DevX Q2 revenue rises 54.8% as PAT triples to Rs 5.5 crore

Dev Accelerator Limited reported Q2 FY27 revenue of Rs 80.2 crore, up 54.8% year on year, while profit after tax reached Rs 5.5 crore, 3.1 times the previous year’s level. Cash EBIT more than doubled to Rs 19.1 crore and its margin rose 625 basis points to 23.8%, alongside 91.2% occupancy.

How did DevX perform in Q2 FY27?

DevX delivered its highest quarterly revenue in Q2 FY27, according to Chairman Parth Shah, with revenue from operations rising from Rs 51.8 crore in Q2 FY26 to Rs 80.2 crore. The quarter also improved from Rs 53.8 crore in Q1 FY27, representing sequential revenue growth of 49.2%. For the first half, or H1 FY27, revenue was Rs 134.0 crore, compared with Rs 107.5 crore in H1 FY26, an increase of 24.7%.

Profit rose faster than sales in the quarter. Profit before tax, or PBT, increased to Rs 6.3 crore in Q2 FY27 from Rs 1.7 crore a year earlier, while profit after tax, or PAT, rose to Rs 5.5 crore from Rs 1.8 crore. PAT margin increased to 6.7% from 3.2%, a 345-basis-point change, while PBT margin moved to 7.7% from 3.1%. A basis point equals one-hundredth of a percentage point.

Why did DevX profit rise faster than revenue?

DevX management attributed the faster profit growth to expansion without a corresponding increase in overheads, alongside rising occupancy at centres opened during the past year. Chief Financial Officer Parin Shah said other expenses in H1 FY27 fell to 7.7% of revenue from 11.1% in H1 FY26, while employee costs remained broadly unchanged. That cost movement accompanied H1 PAT of Rs 7.0 crore, compared with Rs 1.9 crore a year earlier.

The quarterly comparison shows the operating leverage described by management. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 54.3% year on year to Rs 40.8 crore in Q2 FY27, from Rs 26.4 crore, nearly matching revenue’s 54.8% increase. However, PAT increased 3.1 times because it rose from a lower Rs 1.8 crore base to Rs 5.5 crore, lifting the PAT margin by 345 basis points.

DevX’s EBITDA margin was 50.8% in Q2 FY27, marginally below 51.0% in Q2 FY26 and below 56.3% in Q1 FY27. For H1 FY27, the EBITDA margin was 53.0%, up from 49.2% in H1 FY26. The release also reported a standalone EBITDA margin of 69.7% for Q2 FY27, 311 basis points higher year on year, as a separate standalone disclosure.

What drove DevX cash-profit margin improvement?

DevX reported Cash EBIT of Rs 19.1 crore in Q2 FY27, up 109.9% from Rs 9.1 crore in Q2 FY26, after deducting lease rent paid from EBITDA. The company identifies Cash EBIT as a non-GAAP measure. Its margin increased to 23.8% from 17.5%, a 625-basis-point improvement.

The cash-profit measure also improved sequentially. Cash EBIT was Rs 12.5 crore in Q1 FY27 and increased 53.1% to Rs 19.1 crore in Q2, while the Cash EBIT margin rose from 23.2% to 23.8%. Across H1 FY27, Cash EBIT totalled Rs 31.5 crore, compared with Rs 19.2 crore in H1 FY26, and the margin expanded to 23.5% from 17.9%.

Management linked the quarterly operating outcome to occupancy of 91.2% and adoption of integrated services. These services include design and build through Neddle & Thread, technology services through SaaSJoy, and facility management. Mr Shah said these offerings supported greater client engagement and cross-selling, while DevX’s workspace centres provided the underlying operating base for the Q2 FY27 revenue increase.

How is DevX funding and executing expansion?

DevX has a pipeline of 17 new centres covering approximately 2.81 million square feet, which management expects to take its platform to 4.16 million square feet across 49 centres. The company currently operates 28 centres, with more than 17,000 seats and 1.2 million square feet under management. Management said its immediate operating focus is phased commissioning, converting leasing opportunities into occupied space, and expanding its Global Capability Centre, or GCC, services business.

The company allotted Rs 100 crore of secured, rated and listed non-convertible debentures, or NCDs, in August 2026 to support its signed expansion pipeline. Mr Shah said net debt remains below equity, although the release did not provide a net-debt or equity amount. The stated second-half priority is stronger cash generation through faster billing and collections rather than a disclosed financial target.

DevX is also using development-management partnerships with landowners rather than investing in land or construction, according to management. One Ahmedabad project covers approximately 8.6 lakh square feet. Mr Shah described the model as a way to apply operating expertise and client relationships across a larger portfolio, while the release cautioned that plans for new centres, timing and financial performance are forward-looking and actual results may differ.

Conclusion

DevX’s Q2 FY27 figures combine a 50.8% EBITDA margin, a 23.8% Cash EBIT margin and a 6.7% PAT margin, compared with 51.0%, 17.5% and 3.2%, respectively, in Q2 FY26. The reported change in other expenses to 7.7% of H1 FY27 revenue from 11.1% a year earlier provides management’s stated context for profit growth exceeding revenue growth.

The next disclosed milestones are phased commissioning of the 17-centre, 2.81 million-square-foot pipeline and conversion of leasing opportunities into occupied space. DevX has also identified faster billing and collections as its H2 FY27 priority following the Rs 100 crore NCD allotment in August 2026, while its plans remain subject to the forward-looking risks outlined in the release.