DEVX - Dev Accele.

📊 NSE: DEVX 🏢 Diversified Commercial Services 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 81% YoY to INR 107.47 Cr in H1 FY26. Managed Space Services contributed 52.52% of revenue, while Designing & Execution (Design & Build) contributed 35.30% (INR 40-50 Cr in H1 FY26). Co-working Space accounted for 5.49%, Facility Management 3.76%, and IT/ITes Services 1.92%.

Geographic Revenue Split

The company operates 28 centers across 12 cities. Tier-2 cities are a core strength. Recent growth was driven by adding Surat and expanding in Ahmedabad (84,000 sq. ft. center) and Pune (35,000 sq. ft. center).

Profitability Margins

Profit for the period in H1 FY26 was INR 1.89 Cr, a 382.8% increase from INR 0.39 Cr in H1 FY25. However, PAT margins are impacted by the reduction in 'Other Income' (fair market value of startup investments), which fell from INR 14.48 Cr in H1 FY25 to INR 3.96 Cr in H1 FY26.

EBITDA Margin

Consolidated EBITDA margin was 49.2% in H1 FY26 (INR 52.82 Cr), compared to 54.2% in H1 FY25. Standalone EBITDA margins improved from 52% to 65% due to better operational leverage at mature centers.

Capital Expenditure

Planned IPO-funded capex includes INR 73.1 Cr for fit-out investments to expand capacity and INR 35 Cr for debt repayment. Total IPO proceeds are INR 143 Cr.

Credit Rating & Borrowing

Debt-to-Equity ratio significantly improved from 2.6x to 0.37x following equity influx. Finance costs for H1 FY26 were INR 24.90 Cr, up 23.6% from INR 20.14 Cr in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Primary costs include fit-out materials (furniture, interiors, technology hardware) and lease rentals. Operational expenses (including rent) were INR 28.89 Cr in H1 FY26, representing 26.9% of revenue.

Import Sources

Not disclosed in available documents; however, procurement is linked to center locations across 12 Indian cities.

Key Suppliers

Not specifically named; the company engages with various landlords and developers under 'Straight Lease' (75% of centers) and 'Revenue Share' models.

Capacity Expansion

Current capacity is 13,604 seats across 0.89 million sq. ft. Planned expansion to 28,000-30,000 seats by December 2026, targeting a revenue run rate of INR 330-350 Cr by March 2027.

Raw Material Costs

Cost of Goods and Services (primarily fit-outs and operations) was INR 28.89 Cr in H1 FY26, up 159.6% YoY from INR 11.13 Cr, reflecting rapid center expansion.

Manufacturing Efficiency

Overall occupancy is 88.35%. Mature centers (>3 years) maintain 97.01% occupancy, while new centers target 90%+ occupancy within the first quarter of going live.

Logistics & Distribution

Not applicable; revenue is generated through on-site managed office services.

📈 Strategic Growth

Expected Growth Rate

50-60%

Growth Strategy

Expansion into Tier-2 cities using a capex-light OpCo-PropCo model; leveraging the GCC (Global Capability Center) boom; and scaling the 'Design & Build' subsidiary to INR 65-100 Cr revenue by FY27. The company is also launching SaaS solutions via SASJoy targeting INR 7-10 Cr revenue.

Products & Services

Managed office spaces, custom-built turnkey offices, co-working desks, design and execution services, facility management, payroll management, and IT/ITes support.

Brand Portfolio

DevX (Dev Accelerator Limited), SASJoy Solutions Pvt. Ltd.

New Products/Services

Bespoke tech solutions including enterprise software and mobile apps via SASJoy, expected to contribute ~3% of FY27 revenue.

Market Expansion

Targeting 28,000-30,000 seats by Dec 2026 across existing and new Indian metros and Tier-2 hubs.

Market Share & Ranking

Top 10 operators (including DevX) control the major share of the 1,000+ flex centers in India.

Strategic Alliances

Partnerships with developers and landlords for the PropCo model; 33% of revenue comes from existing clients expanding into new cities.

🌍 External Factors

Industry Trends

The flex office industry is growing at 20% CAGR, driven by a shift from traditional long-term leases to agile, plug-and-play models that reduce real estate costs by 25-30% per employee.

Competitive Landscape

Key competitors include other top-10 flex operators; consolidation is accelerating (e.g., Incuspaze-Trios). DevX differentiates through enterprise-grade customization.

Competitive Moat

Durable advantages include a specialized Tier-2 city playbook, high switching costs (44-month lock-ins), and a full-stack offering (Design + Build + Operate) that competitors often lack.