Event Participants
Executives
1 Umesh Uttamchandani
Analysts
2 Mukul Bhushan, Shubham Padhiyar
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹53.8 crores | Includes ₹42 crores standalone workspace revenue plus Needle & Thread one-time revenue |
| Standalone Revenue | ₹42 crores | Up 7.8% YoY from ₹38.9 crores in Q1 FY26; driven by Capital One becoming operational late FY26 |
| Consolidated EBITDA (IndAS) | ₹30.3 crores | Up 14.7% YoY; margin improved to 56.3% from 47.4% in Q1 FY26 |
| Consolidated EBITDA (IGAAP) | ₹12.5 crores | Up 24% YoY; margin 23.2% vs 18.1% |
| Consolidated PBT (IGAAP) | ₹7.1 crores | Up 64.9% from ₹4.3 crores in Q1 FY26 |
| Standalone EBITDA (IndAS) | ₹27.7 crores | Margin of 66%, reflecting core workspace operating economics |
| Standalone EBITDA (IGAAP) | ₹9.9 crores | Up 9.8% YoY |
| Standalone PBT (IGAAP) | ₹6.6 crores | Up 59.1% YoY |
| Operational Portfolio | 1.13 million sq ft | vs 0.86 million sq ft in Q1 FY26; additional 0.19 million sq ft under fit-out |
| Seats / Centers | 17,294 seats / 27 centers / 12 cities | Occupied seats at 15,899 vs 12,534 in Q1 FY26 |
| Occupancy | 91.93% | Improved from 88.6% in Q1 FY26 |
| Enterprise Revenue Share | 70% | vs 52% in Q1 FY26; rising B2B/enterprise mix |
| Revenue-to-Rent | 3.6x | Key industry efficiency metric for managed office space |
| Tier 2 Contribution | 74% of standalone revenue | ~80% of operational SBA in Tier 2 cities |
| Gross Debt | ₹135 crores | vs ₹145 crores end FY26; excludes ₹100 crores NCD raised post-quarter |
| Net Debt | ₹81 crores | vs ₹89 crores end FY26; cash of ₹54 crores |
| Net Debt-to-Equity | 0.4x | Improved from 0.48x end FY26 |
| Net Debt-to-EBITDA (IGAAP) | 1.04x | vs 2.10x end FY26 |
Geographic & Segment Commentary
Tier 2 Markets (Core Strategy): Approximately 80% of operational SBA is in Tier 2 cities, contributing ~74% of standalone revenue. Management reiterated this as the central pillar of the business model, with the entire growth pipeline concentrated in these markets. Tier 2 strategy was validated at scale in FY26, and FY27 is focused on expanding into additional territories.
Ahmedabad (Largest Portfolio): Highest portfolio concentration. Capital One asset (3.15 lakh sq ft) became operational with 95% pre-leased occupancy, generating ₹2.75-3 crores monthly revenue run-rate. First-year rent-free and fit-out periods suppress realized revenue per sq ft (₹87/sq ft/month) versus the stabilized ₹110-125/sq ft/month typical across the Ahmedabad portfolio.
Noida: FY26 full-year revenue from three Noida centers was ~₹11.45 crores before one center closed due to litigation. Post-closure revenue dip of ~₹4.5 crores annually; remaining two centers recorded occupancy and pricing gains during FY26.
Mumbai: City-wise revenue declined from ~₹14 crores (FY25) to ~₹11 crores (FY26); management deferred detailed reconciliation to email follow-up.
Company-Specific & Strategic Commentary
Signed Pipeline & Expansion: Total identified portfolio stands at 3.63 million sq ft across 40 centers with ~52,000+ seats. Beyond the 1.13 million sq ft operational, 0.19 million sq ft is under fit-out and 2.31 million sq ft is signed for future consumption. Core team focus is converting signed capacity into operational centers in a disciplined manner.
Development Management Model: ~1.4 million sq ft planned under this model across Ahmedabad and Jaipur. The Ahmedabad project on Amli Bhopal Road: 8.6 lakh sq ft signed with the developer, ~₹100 crores fit-out investment, ~8,500 seats, and potential revenue of ~₹120 crores. Landlord retains ownership while DEVX brings execution capability, institutional specification, and client relationships; model to be replicated across selected micro markets with limited institutional office supply.
Technology & Platform Strategy: Building AI infrastructure launchpad in partnership with a pan-India media organization to scout AI/PropTech startups for operational efficiency and data-driven decision-making. Investment in Eazily Networks provides broker network access, real estate market intelligence, and demand intake. Tokenization platform incorporation outside India commenced, with law firms onboarded, to access global capital pools.
GCC & Services Expansion: Scalex Advisory JV (12% DEVX stake) with SEVI and Talati & Talati targets GCC clients in GIFT City with full-spectrum solutions — compliance, real estate, and infrastructure management. Non-compete ensures managed office space leads redirect to DEVX; DEVX independently continues GCC business with payroll and facility management revenue streams, including active conversations with clients in Bangalore and Hyderabad.
Capital Raise & Capital Structure: Post-quarter raised ₹100 crores via 36-month senior secured NCD at 11.75% coupon; 1.85 crore shares (19.65% of equity) encumbered, but promoter shareholding not pledged or reduced. Promoter holding at 36.81% vs 19.65% minimum covenant; conversion of warrants for 33,33,330 shares to lift promoter holding to ~37.29%. Repaid ~₹55 crores of existing debt.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | Progressive visibility in coming quarters | Capital One revenue now reflecting; signed capacity converting to operations will progressively show in financials |
| Capacity Conversion | 2.31 million sq ft signed for future consumption | ~40 centers total identified; priority is disciplined conversion of signed pipeline into operational centers in FY27 |
| Development Management | Selective replication in new micro markets | Ahmedabad model (8.6 lakh sq ft, ~8,500 seats, ~₹120 crores revenue potential) to be replicated in cities with limited institutional office supply |
| FY27 Strategic Focus | Execute signed assets; expand into multiple territories | FY26 proved Tier 2 strategy at scale; FY27 is about operationalizing pipeline and deepening enterprise/B2B relationships |
| Leverage | Net debt-to-equity 0.4x; improving trajectory | NCD reflected from Q2; ₹55 crores debt repaid; IndAS lease liabilities are future rent commitments, not borrowed money |
Risks & Constraints
| Risk | Context |
|---|---|
| Litigation / Center Closure | Noida center closed due to litigation, causing ~₹4.5 crores annual revenue loss. Remaining two Noida centers benefited from occupancy/pricing gains, but litigation remains a watch item with potential for further disruption. |
| IndAS Lease Liability Accounting | Full future rental obligations recognized as liabilities upfront under IndAS (₹226 crores for 5-9 year contracts), inflating reported leverage. Management emphasized these are not borrowed funds but future rent payable from operating revenue, and urged investors to track separately reported borrowings. |
| ROC/ROE Dilution | IPO funds still being deployed; new centers take 6-9 months to mature before reflecting in revenue and returns. ROC at 14% as presented excludes lease liabilities; on lease-inclusive basis it is ~9%. Management expects improvement as capital deployment matures into operating centers. |
| New Center Ramp-Up | 3-4 month rent-free/fit-out period per center before client revenue begins; full stabilization takes 6-9 months. This temporally suppresses revenue per sq ft and margin metrics in initial operating years. |
Q&A Highlights
Noida Center Closure & City-Wise Revenue
- Question: Why did Noida revenue increase in FY26 despite center closure, and why did Mumbai revenue decline from ₹14 crores to ₹11 crores? (Shubham Padhiyar)
- Answer: FY26 full-year Noida revenue was ~₹11.45 crores from three centers (not the ₹9 crores estimated from DRHP data). The center closed only at the very end of the year; the remaining two centers saw occupancy and pricing improvements during FY26. Post-closure, there is a dip of ~₹4.5 crores from the closed center. Management deferred detailed city-wise reconciliation to an email follow-up. (Umesh Uttamchandani)
Capital One Revenue Economics
- Question: Capital One seems to generate only ~₹1,044/sq ft annually versus ~₹2,500/sq ft for the Ahmedabad portfolio — is this underperforming despite 95% pre-leasing? (Shubham Padhiyar)
- Answer: The ₹2,500/sq ft figure is inaccurate; typical Ahmedabad revenue is ₹100-125/sq ft/month (₹1,200-1,500/sq ft annually). Capital One at ₹87/sq ft/month reflects first-year rent-free and fit-out periods of 3-4 months, reducing realized revenue in the initial year. A full operational year should reach the ₹110-125/sq ft/month range. (Umesh Uttamchandani)
Revenue Mix & Capex Invested
- Question: What is the split between recurring rental revenue and one-time revenue, and what total Capex was spent for the 1.13 million sq ft portfolio? (Shubham Padhiyar)
- Answer: Standalone business is entirely recurring revenue. One-time revenue (₹57 crores last year) comes from Needle & Thread. Capex for the operational portfolio: ~9 lakh sq ft (75% of portfolio) at ~₹1,300/sq ft equates to ~₹118 crores. Additional deposits and refurbishment capital will be required for the 2.31 million sq ft signed pipeline. (Umesh Uttamchandani)
Debt Equity & ROC on Lease-Inclusive Basis
- Question: Debt-to-equity of 0.78x and ROC of 14% exclude ₹226 crores of lease liability from 5-9 year fixed contracts. Inclusive basis shows ~2x debt/equity and ~9% ROC — will both versions be disclosed quarterly? (Mukul Bhushan)
- Answer: IPO funds are still being deployed into new centers, which take 6-9 months to reach maturity — new capital naturally dilutes ROC/ROE until revenue ramps. Management expects improving ROC/ROE in coming quarters as deployed capital starts generating revenue. (Umesh Uttamchandani)
EBITDA Margin Movement
- Question: Full-year standalone margin improved to 60.5%, but Q4 alone was 59.2% versus 64% last year — what drove the ~5pp drop, and should 60.5% or 59.2% be used as the steady-state model? (Mukul Bhushan)
- Answer: The drop is driven by one-time expenses; standalone EBITDA margin is ~66% (IndAS). Consolidated margin is dragged by Needle & Thread, which books revenue on a project completion/milestone basis, delaying revenue recognition. Industry peer EBITDA margins are 60-65%, and DEVX standalone is within that range. (Umesh Uttamchandani)
Scalex Advisory & GCC Non-Compete
- Question: What is the non-compete agreement with Scalex Advisory regarding GCC business, and does it restrict Dev Accelerator? (Shubham Padhiyar)
- Answer: Scalex is a JV (DEVX ~12% stake) with SEVI (developer) and Talati & Talati (CA firm) targeting GCC clients in GIFT City with full-spectrum solutions — compliance, real estate, infrastructure. The non-compete only restricts Scalex from operating managed office space; GCC leads requiring flex space get redirected to DEVX. DEVX continues independent GCC business, currently serving clients in Bangalore and Hyderabad with payroll and facility management services. (Umesh Uttamchandani)
Key Takeaway
Dev Accelerator reported Q1 FY27 standalone revenue of ₹42 crores (+7.8% YoY) and consolidated revenue of ₹53.8 crores, with consolidated IndAS EBITDA margin improving to 56.3% from 47.4% YoY as Capital One (3.15 lakh sq ft, 95% pre-leased) began contributing revenue. Operational portfolio grew to 1.13 million sq ft with occupancy at 91.93%, enterprise revenue share at 70% (vs 52% YoY), and revenue-to-rent at 3.6x. The company holds a signed pipeline of 2.31 million sq ft (3.63 million sq ft total identified across 40 centers, 52,000+ seats), anchored in Tier 2 cities (74% of standalone revenue) and a development management model (1.4 million sq ft planned; Ahmedabad project alone expected to generate ₹120 crores from ~8,500 seats). Post-quarter, DEVX raised ₹100 crores via NCDs at 11.75% coupon and repaid ₹55 crores of existing debt, with net debt-to-equity improving to 0.4x and net debt-to-EBITDA (IGAAP) to 1.04x. Strategy centers on converting signed capacity to operational centers while building adjacent capabilities — AI infrastructure launchpad, Eazily Networks investment, tokenization platform, and GCC services via Scalex Advisory. Key watch points include the Noida center closure impact (₹4.5 crores annual revenue), IndAS lease liability recognition inflating reported leverage, and ROC/ROE recovery as IPO funds deploy into maturing centers through FY27.