Dev Accelerator Limited reported a 14.7% year-on-year increase in consolidated EBITDA to ₹30.3 crore for the quarter ended June 30, 2026 (Q1FY27), driven by margin expansion despite a slight contraction in top-line revenue.

The Ahmedabad-based managed office space provider saw consolidated revenue from operations fall 3.3% YoY to ₹53.8 crore, down from ₹55.6 crore in the corresponding period of FY26. However, the company’s EBITDA margin expanded significantly by 886 basis points to 56.3%, up from 47.4% in Q1FY26. Profit before tax (PBT) rose 66.5% YoY to ₹1.6 crore, while profit after tax (PAT) reached ₹1.5 crore, compared to ₹0.1 crore in the prior year period.

Operational Expansion and Occupancy

The company continued its aggressive expansion strategy, increasing its total super built-up area (SBA) by 31.4% YoY to 1.13 million sq ft. The portfolio now comprises 27 centers across 12 cities, with an overall occupancy rate of 91.9%, up from 88.6% in Q1FY26. Mature center occupancy stood at 69.8%, slightly below the 70.4% recorded in Q4FY26.

Enterprise clients accounted for 70% of revenue from operations, a significant increase from 52% in the same quarter last year. The revenue-to-rent ratio remained stable at 2.36x, indicating consistent pricing power relative to lease obligations.

Financial Health and Capital Structure

Dev Accelerator strengthened its balance sheet during the quarter. Consolidated net debt decreased to ₹81 crore from ₹89 crore at the end of FY26, supported by cash and cash equivalents of ₹54 crore against gross debt of ₹135 crore. The net debt-to-EBITDA ratio (IGAAP) improved sharply to 1.04x from 2.10x in FY26.

The company raised ₹100 crore through non-convertible debt to fund its expansion plans. Additionally, the conversion of recently issued preferential warrants is expected to increase promoter shareholding from 36.81% to approximately 37.29%.

Segment and Geographic Performance

Managed Space Services remained the primary revenue driver, contributing 66% of total consolidated revenue. Designing & Execution services accounted for 18%, while Co-Working Space, IT/ITES Services, Payroll Management, and Facility Management each contributed between 2% and 6%.

Geographically, Gujarat dominated the revenue mix with a 66% share, followed by Maharashtra (15%), Telangana (8%), and Rajasthan (7%). Tier 2 cities contributed 74% of the revenue, underscoring the company’s focus on emerging markets alongside its Tier 1 presence.

What the Numbers Show

A notable divergence exists between the company’s operational scale and its bottom-line profitability metrics under IND AS. While EBITDA grew robustly by 14.7%, PAT growth was nominal in absolute terms (₹1.4 crore increase) due to high depreciation charges. Depreciation and amortization expenses rose 21.9% YoY to ₹17.7 crore, constituting nearly 58% of the EBITDA figure. This heavy capital intensity is characteristic of the managed office model but suggests that future profitability gains will be highly sensitive to occupancy rates and lease cost management as the asset base expands.

Forward Outlook

Management highlighted a pipeline of 2.38 million sq ft under signed agreements, aiming to reach a total portfolio size of 3.62 million sq ft by FY29. The company is also leveraging its investment in Eezily to access broader real estate market intelligence and broker networks, aiming to create synergies between AI-driven data and its operating platform.

Dev Accelerator reported a standalone net profit of ₹1.25 crore for the quarter ended June 30, 2026, a decline of 20% from ₹1.57 crore in the corresponding period of FY25. The company’s total income from operations increased significantly to ₹12.70 crore, up from ₹8.20 crore year-on-year, indicating higher billings despite the dip in bottom-line profitability.

The Board of Directors approved the unaudited financial results on August 12, 2026. The figures were reviewed by M/s Nisarg J. Shah & Co., Chartered Accountants (FRN: 128310W), the statutory auditors.

Financial Performance

The company’s consolidated net profit stood at ₹0.62 crore, compared to ₹4.39 crore in Q1FY25. This sharper decline in consolidated earnings suggests that subsidiaries or associates contributed negatively or had lower margins during the period.

What the Numbers Show

A divergence exists between top-line growth and bottom-line performance. While revenue grew by over 50%, net profit contracted by 20%. This indicates that operating costs or expenses likely expanded at a faster rate than revenue, compressing margins. The basic earnings per share fell sharply to ₹0.95 from ₹3.65, mirroring the decline in net profit relative to the constant equity share capital of ₹13.23 crore.

Consolidated View

On a consolidated basis, total income from operations was ₹13.43 crore, up from ₹8.15 crore in Q1FY25. However, the consolidated net profit after tax dropped to ₹0.62 crore from ₹4.39 crore. The significant variance between standalone and consolidated results warrants attention, as the group-level profitability was substantially lower than the parent entity's performance.

The full financial results and limited review report are available on the company’s website and the stock exchange portals.