Dev Accelerator EBITDA rises 14.7% in Q1FY27; occupancy hits 91.9%
Dev Accelerator Ltd posted a 14.7% YoY rise in Q1FY27 consolidated EBITDA to ₹30.3 crore, with margins expanding to 56.3% despite a 3.3% revenue dip to ₹53.8 crore. Standalone revenue grew 7.8% to ₹42 crore, while occupancy hit 91.9%. The company raised ₹100 crore via NCDs post-quarter and reduced net debt to ₹81 crore.
*this image is generated using AI for illustrative purposes only.
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 significant 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 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.
On a standalone basis, which largely represents core workspace operations, revenue increased 7.8% YoY to ₹42 crore from ₹38.9 crore in Q1FY26. At an IGAAP level, consolidated EBITDA increased by 24% to ₹12.5 crore with a margin of 23.2%, compared to 18.1% in the corresponding quarter last year. Consolidated PBT under IGAAP rose 64.9% to ₹7.1 crore from ₹4.3 crore previously.
| Metric | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Consolidated Revenue | ₹53.8 crore | ₹55.6 crore | -3.3% |
| Standalone Revenue | ₹42.0 crore | ₹38.9 crore | +7.8% |
| Consolidated EBITDA (Ind AS) | ₹30.3 crore | ₹26.4 crore | +14.7% |
| Consolidated EBITDA Margin | 56.3% | 47.4% | +886 bps |
| Consolidated PBT (Ind AS) | ₹1.6 crore | ₹0.9 crore | +66.5% |
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, offering 17,294 seats. Overall occupancy rate improved to 91.9%, up from 88.6% in Q1FY26, with occupied seats rising to 15,899 from 12,534.
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 stood at 2.63x, indicating consistent pricing power relative to lease obligations. Approximately 80% of operational SBA is located in Tier 2 cities, which contributed 74% of standalone revenue.
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. Net debt-to-equity improved to 0.4x from 0.48x.
Subsequent to the quarter, the company raised ₹100 crore through senior, listed, secured, redeemable, and non-convertible debt carrying a coupon of 11.75% per annum with a tenure of 36 months. As part of this financing, roughly 1.85 crore shares (19.65% of equity) were encumbered, though promoter shareholding remains unpledged. 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%. Standalone business is entirely recurring revenue, while Needle & Thread contributes one-time revenue.
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. An additional 0.19 million sq ft is currently under fit-out. The company is 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. It has also initiated the process for building a tokenization platform outside India to access global capital pools.
Historical Stock Returns for Dev Accelerator
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.15% | -0.82% | -0.85% | -14.09% | 0.0% | 0.0% |
How will the aggressive expansion to 3.62 million sq ft by FY29 impact Dev Accelerator's net debt-to-EBITDA ratio, given the recent ₹100 crore debt issuance at 11.75% interest?
What specific strategies will management employ to sustain the 56.3% EBITDA margin as the asset base grows and depreciation expenses continue to rise significantly?
How might the shift toward 70% enterprise client revenue influence lease duration stability and churn rates compared to the previous mix dominated by smaller clients?
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