Press Release October 08, 2026 DEV ACCELERATOR LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	100.00	0.00	ACUITE BBB | Stable | Reaffirmed	-	SEBI
Total Outstanding	100.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs.100.00 crore Non Convertible Debentures of Dev Accelerator Limited (DevX). The Outlook is 'Stable'. Rationale for rating  The rating reaffirmation factors the increase in the company's AUM from 0.83 msf to 1.13 msf and number of operational seats to 17,294 from 13,304 till September 2026, supported by stable occupancy levels across the company's portfolio. While the company reported moderation in operating income due to the temporary closure of one of its centres, the same is however expected to improve with the commencement of multiple new centres planned to become operational by Q3 FY27 and the increase in occupancy of existing centres. Additionally, the rating also factors DevX's established presence in the managed workspace segment with a focus on Tier-2 cities, its improving operating performance, sizeable growth pipeline, and demonstrated ability to mobilize resources through equity, debt funding and investment monetisation. The company currently has its operational footprint across 27 centres in 12 cities and reported growth in revenue and profitability during FY26, supported by healthy occupancy levels and an enterprise-focused client base. Further, the company has visibility over future growth through its planned capacity additions. However, the rating remains constrained by the company's leveraged capital structure with non-convertible debenture debt raise of Rs.150 crore in FY27 (Rs.100 crore already raised and Rs 50 crore proposed to be raised), marking a moderation in the coverage ratio. Further the rating also factors the geographic concentration of revenues in Ahmedabad and surrounding markets, and execution risks associated with the planned expansion pipeline. The company's performance also remains exposed to occupancy retention, demand conditions in the managed workspace segment and competitive pressures in the commercial real estate market.

About the Company

Incorporated in 2020 and headquartered in Ahmedabad, Gujarat, Dev Accelerator Limited (DevX) operates in the managed workspace segment and provides managed office spaces, coworking solutions, interior fit-out services and technology-enabled business solutions. The company offers workspace solutions encompassing office design, fit-outs, facility management and allied support services through its operating platforms and subsidiaries. The current directors of the company are Mr. Parth Naimeshbhai Shah, Mr. Jaiminbhai Jagdishbhai Shah, Mr. Umesh Satishkumar Uttamchandani, Mr. Rushit Shardulkumar Shah, Mr. Yash Himanshu Shah, Mr. Gopi Trivedi, Mr. Anand Anilbhai Patel, Mr. Anish Alerk Patel, Mr. Pathik Shailesh Patwari and Mr. Praveen Kumar.

About the Group

­Needle and Thread Designs LLP Needle and Thread Designs LLP was incorporated in 2019 & is based in Mumbai. Needle and Thread Designs LLP is a full-service corporate interior designing and building firm. It operates in the real estate, corporate infrastructure, and workspace design sector, under the commercial brand name of PhiDesigns. Mr. Lalit Nagrani & Mr. Parth Naimeshbhai Shah are the partners of the firm. Saasjoy Solutions Private Limited Saasjoy Solutions Private Limited was incorporated in 2023 & based in Gujarat. It is engaged in building fully managed remote engineering, design, and development squads, setting up and managing physical/digital office infrastructure for distributed teams etc. Mr. Parth Naimeshbhai Shah, Mr. Umesh Satishkumar Uttamchandani & Mr. Yash Himanshu Shah are the current directors of the company.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

The rating is based on a consolidated approach, considering the strategic integration among the group entities, shareholding linkages and presence of common management.

Key Rating Drivers

Strengths

Established presence in Tier-2 Markets DevX has been operating in the managed workspace segment since 2017 and has established a presence across 28 centres in 12 cities, with an area under management of 1.13 million sq. ft. and a seating capacity of 17,294 seats as on September 2026. The company's operations are largely concentrated in Tier-2 cities, including Ahmedabad, Vadodara, Gandhinagar, Jaipur and Indore, which together accounted for the majority of its revenue in FY26. The company serves a client base of over 335 customers, with enterprise clients contributing approximately 65% of total revenue. The business is led by its promoters, Mr. Parth Shah, Mr. Umesh Uttamchandani, Mr. Rushit Shah and Mr. Jaimin Shah, who have been associated with the company since inception. Improvement in operating performance The company reported growth in its operating scale over the past three years, with consolidated revenue increasing 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 compared to Rs. 80.52 crore in FY25, supported by higher occupancy levels and increased contribution from its managed workspace portfolio. The company's profitability also improved, with profit after tax increasing to Rs.8.84 crore in FY26 from Rs.1.78 crore in FY25. However, it remain impacted by higher depreciation on Right-of-Use (RoU) assets and interest expenses related to lease liabilities arising from the company's lease-based operating model. The company however reported a decrease in revenue of around 5% in Q1FY27 compared to the previous quarter, primarily due to a fire incident at one of its centres, which resulted in closure of operations at the affected facility. Nevertheless, the company's overall operating profile is expected to improve, supported by the scale-up of existing centres and incremental contribution from the upcoming new properties. Strong expansion pipeline The company has a sizeable expansion pipeline over the next 2 years across multiple locations. Of these, few properties are currently under fit-out and some have signed LOI. As of March 31, 2026, the total portfolio (including operational portfolio and signed pipeline), stood at approximately 3.04 million sq. ft. with a seating capacity of more than 50,000, compared to the current operational portfolio of 0.83 million sq. ft. and 13,304 seats (1.13 million sq. ft. and 17294 seats as on Sep 30, 2026 respectively). The planned expansion is supported through a mix of asset procurement models, including straight lease, development management and OpCo–PropCo arrangements, which provide flexibility in scaling operations. Demonstrated resource mobilization ability The company has demonstrated its ability to raise funds through multiple sources, including equity and debt. During FY26, the company raised approximately Rs.143.35 crore through its IPO, the proceeds of which were utilized towards expansion and debt reduction. Further, the company has initiated a Rs.35 crore preferential equity issuance in FY27 to support the planned capacity additions. Further it expects to realize approximately Rs.110 crore through the monetization of its investment in associate company Janak Urja Private Limited (JUPL) in FY27, timely realisation of which remains a monitorable.

Weaknesses

Leveraged capital structure The company's capital structure remained leveraged as on March 31, 2026, albeit with significant improvement during FY26, supported by IPO proceeds and profit accretion to reserves under Ind AS accounting. Accordingly, tangible net worth increased to Rs. 182.28 crore as on March 31, 2026, from Rs. 50.65 crore as on March 31, 2025. The debt profile includes lease liabilities recognised under Ind AS in respect of leased properties operated by the company, representing the present value of future lease rental commitments. Consequently, the Debt/EBITDA ratio stood at 3.11 times in FY26. However, excluding lease liabilities, the adjusted Debt/EBITDA ratio stood at 1.32 times. Further, the company has raised Rs. 100 crore of NCDs in August 2026 and is proposing an additional NCD issuance of Rs. 50 crore to fund fit-outs and development of upcoming centres. Accordingly, the debt levels are expected to increase over the medium term, with the company's leverage metrics remaining exposed to timely ramp-up and stabilization of the planned properties. Geographic concentration and retention risk The company's revenue profile remains concentrated, with Ahmedabad contributing around 46% of FY26 revenue. Further, a significant portion of the upcoming capacity additions and signed pipeline is also located in Ahmedabad and nearby markets, resulting in continued dependence on the Gujarat region for business growth. In addition, the company remains exposed to occupancy retention risk, as client contracts generally carry lock-in periods of 3.5–5 years compared to underlying property lease tenures of 5–9 years. Non retention or non-replacement of existing or exiting clients in a timely manner, particularly in its key operating markets, could impact occupancy levels, revenue generation and profitability. The risk is partially mitigated by the company's enterprise-focused client base and its track record of maintaining high occupancy and tenant retention levels. Exposure to expansion and market risks The company has a sizeable growth pipeline over the next two years, the successful execution and stabilization of which will remain critical for sustaining its growth trajectory. The planned expansion is expected to require continued deployment of capital and timely ramp-up in occupancy levels. Further, the company's performance remains linked to demand conditions in the managed workspace and commercial real estate sectors, which are influenced by corporate office leasing activity, economic conditions and competitive intensity. Any moderation in demand, lower-than-expected occupancy in new centres, or increased competition in existing and proposed markets could impact the company's operating performance and returns on the planned investments.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Increase in the operating revenues with timely commissioning and leasing of the ongoing and upcoming capex plans while maintaining healthy occupancy, rental growth and profitability Improvement in cash coverage ratio above 2 - 2.5 times

Potential triggers (individual or collective) for a downward rating action:

Sustained decline in occupancy levels, moderation in profitability, or a significant increase in the tenure mismatch between lease agreements with landlords and tenants. Decline in cumulative cash coverage ratio below 1.10 times

Liquidity Position

Adequate

­The company's liquidity profile is supported by healthy operating cash flow generation and the availability of liquidity buffers in the form of security deposits maintained with lenders, typically amounting to 20-25% of the outstanding borrowing exposure. Further, over FY27 to FY29, the company is expected to generate annual net cash inflows of around Rs.160-230 crore, which are expected to remain adequate to meet its scheduled debt obligations of approximately Rs.60-115 crore during the period. The company has also demonstrated its ability to access both debt and equity markets to fund growth initiatives and refinancing requirements. As on September 29, 2026, the company-maintained cash and cash equivalent of ~Rs.39 crore along with security deposit of Rs.34 crores. The cash coverage ratio remained above unity in FY2026, with debt servicing requirements adequately supported by fresh equity infusion during the year. Going forward, the company's liquidity position is expected to remain comfortable, supported by steady operating cash accruals, available cash reserves, and continued access to external funding sources.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials (Consolidated)

­ Particulars        Unit           FY 26 (Actual)         FY 25 (Actual)     Operating Income Rs. Cr 225.93 158.88 PAT Rs. Cr. 8.84 1.78 PAT Margin (%) 3.91 1.12 Total Debt/Tangible Net Worth     Times 2.03 7.61 PBDIT/Interest Times 2.68 2.23 *In the above key financials, oustanding lease liabilities have been included as part of total debt, and the related lease liability expense has been considered under interest expense.

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable

Any Other Information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 16 Jul 2026 Proposed Non Convertible Debentures Long Term 25.00 ACUITE BBB | Stable (Assigned) Proposed Non Convertible Debentures Long Term 75.00 ACUITE BBB | Stable (Assigned)

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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No. Name of Entity 1 Dev Accelerator Limited 2 Needle and Thread Designs LLP 3 Saasjoy Solutions Private Limited ­

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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