, we would've done about INR 18 crore of customization revenue. And close to maybe about INR 30 crore in the first half of this year in terms of customization revenue, which has a flow-through down to EBITDA. These are a long tail of small customizations that we do across multiple member accounts that are much more short-term and in the space, coupled with maybe one or two large ones that we've done. This is probably a run rate expectation that we have moving forward on how this sort of revenue stream will work. We also have started to really amortize the large customizations like we spoke about. This number includes amortized customization as well, which is smoothing out the entire revenue bucket over there. In terms of GCC headcount, we continue to see, I think, two things happening. While headlines read about job cuts across some of these large occupiers or large tech businesses, when we speak to all of them on the ground, they're all talking about moving jobs basically from the U.S. to India and setting up these GCCs, and insourcing a lot from some of the IT services firms because they want to control culture, they want to control the product, they want to control the talent. We are seeing new businesses, new global businesses setting up. In fact, just yesterday, I was at a dinner for Blackstone's GCC Revantage that they set up with Prestige on Outer Ring Road. Speaking to the guys over there, they were like, "This is just talent that we're moving out of PwC or Wipro that was housing a lot of this talent. We're trying to bring it in-house. We want to control the experience that they have. We're spending a lot more on this space." Someone like Blackstone, who's an asset manager, was never really a large taker of space. Let's say they're a large owner of space, but they were never an occupier or a tenant of space in the country. Like that, there is a whole bunch of new businesses that are setting up their GCCs that are sizable businesses globally. They just never hire talent in India. With this AI build-out and boom, which I think you're seeing some of the cracks and a lot of the stories of it replacing jobs and implementation within enterprises, etc., b ut if you think about companies that are really non-tech, which are a huge section of all businesses in the world, they are all trying to do technology transformation now. They're trying to build AI within their businesses. The only way they're able to do it is with skilled developers. The only place with skilled developers at scale continues to be India and so w e see this as a big driver even in coming quarters. Now, there has been one change, though, which is it is no longer necessarily an FTE or a seat count type of metric. It is fully a productivity and outcome-driven metric that these GCCs are driving, and hence experience, the type of employee, the output of employee has changed to being much, much more high value, which is why you're seeing the premiumization story play out across the country. You are seeing the increase in CapEx from some of these managed office deals because they want to spend more on the space. It is not as dense. They want to give more amenities to these customers. Today, we are working on space types with a lot of these customers that are well beyond what we used to do. They are all asking for wellness spaces. They are all asking for F&B at scale. They are all asking for town hall spaces. The need for meeting room collaboration areas have increased almost 50% in what sort of these companies want in that space. AI has made the office much more collaborative. It is definitely a space where meetings and putting things together is more a requirement. I think one other really green shoot which is getting unnoticed in our business is our digital products business. That is just showing how the nature of demand is actually changing. I think it is a good indication of what future of office space, future of flex looks like, where there will be a lot of people and a lot of B2C customers that end up using the office space in this manner and on-demand through a fully digital journey. All of these things, I think, are reasons why we continue to invest on the platform. Sure, Karan. Thank you for that detailed explanation. Wish you all the best. Thank you. Thank you. The next question is from the line of Mohit Agrawal from IIFL Capital. Please go ahead. Yeah. Hi. Good morning, everyone, and congratulations on a great set of numbers. My question is actually getting some more clarity on the earlier question on renewals. Karan, you mentioned that typically 80% or more of contracts which are coming up for renewal are getting renewed and at a higher revenue to rent multiple. Is that understanding correct? This would include pure renewals, right? With the same tenant. Yeah. Renewals, I think we try to do multiple bits with renewals. A lot of times, renewal comes with an upgrade conversation also. Companies don't just renew the existing contract. They end up adding scale, adding a new city, adding a new format of space. When we look at the price increases over there, we try to obviously weigh out all of the different parameters, which include further commitment term, further lock-in from these customers. I would say renewal escalations are definitely lower than the annual contracted escalation and also some of the pricing increases we get in buildings when we fill up occupancy. I think that's a conscious call because we want to obviously reward for loyalty, we want to reward for scale, and we want to help these companies continue to grow through the platform. The cost of churn or the cost of backfill is obviously much, much higher than whatever it costs us to renew at slightly lower. We focus more on that. Even sometimes if it's, let's say, a flat renewal that we would have to make, as long as there's added scale and there's an added commitment term, it makes sense for us because the cost of replacing that customer would be a lot larger. That's how we kind of look at it. I think there's no uniform approach necessarily to these renewals. Over the last two years, you will see the rates have consistently moved up. We're seeing more customers grow with us. T hat's been above 50% for years now, actually, that about 50% of our customer growth comes from internal members growing. Yeah. That's how at least the renewal part is playing out. But on aggregate, that is all leading to the revenue to rent multiple, the overall pricing increase and revenue increase, and the margin increase in these centers. Yeah, actually, that is what the profitability on renewals is what I was coming to. So let's say assuming that you would renew with the same tenant. Even if the revenue to rent multiple is flattish, what proportion of the INR 2,500 CapEx do you need to re-incur on renewals, let's say for three-year or four-year contract? Because then that would actually get built into your IRRs or the entire profitability of the contract. So have you analyzed if a customer renews with you, what is the kind of enhanced profitability that you get on the renewal? Yeah. I think, again, we break it up into two parts. One is the WeWork branded spaces, where our CapEx is over a longer period of time, not dedicated to that customer. So typically, when renewals happen there, we don't end up putting any fresh investment into the space. Unless there is some real requirement to, and at that point, that gets priced into the renewal conversation and there's a payback based on the further commitment term, let's say, that that customer's giving us, or they pay us upfront for small works that need to get done. And in some cases, it might be enhancement that works for us, so we put that into the space and it overall extends the CapEx, or the look and feel of the space for years beyond what it would have otherwise. These renewals happen on a regular basis, and we don't go around keep deploying capital into some of those locations. Now, on managed office deals or these larger, fully dedicated CapEx deals, at that point, conversations happen with the customer. Sometimes they want us to reinvest back into the space. Sometimes they actually don't need to reinvest back into the space, and we continue that fit out with them. So like I said, even in that scenario, if we're putting any money back into the space, it all gets priced into both the escalation and the commitment term that we have coming up. Now, profitability obviously increases with each renewal cycle, I think with every customer, because not only has it helped us pay back the initial CapEx that we have put in into the space, the further renewal allows it to just be clear, sort of juice for the business, and continues to improve the return profiles of the business. We see the same thing happening in managed office as well. In managed office, however, I think sometimes when the initial CapEx is amortized and we do not need to reinvest back into the space, we do give the customer the benefit of the paid-off CapEx so that we are able to kind of extend them at a better rate also coming up for the future. I think, and just maybe to highlight the refurbishment cycle, across most of our assets, we are only putting in heavy investment back between year five and year seven, depending on the product and the wear and tear of those assets. And now we are already talking about renewal across most of the portfolio as well. All of this CapEx will extend to a further 10-year cycle that should drive PAT increases at that asset level to be significantly higher than what it is today. Hello? Yeah, I think. Sorry, the last bit is the ROCE number obviously reflects all of it. It reflects refurbishment, maintenance, fresh CapEx, new CapEx. All of that is reflected in this number, so it is obviously continuing to move up. Sorry, am I audible? Yes, sir. Mr. Agrawal. Your voice is breaking. Sir, can you please repeat your last line? Yeah. No, I think, Karan, this is very clear. Just one— yeah. No, sorry. I will just maybe complete it again. The ROCE numbers obviously reflect all of the CapEx investment that we are doing, which includes refurbishments or anything that we put in into any of the assets. And you can see that those numbers are trending upwards, which will be basically an output or better economics through each of the buildings. Sure. This is clear. My second question is, the cash flow from operating activities, that, like you put it, the free cash flow number to EBITDA ratio, as Clifford mentioned, was about 1.5x. How do you think about this ratio, and is the driver completely the security deposit float that you enjoy on higher leasing, or are there more legs to it? If you could explain that, and the sustainability of that 1.5x around that kind of a ratio. I think you should look at a range of between 1.2x- 1.5x in terms of what this number would look like. I think security deposits is definitely one factor to it. There is also sometimes this upfront customization that companies end up paying us, but we've been now, we're amortizing that across the contract term. But we still continue to receive the cash upfront from these companies, so that definitely is adding to it. I think these are the two large factors, really, that adds to that multiple. And security deposits will always continue. Customization will also continue at different levels, and I think that is really what drives that range between 1.2x to maybe 1.5x times. Yeah. Yeah. Just one last clarification. When you're renewing the contract at a higher revenue to rent ratio, the security deposit, you get an incremental deposit on the renewed rental as well, correct? We don't. We actually take additional deposit purely on any expansion of seats when it comes to that. We don't necessarily take higher deposits when the price has escalated. Okay. Understood. Those were my questions. Thanks a lot, and all the best. Thank you. The next question is from the line of Abhinav Sinha from Jefferies. Please go ahead. Hi. Congrats on a strong quarter. Just a couple of questions. Firstly, on seat addition guidelines, you have put March 2027 as between 150,000- 155,000. Is there a chance of the earlier 155,000 not being met, and what is driving that? That is first question. Secondly, you can also guide us on what should be the margin uptake in the second half of the year. Thank you. Sure. I think we wanted to start putting a range because sometimes buildings slip from one quarter to the other and does not always end up in the exact way. But as of today itself, we are already at 150,000. As of October 5th, we opened another 4,500 over and above this 45,000 that you are seeing, which ended at September 30th. So we are already at 150,000. We definitely have visibility of the 155,000 between now and March. But like I said, with maybe some deliveries that are meant for March could potentially open April 1st or in the first week of April. That is why we wanted to just kind of put this range in from a reporting standpoint. So I do not think anything is changing in terms of the guidance or whatever it is. And some of it has to do with client requirements, some of it has to do with landlords delivering the space or giving us, handing over the space delayed or whatever it might be. But we continue to stay on the path like we've mentioned. Now, in terms of margin expansion, I think for the coming two quarters, with a lower capacity addition and pretty much all of the rentals hitting in in Q3, between Q3 and Q4, you will see hopefully further margin expansion as occupancy continues to move up. There will be maybe a higher expansion towards Q4, but because we have some rent freeze and things like that will expire in Q3 and actually start hitting the P&L in full force. But the large kind of growth you will definitely see happening by Q4 and as we exit the year. And that's kind of how we built out the plan as well. We wanted to front-load all of this capacity so we have that time to ramp up towards the second half of the year. Okay. So can we expect last quarter Q4 margins to be higher on a year-over-year basis? On a YoY basis, we did have a pretty stellar Q4 last year, so I'm not exactly sure on a percentage-wise YoY basis would be that much different, b ut overall, EBITDA base obviously would be much larger than it was last year. Got it. Thank you. Thanks. Thank you. We will take the next question from the line of Mayur Patel from 360 ONE AMC. Please go ahead. Congrats, Karan and the team, for stellar performance. Just one or two questions on this. You are doing 21%+ EBITDA margins, and you are hinting towards more margin expansion going forward. Is there anything we can take it as a guidance for next year and way forward? That is question number one in terms of margin expansion. I think that is a loaded question. I do not think we will give really a percentage increase. I think there are a lot of moving parts, obviously. Just to give you a very good example of this year itself. Minimum wage increases that hit us basically in this first half for Karnataka was nearly 60%. Haryana was also sizable. We also got hit with a lot of backdated energy tariff, especially from BESCOM in Karnataka, which is our largest portfolio. OpEx cost per square foot actually went up significantly in this last year, in this last first half. Even with that, we were able to deliver this sort of margin expansion. I think if that did not exist or that did not happen, margin obviously would be closer to maybe 22%-23% just in this quarter itself. To give you a percentage guidance, I think for next year, it's hard just because there's so many moving parts. Buildings open at different times. Move-ins of customers could happen at different times. I think what we really want to note is structurally, the business is definitely expanding in terms of margin. Fixed costs are much, much flatter than the revenue growth that we're seeing today. You'll see just even in the rentals that we brought in versus the revenue contracts that we signed. There's a huge gap happening over there, and the rental revenue continues to stay. Now, I would say over and above that, our endeavor in terms of new initiatives, new businesses, is to drive anything that will make the PAT margin as well as the EBITDA margin grow. That is the major focus of how we're operating and growing the business. I would say, let's think about it in this range of 22%-23% for next year, depending on how capacity comes in and all of that. That's how we would look at it. But structurally, really the center-level margins are nearly close to about 30%. At any point in time, if we pull the lever on growth, you'll definitely see the margins inch up closer to the center-level margins. Got it. Just two more questions. First on, given your total capacity of 13% and you are at 9.8% currently, that clearly gives you, like you said, March 2027, you'll close it around 10.3%, 30% growth visibility for next year. But how is the pipeline looking like for booking new supply and growth beyond FY 2028? That's one. And second, is my reading right when we look at your 2.9x contract value coverage, that's largely related to the current operational capacity of 9.8%? That's right. Second part, you're right. It's only based on whatever is basically hitting the P&L today and what we have signed up against. Actual live contracts that we have signed up against that. In terms of growth— Got it. —from this perspective, like I said, the 13%, it is kind of what we have signed right now, which are LOI signed. There is a whole tail of assets that are in discussion, evaluation, and all of that are not either at LOI stage or we have not brought it to LOI stage because we do not want to pay the deposit right now. I think easily there is another visibility of over 2 million square foot over and above this 13 million square foot that we have across various different assets that we are looking at right now itself. It is just not signed. Now in terms of seat additions for— So this 2 million square foot can— y eah, sorry. Sorry, go ahead. No, this 2 million square foot can get finalized over next two quarters? I wouldn't say over the next two quarters, but it will keep increasing as we need it to. There's no need to just sign up space for FY 2029, FY 2030 today when we either don't know what the market is going to look like, what the demand is going to look like, which locations we really want to grow in. We like having almost 95% visibility of, let's say, 12 months out and maybe 70%-80% visibility of 18 or 24 months out. But doing anything over and above that, signing these leases, taking on a long-term commitment where demand could move either way, I don't think is prudent either. We don't think about just adding AUM for the sake of adding AUM. We are definitely focused on a consistent rollout plan each year. Next year will be higher than this year for sure in terms of the desk rollout that we have. We already have visibility of that. But we are in no rush to sign up spaces that are necessarily coming in FY 2029 or FY 2028 without knowing what the market is going to really look like at that point in time. Sure. Thanks and all the best, Karan. Thank you. Thank you. The next question is from the line of Rishith Shah from Axis Capital. Please go ahead. I would request all the participants to kindly limit their questions to only one per participant as we have a queue. Thank you. Yes. Thanks for the opportunity. Just on the extension of the previous question about renewals. On the expiries, are you looking at any lumpy expiries in the coming, maybe rest of FY 2027 or FY 2028? Correct my understanding if I am wrong over here. With a tenure of about 28 months, we will typically see about 35%-40% of that expiring each year. How does that work, I mean? On the last part, like I mentioned, our renewal rates are closer to 80%-85%. You should assume, obviously, that that section of the current contracts continues to renew with us for a further, whatever, 28 or 30 months. That is on average how that sort of continues to keep rolling. In terms of lumpy move-outs, we do have one company that we have that might be moving out in the next year, but it is not fully certain right now in terms of timing, which month, and things like that. Commonwealth Bank of Australia, that has been a large customer of ours for nearly seven years, has taken up a large build to suit campus with Embassy in Manyata itself of about 1.2 million square foot. There will be some shifting of that to their own campus, which happens. But we've already— I would say, we have already been working both on backfill as well as bringing in some large contracts that will offset any of that churn, because we've known about this for a few years in terms of their timing and when this is going to kind of move out. I think other than that, we don't have any deep concentration of customers. And we don't see any major issue in terms of renewals coming up next year apart from that. Sure. Can I squeeze in one quick question? Sure. Yeah, go ahead. Yeah. So with the CapEx cycle that we are on, the depreciation should increase. So how are you looking at PAT margins going forward? You have depreciations obviously increasing of newer assets, but we also have some reducing of older assets. Then as some of the buildings go through the 10-year renewal, you will see that most of the CapEx is paid off across those assets as well. But in terms of PAT margins, I would say hovering between the 7%-10% with all the growth that we have coming in should continue. The timing of the expansion, the way that we roll it out, and the amount that we bring in is all something that we keep looking at and trying to manage it to the best of our ability. The other thing is obviously interest cost has come down drastically, which has led to also some of the PAT expansion in the business. We hopefully see that continuing to stay this way. Perfect. Thank you so much for the details. Thanks. Thank you. The next question is from Ankit Minocha. Please introduce yourself and proceed with the questions. Yeah. Hi. Good morning, Karan, and congratulations on the constant progress that is happening with WeWork. So I had asked about the promoter pledge on the previous quarterly call as well. At that time, you had indicated that maybe 30 lakh additional shares would be released shortly, and that a block sale was another possible route towards eliminating the pledge. Could you please update us on whether there has been any progress since then and share the broad plan on the pledge from here? Sure. In terms of the pledge, obviously it continues to hold. It will come down. Market has been a little bit volatile, but as long as our value, our market cap sort of gets back to where it should be at, there will be some percentage reduction in what is pledged based on the cover that we have on that debt. Our endeavor is to close this basically as soon as possible, but it also has to sort of make sense for us to be able to either sell something externally that is not WeWork-related or do a block at some point in time. It is not something that we are looking at, definitely, at these pricing levels. We see that there is a lot of upside in the business coming up. We are in no hurry to close it because we have three years to basically sort of pay that debt off, and clearly the business is growing faster than the cost of capital that we have for that debt. So right now, it makes sense for us to kind of just stay status quo. I think if anything changes or really what you want to know is that we are 100% on a de-levering path. Timing of that is just based on where it makes sense for us as a promoter group. Yeah, sure. Thanks. That helps. I was just coming from a place of, I am sure we are all aware of the kind of effects that this has on the fair valuations as well. So, I believe it is maybe a double-edged argument there. But yeah, we look forward to kind of Sorry. I think there is no denying that, 100%. We are fully aware of it, and it is something that we definitely want to get done as soon as possible. Thanks. Appreciate that, Karan. Wish you guys all the luck. Thank you. Thank you. Thank you. Ladies and gentlemen, this will be the last question for today from the line of Sourabh Gilda. Please introduce yourself and proceed with your questions. Hi. Congratulations on good set of numbers. My first question is just a clarification on a comment earlier made on revenue rent multiple, which is clocking 3x for some of the new deals. Just wanted to understand, is this also associated with higher CapEx per square foot that we are incurring? Yeah, it is. Especially on those larger managed office deals, it is fully driven by the CapEx spend. Okay. Sure. Thanks. Secondly, if you can highlight any CapEx guidance for second half and next year, FY 2028. I think we have— yeah, I would say for the entire year, we are still holding on between INR 500- odd crore of CapEx spend. That will happen. Like I mentioned, we have a large deal that we are executing on for the next half, which just got signed a few months ago, a few weeks ago. So that is a larger CapEx spend than we expected, but it will be lower than the first half for sure, for the remaining half of this year. In terms of FY 2028, like I mentioned, we are looking at extending the expansion or adding more seats than we did this year. So, CapEx will possibly be closer to the INR 600 crore mark, or maybe even slightly more than that for FY 2028. Yeah, obviously, it will still be well below the cash generated from the business in FY 2028. Okay, sure. Given that the managed deals are largely demand backed. In that sense, is there any upside risk? Because when you sign a managed deal, it kind of could get closed in a two, three months time period, right? The point I am trying to make is there any upside risk to the CapEx number in a situation wherein you may land up multiple managed seats, which you do not envisage currently? Yeah, I think that we would really hope for that situation to happen, because that just means while we will be deploying more capital, our revenues will jump up more than we expected, and so will EBITDA, and so will PAT, off doing these deals. Because they are, like you mentioned, they are 100% demand-backed, and if we can get that live, it will obviously add a boost to the business. So, I think we hope, and we are actually pushing and fighting to try to get definitely upside that can help expand, sort of increase the growth that we have for that year. Sure. Thanks for the clarification. Thank you. Ladies and gentlemen, as that was the last question for today, I will now hand the conference back to Mr. Karan Virwani for closing comments. Thank you, and over to you, sir. Thank you. Thank you everyone for joining and spending time and asking us all of these detailed questions. We hope to meet a lot of you one on one and in meetings coming forward as well. Thank you for your continued trust, and we hope to continue to deliver as we have done in the past. So thank you, and have a great day. Thank you, sir. 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 now disconnect your lines. Thank you.