Dev Accelerator Limited Assigned ACUITE BBB Rating for Proposed Non Convertible Debentures

Dev Accelerator Limited Assigned ACUITE BBB Rating for Proposed Non Convertible Debentures​

Dev Accelerator Limited (DevX) has been assigned a long-term credit rating of 'ACUITE BBB' with a 'Stable' outlook by Acuite Ratings & Research Limited. The rating pertains to the company's proposed issuance of Non Convertible Debentures (NCD) with a total quantum of Rs. 100.00 crore.

The rating agency attributed the score to DevX’s established presence in the managed workspace segment, particularly within Tier-2 cities. The company has demonstrated an improving operating performance and a sizeable growth pipeline. As of March 31, 2026, the company operated across 28 centres in 12 cities with a seating capacity of 13,304 seats.

Operational and Financial Performance​

The company reported significant growth in its operating scale over the last three fiscal years. Consolidated revenue rose to Rs. 225.93 crore in FY26 from Rs. 158.88 crore in FY25 and Rs. 109.14 crore in FY24. EBITDA improved to Rs. 109.31 crore in FY26, supported by higher occupancy levels. Profit after tax (PAT) also saw an increase, rising to Rs. 8.84 crore in FY26 from Rs. 1.78 crore in FY25.

The company maintains a diverse client base of over 335 customers, with enterprise clients contributing approximately 65% of total revenue. The managed workspace portfolio is concentrated in Tier-2 markets, including Ahmedabad, Vadodara, Gandhinagar, Jaipur, and Indore.

Growth Strategy and Resource Mobilization​

DevX has a substantial expansion pipeline for the next two years. As of FY26, the total portfolio, including the operational portfolio and signed pipeline, stood at approximately 3.04 million sq. ft. with a seating capacity exceeding 50,000 seats.

To support this growth, the company has demonstrated the ability to mobilize resources through both equity and debt. During FY26, the company raised approximately Rs. 143.35 crore through its IPO, which was utilized for expansion and debt reduction. Additionally, the company initiated a Rs. 35 crore preferential equity issuance in FY27 and expects to realize approximately Rs. 110 crore from the monetization of its investment in associate company Janak Urja Private Limited (JUPL).

Financial Position and Risks​

The rating highlights certain constraints regarding the company's leveraged capital structure. As of March 31, 2026, the tangible net worth increased to Rs. 182.28 crore from Rs. 50.65 crore in FY25. However, the Debt/EBITDA ratio stood at 3.11 times in FY26, though the adjusted ratio (excluding lease liabilities) was 1.32 times.

Key risks identified include:

• Geographic concentration with Ahmedabad contributing around 46% of FY26 revenue.
• Occupancy retention risks due to the difference between client contract lock-in periods (3.5-5 years) and property lease tenures (5-9 years).
• Execution risks associated with the planned expansion pipeline and competition in the commercial real estate market.

Liquidity and Financial Metrics​

The company's liquidity remains adequate, supported by healthy operating cash flows and security deposits maintained with lenders. The company is expected to generate net cash accruals of approximately Rs. 120-200 crore over the medium term to meet scheduled debt repayments of less than Rs. 110 crore.

Rating Details and Covenants​

The proposed Non Convertible Debentures are categorized as 'Simple' complexity. The rating remains subject to specific financial covenants, including:

• Total Debt to Tangible Net Worth <=1.5x
• Debt to Adjusted EBITDA (Net of Lease expenses) <=2.5x
• Minimum net worth of 175 Crore on a consolidated basis
• Total debt cap of Rs. 250 Crore on a consolidated basis
• Minimum Interest coverage ratio of 3.5x

DEVX Stock Price Movement​

Shares of Dev Accelerator Limited are edging higher to ₹34.27 as of 11:37 AM today, rebounding by 0.23% from the previous session. The stock is seeing active interest with a turnover of 9,781 shares as it trades within its daily range.