DEVX

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.

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.

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.

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.

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.