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    Dev Accelerator Q1 FY27 earnings call

    DEVX
    Services·13 Aug 2026
    Management Summary

    Dev Accelerator Limited reported a strong Q1 FY27, with consolidated revenue reaching INR 53.8 crores and a significant 14.7% YoY increase in consolidated EBITDA (Ind AS) to INR 30.3 crores, driven by improved margins and higher occupancy. The company expanded its operational portfolio to 1.13 million square feet and secured substantial future growth with 2.31 million square feet signed. Strategic initiatives include a focus on enterprise clients, Tier 2 cities, and a new JV, Scalex Advisory, for GCC solutions, alongside raising INR 100 crores in NCDs to support expansion.

    Highlights

    5

    • Consolidated revenue grew to INR 53.8 crores, with standalone core workspace revenue increasing 7.8% YoY to INR 42 crores.

    • Consolidated EBITDA (Ind AS) increased 14.7% YoY to INR 30.3 crores, with margin improving significantly to 56.3% from 47.4% in Q1 FY26.

    • Occupancy improved to 91.93% across an expanded operational portfolio of 1.13 million square feet and 17,294 seats.

    • Enterprise clients now contribute 70% of revenue from operations, up from 52% last year, indicating a shift towards higher-quality, stable revenue.

    • Secured significant future growth with 2.31 million square feet signed for future consumption, bringing the total identified portfolio to 3.63 million square feet and over 52,000 seats.

    Concerns

    2

    • Closure of a Noida center due to litigation, which previously contributed approximately INR 4.5 crores quarterly, impacting revenue from that specific center.

    • Analyst confusion regarding revenue figures for Noida and Ahmedabad, requiring offline clarification from management.

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Revenue (Ind AS)₹53.8 Cr
    2. 02Standalone Revenue (Ind AS)₹42 Cr+7.8%YoY
    3. 03Consolidated EBITDA (Ind AS)₹30.3 Cr+14.7%YoY
    4. 04Consolidated EBITDA Margin (Ind AS)56.3%
    5. 05Consolidated PBT (IGAAP)₹7.1 Cr+64.9%YoY

    Segment breakdown

    • Core Workspace Operations (Standalone)₹42 Cr78.1%
    • One-time Revenue (Needle & Thread)₹11.8 Cr21.9%
    Donut· Share of Revenue

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹118 crores

    Debt

    Gross ₹135 crores · Net ₹81 crores · 1.0x EBITDA

    M&A

    Scalex Advisory Limited

    joint venture · announced

    Liquidity

    Cash ₹54 crores

    Guidance & targets

    1
    CategoryTargetPriority
    Promoter Shareholding
    Promoter Shareholding Percentage
    37.29%
    		High

    What to watch in Q2 FY27

    5

    NCD Reflection in Debt

    Next quarter (Q2 FY27)
    CurrentINR 100 crores NCDs raised, not yet reflected in Q1 debt figures
    TargetReflection of INR 100 crores NCDs in gross and net debt

    Why it matters

    Impacts leverage ratios and capital structure, providing additional funding for expansion.

    The INR 100 crores NCD that we raised will get reflected from quarter two onwards.

    Risks & concerns

    2
    RiskSeverity

    Noida Center Litigation and Revenue Loss

    A Noida center was closed due to litigation, resulting in a loss of approximately INR 4.5 crores in quarterly revenue from that specific center. — Management acknowledged

    medium

    Time Lag for New Center Profitability

    New centers typically take 6-9 months to become fully operational and reach maturity, leading to a delay in revenue and profitability reflection in financial metrics like ROCE and ROE. — Management acknowledged

    low

    Q&A highlights

    7

    “So that because of revenue is not contributing further to this quarter. So that dip you observed from that center. Because of like Noida is one of the like centers what we are receiving the almost INR 3.5 crores, INR 3.7 crores revenue quarterly from that center, that revenue is not there with this particular financial --this particular quarter.”

    Analyst questioned the impact of a closed Noida center on revenue, and management clarified the specific quarterly revenue loss of approximately INR 4.5 crores due to litigation.

    asked by Shubham Padhiyar

    3 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Overview

    Dev Accelerator Limited reported consolidated revenue of INR 53.8 crores for Q1 FY27. On a standalone basis, representing core workspace operations, revenue grew 7.8% YoY to INR 42 crores from INR 38.9 crores in Q1 last year. Consolidated EBITDA (Ind AS) increased 14.7% YoY to INR 30.3 crores, with the margin improving to 56.3% from 47.4% in Q1 FY26. Consolidated PBT under IGAAP saw a significant 64.9% increase to INR 7.1 crores from INR 4.3 crores in the previous quarter.

    02

    Operational Expansion and Occupancy Growth

    The company's operational portfolio expanded to 1.13 million square feet in Q1 FY27, up from 0.86 million square feet in the prior year. This includes 17,294 seats across 27 centers in 12 cities, with occupied seats rising to 15,899 from 12,534 in Q1 FY26. Overall occupancy improved to 91.93% from 88.6%. The company has also secured significant future growth, with an additional 0.19 million square feet under fit-out and 2.31 million square feet signed for future consumption, bringing the total identified portfolio to 3.63 million square feet and over 52,000 seats.

    03

    Strategic Focus on Enterprise Clients and Tier 2 Cities

    A key development is the increasing contribution of enterprise clients, which now account for approximately 70% of revenue from operations, a substantial increase from 52% in the corresponding quarter last year. This shift indicates a focus on higher-value, stable revenue streams. Furthermore, the company's Tier 2 strategy remains central, with approximately 80% of the operational Small Business Area (SBA) located in Tier 2 cities, contributing about 74% of standalone revenue during the quarter. The revenue to rent ratio for the quarter stood at 2.63x.

    04

    Capital Structure and Funding Initiatives

    DevX raised INR 100 crores through senior, listed, secured, redeemable, non-convertible debt (NCDs) with a coupon of 11.75% per annum and a 36-month tenure, which will be reflected from Q2 onwards. The company's gross debt stood at INR 135 crores, with net debt at INR 81 crores, improving the net debt to equity ratio to 0.4x from 0.48x at the end of FY26. The net debt to EBITDA (IGAAP) also improved to 1.04x from 2.10x. Additionally, INR 55 crores of existing debt were repaid during the quarter.

    05

    GCC Platform and Technology Integration

    The company is evolving beyond a pure workspace provider to a comprehensive solution provider for enterprises and Global Capability Centers (GCCs). This includes enhancing facility management, payroll, talent sourcing, and technology solutions through its subsidiary SaaSJoy and design/execution capabilities via Needle & Thread. A new technology-led real estate ecosystem is being built with an AI infrastructure launchpad to foster solutions for operational efficiency and customer experience. The company also initiated the process for building a tokenization platform outside India to access global capital pools.

    06

    Scalex Advisory Joint Venture

    DevX has formed a joint venture called Scalex Advisory Limited, with a 12% ownership stake, alongside a reputed developer and an FP&A firm. This JV aims to offer a full-spectrum solution for GCC clients entering India, covering compliance, real estate, IT network setup, and infrastructure management, primarily focused on GIFT City. The JV has onboarded a senior leader, and operations are set to commence, with the objective of providing integrated services rather than standalone off📎erings.

    This is an AI-generated summary of a publicly available earnings call transcript.