Summary
Dev Accelerator Limited - Q3 FY26 Earnings Call Summary Monday, February 02, 2026 4:00 PM
Event Participants
Executives 7 Anjan Trivedi (CS), Parin Shah (Joint CFO), Parth Shah (Chairman), Parthiv Panchal (Joint CFO), Rushit Shah (WTD), Umesh Uttamchandani (MD), Yash Shah (Director)
Analysts 5 Anand Mundra (MyTemple Capital), Aniket Redkar (Individual), Juzer (Individual), Rohan Mehta (Individual), Shamit (Ambit Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations (Consol) | ₹59.2 crores | +19% YoY for Q3 FY26; 9M FY26 revenue reached ₹166.7 crores, surpassing full-year FY25. |
| EBITDA (Consolidated) | ₹77.6 crores | 9M FY26 figure; reflects a strong 46.1% EBITDA margin due to operating leverage in mature centers. |
| Profit Before Tax (PBT) | ₹5.2 crores | +173% YoY for 9M FY26; company has maintained PBT positivity for two consecutive years. |
| Revenue (Standalone) | ₹124 crores | +50% YoY for 9M FY26; higher growth rate compared to consolidated top-line. |
| EBITDA Margin (Standalone) | 61% | +350 bps YoY from 57.5% in 9M FY25; industry-leading margins driven by Tier-2 efficiency. |
| Rent to Revenue Ratio (Tier-2) | 2.62x | Significant improvement from 1.86x YoY; every ₹1 spent on rent generates ₹2.62 in revenue. |
| Portfolio Occupancy | 88.4% | Consistent performance; 70% of centers are at 100% occupancy with 13,500 total seats. |
| Client Retention & Churn | 98% / -0.6% | 98% retention with negative net churn, indicating existing clients are expanding floor space. |
Geographic & Segment Commentary
- Tier-2 Strategy: 75% of revenue is derived from Tier-2 cities (Ahmedabad, Baroda, Jaipur, etc.). These markets offer a 2.62x rent-to-revenue ratio compared to 2.1x in Tier-1, driven by lower landlord competition and high client stickiness with an average 3.5-year remaining lock-in.
- Design & Build (D&B): This subsidiary generated ₹38.8 crores in 9M FY26 with a 16.8% EBITDA margin. It serves as a strategic moat, allowing DevX to reduce procurement costs and share specialized project management overhead with external clients.
- SaaSjoy Solutions: The technology arm provides recruitment, payroll, and facility management software. It is positioned to capture a higher wallet share from GCC clients by offering a “full-stack” infrastructure and human capital solution.
Company-Specific & Strategic Commentary
- Development Management (DM) Model: Launched a re-engineered model where DevX partners with landowners to design Grade-A units for a fee of ₹400-₹600 per sq. ft. This reduces DevX’s capital expenditure while securing long-term Grade-A supply.
- Mega Campus Deal: Signed a landmark 8.15 lakh sq. ft. single-managed office contract in Ahmedabad (Ambli-Bopal Road). The project will hold 8,500 seats and is expected to generate ₹120 crores in annual revenue once operational.
- GCC Focus: Targeting Global Capability Centers (GCCs) which account for 60-65% of seat absorption. DevX aims to provide end-to-end “built-to-suit” solutions, leveraging a 20-35% cost advantage in Tier-2 cities versus metros.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹350 crores by FY27 | Driven by the operationalization of the 3.15 lakh sq. ft. Capital One center and expansion of D&B and SaaS units. |
| New Center Launches | 4 Centers in Pipeline | Capital One (Ahmedabad) to start revenue in Feb/Mar 2026; Pune and Million Minds (Ahmedabad) targeted for Q1 FY27. |
| Geographic Expansion | 4 New Cities | Evaluating entry into Lucknow, Bhubaneswar, Coimbatore, and Kochi based on client demand. |
Risks & Constraints
| Risk | Context |
|---|---|
| Concentration Risk | Top 10 clients contribute approximately 40% of total revenue, creating reliance on a small group of large enterprise accounts. |
| Execution Risk | Large-scale projects (like the 8.15 lakh sq. ft. deal) require significant fit-out management and timely completion to meet 27-month ROCE targets. |
| Competition | While Tier-2 has “virtual entry barriers,” management admits Tier-1 players may eventually enter as the market matures and GCCs scale. |
Q&A Highlights
Managed Office Economics
- Question: What is the sourcing strategy for new cities versus established ones? (Shamit, Ambit)
- Answer: In new cities, DevX starts with 25k–40k sq. ft. to build a local ecosystem. Once established, they scale to 2 lakh–3 lakh sq. ft. assets (Umesh Uttamchandani).
Asset Profitability
- Question: How quickly do GCC-led projects reach steady-state returns? (Juzer, Individual)
- Answer: Smaller centers (<50k sq. ft.) have a 36-month ROCE, while larger campuses (3.15 lakh sq. ft.) target 27 months due to longer rent-free periods (8–12 months) and higher floor efficiency (Umesh Uttamchandani).
The DM Model
- Question: What are the specifics of the Development Management model? (Anand Mundra, MyTemple Capital)
- Answer: DevX charges landowners ₹400–₹600 per sq. ft. for design/PMC expertise while the landowner bears all construction capex. DevX then takes the asset on a fixed-lease model to manage as a flex space (Umesh Uttamchandani).
One-off Expenses
- Question: Why did other expenses increase by 100% in the standalone business? (Vraj Shah, Tatvic Digital)
- Answer: These were one-time expenditures related to the IPO processing that were approved during the current quarter (Umesh Uttamchandani).
Key Takeaway
Dev Accelerator Limited delivered a robust 9M FY26 performance, with revenue growing 53% YoY to ₹166.7 crores and standalone EBITDA margins reaching a record 61%. The company is successfully executing a Tier-2 dominant strategy, evidenced by its 2.62x rent-to-revenue ratio and the signing of a massive 8.15 lakh sq. ft. “Mega Campus” in Ahmedabad. Strategic focus has shifted toward a capital-light Development Management model and “full-stack” GCC services, including payroll and recruitment, to maximize wallet share. Despite some client concentration, high retention rates of 98% and a negative churn of -0.6% provide strong cash flow visibility. Management remains confident in achieving a ₹350 crore revenue target by FY27 as major new capacities in Ahmedabad and Pune become operational.
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