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DevX FY26: Tier 2 scale, strong cash EBIT, and a corridor-led growth plan

Dev Accelerator Limited, branded as DevX, closed FY26 with sharp top line growth and improved profitability, while reiterating a strategy that leans heavily into Tier 2 India and enterprise led managed offices. For FY26, consolidated revenue from operations was INR225.92 crore, up from INR158.87 crore in FY25. Consolidated EBITDA was INR109 crore with a 48.4 percent margin, and profit before tax was INR15.73 crore.

On a standalone basis, which management positions as the core managed workspace engine, revenue from operations was INR170.91 crore. Standalone EBITDA was INR103.46 crore, translating to a 60.54 percent margin, and cash EBIT was INR36.55 crore. Management also stated that normalized standalone profit before tax was INR20 crore, marking the second consecutive year of positive PBT.

The operational story that supports these numbers is centered on occupancy, enterprise mix, and the company’s ability to pre-contract demand. The investor presentation reports 90.31 percent occupancy at peak levels, 99.7 percent seat retention, and a net churn rate of 0.0 percent for FY26. It also states that 65 percent of revenue comes from enterprise clients and that Tier 2 cities contribute 71.63 percent of FY26 revenue.

FY26 performance in numbers, and what changed in Q4

The FY26 growth rate on the consolidated revenue line was strong, but quarterly volatility showed up in Q4. Consolidated revenue from operations in Q4 FY26 was INR59.26 crore versus INR65.40 crore in Q4 FY25. In the earnings call, management attributed the decline largely to the shutdown of a Noida center, citing persistent issues in common area maintenance by the landlord, including recurring elevator stoppages and HVAC servicing problems.

Despite the Q4 revenue decline, the company reported a jump in profitability in Q4. Consolidated PBT in Q4 FY26 was INR10.50 crore versus INR2.54 crore in Q4 FY25. Total expenses were lower year on year in Q4, as shown in the consolidated income statement.

On the standalone side, the company reported FY26 revenue of INR170.91 crore and EBITDA of INR103.46 crore. Standalone PBT for FY26 was INR10.15 crore as per the IndAS table, while management repeatedly referenced normalized PBT of INR20 crore for the year.

Where revenue comes from: enterprise led managed offices plus services

DevX describes itself as India’s leading Tier 2 flexible workspace provider, with 28 centers across 12 cities. As of FY26, it reported 0.83 million sq ft of AUM, 13,304 total seats, and 12,015 occupied seats. Ahmedabad remains the anchor city, contributing INR78.60 crore of FY26 revenue, or 45.99 percent of total.

The segment mix slide provides a revenue contribution split for FY26. Managed space services contributed 61.08 percent. Payroll management services contributed 25.59 percent. Facility management and other services contributed 6.04 percent. Co-working space contributed 0.97 percent. Designing and execution contributed 3.15 percent, and IT services contributed 3.17 percent.

This mix is consistent with the management narrative in the call that the business is enterprise first, with limited exposure to startup demand. In the Q and A, management said startup exposure is largely through coworking, while 65 percent of revenue is from enterprise clients on built-to-suit contracts.

The Ambli Bopal corridor playbook and the development management model

The most important strategic theme in both the presentation and the call is the consolidation of contracted supply in the Ambli Bopal corridor of Ahmedabad. Management said that in FY26 the company secured about 15.75 lakh sq ft of contracted space in that micro market. This includes Capital One, a 3.15 lakh sq ft building that went live in Q4 FY26 and was 95 percent pre-leased before operations began.

Management also highlighted an 8.1 lakh sq ft development management contract, describing it as the defining differentiator for DevX. Under this model, DevX partners with non-institutional landowners to create Grade A plus assets designed for enterprise and GCC demand. The landowner funds construction, while DevX provides design, execution discipline, and demand relationships. In the call, management said DevX charges a fee in the range of INR300 to INR500 per sq ft over two to four years.

The investor presentation positions the development management model as an additional revenue line over and above leasing and links it to asset-light expansion across 8.1 lakh sq ft of workspace.

Alongside this, DevX continues to use traditional procurement models. The presentation states that 21 of 28 centers operate under the straight lease model, where DevX bears fit-out capex. Six centers are furnished by the landlord, and one center in GIFT City operates under a revenue share structure where DevX pays 60 percent of revenue.

Guidance, funding, and what investors will likely track

Management offered explicit forward looking markers in the earnings call. It indicated an FY27 revenue expectation of INR330 to INR350 crore and said it expects cash EBIT margin to remain in the 21 to 22 percent range at that run rate. It also stated a plan to invest roughly INR200 to INR225 crore over the next two years to expand operational area to about 3 million sq ft by FY28.

On financing, management said the board approved a preferential issue of INR35 crore, with INR15 crore subscribed by promoters and promoter group through convertible warrants and INR20 crore from non-promoter investors. It also said the board approved a project-level NCD program of up to INR100 crore, and that the company is looking at an 11 to 12 percent cost for the debentures.

One additional element mentioned was a potential liquidity event in Q1 FY27 that management said could result in INR110 to INR120 crore of liquidity within DevX. The transcript does not provide further quantification or source detail beyond that statement.

For investors, the near-term proof points are operational rather than narrative. Management itself suggested monitoring quarterly supply additions, conversion of contracted demand as centers go live, leadership build-out at the city level, and maintaining hygiene metrics such as cash EBIT margin, rent to revenue ratio, and debt to equity.

DevX enters FY27 with high occupancy, a disclosed pipeline of 3.52 million sq ft split between operational, under fit-out, and signed pipeline, and a growth plan that hinges on replicating the Ahmedabad corridor strategy across multiple Tier 2 markets.