Q1 2027 Dev Accelerator Ltd Earnings Call

August 13, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Dev Accelerator Limited Q1 FY27 earnings conference call, hosted by Churchgate Partners. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to the Dev Accelerator Limited Q1 FY27 earnings conference call hosted by Churchgate Partners. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing * then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Umesh Uttamchandani, Managing Director. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Dev Accelerator Limited Q1 FY2027 Earnings Conference Call hosted by Churchgate Partners. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing * then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Umesh Uttamchandani, Managing Director. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Umesh Uthamchandani, Managing Director. Thank you, and over to you, sir.

Speaker #2: Thank you so much for setting this up, and good afternoon, everyone, for joining this earnings call. I hope you all had the chance to go through our investor presentation and the media releases that have been uploaded to the stock exchanges.

Umesh Uttamchandani: Thank you so much for setting this up. Good afternoon, everyone, for joining this earnings call. I hope you all had the chance to go through our investor presentation and the media releases that have been uploaded on the stock exchanges. We will share our key reporting, operating, and financial highlights for the quarter ended 30 June 2026. I will first start with this quarter's performance and then spend some time on the expansion that is taking place across DevX. Following that, I will also take you through some of the initiatives that we are building around our GCC platform, technology, and real estate, and then finally address our recent fundraise and capital structure. Quarter one FY27, our consolidated revenue was INR 53.8 crores.

Speaker #2: We will share our key reporting operating and financial highlights for the quarter ended June 30, 2026. I'll first start with this quarter's performance and then spend some time on the expansion that is taking place across the risks.

Speaker #2: Following that, I'll also take you through some of the initiatives that we are building around our GCC platform, technology, and real estate, and then finally address our recent fundraise and capital structure.

Speaker #2: For quarter one FY27, our consolidated revenue was ₹53.8 crores. On a standalone basis—which largely represents our core workspace operations—the revenue increased by 7.8% on a year-on-year basis to ₹42 crores, from ₹38.9 crores in Q1 last year.

Umesh Uttamchandani: On a standalone basis, which largely represents our core workspace operations, the revenue increased by 7.8% on a year-on-year basis to INR 42 crores from INR 38.9 crores in Q1 last year. One of the important developments during the quarter is the fact that revenue from Capital One, which is one of the larger assets that we have signed up, has become operational towards the end of FY26, and the numbers have started reflecting the revenue that has been generating from Capital One. As more of our signed capacity moves into operation, the revenue contributions from these centers will progressively become visible in our financial performance. Now coming to our profitability. Our consolidated EBITDA under Ind AS increased by 14.7% on a year-on-year basis to INR 30.3 crores, with EBITDA margin improving to 56.3% from 47.4% in Q1 FY26.

Speaker #2: One of the important developments during the quarter is the fact that revenue from Capital One, which is one of the larger assets that we have signed up, has become operational towards the end of FY26, and the numbers have started reflecting the revenue that has been generated from Capital One.

Speaker #2: As more of our signed capacity moves into operations, the revenue contributions from these centers will progressively become visible in our financial performance. Now, coming to our profitability, our consolidated EBITDA increased by 14.7% on a year-on-year basis to ₹30.3 crores.

Speaker #2: With EBITDA margin improving to 56.3% from 47.4% in Q1 FY26, at an aggregate level, our consolidated EBITDA increased by 24% to ₹12.5 crore, with an EBITDA margin of 23.2% compared to 18.1% in the corresponding quarter last year.

Umesh Uttamchandani: At an IGAAP level, our consolidated EBITDA increased by 24% to INR 12.5 crores, with an EBITDA margin of 23.2% compared to 18.1% in the corresponding quarter last year. The consolidated profit before tax under IGAAP increased by 64.9% to INR 7.1 crores, which earlier was INR 4.3 crores in the previous quarter. On a standalone basis, EBITDA under Ind AS was INR 27.7 crores with a margin of 66%. At an IGAAP level, the standalone EBITDA increased by 9.8% to INR 9.9 crores, while PBT increased by 59.1% to INR 6.6 crores. As we have explained in our earlier interactions, we also look at the numbers of IGAAP just to understand the underlying economics of our workspace operations as our rental outflows are treated as operating expenditure rather than being split between depreciation and finance cost under Ind AS.

Speaker #2: The consolidated profit before tax under IGAAP increased by 64.9% to ₹7.1 crores, which earlier was ₹4.3 crores in the previous quarter. On a standalone basis, EBITDA under Ind AS was ₹27.7 crores, with a margin of 66%. At an IGAAP level, the standalone EBITDA increased by 9.8% to ₹9.9 crores, while PBT increased by 59.1% to ₹6.6 crores.

Speaker #2: As we have explained in our earlier introductions as well, we also look at the numbers of eye gap, just to understand the underlying economics of our workspace operations, as our rental outflows are treated as operating expenditure rather than being split between depreciation and finance cost under in-base.

Speaker #2: Let me now come to the operating side of the business, because this is where the action is, and this is where the scale-up is.

Umesh Uttamchandani: Let me now come to the operating side of the business because this is where the action is and this is where the scale-up is. The same thing that we have referred during our last call. I just want to bring that up because we can see them becoming visible now. At the end of Q1, our operational portfolio was 1.13 million square feet compared to 0.86 million square feet in Q1 last year. We now have 17,294 seats across 27 centers in 12 cities. Our occupied seats increased to 15,899 from 12,534 in Q1, FY26, and overall occupancy also improved to 91.93% from 88.6%. Another important development for us has been the increasing share of enterprise business. The enterprise clients contributed approximately 70% of our revenue from operations during our first quarter, compared to 52% in the corresponding quarter last year.

Speaker #2: The same thing that we referred to during our last call—I just want to bring that up, because we can see them becoming visible now.

Speaker #2: At the end of Q1, our operational portfolio was 1.13 million square feet, compared to 0.86 million square feet in Q1 last year.

Speaker #2: We now have 17,294 seats across 27 centers in 12 cities. Our occupied seats increased to 15,899, from 12,534 in Q1 FY26, and overall occupancy also improved to 91.93% from 88.6%.

Speaker #2: Another important development for us has been the increasing share of enterprise business. Enterprise clients contributed approximately 70% of our revenue from operations during our first quarter, compared to 52% in the corresponding quarter last year.

Umesh Uttamchandani: The enterprise clients contributed approximately 70% of our revenue from operations during our first quarter, compared to 52% in the corresponding quarter last year. One of the significant ratio to understand this industry is revenue to rent. The quarter that we finished, the performance in our revenue to rent ratio was 366. Approximately 80% of our operational SBA today is in tier 2 cities, and these markets contributed approximately 74% of our standalone revenue during the quarter. Our tier 2 strategy, which we started with DevX, continues to remain at the center of our business model. But I think one more important number to understand is the fact that 1.13 million square feet, which is operational. Beyond that, we also have secured future growth, and we have signed up the capacity.

Speaker #2: One of the significant ratios to understand this industry is revenue to rent. The quarter that we finished, the performance in our revenue to rent ratio was 36x.

Umesh Uttamchandani: One of the significant ratio to understand this industry is revenue to rent. The quarter that we finished, the performance in our revenue to rent ratio was 366. Approximately 80% of our operational SBA today is in tier 2 cities, and these markets contributed approximately 74% of our standalone revenue during the quarter. Our tier 2 strategy, which we started with DevX, continues to remain at the center of our business model. But I think one more important number to understand is the fact that 1.13 million square feet, which is operational. Beyond that, we also have secured future growth, and we have signed up the capacity. So the operational number although being 1.13 million square feet, there is an additional 0.19 million square feet, which is under fit-out. And on top of that, a staggering 2.31 million square feet has been signed for future consumption.

Speaker #2: Approximately 80% of our operational SBA today is in tier two cities, and these markets contributed approximately 74% of our standalone revenue during the quarter.

Speaker #2: So our tier two strategy, which we started with Devex, continues to remain at the center of our business model. I think one more important number to understand is the fact that 1.13 million square feet is operational.

Speaker #2: Beyond that, we have also secured future growth, and we have signed up the capacity. So the operational number, although being 1.13 million square feet, has an additional 0.19 million square feet under fit-out. On top of that, a staggering 2.31 million square feet has been signed for future consumption.

Umesh Uttamchandani: So the operational number although being 1.13 million square feet, there is an additional 0.19 million square feet, which is under fit-out. And on top of that, a staggering 2.31 million square feet has been signed for future consumption. This takes our total identified portfolio to approximately 3.63 million square feet across 40 centers, and operational seats being more than 52,000. So there is a significant amount of capacity that has already been identified beyond what is currently contributing to our existing revenue. Our core focus in the team is now on converting this signed capacity into operational centers in an extremely disciplined manner. Ahmedabad continues to be the best example of how we intend to build this scale. Capital One, with approximately 3.15 lakh square feet, became operational with 95% being pre-leased.

Speaker #2: This takes our total identified portfolio to approximately 3.63 million square feet across 40 centers, with operational seats now exceeding 52,000. So, there's a significant amount of capacity that has already been identified beyond what is currently contributing to our existing revenue.

Umesh Uttamchandani: This takes our total identified portfolio to approximately 3.63 million square feet across 40 centers, and operational seats being more than 52,000. So there is a significant amount of capacity that has already been identified beyond what is currently contributing to our existing revenue. Our core focus in the team is now on converting this signed capacity into operational centers in an extremely disciplined manner. Ahmedabad continues to be the best example of how we intend to build this scale. Capital One, with approximately 3.15 lakh square feet, became operational with 95% being pre-leased. We have already signed the pipeline with the developer for an approximately 8.6 lakh square feet under our development management project in Ahmedabad on the same stretch of Ambli - Bopal Road. Once the building is ready and handed over to us, we will do investment into capital, towards fit-outs, which would be roughly around INR 100 odd crores.

Speaker #2: Our core focus in the team is now on converting these signed capacities into operational centers in an extremely disciplined manner. Ahmedabad continues to be the best example of how we intend to build this scheme.

Speaker #2: Capital One, with approximately 315,000 square feet, became operational with 95% being pre-leased. We have already signed the pipeline with the developer for approximately 860,000 square feet, under our development management project, in Ahmedabad on the same stretch of Amli Gopal Road.

Umesh Uttamchandani: We have already signed the pipeline with the developer for an approximately 8.6 lakh square feet under our development management project in Ahmedabad on the same stretch of Ambli - Bopal Road. Once the building is ready and handed over to us, we will do investment into capital, towards fit-outs, which would be roughly around INR 100 odd crores.

Speaker #2: Once the building is steady and handed over to us, we will do investment into the capital towards fit-outs, which would be roughly around 100 odd crores, following which our property operations would commence, with approximately 8,500 seats, and it has a potential to generate revenue of roughly $120 odd crores.

Umesh Uttamchandani: Following which, our property operations would commence with approximately 8,500 seats, and it has the potential to generate revenue of roughly INR 120 odd crores. We now intend to take the learnings from this model and replicate them across selected micro markets in different cities across the country, where we understand the demand in and out, our client base, and also the real estate environment. The way we are looking at DevX today is also different from simply being a workspace provider. There are strong tailwinds into this domain and sector. We definitely would want to capitalize on that and not limit ourselves to becoming a single delivery platform, but also become a core workspace solution provider for enterprises and GCC. Our design and build unit, which is Needle and Thread, would fulfill the design and execution capability.

Speaker #2: We now intend to take the learnings from this model and replicate them across selected micro-markets in different cities across the country, where we understand the demand in and out, our client base, and also the real estate environment.

Speaker #2: The way we are looking at Devex today is also different from simply being a workspace provider. There are strong tailwinds in this domain and sector.

Speaker #2: We definitely want to capitalize on that, and not limit ourselves to becoming a single delivery platform, but also become a core workspace solution provider for enterprises and GCCs.

Speaker #2: Our design and build unit, which is Netherlands Red, would fulfill the design and execution capability. Then our subsidiary, which is SAS Joy, adds the technology solutions layer on top of it.

Umesh Uttamchandani: Our subsidiary, which is SaaSJoy, adds the technology solutions layer on top of it. Along with this, we also intend to develop on our existing capabilities of providing facility management, running payroll for our existing clients, talent sourcing, and providing other services to our GCC client base. The objective is to participate in a much larger part of the client's requirement and build long-term relationships across multiple services. Technology is becoming another important layer to reach the platform that we are planning for. We are building a technology-led real estate ecosystem through our AI infrastructure launchpad, where we would be inviting AI and top tech innovators, that is startups, to develop solutions around operational efficiency, process automation, customer experience, and data-driven decision-making processes.

Speaker #2: So, along with this, we also intend to build on our existing capabilities of providing facility management, running payroll for our existing clients, talent sourcing, and delivering other services to our GCC client base.

Speaker #2: The objective is to participate in a much larger part of the client's requirements and build long-term relationships across multiple services. Technology is becoming another important layer to reach the platform that we are planning for.

Speaker #2: We are building a technology-led real estate ecosystem through our AI infrastructure launchpad, where we will be inviting AI and top tech innovators—that is, startups—to develop solutions around operational efficiency, process automation, customer experience, and data-driven decision-making processes.

Speaker #2: For this, we are partnering with a very reputed and renowned pan-India media organization, which will help us scout innovators, connect with a wider innovation network, and identify solutions that can be deployed across our platform.

Umesh Uttamchandani: For this, we are partnering with a very reputed and renowned pan-India media organization, which will help us scout innovators and connect with a wider innovation network and identify solutions that can be deployed across our platform. Our investment in Eezily Networks complements this initiative by giving us access to broker networks, real estate market intelligence, and demand insight. The idea is to connect technology, data, and our physical operating platform. With dedicated teams and resources being put behind these initiatives, our focus is on identifying solutions that can translate into measurable improvements in the way we source, operate, and scale our center. We have also initiated the process for building a tokenization platform outside India, wherein the law firms that are required to execute this have been onboarded.

Speaker #2: Our investment in Easily Networks complements this initiative by giving us access to broker networks, real estate market intelligence, and demand insight. The idea is to connect technology, data, and our physical operating platform.

Speaker #2: With dedicated teams and resources being put behind this initiative, our focus is on identifying solutions that can translate into measurable improvements in the way we source, operate, and scale our center.

Speaker #2: We have also initiated the process for building a tokenization platform outside India, wherein the law firms that are required to execute this have been onboarded via signed engagement letters with all of them. The incorporation process of setting up an entity has already commenced by the investors who are looking to participate in the global capital that we are raising.

Umesh Uttamchandani: We have signed engagement letters with all of them, and the incorporation process of setting up an entity has already commenced by the investors who are looking to participate in the global capital that we are raising. Over the time, I believe that this access to newer pools of global capital can complement our existing funding channel, and also support our expansion in technology initiatives that we are looking to take up. At this stage, the process has already commenced, and we will keep all of you updated as it progresses further. Let me now address our capital structure because there have been few developments after the end of our quarter, and I think it is important to explain all of them together.

Speaker #2: Over time, I believe that this access to newer pools of global capital can complement our existing funding channels, and also support our expansion in technology initiatives that we are looking to take off.

Speaker #2: At this stage, the process has already commenced, and we will keep all of you updated as it progresses further. Let me now address our capital structure.

Speaker #2: Because there have been few developments after the end of our quarter, I think it is important to explain all of them together. Subsequent to quarter one, Devex 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.

Umesh Uttamchandani: Subsequent to Q1, DevX raised INR 100 crores through senior listed secured redeemable and non-convertible debt, carrying a coupon of 11.75% per annum with a tenure of 36 months. The financing comes with normal security arrangements and covenants associated with such instrument. I wanted to bring one clarity into this transaction. As part of this financing arrangement, roughly 1.85 crores share, which is representing 19.65% of the company's equity, has been encumbered. The promoter shareholding has not been pledged, neither the promoter shareholding is reduced because of this transaction. The promoter holding is subject to certain covenants, including a maintaining of minimum promoter shareholding of 19.65%. Against this requirement, the current promoter shareholding is 36.81%, which is significantly above the prescribed minimum requirement. In fact, recently, promoters have also increased capital through preferential warrants.

Speaker #2: The financing comes with normal security arrangements and covenants associated with such instruments. I wanted to bring some clarity into this transaction. As part of this financing arrangement, roughly 1.85 crore shares, which represents 19.65% of the company's equity, have been encumbered.

Speaker #2: The promoter shareholding has not been pledged, nor has the promoter shareholding been reduced because of this transaction. The promoter holding is subject to certain covenants, including maintaining a minimum promoter shareholding of 19.65%.

Speaker #2: Against this requirement, the current promoter shareholding is 36.81%, which is significantly above the prescribed minimum requirement. In fact, recently, promoters have also infused capital through preferential warrants.

Speaker #2: The stock exchanges have provided in-principle approval for 3,333,330 equity shares to be issued upon conversion of this warrant, subject to applicable requirements. Upon conversion, promoter shareholding is expected to increase from the current 36.81% to approximately 37.29%.

Umesh Uttamchandani: The stock exchanges have provided in-principle approval for 3,333,330 equity shares to be issued upon conversion of these warrants, subject to applicable requirements. Upon conversion, promoter shareholding is expected to increase from the current 36.81% to approximately 37.29%. The important point for shareholder is that promoter holding is not reduced due to debt raising and upon conversion of the warrant, it is expected to increase further. On leverage, there is also an accounting aspect that investors should keep in mind while looking at our balance sheet. Under Ind AS accounting rules requiring us to recognize the full future rental of our lease years as a liability today. Therefore, every time we sign a new center, our reported liabilities go up. It is important to note that this is not a borrowed money. There is no bank, no loan, and no repayment schedule attached to it.

Speaker #2: So the important point for shareholders is that promoter holding is not reduced due to debt raising, and upon conversion of the warrants, it is expected to increase further.

Speaker #2: On leverage, there is also an accounting aspect that investors should keep in mind while looking at our balance sheet. Under NDS, accounting rules require us to recognize the full future rental of our lease years as a liability today.

Speaker #2: Therefore, every time we sign a new center, our reported liabilities go up. It is important to note that this is not borrowed money.

Speaker #2: There is no bank, no loan, and no repayment schedule attached to it. It simply represents the rent that we'll be required to pay each month out of the revenue that will be generated from our operation.

Umesh Uttamchandani: There is no bank, no loan, and no repayment schedule attached to it. It simply represents the rent that we will be required to pay each month out of the revenue that we will be generating from our operations. When assessing our leverage, we would encourage all our investors to look at our borrowing, which we report separately. At the end of Q1 FY2027, our gross debt was INR 135 crores compared to INR 145 crores at the end of FY2026. With cash and cash equivalents of INR 54 crores, our net debt was INR 81 crores compared to INR 89 crores at the end of FY2026. Our net debt to equity improved to 0.4x from 0.48x, while net debt to EBITDA on an IGAAP basis was 1.04x compared to 2.10x at the end of FY2026.

Umesh Uttamchandani: It simply represents the rent that we will be required to pay each month out of the revenue that we will be generating from our operations. When assessing our leverage, we would encourage all our investors to look at our borrowing, which we report separately. At the end of Q1 FY2027, our gross debt was INR 135 crores compared to INR 145 crores at the end of FY2026. With cash and cash equivalents of INR 54 crores, our net debt was INR 81 crores compared to INR 89 crores at the end of FY2026. Our net debt to equity improved to 0.4x from 0.48x, while net debt to EBITDA on an IGAAP basis was 1.04x compared to 2.10x at the end of FY2026. The INR 100 crores NCD that we raised will get reflected from Q2 onwards. At the same time, we have repaid approximately INR 55 crores of existing debt.

Speaker #2: When assessing our leverage, we would encourage all our investors to look at our borrowings, which we report separately. At the end of Q1 FY27, our gross debt was ₹135 crore, compared to ₹145 crore at the end of FY26.

Speaker #2: With cash and cash equivalents of ₹54 crore, our net debt was ₹81 crore, compared to ₹89 crore at the end of FY26. Our net debt-to-equity improved to 0.4x from 0.48x, while net debt-to-EBITDA on an IGAP basis was 1.04x, compared to 2.10x at the end of FY26.

Speaker #2: The ₹100 crore NCD that we raised will get reflected from quarter two onwards. At the same time, we have repaid approximately ₹55 crore of existing debt.

Umesh Uttamchandani: The INR 100 crores NCD that we raised will get reflected from Q2 onwards. At the same time, we have repaid approximately INR 55 crores of existing debt. Therefore, while reported borrowings will reflect the new fundraise, it is equally important to look at the repayment of existing debt and the accounting impact of lease liabilities while assessing the overall leverage of the business. Coming back to the business, the capital that we have raised is ultimately linked to the expansion opportunity that we see ahead of us. Our approach is to use appropriate structure for each asset, whether that is free lease model, landlord-funded center, or development management arrangements.

Speaker #2: Therefore, while reported borrowings will reflect the new fundraise, it is equally important to look at the repayment of existing debt and the accounting impact of lease liabilities while assessing the overall leverage of the business.

Umesh Uttamchandani: Therefore, while reported borrowings will reflect the new fundraise, it is equally important to look at the repayment of existing debt and the accounting impact of lease liabilities while assessing the overall leverage of the business. Coming back to the business, the capital that we have raised is ultimately linked to the expansion opportunity that we see ahead of us. Our approach is to use appropriate structure for each asset, whether that is free lease model, landlord-funded center, or development management arrangements. The objective is to scale without compromising the unit economics of individual centers. Our development management model remains particularly relevant for certain micro markets when we have strong conviction of fulfilling the demand. It allows landowners to retain ownership while DevX bringing in execution capability, institutional specification, and strong client relationships. For DevX, it provides an opportunity to create grade A+ supply without acquiring the underlying land.

Speaker #2: Coming back to the business, the capital that we have raised is ultimately linked to the expansion opportunity that we see ahead of us. Our approach is to use the appropriate structure for each asset, whether that is a trade lease model, landlord-funded center, or development management arrangement.

Speaker #2: The objective is to scale without compromising the unit economics of each individual center. Our development management model remains particularly relevant for certain micro-markets, especially where we have strong conviction about fulfilling the demand.

Umesh Uttamchandani: The objective is to scale without compromising the unit economics of individual centers. Our development management model remains particularly relevant for certain micro markets when we have strong conviction of fulfilling the demand. It allows landowners to retain ownership while DevX bringing in execution capability, institutional specification, and strong client relationships. For DevX, it provides an opportunity to create grade A+ supply without acquiring the underlying land.

Speaker #2: It allows landowners to retain ownership while Devex brings in execution capability, institutional specification, and strong client relationships. For Devex, it provides an opportunity to create grade A-plus supply without acquiring the underlying land.

Speaker #2: We currently have approximately 1.4 million square feet planned under this model, spread across Ahmedabad and Jaipur, and we intend to selectively replicate it across different micro-markets in different cities, where institutional office supply remains limited.

Umesh Uttamchandani: We currently have approximately 1.4 million square feet planned under this model, spread across Ahmedabad and Jaipur, and we intend to selectively replicate it across different micro markets in different cities where institutional office supply remains limited. When I look at Q1 FY27, I would not look at the quarter only through INR 53.8 crores of consolidated revenue that we have reported. I would look at it, what is being built behind those numbers. We have 1.13 million square feet operational today, approximately 2.38 million square feet of signed pipeline, more than 52,000 seats across total identified portfolio, occupancy of over 91%, enterprise contribution of 70%, and multiple funding and operating structures available to convert this pipeline into revenue.

Umesh Uttamchandani: We currently have approximately 1.4 million square feet planned under this model, spread across Ahmedabad and Jaipur, and we intend to selectively replicate it across different micro markets in different cities where institutional office supply remains limited. When I look at Q1 FY2027, I would not look at the quarter only through INR 53.8 crores of consolidated revenue that we have reported. I would look at it, what is being built behind those numbers. We have 1.13 million square feet operational today, approximately 2.38 million square feet of signed pipeline, more than 52,000 seats across total identified portfolio, occupancy of over 91%, enterprise contribution of 70%, and multiple funding and operating structures available to convert this pipeline into revenue.

Speaker #2: So, when I look at Quarter 1, FY27, I would not look at the quarter only through the ₹53.8 crore of consolidated revenue that we have reported.

Speaker #2: I would look at what is being built behind those numbers. We have 1.13 million square feet operational today, approximately 2.38 million square feet of signed pipeline, more than 52,000 seats across the total identified portfolio, occupancy of 91%, enterprise contribution of 70%, and multiple funding and operating structures available to convert this pipeline into revenue.

Speaker #2: FY26 was about demonstrating that our Tier Two strategy can work at scale, and now FY27 is about executing the signed assets and expanding into multiple different territories.

[Company Representative] (Dev Accelerator): FY26 was about demonstrating that our Tier 2 strategy can work at scale. Now FY27 is about executing the signed assets and expanding into multiple different territories. Our priority is to bring the signed portfolio into operation, increase the revenue base, deepen our relationship with enterprise and GCC clients, and build additional capabilities around technology, design and services that can increase our participation across the client life cycle. We believe the opportunity in front of DevX is much larger than the capacity that is operational today. At the same time, our focus will remain on disciplined expansion, center-level economics, and building a business that can scale across multiple Tier 2 markets. With that, I conclude the business update for the quarter. Would be extremely happy to answer the questions that you have along with my team.

Umesh Uttamchandani: FY26 was about demonstrating that our Tier 2 strategy can work at scale. Now FY2027 is about executing the signed assets and expanding into multiple different territories. Our priority is to bring the signed portfolio into operation, increase the revenue base, deepen our relationship with enterprise and GCC clients, and build additional capabilities around technology, design and services that can increase our participation across the client life cycle. We believe the opportunity in front of DevX is much larger than the capacity that is operational today. At the same time, our focus will remain on disciplined expansion, center-level economics, and building a business that can scale across multiple Tier 2 markets. With that, I conclude the business update for the quarter. Would be extremely happy to answer the questions that you have along with my team.

Speaker #2: Our priority is to bring the signed portfolio into operation, increase the revenue base, deepen our relationship with enterprise and VCC clients, and build additional capabilities around technology, design, and services that can increase our participation across the client lifecycle.

Speaker #2: We believe the opportunity in front of Devex is much larger than the capacity that is operational today. At the same time, our focus will remain on disciplined expansion, center-level economics, and building a business that can scale across multiple Tier 2 markets.

Speaker #2: With that, I conclude the business update for the quarter. I would be extremely happy to answer any questions you may have, along with my team.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Anik, our first question comes from the line of Shubham Padiyar with Chhattisgarh Investments. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Anik, our first question comes from the line of Shubham Padhiyar with Chhattisgarh Investments.

Speaker #1: Please go ahead.

Speaker #3: Yeah, hi. Thank you for the opportunity. Am I audible?

Shubham Padiyar: Hi. Thank you for the opportunity. Am I audible?

Speaker #2: Yes, we are audible.

[Company Representative] (Dev Accelerator): Yes, we hear you.

Umesh Uttamchandani: Yes, we hear you.

Speaker #3: Yeah, so I was just going through our FY26 numbers, and I believe there was a center in Noida that closed. That Noida center had a capacity of 1,500 seats, if I'm not wrong.

Shubham Padiyar: I was just going through our FY26 numbers, and I believe there was a center in Noida that closed, and that Noida center was having some capacity of 1,500 seats, if I am not wrong, and after closing it went down to 750, right?

Speaker #3: And after closing, it went down to 750, right?

Speaker #2: Right. I'll give an update on the Noida center.

[Company Representative] (Dev Accelerator): Right. On the Noida center?

Umesh Uttamchandani: Right. On the Noida center?

Speaker #3: Yes. So my question is, if I see our citywise revenue despite of closing that Noida center, our revenue from Noida stood I mean, it increased from $9.14 CR to $9.77 CR.

Shubham Padiyar: Yes. My question is, if I see our city-wide revenue, despite closing that Noida center, our revenue from Noida increased from INR 9.14 crore to INR 9.77 crore. But our revenues from Mumbai center decreased from INR 14 crore to INR 11 crore. So what was the reason of the dip of INR 3 crore from Mumbai?

Speaker #3: But our revenues from the Mumbai center decreased from $1,400 crore to $1,100 crore. So what was the reason for the dip of $300 crore from Mumbai?

Speaker #2: Sir, I just wanted to clarify this, right? I just wanted to know from your side, like, from which segment you are deriving these numbers so I can reconnect those numbers.

[Company Representative] (Dev Accelerator): Farin this side. I just wanted to know from your side, from which segment you are deriving these numbers so I can able to reconnect those numbers.

Umesh Uttamchandani: Farin this side. I just wanted to know from your side, from which segment you are deriving these numbers so I can able to reconnect those numbers.

Speaker #3: So for FY25, I've used DRHP numbers, and for the quarterly numbers in the FY26 number, I've just used your presentations.

Shubham Padiyar: For FY25, I have used DRHP numbers. And for the quarterly numbers and FY26 number, I have just used your presentations.

[Company Representative] (Dev Accelerator): Mm-hmm. While you are referring around the branch number, that is why I am asking. In a presentation, there is no any branch-specific numbers. If you can just-

Umesh Uttamchandani: Mm-hmm. While you are referring around the branch number, that is why I am asking. In a presentation, there is no any branch-specific numbers. If you can just-

Speaker #2: So, earlier you were referring to the branch number, which is why I'm asking—because in the presentation, there isn't any branch-specific number.

Speaker #2: So if you can just.

Speaker #3: No, I'm talking about city-wise revenue. So I'm not talking about any particular branch.

Shubham Padiyar: I am talking about city-wide revenue, so I am not talking about any particular branch.

Speaker #2: Okay. So yeah, you rightly mentioned about the Noida center. That number revenue contribution till the December, we have received from the Noida. And the center got wind up and then closed because of the litigation that happened, and we closed it down the Noida center.

[Company Representative] (Dev Accelerator): Okay. So yeah, you rightly mentioned about the Noida centers. That revenue contribution till December we have received from the Noida and the centers got wind up and then closed because of the litigation that happened, and we closed down the Noida centers. Because of revenue is not contributing for this quarter, so that dip you observe from that center. Because Noida is one of the centers what we are receiving almost INR 3.5 or INR 3.7 crore revenue monthly from that center. That revenue is not there with this particular quarter.

Umesh Uttamchandani: Okay. So yeah, you rightly mentioned about the Noida centers. That revenue contribution till December we have received from the Noida and the centers got wind up and then closed because of the litigation that happened, and we closed down the Noida centers. Because of revenue is not contributing for this quarter, so that dip you observe from that center. Because Noida is one of the centers what we are receiving almost INR 3.5 or INR 3.7 crore revenue monthly from that center. That revenue is not there with this particular quarter.

Speaker #2: So that because of revenue is not contributing for the this quarter. So that deep we observe from that center. Because of, like, Noida is one of the, like, the centers what we are receiving the almost $3.4 to $3.7 crores revenue monthly from that center.

Speaker #2: That revenue is not there for this particular financial quarter.

Speaker #3: Yeah, I'm not talking about this quarter. I'm talking about FY26 versus FY25. So, in FY25, how much did you earn from Noida?

Shubham Padiyar: Yeah, I am not talking about this quarter. I am talking about FY2026 versus FY2025. So in FY2025, how much did you earn from Noida?

Speaker #2: Total monthly revenue from Noida we are receiving from FY26. Monthly revenue is $3.2, $3.5 to $3.7 crores revenue.

[Company Representative] (Dev Accelerator): Total monthly revenue from Noida we are receiving from FY2023. Monthly revenue is INR 3.5, INR 3.7 crore revenue.

Umesh Uttamchandani: Total monthly revenue from Noida we are receiving from FY2023. Monthly revenue is INR 3.5, INR 3.7 crore revenue.

Speaker #3: Then there's something wrong with the numbers that you have reported, right? Because I think in FY26, from Noida, you've earned ₹9 crore for the whole year.

Shubham Padiyar: Then there is something wrong with the numbers that you have reported, right? Because I think in FY2026, from Noida, you have earned INR 9 crore for the whole year. I think we can take this question offline if you do not have numbers in handy.

Speaker #3: I think we can take this question offline if you don't have numbers handy.

Speaker #2: Just to pull up—no, no. Just let me pull up the entire Noida stats.

[Company Representative] (Dev Accelerator): No. Just give us a second. Let me pull up the entire Noida stats.

Umesh Uttamchandani: No. Just give us a second. Let me pull up the entire Noida stats.

Speaker #3: Yeah.

Shubham Padiyar: Yeah.

Speaker #2: Just give me a second.

[Company Representative] (Dev Accelerator): Just give me a second. Yeah. Let me pull up the exact numbers from the MIS.

Umesh Uttamchandani: Just give me a second. Yeah. Let me pull up the exact numbers from the MIS.

Speaker #3: Yeah.

Speaker #2: Let me pull up the exact numbers, right, from the MIS.

Speaker #3: Sorry.

Shubham Padiyar: Sorry?

Speaker #2: Let me pull up the exact numbers that we have here.

[Company Representative] (Dev Accelerator): Let me pull up the exact numbers that we have.

Umesh Uttamchandani: Let me pull up the exact numbers that we have.

Speaker #3: Yeah, yeah.

Shubham Padiyar: Yeah.

Speaker #2: From the MIS. Just give me a second.

[Company Representative] (Dev Accelerator): Just give me a second.

Umesh Uttamchandani: Just give me a second.

Speaker #3: Yeah, yeah. Sure.

Shubham Padiyar: Yeah, sure.

Speaker #2: It's not reported numbers in FY26 for the entire, so in Noida, we have—technically, we have three centers. It's not ₹9 crore as revenue.

Umesh Uttamchandani: These are reported numbers in FY26 for the entire. So in Noida, technically, we have three centers. It is not INR 9 crores as a revenue, that is around INR 12 crores as a revenue. INR 11.5 crores is the operational revenue that we generate in Noida.

Speaker #2: That's around ₹12 crore as revenue and ₹11.5 crore as the operational revenue that we generate in Noida.

Speaker #3: $11.5 crores.

Shubham Padiyar: INR 11.5 crores.

Speaker #2: Correct.

Umesh Uttamchandani: Correct.

Speaker #3: $11.5, you said, right?

Shubham Padiyar: INR 11.5 you said, right?

Speaker #2: Yeah, yeah. ₹11.45 crores, to be precise, is the revenue that we generate from managed office space revenue in Noida. This is Noida as a city. In Noida, we have three different centers.

Umesh Uttamchandani: Yeah. INR 11.45 crores is the precise revenue that we generate from managed office space revenue in Noida. Noida is a city. In Noida, we have three different centers across three different micro markets. The number that I am referring to is the number that we used to generate before closing down the center.

Speaker #2: That we have, across three different micro-markets. The number that I'm referring to is the one that we used to generate before closing down the center.

Speaker #3: So this is before you closed the center.

Shubham Padiyar: So this is before you closed the center?

Speaker #2: This is before we closed the center. Correct.

Umesh Uttamchandani: Before we closed the center. Correct.

Speaker #3: Okay. And what would be the number after that? Like,

Shubham Padiyar: Okay. What would be the number after that?

Umesh Uttamchandani: Let me just see that. Yeah. Just a second.

Speaker #2: Yeah. Just a second.

Speaker #3: Yeah. Because in the DRHP, I can see Noida, so you've given a location-wise breakdown, right? So Noida number of centers is three, and in FY25, you earned ₹9.14 crore from the Noida center, and it has the number of centers mentioned as three.

Shubham Padiyar: Yeah. Because in DRHP, I can see Noida. So you've given location-wise breakdown, right? So Noida, number of centers are three, and in FY25, you earn INR 9.14 crores from Noida center, and it has number of centers mentioned as three.

Speaker #2: Correct, which is true. So that is your reference to FY25. I'm referring to FY26.

Umesh Uttamchandani: Correct. Which is true. So that is referring to FY25, I'm referring to FY26.

Speaker #3: Yeah, but in FY26, one of the centers got closed, right? So this is just...

Shubham Padiyar: Yeah, but in FY26, one of the centers got closed, right?

Umesh Uttamchandani: That closed towards the very end of the year. The full year was operational.

Speaker #2: But this, sir, was towards the very end of the year. The full year was operational.

Speaker #3: Okay.

Shubham Padiyar: Okay.

Speaker #2: And during the year, the remaining two centers' occupancy also increased, rising, so those centers also started contributing more.

Umesh Uttamchandani: During the year, the remaining two centers occupancy also increased, pricing got increased. So those centers also started contributing more.

Speaker #3: Okay.

Speaker #2: Now, today, while we speak, there's a dip of 4.5 crores from the center that has been closed.

Shubham Padiyar: Okay.

Umesh Uttamchandani: Now today, while we speak, there's a dip of INR 4.5 crore from the center that has been closed.

Speaker #3: Got it. Four CR. Okay. And then my next question is—yeah, yeah, so I'm clear on that. So my next question is on Capital One.

Shubham Padiyar: Got it. INR 4 crore, okay. My next question is on Capital One.

Shubham Padiyar: Got it. INR 4 crore, okay. My next question is on Capital One. Capital One, we had 95% pre-committed occupancy.

Speaker #2: Mm-hmm.

Speaker #3: So, Capital One, we had 95% pre-committed occupancy, right?

Shubham Padiyar: Capital One, we had 95% pre-committed occupancy.

Speaker #2: Correct.

Umesh Uttamchandani: Correct.

Speaker #3: And we were expecting a revenue of ₹3 crore monthly from that asset.

Shubham Padiyar: And we were expecting a revenue of INR 3 crore monthly from that asset.

Speaker #2: 2.75.

Umesh Uttamchandani: INR 2.75 to 3 crore.

Speaker #3: 2.7. Yeah, 2.75 to 3 CR. So if I do the math, per square foot revenue is coming at around $1,050 per year, right?

Shubham Padiyar: 2.7, yeah. INR 2.75 to 3 crore.

Umesh Uttamchandani: Correct.

Shubham Padiyar: So if I do the math, per square foot revenue is coming at around INR 1,050 per year, right?

Speaker #2: $1,050 per year?

Umesh Uttamchandani: INR 1,050 per unit?

Speaker #3: Yeah. So our square foot built-up area is around 315,000, right?

Shubham Padiyar: Yeah. So our square foot built-up area is around 3,15,000.

Speaker #2: 3,15,000. Correct.

Umesh Uttamchandani: Correct.

Speaker #3: And if I take 2.75 times 12, that's 33 CR.

Shubham Padiyar: And if I take 2.75 times 12.

Umesh Uttamchandani: That's 87.

Shubham Padiyar: 30 crore.

Speaker #2: You're estimating annually?

Umesh Uttamchandani: You are referring to annually? 2.75.

Speaker #3: 2.75.

Speaker #2: Yeah.

Shubham Padiyar: Yeah, annually.

Umesh Uttamchandani: Yeah. Got you. Yeah.

Speaker #3: Yeah. Annually, right?

Shubham Padiyar: Annually, right?

Speaker #2: Correct. So, $1,044 is the number that you're referring to?

Umesh Uttamchandani: Correct. 1,044 is the number you are referring to?

Speaker #3: Yes. Yes.

Shubham Padiyar: Yes.

Speaker #2: Correct.

Umesh Uttamchandani: Okay.

Speaker #3: So if I see RR in general, our current Ahmedabad portfolio is earning around $2,500 revenue per square foot, right? I'm talking about annual revenue.

Shubham Padiyar: If I see RR, in general, our current Ahmedabad portfolio is earning around 2,500 revenue per square foot, right? I am talking about annual revenue.

Umesh Uttamchandani: Per square foot. That's INR 208, sir.

Speaker #2: Square foot. So that's 208 rupees, sir.

Shubham Padiyar: Sorry, I didn't get you.

Speaker #3: Sorry. I didn't get you.

Speaker #2: Right?

Umesh Uttamchandani: Sorry.

Speaker #3: Hello?

Shubham Padiyar: Hello?

Speaker #2: Hello? I can hear you, sir. Are you referring to a rate of ₹2,500 per square foot annually? So, per square foot per month, that is ₹208.

Umesh Uttamchandani: I can hear you, sir. Are you referring to a number of INR 2,500 per square foot annually?

Shubham Padiyar: Yes.

Umesh Uttamchandani: Per square foot per month is INR 208.

Speaker #3: Yeah, yeah, yeah. So my question is, is less than 50% of what we are earning currently in our Ahmedabad portfolio, right, despite having 95% pre-committed occupancy?

Shubham Padiyar: Yeah. My question is, it is less than 50% of what we are earning currently in our Ahmedabad portfolio, despite having 95% pre-committed occupancy. What's the-

Speaker #3: So what's the.

Umesh Uttamchandani: I don't think so. I don't think so. INR 2,500, INR 710 of per square foot revenue in Ahmedabad is not feasible, Jose. Our revenues in Ahmedabad are in the lines of INR 100 to INR 125 per square foot, per month. Multiply that by 12. That is the typical average number that we achieve in Ahmedabad. We have the highest portfolio in Ahmedabad today while we speak. I'm not sure where did you get that number of INR 2,500. This 1,044 that you're referring to boils down to INR 87 per square foot, per month in Ahmedabad. The first year that we are operating right now has certain rental periods and fit-out periods. From that day when we start the fit-outs, typically it takes three to four months of time frame for clients to come in and start paying the rental.

Speaker #2: I don't think so. Two thousand five hundred rupees—less than ten rupees of per square foot revenue in Ahmedabad—is not feasible to achieve. Our revenues in Ahmedabad are in the range of 100 to 125 rupees per square foot per month, multiplied by twelve.

Speaker #2: That is the typical average number that we achieve in Ahmedabad. We have the highest portfolio in Ahmedabad as of today while we speak. So I'm not sure where you got that number of 2,500 rupees.

Speaker #2: This 1,044 that you're referring to boils down to ₹87 per square foot per month in Ahmedabad. So, the first year that we are iterating right now has certain venture periods and fit-out periods.

Speaker #2: So, there's been three leases. From that day, when we start the fit-outs, typically it takes three to four months for clients to come in and start paying the rental.

Umesh Uttamchandani: From that day when we start the fit-outs, typically it takes three to four months of time frame for clients to come in and start paying the rental. That is when the actual numbers start hitting in the books. Let's say if I close one client April, my revenue for that client would start in July or August. In a year, if you count that, the number would be lesser because out of 12 months, you deduct three or four months. Practically we are left off with eight to nine months of actual rental realization.

Speaker #2: And then that is when the actual numbers start hitting the books. So, let's say if I close one client in April, my revenue for that client would start in July or August.

Umesh Uttamchandani: That is when the actual numbers start hitting in the books. Let's say if I close one client April, my revenue for that client would start in July or August. In a year, if you count that, the number would be lesser because out of 12 months, you deduct three or four months. Practically we are left off with eight to nine months of actual rental realization.

Speaker #2: So, in a year, if you count that, the number would be less because, out of 12 months, you deduct three or four months. So, practically, we're left with eight to nine months of actual rental realization.

Shubham Padiyar: Got it.

Speaker #2: So then the average would come down further. But in a full operational year, when the client is paying the revenue, those numbers are anywhere in the range of ₹110 to ₹125 per square foot per month.

Umesh Uttamchandani: The average would come down lesser. But a full operational year when the client is paying the revenue, those numbers are in the range of INR 110 to INR 125 per square foot per month.

Speaker #3: Got it. So the number that I was referring to was in FY26—you earned around 78 crores from Ahmedabad, right? In revenue.

Shubham Padiyar: Got it. The number that I was referring to was, in FY26, you earned around INR 78 crores from Ahmedabad, right? In revenue.

Speaker #2: I'll have to get that number again.

Umesh Uttamchandani: I will have to again get that number from you. Probably we can have a detailed email conversation where you can shoot me the email, ask me questions, and probably I can send that across to you. Because I will have to go back and fetch all this data that you are asking for.

Speaker #3: Probably we can.

Speaker #2: I have a detailed email conversation where you can shoot me the email asking questions, and probably I can send that across to you, because I'll have to go back and fetch all this data that you're referring to.

Speaker #3: Okay, okay. No worries, no worries. And one more question before I join the queue: What is your percentage revenue from rental versus one-time?

Shubham Padiyar: Okay. No worries. And one more question before I join the queue. What is your percentage revenue from rental versus one-time?

Speaker #2: What is the percentage revenue from rental?

Umesh Uttamchandani: What is the percentage revenue from rental?

Speaker #3: Rental revenue and one-time revenue. So, recurring and one-time revenue.

Shubham Padiyar: Rental revenue and one-time revenue. Recurring and one-time revenue.

Speaker #2: So one-time revenue is a needle-and-thread business. In the last year, we closed ₹67 crore of one-time revenue, which is a needle-and-thread. The remaining was coming in from the flex of the managed office-based business.

Umesh Uttamchandani: One-time revenue is our Needle and Thread business. Last year we closed INR 57 crores of one-time revenue, which is our Needle and Thread. And the remaining was coming in from the flex of the managed office space business. This year-

Speaker #2: This year, standalone businesses

Shubham Padiyar: Standalone business is entirely recurring revenue business, right?

Speaker #3: It's an entirely recurring revenue business, right?

Speaker #2: Correct. So, out of ₹53.8 crores, ₹42 crores is from the managed office-based business. The remaining amount is operational revenue from Needle & Thread.

Umesh Uttamchandani: Correct. So out of INR 53.8, INR 42 crores is the managed office space business, and the remaining is the operational revenue from the Needle and Thread.

Speaker #2: Which is one-time in nature.

Shubham Padiyar: Understood.

Umesh Uttamchandani: Which is one time in nature.

Speaker #3: Got it, got it. And just one more question—oh, I'm sorry. So, what is the total amount of capex that you have spent to date to have 1.13 million square feet of portfolio?

Shubham Padiyar: Got it. Just one more question. I'm sorry. What is the total amount of CapEx that you have spent till date to have 1.13 million square foot of portfolio?

Speaker #2: Fifteen years ago. Let me pull that up. I can pull up the exact data—let me see if I can tell you right away—that's 1.13 million square feet, that's almost 12 lakh square feet of area.

Umesh Uttamchandani: Just two minutes. Let me pull that up. I can pull up the exact data. But roughly if I can tell you right away, that's 1.13 million square foot, that's almost 12 lakh square foot of area, wherein 75% of our space take-up is built-in by us. So that's roughly around nine lakh square foot multiplied by ₹1,300 per square foot.

Speaker #2: Wherein 75% of our space take-up is built in by us. So that's roughly around 900,000 square feet, multiplied by ₹1,300 per square foot.

Speaker #2: I'll just pull that up.

Speaker #3: 1,300, right?

Shubham Padiyar: 1,300, right?

Speaker #2: Yeah.

Umesh Uttamchandani: Yeah.

Speaker #3: Got it.

Shubham Padiyar: Got it.

Speaker #2: 118-odd crores of investment in the fit-outs of probably the assets that we have. Now, this would be all fresh investment. There would be obviously assets which would have turned older, when we would have reinvested some more capital in them.

Umesh Uttamchandani: INR 118 odd crores of investment in the fit-outs of probably the assets that we have. This would be all fresh investment. There would be obviously assets which would have turned older and we would have reinvested some more capital in that. Future deposits that we have paid for, as I covered earlier, there is almost 2.3 million square feet of assets that we have signed up for the future take-up. For doing that, we would have paid additional deposits and paid some capital for them to do the refurbishment. That would be on top of it.

Speaker #2: And for future deposits that we have paid, as I covered earlier, there's almost 2.3 million square feet of assets that we have signed up for future take-up.

[Company Representative] (Dev Accelerator): Future deposits that we have paid for, as I covered earlier, there is almost 2.3 million square feet of assets that we have signed up for the future take-up. For doing that, we would have paid additional deposits and paid some capital for them to do the refurbishment. That would be on top of it.

Speaker #2: For doing that, we would have paid additional deposits and paid some capital for them to kind of do the replenishment. That would be on top of it.

Speaker #3: Got it. Okay, yeah. Thank you.

Shubham Padiyar: Got it. Okay. Yeah, thank you.

Speaker #2: I'm happy to answer the previous question you had, sir. If you can send me an email, we'll be happy to address that in detail.

[Company Representative] (Dev Accelerator): I am happy to answer the previous question that you had, sir. If you can send me an email.

Umesh Uttamchandani: I am happy to answer the previous question that you had, sir. If you can send me an email.

Shubham Padiyar: Yeah.

[Company Representative] (Dev Accelerator): We will be happy to address that in detail.

Umesh Uttamchandani: We will be happy to address that in detail.

Speaker #3: Yeah, I'll send you an email. Thank you.

Shubham Padiyar: Yeah, I will send you an email, sir.

[Company Representative] (Dev Accelerator): Sure. Thank you.

Umesh Uttamchandani: Sure. Thank you.

Shubham Padiyar: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, to ask a question, please press star, then 1. Our next question comes from the line of Mukul Bhushan with Raru Family Office.

Operator: Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. Our next question comes from the line of Mukul Bhushan with Raru Family Office. Please go ahead.

Speaker #1: Please go ahead.

Mukul Bhushan: Hi, sir. Am I audible?

Speaker #2: Hi, sir. Am I audible?

Speaker #3: Yeah. Pretty much.

[Company Representative] (Dev Accelerator): Yeah. Very good, sir.

Umesh Uttamchandani: Yeah. Very good, sir.

Mukul Bhushan: Your presentation shows that the debt to equity at 0.78x and your ROCE at 14%. But that appears to exclude the 226 crore of lease liability from 5 to 9 years of fixed contract. On a lease inclusive basis, debt to equity is about 2 times and ROCE is about 9%. Since these are real fixed commitments, would they exclude both module each quarter?

Speaker #2: So your presentation shows the debt-to-equity at 0.78x, and your ROC at 14%. But that appears to exclude the ₹226 crore of lease liability from 5 to 9 years of fixed contract.

Speaker #2: On a lease-inclusive basis, debt-to-equity is about 2 times, and ROC is about 9%. Since these are real, fixed commitments, would you disclose both versions each quarter?

Speaker #2: So I guess this is the

[Company Representative] (Dev Accelerator): No. I will just give you the context about the ROCE and ROE. In our business, what happens, whenever we have sufficient capital to deploy for the CapEx and expansion for the new centers. But new centers will take time. Let us take, I am just giving you the understanding about giving you example. If I am opening a new center, that the centers I find out in the market and then search it for the centers and then do the furniture setup for the client. That will take us 75 to 90 days to take an handing over to the space owner. The same thing, if I give you the client, and then clients pay me rental on a monthly rental on a time. Approximately on the journey and the history-wise, one center will take almost 6 to 9 months to operate and reach at a mature level.

Umesh Uttamchandani: No. I will just give you the context about the ROCE and ROE. In our business, what happens, whenever we have sufficient capital to deploy for the CapEx and expansion for the new centers. But new centers will take time. Let us take, I am just giving you the understanding about giving you example. If I am opening a new center, that the centers I find out in the market and then search it for the centers and then do the furniture setup for the client. That will take us 75 to 90 days to take an handing over to the space owner. The same thing, if I give you the client, and then clients pay me rental on a monthly rental on a time.

Speaker #3: Context about the ROC and ROE: In our business, whenever we have sufficient capital to deploy for CapEx and expansion for new centers, but the new centers will take some time.

Speaker #3: Let’s say I’m just giving you the understanding by giving you an example. If I’m opening a new center, that’s the centers I find out in the market, and then I search for the centers, and then I do the furniture fit-out for the client.

Speaker #3: So that will take us 75 to 90 days to take a handling work for the space owner. At the same thing, if I give you the clients and then clients pay me on a rent pay me rental on a monthly rental on a time, so approximately on the journey and the history-wise, one center will take almost 6 to 9 months to operation and reach at a mature level.

Umesh Uttamchandani: Approximately on the journey and the history-wise, one center will take almost 6 to 9 months to operate and reach at a mature level. You see that if I invested INR 1 in a business or INR 1 in a CapEx, that gives me or maybe that reflection in the revenue and that reflection in the metrics like ROCE and ROE will may be possible in the same financial year or maybe might possible that it will therefore or maybe give a result or give a reflection in my revenue in the next quarter or maybe next financial year. That happens, because of my ROCE is 40% and ROE is 7%. We recently go in IPO, and sufficient amount of IPO funds is still with us.

Speaker #3: So you see that if I invested 1 rupee in a business or 1 rupee in capex, that gives me—or maybe that reflection—in the revenue and that reflection in the metrics like ROC and ROE, will maybe be possible in the same financial year, or maybe it might be possible that this will be deferred, or maybe give a result or reflection in my revenue in the next quarter or maybe the next financial year.

[Company Representative] (Dev Accelerator): You see that if I invested INR 1 in a business or INR 1 in a CapEx, that gives me or maybe that reflection in the revenue and that reflection in the metrics like ROCE and ROE will may be possible in the same financial year or maybe might possible that it will therefore or maybe give a result or give a reflection in my revenue in the next quarter or maybe next financial year. That happens, because of my ROCE is 40% and ROE is 7%. We recently go in IPO, and sufficient amount of IPO funds is still with us. Those funds we are in a process to deploy in the finding a new opportunity and already some property is under construction. That property will get a handover and then we will deploy the funds in the centers.

Speaker #3: So that happens because my ROC is 40% and my ROE is 7%. We recently went in IPO, and a sufficient amount of IPO funds is still with us.

Speaker #3: So that funds, we are in a process to deploy in finding a new opportunity, and already some property is under construction. So that property will get a handover, and then we'll deploy the funds in the centers.

Umesh Uttamchandani: Those funds we are in a process to deploy in the finding a new opportunity and already some property is under construction. That property will get a handover and then we will deploy the funds in the centers. That centers will give us a sufficient amount of revenue, so we can have a good amount of good percentage of ROCE in the future. You can have a same reflection in the coming quarter where we are improving our ROCE and ROE both.

Speaker #3: That center will give us a sufficient amount of revenue, so we can have a good percentage of ROC in the future.

[Company Representative] (Dev Accelerator): That centers will give us a sufficient amount of revenue, so we can have a good amount of good percentage of ROCE in the future. You can have a same reflection in the coming quarter where we are improving our ROCE and ROE both.

Speaker #3: So you can have the same reflection in the coming quarter, where we are improving our ROC and ROE, both.

Speaker #2: Okay. Okay. And one more question. So I see fully standalone margin improved to 60.5%, which is what you highlighted. But Q4 alone is 59.2% versus 64% last year.

Mukul Bhushan: Okay. One more question. I see full year standalone margin improved to 60.5%, which you highlighted. But Q4 alone is 59.2% versus 64% last year. That is about down 5 percentage points. Can you explain what drove that quarter-on-quarter drop and the 2027 model? Should I use 60.5% or 59.2%?

Speaker #2: So that's down about 5 percentage points. Can you explain what drove that quarter-on-quarter drop? And for the 2027 model, should I use 60.5% or 59.2%?

Speaker #3: Yeah. So, in this case, similar line—you rightly observe that the EBITDA margin for the standalone business has increased from 66%. That is because of operational leverage, and we have reduced some costs in the system.

[Company Representative] (Dev Accelerator): Yeah. In the similar line, like you rightly observe about that, our EBITDA margin for a standalone business is increased from 66%. That is because of operational leverage, and we reduced some sort of cost in the system. But again, it is not a drop on a margin side, but because of some of the expenditures, like one time in the nature. That is because of the drivers for falling down the percentage and margin. But we will make sure that we are in a process to improving our operation at very robust level. We are improving our margin. You also see that the industry peers are at a EBITDA level of 60% to 65%, where we are at a reach at a standalone 66%. This is for one of the drivers where we are falling on a consolidated basis for a 59% of EBITDA.

Umesh Uttamchandani: Yeah. In the similar line, like you rightly observe about that, our EBITDA margin for a standalone business is increased from 66%. That is because of operational leverage, and we reduced some sort of cost in the system. But again, it is not a drop on a margin side, but because of some of the expenditures, like one time in the nature. That is because of the drivers for falling down the percentage and margin. But we will make sure that we are in a process to improving our operation at very robust level. We are improving our margin. You also see that the industry peers are at a EBITDA level of 60% to 65%, where we are at a reach at a standalone 66%.

Speaker #3: But again, it is not a drop on the margin side, but because of some of the expenses, like one-time in nature. So that is one of the drivers for the fall in the percentage of margin. But I will make sure that we are in the process of improving our operations at a very robust level, where we are improving our margin. You also see that the industry peers are at an EBITDA level of 60 to 65 percent, whereas we have reached a standalone 66%.

Speaker #3: This is one of the drivers where we are falling, on a consolidated basis, to 59% of Iveta. But you see that it's because one of the subsidiaries is Needle and Thread.

Umesh Uttamchandani: This is for one of the drivers where we are falling on a consolidated basis for a 59% of EBITDA. But you see that because of one of our subsidiary is in Needle and Thread, where we are booking a revenue as per Ind AS on a project completion or milestone base. That revenue and that percent is not 100% or fully come on the revenue side on the P&L. That is why you see that the control level, my EBITDA is falling down for some percentage.

[Company Representative] (Dev Accelerator): But you see that because of one of our subsidiary is in Needle and Thread, where we are booking a revenue as per Ind AS on a project completion or milestone base. That revenue and that percent is not 100% or fully come on the revenue side on the P&L. That is why you see that the control level, my EBITDA is falling down for some percentage.

Speaker #3: Where we are booking revenue as per index on a project completion or milestone basis, that revenue and that percent does not come 100%, or fully, on the revenue side in the P&L.

Speaker #3: So that is why you see that the control level, my Iveta, is falling down from some percentage.

Speaker #2: Okay, okay. That's all from myself. Thank you.

Mukul Bhushan: Okay. That's all for myself. Thank you.

Speaker #1: Thank you. Ladies and gentlemen, to ask a question, please press star and 1. Participants who wish to ask questions may press star and 1 at this time.

Operator: Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. Participants who wish to ask questions may press star and one at this time. Participants, if you wish to ask questions, you may press star and one on your touchtone telephones. Our next question comes from the line of Shubham Padiyar with Chhattisgarh Investments. Please go ahead.

Speaker #1: Participants, if you wish to ask questions, you may press star and 1 on your touch-tone telephones. Our next question comes from the line of Shubham Padhiyar with Chhattisgarh Investments.

Speaker #1: Please go ahead.

Speaker #3: Yeah, hi. Thanks again. So, in your RHP, you've heard me mention that we have our subsidiary by the name of Scalex Advisory Limited, and we have some sort of non-compete agreement when it comes to GCC business.

Shubham Padiyar: Yeah. Hi. Thanks again. In your RHP, you had mentioned that we have a subsidiary by the name of Salix Advisory Limited.

Shubham Padiyar: Yeah. Hi. Thanks again. In your RHP, you had mentioned that we have a subsidiary by the name of Salix Advisory Limited. And we have some sort of non-compete agreement when it comes to GCC business. Can you just explain to me what's that agreement and how does it restrict us or how does it restrict them to do business concerned with GCCs?

Shubham Padiyar: And we have some sort of non-compete agreement when it comes to GCC business. Can you just explain to me what's that agreement and how does it restrict us or how does it restrict them to do business concerned with GCCs?

Speaker #3: Can you just explain to me what that agreement is and how it restricts us, or how it restricts them, from doing business concerning GCCs?

Speaker #2: Sure. So Scalex Advisory is the name of the entity. That's a joint venture between DaveX and a reputed developer in Duke City and Ahmedabad called Savi.

Umesh Uttamchandani: Sure. Salix Advisory is the name of the entity. That is a joint venture between DevX, then there is a reputed developer in GIFT City in Ahmedabad called Savvy, and a very old FP&A firm, which is an accounting firm, Talati & Talati. Largely, when a GCC enters India, they are looking for a full-fledged solution under a single roof. They are looking for a partner who can help them enter in India, help them with the compliance strategy in the country, help them with the transfer pricing approach and all the legal and the compliance hurdles that are required to set up an entity in India. That is where Talati & Talati kind of comes with that kind of expertise. Then second is the need for real estate, and that is where Savvy comes into picture. The third need is the management of the infrastructure process.

Speaker #2: And a very old FPL firm, which is the chartered accounting firm Talati and Talati. So, largely, when a GCC enters India, they are looking for a full-fledged solution under a single roof.

Speaker #2: They are looking for a partner who can help them enter India, assist them with the compliance strategy in the country, support them with the transfer pricing approach, and navigate all the legal and compliance hurdles required to set up an entity in India.

Speaker #2: That is where Talati & Talati really comes in with their expertise. Then, second, is the need for real estate, and that is where Savi comes into the picture.

Speaker #2: And the third need is management of the infrastructure process. And then management of infrastructure comes with add-on responsibilities of running the payroll, managing the recruitment, and running the IT infrastructure.

Umesh Uttamchandani: The third need is the management of the infrastructure process. Management of infrastructure comes up with add-on responsibilities of running the payroll, managing the recruitment, running the IT infrastructure. These are some needs which are kind of created. When I say DevX, it includes DevX as well as Dev Information Technology Limited, which is a promoter of Dev Accelerator, wherein they would be fulfilling the need of IT network, setting up their cloud solution and managing their NOC centers. This is a need when a GCC enters India. Earlier, what we used to do is provide them this solution, but it was being offered in a standalone basis. I would offer them managed office space spectrum, Savvy would offer them real estate, Talati & Talati would offer them accounting solutions.

Umesh Uttamchandani: Management of infrastructure comes up with add-on responsibilities of running the payroll, managing the recruitment, running the IT infrastructure. These are some needs which are kind of created. When I say DevX, it includes DevX as well as Dev Information Technology Limited, which is a promoter of Dev Accelerator, wherein they would be fulfilling the need of IT network, setting up their cloud solution and managing their NOC centers. This is a need when a GCC enters India. Earlier, what we used to do is provide them this solution, but it was being offered in a standalone basis. I would offer them managed office space spectrum, Savvy would offer them real estate, Talati & Talati would offer them accounting solutions.

Speaker #2: These are some needs which are kind of created. Now, when I say DaveX, it includes DaveX as well as Dave Information Technology Limited, which is a subsidiary of DaveX later.

Speaker #2: Wherein they would be fulfilling the need for IT networks, setting up their cloud solutions, and managing their NOC centers. Now, this is a need when a GCC enters India.

Speaker #2: Earlier, what we used to do was provide them this solution, but it was being offered on a standalone basis. I would offer them managed office space spectrum, Savi would offer them real estate, and Talati and Talati would offer them accounting solutions.

Speaker #2: Instead of that, we formed this entity, wherein the objective was to put the client under this umbrella and offer them a full-spectrum solution under the same entity.

Umesh Uttamchandani: Instead of that, we formed this entity, wherein the objective was to put the client under this umbrella and offer them a full spectrum solution under the same entity. This is created largely from a GIFT City perspective and the requirement that it will come. There is no one who would enter into the competing situation of managed office space of DevX. If there is a requirement of only managed office spaces coming in from a lead or a client, it would be redirected to DevX only.

Speaker #2: And this is created largely from a good city perspective and the requirements that it took from. So there's no one who would enter in the competing situation of managed office space of DaveX.

Speaker #2: If there's a requirement for only managed office spaces coming in from a lead or a client, it would be redirected to DaveX only.

Speaker #3: Got it. And how much do we own in this deal?

Shubham Padiyar: Got it. How much do we own in this deal?

Speaker #2: Sorry. How much have we invested?

Umesh Uttamchandani: Sorry, how much have we invested?

Speaker #3: Sorry. How much do we own? What's the percentage ownership?

Shubham Padiyar: How much do we own? What is our percentage ownership?

Speaker #2: That's roughly 12% in the entity.

Umesh Uttamchandani: That is roughly 12% in the entity.

Speaker #3: 12%. Okay. And is that entity operational, or has it yet to start its operations?

Shubham Padiyar: Okay. Is that entity operational or is it yet to start its operations?

Speaker #2: No, no, no. We just onboarded a senior leader in that, and the operations will start to begin now. The DTM strategy has just been formed.

Umesh Uttamchandani: No. We just onboarded a senior leader in that, and the operations would start to begin now. The GTM strategy has just been formed, so the operational activities would start now. But as I said, this is predominantly for capturing the market within GIFT City.

Speaker #2: So the operational activities would start now. But as I said, this is predominantly for capturing the market within Duke City.

Speaker #3: Understood. So there is.

Shubham Padiyar: Understood.

Umesh Uttamchandani: And only for GCCs. Yeah.

Speaker #2: And only for GCCs. Yeah.

Speaker #3: Okay. Okay. So there's no profit area; it's just restricted to Duke City.

Shubham Padiyar: Okay. So there the area is just restricted to GIFT City.

Speaker #2: Sorry, I lost you a little bit.

Umesh Uttamchandani: Sorry, I lost you a little bit.

Speaker #3: So their geographical area of operation is restricted to Duke City.

Shubham Padiyar: Their geographical area of operation is restricted to GIFT City.

Speaker #2: Yes, that is the objective, because Savi has a very strong presence in real estate within Duke City. It gives us a certain advantage when global companies are looking to enter and set up in Duke City.

Umesh Uttamchandani: Yes, that is the objective because DevX has a very strong presence of real estate within GIFT City. It gives us a certain advantage when global companies are looking to enter and set up in GIFT City.

Speaker #3: Okay. No. That's a problem.

Shubham Padiyar: No, that's it.

Speaker #2: Yeah. I mean, if the question was to understand, would they enter the business of DaveX? I mean, no. I mean, that's not the core element of setting up this entity.

Umesh Uttamchandani: Yeah, I mean, if the question was to understand, would we enter the business of DevX? No, that's not the core objective of setting up this entity.

Speaker #3: Okay, so we can still do GCC business, right, under DaveX?

Shubham Padiyar: Okay, so we can still do GCC business, right? Under the-

Speaker #2: Yeah, yeah, absolutely. We still are. I mean, currently, we are doing GCC business. We have a couple of clients who are also paying us for managing the payroll.

Umesh Uttamchandani: Yeah, absolutely. We still are. I mean, currently we are doing GCC business. We have a couple of clients who are also paying us for managing the payroll. So if you see our revenue heads, there's a payroll and facility management head as well, which is largely coming in from those clients which are looking for GCC solutions. In fact, while we speak, we are speaking to a couple of clients who are looking for solutions in Bangalore and in Hyderabad for a full spectrum GCC solution provider.

Speaker #2: So, if you see our revenue heads, there's a payroll and facility management head as well, which is largely coming in from those clients who are looking for a GCC solution.

Speaker #2: In fact, while we speak, we are speaking to a couple of clients who are looking for solutions in Bangalore and in Hyderabad, for full-spectrum GCC solution providers.

Speaker #3: Understood. Yeah, thank you. That's excellent.

Shubham Padiyar: Understood. Yeah, thank you. That's it from me.

Speaker #2: Thank you. Thanks.

Umesh Uttamchandani: Thank you.

Speaker #1: Thank you. Participants, to ask a question, you may press star, then one. As we have no further questions, ladies and gentlemen, I would now like to hand the conference over to management for closing comments.

Operator: Thank you. Participants, to ask a question, you may press star and one. As we have no further questions, ladies and gentlemen, I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Speaker #1: Over to you, sir.

Speaker #2: Thank you so much, everyone, for joining the call. I hope I was able to justify the questions and respond correctly to the questions that were asked.

Umesh Uttamchandani: Thank you so much, everyone for joining the call. I hope I was able to justify the questions and able to rightly respond to the questions that were asked. For any further information, I think we had couple of questions wherein we would be required to fetch the data. I would appreciate if you can reach out to our email address of investor relations team, and we will be happy to address those questions. Look forward to kind of connect with you again in the next quarter. Till then, kind of stay safe, stay healthy, and thank you once again, all of you, for joining with us.

Speaker #2: For any further information, I think we had a couple of questions where we would be required to fetch the data. I would appreciate it if you could reach out to our Investor Relations team's email address, and we would be happy to address those questions.

Speaker #2: So, look forward to kind of connecting with you again in the next quarter. Till then, stay safe, stay healthy, and thank you once again, all of you, for joining us.

Operator: Thank you. On behalf of Dev Accelerator Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.

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Q1 2027 Dev Accelerator Ltd Earnings Call

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