Concall AI

Dev Accelerator Limited — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Dev Accelerator Limited delivered robust financial results for Q3 and 9M FY26, driven by its strategic focus on Tier 2 cities and an innovative development management model. The company reported significant revenue and PBT growth, alongside healthy EBITDA margins. With high occupancy rates and a strong pipeline of new centers, DevX is well-positioned to capitalize on the growing demand from Global Capability Centers in emerging markets.

Highlights

Consolidated 9M FY26 Revenue grew 53% YoY to INR 166.7 crores.
Consolidated 9M FY26 EBITDA margin was strong at 46.1%.
PBT for 9M FY26 grew 173% to INR 5.2 crores.
Secured a landmark 8 lakh sq ft deal in Ahmedabad under a capital-light development management model.
Maintained high overall occupancy of 88.4% across 13,500 seats.

Key financials

2 periods

Q3 FY26

Consolidated Revenue
₹59.2 Cr
YoY +19%

9M FY26

Consolidated Revenue
₹166.7 Cr
YoY +53%
Consolidated EBITDA
₹77.6 Cr
Consolidated EBITDA Margin
46.1%
Consolidated PBT
₹5.2 Cr
YoY +173%

What they filed

Q1 FY27: revenue down 3.3%, net profit up 971.4% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	34	50	65	56	52 +50%	59 +19%	59 −9%	54 −3%
Expenses	16	26	34	29	25	35	27	23
EBITDA	18	24	31	26	26 +46%	24 −1%	32 +4%	30 +15%
Margin	53%	48%	48%	47%	51%	40%	55%	56%
Other income	14	2	3	1	3	3	3	3
Interest	11	12	15	12	13	9	10	14
Depreciation	14	13	17	15	15	15	15	18
Profit before tax	7	1	3	1	2 −75%	3 +217%	11 +315%	2 +67%
Tax rate	6%	14%	17%	85%	-4%	139%	24%	4%
Net profit	6	1	2	0	2 −72%	-1 −246%	8 +275%	2 +971%
EPS	0.93	0.10	0.31	0.02	0.20	-0.11	0.88	0.16

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Design & Build
₹38.8 Cr Revenue (9M FY26)16.8% EBITDA Margin (9M FY26)

Capital allocation

medium confidence

Capex Capex disclosed Investment comes in paying security deposit and investing in the fit outs. Landowner incurs capital investment for land and development.
- Investment commitment for 8 lakh sq ft Ahmedabad deal (across four years) ₹100 Cr
Our investment comes in paying security deposit and investing in the fit outs. That is where our investment lies. (Page 12) / We are committing an investment of INR100 crores across four years and an occupancy of 85%. (Page 7)

Guidance & targets

Revenue

Revenue Revenue · FY27 · High confidence INR350 crores

So the revenue forecast for '27 was done. This is the same line with the current centers that we already planned and achieved the supply on hand are the same ones that are going to be supporting us in achieving an outcome of INR350 crores.

— Umesh Uttamchandani

What to watch in Q4 FY26

Capital One Center Operationalization & Revenue

End February / early March 2026

Current Occupancy certificate received Dec 27, 2025; fit-outs started

Target Operational, generating revenue

Why it matters

This is a large center (3.15 lakh sq ft) expected to contribute significantly to revenue and operate at 60-65% margin initially.

We are expected to deliver the project in the next 15 to 20 days of time frame, giving us a full-fledged revenue towards the end of February and the first week of March.

Q&A highlights

8 direct

Sourcing Strategy & Top Client Contribution Direct

So we started this company back in 2017 with a clear conviction that India's Tier 2 cities would become the frontier for future commercial real estate consumption... The top 10 clients, the question that you asked, the second one, contributes today roughly 40% of our entire revenue.

Clarifies the company's core strategy of focusing on Tier 2 cities and the significant contribution of its top clients, indicating client stickiness.

Asked by Shamit, Ambit Capital

ROCE for New Centers (Small vs. Large) Direct

Let's say a center is of a size of less than 50,000 square feet of area... There, our ROCE is 36 months. But in larger centers, but in the centers like 3.15 lakh square feet center, there we are forecasting our ROCE to be around 27 months.

Provides specific financial targets for new projects based on size, highlighting better efficiency for larger centers due to longer rent-free periods and optimized common areas.

Asked by Juzer, Individual Investor

Strategic Rationale for Tier 2 Focus Direct

We are of the belief that Tier 2 cities would be the next wave of growth... The arbitrage, cost arbitrage of the talent is also higher here. So let's say a Real Estate Developer resource that is available in Bangalore, vis-à-vis Real Estate Developer available cost of that resource in Baroda, is at least 25% to 30% lower.

Explains the fundamental drivers behind the company's Tier 2 strategy, emphasizing cost advantages and talent pool loyalty as key competitive differentiators.

Asked by Rohit Mehra, SK Securities

Funding for Mega GCC Projects (Development Management Model) Direct

under the development management model, we do not incur the cost of developing the asset. The capital investment from land to development is done by the landowner only. Our investment comes in paying security deposit and investing in the fit outs... landowners would pay us a certain fee to overlook development of that asset.

Details an innovative capital-light model for large projects, where DevX leverages its expertise to generate revenue without significant upfront capital expenditure on land and construction.

Asked by Rohit Mehra, SK Securities

Market Opportunity for Managed Office Space (GCC Perspective) Direct

Today from a flexible office space market, we are at a $5 billion contribution. This is bound to reach around $11 billion in terms of market size... 60% is by GCC... we hold 13% market share in Tier 2 cities.

Quantifies the significant market opportunity in the flexible office space, particularly driven by GCCs, and highlights DevX's strong market share within the Tier 2 segment.

Asked by Aniket Redkar, Individual Investor

Why Focus on Tier 2 vs. Tier 1 Cities Direct

Tier 1 cities have saturated in terms of competition with so many players being there... What we are essentially doing is creating a virtual entry barrier in this Tier 2 cities. Today, I can proudly say that I'm the largest operator in Ahmedabad. I'm the largest operator in Baroda. I'm the largest operator in Jaipur.

Explains the strategic decision to prioritize Tier 2 cities due to lower competition and the company's ability to establish market leadership, creating a competitive moat.

Asked by Rohan Mehta, Tatvic Digital Analytics

Growth from New vs. Existing Clients Direct

existing clients contribute more in our growth story and contribute more to our revenue while we are kind of expanding rapidly... For more than 300 seats per bucket, we have clients who are going to stay with us beyond three years of lock-in.

Underscores the importance of client retention and expansion from existing clients, particularly large ones, which provides stable and predictable revenue streams with long lock-in periods.

Asked by Rohan Mehta, Tatvic Digital Analytics

Economics of the 8 Lakh Sq Ft Ahmedabad Development Management Deal Direct

We did a development management model... wherein right from the land stage, we partnered with the landowner... we'll bring in expertise on the architectural side, on the NEPF side, on the structural side, and on the PMC side... the revenue that we will charge them is anywhere between INR400 to INR600 per square feet.

Provides granular details on the revenue model and value proposition of the development management strategy, showcasing how DevX monetizes its expertise in building Grade A+ assets.

Asked by Anand Mundra, MyTemple Capital

2 min read 5 chapters

Detailed narrative

Q3 & 9M FY26 Financial Performance

Dev Accelerator Limited reported strong financial performance for Q3 and 9M FY26. Consolidated revenue from operations for Q3 FY26 stood at INR 59.2 crores, marking a 19% year-on-year growth. For the nine-month period, consolidated revenue reached INR 166.7 crores, a 53% year-on-year increase. The company achieved a consolidated EBITDA of INR 77.6 crores for 9M FY26, translating to an EBITDA margin of 46.1%. PBT for 9M FY26 grew by 173% to INR 5.2 crores. The Design & Build subsidiary contributed INR 38.8 crores in revenue for 9M FY26 with a 16.8% EBITDA margin.

Tier 2 Strategy and Market Leadership

The company's core strategy revolves around focusing on India's Tier 2 cities, which contribute 75% of its current revenue. This deliberate strategy is driven by the belief that Tier 2 cities represent the next wave of growth, offering significant cost arbitrage (25-30% lower talent costs and lower real estate costs compared to metros). DevX aims to create 'virtual entry barriers' by establishing market leadership, proudly stating it is the largest operator in Ahmedabad, Baroda, and Jaipur. The company operates 28 centers across 12 cities, managing 9 lakh square feet with 13,500 seats at an 88% occupancy level.

Development Management Model

DevX introduced an innovative development management model, particularly for large-scale projects like the 8 lakh square feet Ahmedabad deal. Under this model, DevX partners with landowners, providing its expertise in designing and building Grade A+ assets. The landowner incurs the capital investment for land and development, while DevX charges a fee of INR 400-600 per square foot for its services. DevX's investment is limited to security deposits and fit-outs, making it a capital-light approach to expand its footprint and generate revenue from its specialized knowledge.

New Center Rollouts and Occupancy

The company is actively expanding its network with several new centers. The 3.15 lakh square feet Capital One center in Ahmedabad received its occupancy certificate on December 27, 2025, with operations expected to commence by end-February/early March 2026, already 95% pre-leased. New centers in Pune and Million Minds (Ahmedabad) are undergoing fit-outs and are expected to be operational by April/May 2026, with anticipated margins of 35-40% and 40-45% respectively. Overall, the company maintains a high occupancy level of 88.4% across its portfolio, with enterprise clients contributing to long lock-in periods.

Industry Outlook and GCC Demand

DevX highlighted the significant growth in the flexible office space market, currently valued at $5 billion and projected to reach $11 billion by 2030. Global Capability Centers (GCCs) are the primary demand drivers, contributing 60-65% of annual seat absorption. GCCs prefer managed office spaces for long lease tenures, customized solutions, and enterprise-grade infrastructure. The shift of GCCs towards Tier 2 cities, driven by talent pool availability, cost arbitrage, and improved infrastructure, aligns perfectly with DevX's strategic focus.

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

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