Concall AI

Dev Accelerator Limited — Q4 FY26 earnings call

Call held 20 May 2026

Management summary

Dev Accelerator Limited reported a strong FY26, with consolidated revenue growing 42% to INR 226 crores and EBITDA margin at 48.4%. The company successfully launched its Capital One campus with high pre-occupancy and maintained excellent client retention. While Q4 saw a revenue dip due to an asset closure, DevX is focused on an asset-light expansion model in Tier 2 cities, targeting 3 million sq ft operational area by FY28, supported by planned investments and strategic partnerships.

Highlights

FY26 Consolidated Revenue of INR 226 crores, up 42% YoY from INR 159 crores in FY25.
FY26 Consolidated EBITDA of INR 109 crores, with a margin of 48.4%.
FY26 Standalone Revenue of INR 171 crores, showing 34% annualized growth, with an EBITDA margin of 60.5%.
Capital One campus (3.15 lakh sq ft) achieved 95% occupancy before going live, expected to generate INR 2.65-2.75 crores monthly revenue from Q1 FY27.
High client retention at 99.7% and low churn at 0.003%, with an average client lock-in of 34 months.

Concerns

Q4 FY26 consolidated revenue dipped to INR 59 crores, primarily due to the closure of a Noida asset.
Closure of Noida asset was attributed to poor maintenance and services by the landowner.
Potential scaling challenges with rapid expansion from 1.2 million to 3 million sq ft, requiring more leadership and efficient processes.

Key financials

2 periods

Headline

Consolidated Revenue
₹226 Cr
YoY +42.1%
Consolidated EBITDA
₹109 Cr
Consolidated EBITDA Margin
48.4%
Standalone Revenue
₹171 Cr
YoY +34%
Standalone EBITDA Margin
60.5%

Q4

Consolidated Revenue
₹59 Cr

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

Needle & Thread (Design & Build Subsidiary)
₹52.3 Cr Revenue7.2% EBITDA Margin

Capital allocation

high confidence

Capex ₹200 Cr
- Expand operational area from 1.2 million sq ft to 3 million sq ft by FY28
To help you on an outlook of FY27 and FY28, we would be, we are planning to invest roughly INR200 crores to INR225 crores in the next two years of time frame, which practically would empower us to reach from current 1.2 million square feet to 3 million square feet of operational area by FY28.
Debt Debt disclosed Cost 11.5%
- New borrowing Preferential issue, INR 15 crores subscribed by promoter and INR 20 crores from non-promoter investors. ₹35 Cr
- New borrowing Non-convertible debenture issuance at project level, with an interest rate of 11-12%. ₹100 Cr
We are looking to kind of issue debentures in the range of 11 to 12 percentage.
Liquidity Cash ₹110 Cr Expected from monetization of a subsidiary holding.

Q1 FY27, we are anticipating a significant capital event through monetization of our holding in one of our subsidiaries, wherein we are building almost 0.5 million square feet. That capital event would result into a liquidity of INR110 crores to INR120 crores within DevX.

Guidance & targets

Revenue

FY27 Revenue Run Rate Revenue · FY27 · High confidence INR 330-350 crores

So next year, at a revenue run rate of 330 to 350 Crores, we expect to have a cash EBIT of 21 to 22 percentage.

— Umesh Uttamchandani
Capital One Campus Monthly Revenue Revenue · Q1 FY27 onwards · High confidence INR 2.65-2.75 crores per month

The asset is EBITDA positive from day one, and we would be achieving a revenue run rate of INR2.65 crores to INR2.75 crores per month. The revenue from this center would be reflecting in our books from Q1 FY27.

— Umesh Uttamchandani

Profitability

Cash EBIT Margin Profitability · Ongoing · High confidence 21-22%

So the cash EBIT item that you see in our books, that is ranging between 21 to 22 percentage, has been very steady since last couple of years.

— Umesh Uttamchandani
Rent-to-Revenue Ratio Profitability · Ongoing · High confidence >2.2x

Am I ensuring that my rent-to-revenue ratio is more than 2.2x?

— Umesh Uttamchandani

Debt

Debt-to-Equity Ratio Debt · Ongoing · High confidence <1

And am I ensuring that my debt-to-equity ratio is less than one?

— Umesh Uttamchandani

Capacity

Operational Area Capacity · by FY28 · High confidence 3 million sq ft

From 1.2 million sq ft today

which practically would empower us to reach from current 1.2 million square feet to 3 million square feet of operational area by FY28.

— Umesh Uttamchandani
Development Management Projects Identified Capacity · next 12 months · High confidence 5-7 lakh sq ft

And third is identify at least 5 to 7 Lakh square feet of projects under development management model in the next 12 months of time frame.

— Umesh Uttamchandani

What to watch in Q1 FY27

Capital One Campus Revenue Contribution

Q1 FY27

Current Go-live in Q4 FY26, revenue not yet reflected

Target Revenue reflection in Q1 FY27

Why it matters

This significant new asset (3.15 lakh sq ft) is a key driver for FY27 revenue and its contribution will validate growth projections.

The revenue from this center would be reflecting in our books from Q1 FY27.

Risks & concerns

Reliance on Landowner Maintenance
medium

Closure of Noida asset due to poor maintenance by the landowner, highlighting risks in partnerships where DevX does not control asset upkeep.

Management acknowledged
AI Impact on IT Jobs and Real Estate Demand
medium

Analyst raised concerns about subdued IT job additions due to AI; management views it as a talent shift towards AI-skilled professionals, leading to increased productivity and continued demand for space.

Analyst downplayed
Scaling Challenges with Rapid Growth
medium

Rapid expansion from 1.2 million to 3 million sq ft will require more leadership and could lead to inefficiencies if not managed well, though management is focused on building processes and teams.

Management acknowledged
Geopolitical Tensions
low

Acknowledged geopolitical tensions but management believes the hybrid work culture driven by such events benefits the flexible office space sector.

Management downplayed

Q&A highlights

7 direct

Occupancy in Mature Centers Direct

So basically we don't want to change the previous numbers, that's why we see the dip in the occupancy percentage in a mature center. But then we also see that we if we can also achieve the more than 85%, that is good for the business. So that's why we keeping our benchmark high, so that's why we updating the numbers at a mature center.

Analyst questioned a significant drop in occupancy; management clarified it was a change in internal benchmark (from 85% to 100%) rather than an actual operational decline.

Asked by Urmish Shah

Q4 Revenue and Margin Dip Direct

So there has been a dip in the revenue compared to last quarter because one of the asset that we were operating in Noida, that we had closed down. And that was the primary reason why that dip of that revenue comes in on compared to previous quarter.

Analyst inquired about the Q4 dip; management provided a specific reason (Noida asset closure) and explained it was not a systemic issue.

Asked by Urmish Shah

AI Impact on IT Sector and Real Estate Demand Partial

So ultimately what we are sensing and what they are echoing is in the next 15 to 24 months of time frame, their margins are going to shoot up drastically than what has happened in the last decade. Their productivity is going to blast out... If it is a business, then people will be needed. So that is a mandatory outcome.

Analyst raised concerns about AI's potential to reduce IT jobs and real estate demand; management acknowledged the shift but argued it would lead to higher productivity and a need for AI-skilled talent, not necessarily less space.

Asked by Arvind Singh

Economics of Development Management Model Direct

So what we are doing here is we partner with land owners, tell them that we would be leasing this asset, we would be bringing in clients, and it's our commitment to bring in the client. However, the infusion of capital to build the asset is to be done by the land owner. So we charge them an fee for managing and designing that asset.

Analyst sought clarification on the asset-light development management model; management detailed how it addresses Tier 2 supply gaps by partnering with landowners and charging a fee, without taking construction/land risk.

Asked by Nikita Mehta

FY27 Revenue Recognition Pattern Direct

So, for the first two quarters this year, we can expect the revenue to be coming in from couple of assets that were in pipeline, which is Capital One and Million Minds and one asset in Pune. So, the first two quarters would have revenue recognized from these few assets. There are few other assets which are in pipeline, which can be going live in the quarter three. And last quarter would again get pumped up with the delivery of half a million square feet of asset in Ahmedabad.

Analyst asked about the linearity of FY27 revenue; management provided a detailed quarter-by-quarter breakdown of new asset contributions, indicating a phased ramp-up.

Asked by Atul Daga

Top 3 Priorities for FY27 Direct

So first and foremost priority is to bring in senior leadership team at multiple city level... Second is to become Al native in nature... And third is identify at least 5 to 7 Lakh square feet of projects under development management model in the next 12 months of time frame.

Analyst asked for strategic priorities; management clearly outlined three key areas of focus for the upcoming fiscal year, providing insight into future operational and growth drivers.

Asked by Vikrant Sahu

Milestones for Investors to Track Direct

So if I'm committing a 3 Million square feet of area in the next two years of time frame, how much are we adding on a quarter-on-quarter basis? And probably where are we on that supply which we have signed up? That's one. Second, the demand that has been contracted for all these 3 million square feet... The third thing, as my shareholder, what is the leadership team that I'm building in the next two years of time frame?

Analyst asked for key tracking metrics; management provided a comprehensive list of operational, financial, and strategic indicators for investors to monitor, including supply addition, demand conversion, leadership development, and core financial ratios.

Asked by Atul Daga

Interest Rate on Debentures Direct

We are looking to kind of issue debentures in the range of 11 to 12 percentage.

Analyst inquired about the cost of new debt; management provided a specific interest rate range for the non-convertible debentures, which is important for assessing financing costs.

Asked by Vraj Shah

3 min read 7 chapters

Detailed narrative

Strong FY26 Performance and Strategic Focus on Tier 2 Cities

DevX reported a robust FY26, with consolidated revenue reaching INR 226 crores, reflecting a 42% annualized growth from INR 159 crores in FY25. Consolidated EBITDA stood at INR 109 crores, achieving a strong margin of 48.4%. The company's strategy of focusing on India's Tier 2 cities has proven successful, contributing significantly to these numbers and positioning DevX as a leader in flexible office spaces in these markets.

Successful Launch of Capital One Campus and Occupancy Metrics

The dream project, Capital One campus (3.15 lakh sq ft), went live in Q4 FY26, achieving an impressive 95% occupancy even before its official launch. This asset is projected to generate a monthly revenue run rate of INR 2.65-2.75 crores starting from Q1 FY27. Overall, DevX maintained a high client retention rate of 99.7% with a negligible 0.003% churn, and an average client lock-in period of 34 months, indicating strong client satisfaction and recurring revenue.

Asset-Light Development Management Model

DevX's proprietary 'land owner first development management model' is a key differentiator. This model involves partnering with landowners to build Grade A+ assets in Tier 2 cities, where DevX brings in clients and operational expertise, while the landowner provides the capital. This approach is 100% asset-light for DevX, allowing it to scale rapidly without significant balance sheet risk, and generates a fee ranging from INR 300-500 per square foot over a 2-4 year timeframe.

Subsidiary Contributions and Full-Stack Offering

The design and build subsidiary, Needle & Thread, contributed INR 52.3 crores in revenue with a 7.2% EBITDA margin, initially serving DevX's internal needs and now expanding to external clients. SaaSjoy Solutions, the technology subsidiary, provides recruitment, payroll, and HRMS solutions, aiming to offer a full-stack solution to GCC clients. Both subsidiaries play a pivotal role in enhancing DevX's overall offering and client engagement.

Capital Raising and Liquidity Events

The company recently completed a preferential issue of INR 35 crores, with INR 15 crores from promoters and INR 20 crores from non-promoter investors, to fund growth and acquire 4.5 lakh sq ft. Additionally, DevX anticipates a significant capital event in Q1 FY27 through the monetization of a subsidiary holding, expected to generate INR 110-120 crores in liquidity. The board has also approved a non-convertible debenture issuance of INR 100 crores at a project level, with an expected interest rate of 11-12%.

FY27 Outlook and Expansion Targets

DevX plans to invest INR 200-225 crores over the next two years to expand its operational area from the current 1.2 million sq ft to 3 million sq ft by FY28. The company forecasts an FY27 revenue run rate of INR 330-350 crores. Key priorities for FY27 include strengthening the senior leadership team, becoming AI-native to enhance productivity, and identifying 5-7 lakh sq ft of new projects under the development management model within the next 12 months.

Impact of AI and Industry Trends

Management addressed concerns regarding AI's impact on the IT sector and real estate demand. While acknowledging the 'noise' about job displacement, DevX believes AI will lead to increased productivity and a shift towards professionals skilled in AI technologies. This shift is expected to expand the market for IT companies and maintain demand for flexible office spaces that can accommodate hybrid work cultures and evolving talent needs.

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

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