DevX Q2 revenue rises 54.8% as lease-adjusted EBITDA doubles

DevX reported Q2 FY27 revenue of Rs 80.2 crore, up 54.8% year on year, while IGAAP EBITDA, adjusted for lease rental outflows, rose 109.9% to Rs 19.1 crore. IND AS EBITDA was Rs 40.8 crore, showing that the disclosed lease principal and interest adjustment produces different reported profitability measures.

How did DevX’s Q2 FY27 revenue change?

DevX’s Q2 FY27 revenue increased to Rs 80.2 crore from Rs 51.8 crore in Q2 FY26, a 54.8% rise, and from Rs 53.8 crore in Q1 FY27. Chairman Parth Shah described Rs 80.2 crore as DevX’s highest-ever quarterly revenue and attributed growth to increasing occupancy at centres opened in the past year and greater adoption of integrated services.

H1 FY27 revenue was Rs 134.0 crore, 24.7% above Rs 107.5 crore in H1 FY26. Revenue was the same in the IND AS, or Indian Accounting Standards, and IGAAP financial presentations, indicating that the difference between the two reported views begins below the top line.

The Q2 revenue increase came alongside a larger operating footprint. Super built-up area, or SBA, reached 1.16 million square feet in Q2 FY27, compared with 0.89 million square feet in Q2 FY26 and 1.13 million square feet in Q1 FY27. Operational seats rose to 17,412 from 13,604 a year earlier, while managed-office centres increased to 28 from 27 in Q1 FY27.

Why are DevX’s IND AS and IGAAP EBITDA figures different?

DevX reported Q2 FY27 earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 40.8 crore under IND AS and Rs 19.1 crore under IGAAP. The Rs 21.7 crore difference reflects the IGAAP presentation’s adjustment for lease rental outflows, comprising principal payments on lease liabilities and interest paid on lease liabilities. Both reported EBITDA measures exclude other income.

On the stated IGAAP basis, Q2 EBITDA rose 109.9% from Rs 9.1 crore in Q2 FY26 to Rs 19.1 crore in Q2 FY27. Its margin increased to 23.8% from 17.5%. IND AS EBITDA increased 54.3% from Rs 26.4 crore to Rs 40.8 crore, while the IND AS EBITDA margin moved to 50.8% from 51.0%.

The difference remained visible over the first half. IGAAP EBITDA increased 64.3% to Rs 31.5 crore in H1 FY27 from Rs 19.2 crore in H1 FY26, and the margin rose to 23.5% from 17.9%. IND AS EBITDA rose 34.5% to Rs 71.1 crore from Rs 52.8 crore, with margin increasing to 53.0% from 49.2%.

Did DevX’s EBIT and pre-tax profit improve?

DevX’s Q2 FY27 IGAAP earnings before interest and tax, or EBIT, rose 90.2% to Rs 18.2 crore from Rs 9.6 crore in Q2 FY26, and the margin reached 22.1% from 17.6%. IGAAP profit before tax, or PBT, increased 182.5% to Rs 11.0 crore from Rs 3.9 crore, with margin rising to 13.3% from 7.1%.

Under IND AS, Q2 FY27 EBIT was Rs 22.6 crore, up 58.3% from Rs 14.3 crore, while margin rose to 27.4% from 26.2%. IND AS PBT rose 272.4% to Rs 6.3 crore from Rs 1.7 crore, and margin increased to 7.7% from 3.1%. The presentation states that PBT is after exceptional items and the share of profit or loss of associates.

For H1 FY27, IGAAP PBT reached Rs 18.1 crore, up 117.6% from Rs 8.3 crore in H1 FY26, while IND AS PBT was Rs 7.9 crore, up 197.8% from Rs 2.7 crore. Shah said Q2 FY27 profit after tax was Rs 5.5 crore and more than tripled, while H1 FY27 profit after tax was 3.7 times the corresponding prior-year period; the presentation does not give an absolute H1 profit-after-tax amount.

What operating changes and expansion plan did DevX disclose?

DevX reported Q2 FY27 occupancy of 91.2%, compared with 88.3% in Q2 FY26, although it was below 91.9% in Q1 FY27. Occupied seats were 15,872, versus 12,019 a year earlier and 15,899 in the preceding quarter. Mature-centre occupancy rose to 81.0% from 61.8% a year earlier and 69.8% in Q1 FY27.

The revenue-to-rent ratio was 2.90 times in Q2 FY27, compared with 2.40 times in Q2 FY26 and 2.36 times in Q1 FY27. DevX said this metric was previously reported as rent to revenue, with the underlying measure unchanged. Enterprise clients represented 75% of revenue from operations, up from 65% a year earlier, while brokerage was 1.13% of operating revenue against 1.6% in Q2 FY26.

DevX disclosed a pipeline of 17 new centres covering about 2.81 million square feet, compared with its Q2 FY27 operating portfolio of 28 centres and 1.16 million square feet of SBA. Management said it plans to commission sites in phases, strengthen leasing, improve utilisation and grow global capability centre services. The chairman also said the Rs 100 crore raised through non-convertible debentures supported refinancing and expansion, and that DevX had begun lessee operations at the JUPLA/EAPL property under an OpCo-PropCo model.

Conclusion

DevX’s Q2 FY27 results combined a Rs 80.2 crore revenue quarter with higher occupancy, a 2.90-times revenue-to-rent ratio and a 109.9% increase in IGAAP EBITDA to Rs 19.1 crore. The IND AS and IGAAP results should be read as separate presentations because the latter adjusts EBITDA, EBIT and PBT for lease rental outflows.

The next disclosures to watch are progress in commissioning the 17-centre, 2.81 million-square-foot pipeline, leasing and utilisation at new sites, and expansion of global capability centre services. Management’s stated plans also leave the development of the OpCo-PropCo structure and tokenisation process as matters for future updates.