1. At a Glance – DevX in One Brutally Honest Shot
Dev Accelerator Ltd (aka DevX) is what happens when India’s Tier-2 flex office boom meets capital markets enthusiasm. Listed in September 2025 after raising ₹143 Cr, the stock is now chilling around ₹38, down ~41% from highs of ₹64.4, with a ₹345 Cr market cap, P/E ~98x, EV/EBITDA ~5.4x, and debt of ₹323 Cr breathing down its neck.
Operationally? The business looks busy. FY25 sales ₹232 Cr, OPM a juicy 46.6%, seat occupancy at 87.6%, and centers growing at a ~24% CAGR. Financially? Net profit is still a toddler—₹3.5 Cr TTM, with quarterly profits swinging like a Delhi Metro handle during peak hours.
So is DevX a misunderstood operating leverage story… or just a leveraged landlord cosplay with PowerPoint buzzwords? Let’s open the files.
2. Introduction – Flex Office, Fixed Headaches
Coworking in India has evolved from beanbags and free coffee to long-tenure managed offices with 5–9 year leases. DevX decided to skip the Delhi-Mumbai saturation fight and quietly dominate Tier-2 cities—Ahmedabad, Indore, Jaipur, Vadodara—where landlords are cheaper and competition is sleepier.
The idea is simple:
- Lock long leases with landlords
- Fit out offices
- Sub-lease to corporates at higher yields
- Pray occupancy stays north of 85%
So far, the prayer seems answered. Occupancy rose from 80.8% in FY23 to 87.6% in FY25. But profits? Still warming up. Interest costs, depreciation, and IPO-era balance sheet gymnastics are eating most of the operating buffet.
Question for you: Would you rather own a high-margin business with low profits, or a low-margin business with predictable cash?
3. Business Model – WTF Do
They Even Do?
DevX is not just “coworking”. It’s a flex-office thali:
- Managed Office Spaces (59% of FY25 revenue):
Custom-built offices for corporates (100–500 seats), long tenures, predictable cash flows. This is the adult in the room. - Co-working (5.5%):
Freelancers, startups, SMEs. Sexy but small. - Design & Execution (25.5%):
Office interiors via Neddle & Thread Designs. One-time revenue, good margins, but cyclical. - Payroll, Facility Management, IT/ITeS (~12% combined):
Attach services to clients. Sticky, but not yet material profit engines.
In short: DevX wants to be a workspace OS, not just a landlord. Whether clients actually buy the full bundle consistently is the real test.
4. Financials Overview – Numbers Without Makeup
Quarterly Comparison Table (₹ Cr)
| Metric | Dec’25 (Latest) | Dec’24 (YoY) | Sep’25 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 59.2 | 49.8 | 51.8 | +18.9% | +14.2% |
| EBITDA | 23.9 | 24.1 | 26.4 | -0.8% | -9.5% |
| PAT | -1.01 | 0.69 | 1.76 | -246% | -157% |
| EPS (₹) | -0.11 | 0.10 | 0.20 | — | — |
Annualised EPS (Q3 rule):
Average of Q1–Q3 EPS × 4 ≈ ₹0.42 (matches TTM).
Commentary:
Revenue is growing nicely. Margins are still fat. But interest + depreciation = profit killer combo. This is a leveraged growth story, not a clean SaaS fairy tale.
5. Valuation Discussion – Fair Value Range
