Dev Accele. Q2 FY27 Results (NSE: DEVX)

3 Nov 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The trajectory improved sharply from Q3FY26's ₹1,010 lakh consolidated loss, with PAT reaching ₹549.64 lakh and operating margin holding at 50.87%; however, the recent margin arc is not yet a clean acceleration because margin fell 547bps QoQ and operating expenses grew 81.2% YoY, while H1FY27 operating cash flow was negative ₹2,247.98 lakh.

P&L walk

Revenue increased to ₹8,022.50 lakh, +54.7% YoY and +49.2% QoQ, but operating expenses rose 81.2% YoY and 115.5% QoQ, leaving operating margin at 50.87%, down 23bps YoY and 547bps QoQ; PAT nevertheless rose 213.5% YoY to ₹549.64 lakh.

Key positives

• Consolidated revenue rose 54.7% YoY to ₹8,022.50 lakh and 49.2% QoQ, reversing the Q1FY27 decline of 3.3% in the recent company series.
• PAT increased 213.5% YoY to ₹549.64 lakh, following ₹150.44 lakh in the prior quarter and a ₹1,010 lakh loss in Q3FY26.
• Operating margin remained high at 50.87%, only 23bps below 51.10% YoY, while employee benefits expense declined 26.2% YoY to ₹380.23 lakh.
• PPE plus CWIP increased to ₹15,043.30 lakh from ₹13,470.95 lakh and depreciation rose 37.8% YoY to ₹2,039.29 lakh, indicating that asset additions are beginning to enter the depreciation base.

Key concerns

• Operating expenses grew 81.2% YoY to ₹2,912.80 lakh, faster than the 54.7% revenue growth, and pushed operating margin down 547bps QoQ.
• Finance costs rose 28.9% YoY to ₹1,629.61 lakh as borrowings increased to ₹22,216.94 lakh from ₹14,471.66 lakh at March 31, 2026.
• Operating cash flow was negative ₹2,247.98 lakh in H1FY27 despite ₹700.08 lakh consolidated profit, driven by ₹8,581.16 lakh of net working-capital outflow.
• EPS growth of 130.8% lagged PAT growth of 213.5%, reflecting dilution from the higher paid-up equity base.

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