NewsEarningsDev Accelerator Reports 50.4% Revenue Surge in Q2, Driven by Strong Enterprise DemandDev Accelerator Reports 50.4% Revenue Surge in Q2, Driven by Strong Enterprise Demand
Dev Accelerator Limited reported a 50.4% increase in Q2 revenue, reaching ₹51.84 crore. EBITDA grew 45.3% year-on-year to ₹26.43 crore. The company expanded to 28 centers across 12 cities, covering 0.89 lakh sq. ft., with an 88% occupancy rate. Enterprise clients now account for 65% of rental revenue. Dev Accelerator plans to set up 8 new centers, focusing on Tier-II cities. The company has utilized ₹5,555.16 lakhs of its IPO proceeds for expansion and debt repayment.
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Dev Accelerator Limited (NSE: DEVX, BSE: 544513), a leading provider of flexible workspace solutions, has reported a robust financial performance for the second quarter. The company's focus on enterprise clients and strategic expansion in Tier-2 cities has yielded significant growth in revenue and operational metrics.
Financial Highlights
Dev Accelerator's revenue from operations for Q2 stood at ₹51.84 crore, marking a substantial 50.4% increase compared to ₹34.47 crore in the same quarter of the previous year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter reached ₹26.43 crore, up 45.3% year-on-year, with an EBITDA margin of 50.9%.
Operational Performance
The company has expanded its operational footprint to 28 centers across 12 cities, covering 0.89 lakh sq. ft. Key operational metrics include:
- Overall occupancy rate: 88%
- Committed occupancy rate: 90%
- Enterprise clients now constitute 65% of rental revenue
Strategic Expansion and Client Base
Dev Accelerator's Managing Director, Umesh Uttamchandani, highlighted the company's strategic focus: "Our portfolio today spans 28 centres across 12 cities with ~13,604 seats and ~8.6 lakh sq. ft. under management, operating at high ~88% occupancy - testament to the resilience of our model and the depth of enterprise demand we serve."
The company reports a strong presence in Tier-2 markets, including Ahmedabad, Gandhinagar, Jaipur, Udaipur, Indore, Vadodara, and Rajkot, while also deepening its presence in Tier-1 hubs.
Future Outlook
Dev Accelerator has a robust pipeline for future growth:
- 0.44 lakh sq. ft. under fit-out
- Plans to set up 8 new centers covering approximately 799,179 sq. ft. under the straight lease model, funded from IPO proceeds
- Expansion focused on Tier-II cities
IPO Utilization
The company recently completed its Initial Public Offering (IPO) and has utilized the proceeds as follows:
| Particulars | Amount Utilized (₹ in lakhs) | Amount Unutilized (₹ in lakhs) |
|---|---|---|
| Capex for fit-out in proposed centres | 770.70 | 6,541.30 |
| Repayment/Prepayment of certain borrowings | 2,858.46 | 641.54 |
| General Corporate Purposes | 1,926.00 | 0.00 |
| Total | 5,555.16 | 7,182.84 |
Management Commentary
Umesh Uttamchandani expressed confidence in the company's growth trajectory: "Near term visibility is strong. With 4.4 lakh sq. ft., 5,990 Seats under fit-out and a strong demand pipeline, we remain confident of delivering sustained growth and creating long-term value for our shareholders."
Dev Accelerator's Q2 results demonstrate the company's strong market position in the flexible workspace sector, particularly in Tier-2 cities. The significant revenue growth, high occupancy rates, and strategic expansion plans indicate a positive outlook for the company in the evolving Indian office space market.
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