Dev Accelerator Limited: Accelerating Growth in Flexible Workspaces with Strong H1 FY26 Performance

Dev Accelerator Limited, a key player in India's rapidly expanding managed workspace sector, has reported a robust financial and operational performance for the second quarter and half-year ended September 30, 2025 (Q2 & H1 FY26). The company, known for its enterprise-focused, full-solution managed workspace platform, demonstrated significant top-line growth and strategic execution, particularly in Tier 2 cities.

For H1 FY26, Dev Accelerator Limited's revenue from operations surged by an impressive 80.9% year-on-year, reaching INR 107.47 crores. This strong performance underscores the increasing demand for flexible office solutions and the company's effective strategy in capturing market share. EBITDA for H1 FY26 stood at INR 52.82 crores, marking a 64.0% year-on-year growth, with EBITDA margins maintained at a healthy 49.2%. Cash EBIT also saw a remarkable increase of 531.9% year-on-year, reaching INR 19.81 crores, reflecting improved operational efficiency and cash generation capabilities. While Profit Before Tax (PBT) for H1 FY26 grew by 140.1% to INR 2.64 crores, the Q2 FY26 PBT experienced a de-growth of 74.4%, primarily due to a decrease in other income compared to the previous period.

Strategic Expansion and Tier 2 Market Leadership

Dev Accelerator Limited's growth narrative is heavily anchored in its strategic focus on Tier 2 cities, which the management refers to as the 'rising Bharat story'. The company operates 28 centers across 11 cities in India, with a significant footprint in Tier 2 markets like Ahmedabad, Gandhinagar, Jaipur, Vadodara, Surat, Indore, Rajkot, and Udaipur. This strategy has proven successful, with the company maintaining over 85% occupancy rates across its portfolio.

A landmark achievement in H1 FY26 was the launch of India's single largest managed office space campus in Ahmedabad. This 3.15 lakh square feet campus, developed in partnership with Zaveri, has already achieved an astounding 95% occupancy even before its operational go-live in January 2026. This pre-commitment level not only validates the strong demand in Tier 2 cities but also highlights the trust enterprise clients place in DevX's offerings. This new center is expected to add INR 2.50-2.75 crores to monthly revenue and approximately 3990 seats.

The company's asset procurement strategy, which includes straight lease, revenue share, Opco-Propco, and landlord-furnished models, allows for flexibility and capital efficiency. Management emphasized that their ability to secure long-term rent-free periods for assets significantly boosts their Return on Capital Employed (ROCE).

Diversified Offerings and Financial Prudence

Beyond its core managed workspace offerings, Dev Accelerator Limited has successfully diversified its revenue streams through allied services. The company's Design & Build subsidiary, Needel and Thread, has shown impressive growth, with revenue increasing from INR 12.5 crores in 2023 to approximately INR 30 crores last year. It is projected to achieve INR 65 crores in revenue by March 2026. Additionally, their technology subsidiary, SASJoy Solutions Pvt. Ltd., is expected to contribute INR 8-10 crores in revenue by March 2027. These integrated services, including bespoke fit-outs, technology integration, and facility management, enhance client stickiness and perceived value.

From a financial prudence perspective, DevX has made significant strides in deleveraging its balance sheet. Utilizing IPO proceeds, the company reduced its long-term debt from INR 98.94 crores in FY25 to INR 11.27 crores in H1 FY26. This substantial debt reduction is expected to lower borrowing costs and positively impact future margins, aligning with a disciplined capital allocation strategy.

Outlook and Management Confidence

Dev Accelerator Limited's management expressed strong confidence in the company's future trajectory. They anticipate reaching 28,000-30,000 seats by December 2026. For the full FY26, the company projects revenue between INR 220-250 crores. Looking further ahead, consolidated revenue is guided to be INR 330-350 crores by March 2027, with standalone DevX revenue expected to be INR 250-260 crores. This forward-looking guidance is supported by a robust demand pipeline, particularly from mid to large-sized enterprises and Global Capability Centers (GCCs).

The company acknowledges external threats such as geopolitical tensions and potential pandemics but believes the underlying demand for flexible workspaces in India remains strong. The management's proactive approach to identifying growth opportunities in Tier 2 cities, coupled with a disciplined operational and financial strategy, positions Dev Accelerator Limited for sustained growth and value creation for its shareholders.