Dev Accele. Q4 FY26 Results (NSE: DEVX)
Signal: Margin expansion
The read
The trajectory inflected sharply in Q4FY26: operating margin expanded 694bps YoY to 54.81% after three consecutive quarters of contraction, while revenue declined 9.4% to 5925.96 lakh; the recovery is encouraging but needs confirmation because other income of 408.89 lakh equalled 60.8% of PBT and depreciation fell despite a large CWIP build.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹59.26 Cr | -9.4% | +0.1% |
| Net profit | ₹7.96 Cr | +278.3% | |
| EPS | ₹0.98 | +206.3% | |
| EBIT margin | 54.81% |
P&L walk
Q4 revenue fell 9.4% YoY to 5925.96 lakh, but gross margin expanded 880bps to 70.5% as cost of goods and services fell to 29.5% of revenue from 38.3%; PAT recovered to 796.20 lakh from 211.50 lakh, although other income was 408.89 lakh and represented 60.8% of PBT.
Segments
The group operates as a single reportable segment, renting and providing co-working spaces; the material split is between standalone and consolidated earnings, with consolidated PAT of 880 lakh materially above standalone PAT of 264 lakh.
Key positives
- Gross margin expanded 880bps YoY to 70.5% as cost of goods and services fell to 29.5% of revenue from 38.3%; management did not disclose the driver.
- Q4 PAT rose to 796.20 lakh from 211.50 lakh a year ago, reversing the 101.28 lakh loss reported in the immediately prior quarter.
- FY26 operating cash flow remained positive at 8984.78 lakh despite FY26 capex and investment cash outflows of 12097.19 lakh.
Key concerns
- Q4 revenue declined 9.4% YoY to 5925.96 lakh, a sharp deceleration from +19.0% YoY in Q3FY26 and +50.4% in Q2FY26.
- Other income of 408.89 lakh represented 60.8% of consolidated PBT of 1049.69 lakh, reducing the quality of the reported PAT recovery.
- EPS growth of 206.3% materially lagged PAT growth of 278.3%, alongside higher paid-up capital after the IPO.
Earnings quality: includes non-operating other income
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