Dev Accelerator Ltd Management Discussions

2026. Moderate growth, sticky inflation and heightened geopolitical uncertainty continued to define the economic landscape. Growth held below its long- term average, at 3.4%3.4% in 2025, reflecting a stable but subdued expansion. Regional divergence widened, with advanced economies growing at approximately 1.9%1.9% while emerging markets outperformed at 4.4%4.4% .

Geopolitical tension, particularly in West Asia, continued to weigh on energy markets, supply chains and trade flows through 2026. Supply risk across key transit routes

GLOBAL OUTLOOK

The balance of risks for FY 2025- 26 and FY 2026- 27 remains tilted to the downside. A prolonged or wider conflict in West Asia remains the most immediate concern. Sustained disruptions to energy supplies through key transit routes, particularly the Strait of Hormuz, could reignite inflation and keep interest rates elevated. Deeper geo- economic fragmentation, renewed trade tensions and elevated public debt across advanced economies could further constrain global trade, investment and fiscal support. A reassessment of the productivity gains expected from artificial intelligence could also trigger volatility in financial markets.

Despite these risks, the outlook is not uniformly negative. A de- escalation in West Asia, easing trade barriers and stronger- than- expected productivity from technology adoption could support growth. Overall, capital is expected to remain selective, favouring economies with resilient domestic demand and credible long- term growth prospects over those more exposed to external shocks.

INDIAN ECONOMIC OVERVIEW

India retained its position as the worlds fastest- growing major economy in FY 2025- 26. Strong domestic demand, robust investment activity, and steady momentum underpinned the economys performance. Growth accelerated over the previous fiscal year, with

such as the Strait of Hormuz drove renewed volatility in crude prices. Although global inflation moderated to around 4.0% - 4.5% 4.0% - 4.5% in 2025, it remained elevated due to higher energy prices and ongoing supply- side pressures.

With inflation proving persistent, major central banks paused their easing cycles, keeping the cost of capital higher for longer than markets had anticipated.

Global trade remained constrained, expanding by around 2.5% 2.5% amid geo- economic fragmentation, protectionism and supply- chain realignment. Multinational companies continued to diversify production and sourcing, reducing dependence on any single country.

Region	2025 (Actual)	2026 (Projected)	2027 (Projected)
World	3.4%	3.1%	3.2%
Advanced Economies	1.9%	1.8%	1.7%
Emerging Market and Developing Economies	4.4%	3.9%	4.2%
[ Source: IMF, World Outlook, April 2026]

private final consumption expenditure, which accounts for around 61.5% 61.5% of GDP, grew by 7.7% 7.7% . This remained the primary driver of economic growth. Manufacturing strengthened markedly in the second half of the year, with Gross Value- Added recording double- digit growth.

Investment activity stayed healthy, led by continued public infrastructure spending and a gradual recovery in private capital expenditure. Gross Fixed Capital Formation expanded steadily through the year, supporting the economys longer- term productive capacity.

[Sources: MoSPI, February 2026 / Ministry of Home Affairs, June 2026 / IBEF, May 2026]

India GDP Growth Projections

India GDP Growth Projections
Year	2025	2026 (P)	2027 (P)
GDP Growth (%)	7.6	6.5	6.5

OUTLOOK

India is expected to stay among the worlds fastest- growing major economies through FY 2026- 27, with the Reserve Bank of India projecting growth of 6.6% 6.6% . The moderation from the current year reflects a normalising base rather than any weakening of underlying drivers. Consumption is expected to remain resilient, supported by easing inflation, while public capital expenditure and a firming private investment cycle are expected

to underpin domestic demand. The principal risks are external. A sharper- than- expected global slowdown or a sustained spike in energy prices could weigh on the trajectory.

[Sources: IMF, World Outlook, April 2026 Economic Times, June, 2026]

INDUSTRY ANALYSIS

Global Workspace Industry

Over the past five years, the global flexible- workspace market has grown rapidly, but unevenly. The Asia- Pacific region has led this growth, with regional Grade A office supply set to peak at 61.3 Million Sq. Ft. in 2026. This expansion is supported by a strong tech sector and Asia Pacific office employment growth projected at 3.5% 3.5% . In contrast, the United States recorded a structural reset, with office construction hitting the lowest level on record and North American prime residential prices falling 0.9% 0.9% . Consequently, the centre of gravity in the global flex industry has shifted decisively eastward.

Bengaluru remains Indias largest flexible workspace market, with 30- 32 Million Sq. Ft. of stock and 12 - 14% 12 - 14% penetration of total office space. Pune records the highest flex penetration nationally at 14 - 16% 14 - 16% . IT and software firms account for 27 - 32% 27 - 32% of flex leasing demand, followed by BFSI at 9 - 14% 9 - 14% .

Flexible workspaces now contribute approximately 20% 20% of Indias commercial leasing by volume, with enterprise clients accounting for more than half of this demand by value.

[Sources: 2026 APAC Market Outlook Report The Wealth Report, 2026 Knight Frank India Flex Office Market Triples: Managed Office Growth Table Space]

Indias Flex Market Matures into An Enterprise Solution

Indias flexible- workspace market has moved well beyond its coworking origins. From a startup- andfreelancer model, it has become a mainstream portfolio tool for large corporates. Managed and bespoke spaces are increasingly preferred for their agility, capital savings and 90- day occupancy compared to conventional fitouts. Operational flex stock across major hubs grew

from 18.6 Million Sq. Ft. in 2018 to 110- 114 Million Sq. Ft. by March 2026, reflecting a 25% 25% CAGR. During this period, flex penetration reached double- digit levels in leading markets, peaking at 16% 16% in Pune. The defining shift within this is the rise of managed space. Since 2020, the segment has tripled in size, driven by global enterprise demand contributing 60% 60% of volume for larger, long- term occupancies.

India Flex Growth Story

Foundational Market Size

2018

? Footprint: 18.6 Million Sq. Ft- Market Penetration: 3.0%3.0%

Current Market Scale

March 2026

? Footprint: 110-114 Million Sq. Ft- Market Penetration: 14-16%14-16% (Leading Hubs)

[Sources: India Flex Office Market Triples: Managed Office Growth Table Space Indias flex workspace market is coming to scale and the leaders are already visible Table Space Indias Flex Office Market Crosses 100 Mn Sq Ft As Enterprise Demand Fuels Growth - BW Businessworld]

Indias Office Market Sets Record Demand Levels

Indias commercial office market has reached a structural scale that underpins the flex opportunity. Grade A office supply is set to peak in 2026, while Indias operational flex stock reached 114 Million Sq. Ft. by March 2026. Demand has kept pace, with flex operators capturing an estimated - 20% - 20% share of all net absorption in fiscal 2026. Flex now accounts for 20 - 25% 20 - 25% of Grade A volume, with record activity anchored by GCCs capturing 40 - 50% 40 - 50% of demand. Occupiers evolving preference for agility and high- spec assets reflects the flight to quality trend, thereby reinforcing demand for managed workspace solutions.

[Sources: India Flex Office Market Triples: Managed Office Growth Table Space Crisil Rating, May 2026 Colliers India Office Market Demand Forecast 2026]

Global Capability Centres Anchor the Demand Story

Global Capability Centres Anchor the Demand StoryGlobal Capability Centres (GCCs) have emerged as the decisive demand driver for both the office and flexible workspace markets. In 2026, GCCs represent around 40 - 50% 40 - 50% of office leasing. With an estimated two- thirds of Fortune Global 2000 companies outside India yet to establish a presence, the long- term runway remains strong. National targets see GCC units reaching 5,000. The widening growth gap between India and advanced economies, the China+1 supply- chain shift and Indias leadership in services exports continue to support GCC expansion. Together, these structural drivers continue to strengthen demand for office and flexible workspaces.

[Sources: India Targets 5,000 Global Capability Centres by 2030 Accline Colliers India Office Market Demand Forecast 2026]

THE STRUCTURAL TAILWINDS

Rapid Urbanisation

The emergence of Tier II cities as cost- effective talent hubs has expanded the addressable market. Tier II flex stock has grown roughly ninefold since 2018 to 4.59 Million Sq.Ft.and is the segment where our Company is strongest.

Regulatory Reforms

Regulatory ReformsReforms such as RERA, GST and REITs have improved transparency, governance and investor confidence in the real estate sector.

Infrastructure Unlocking New Workspace Markets

Infrastructure Unlocking New Workspace MarketsInvestments under the National Infrastructure Pipeline (NIP) and PM GatiShakti are improving road, rail and air connectivity across emerging cities. Better connectivity is making Tier II and III locations more attractive for enterprises, GCCs and skilled talent, expanding the addressable market for managed workspaces.

China+1 Opportunity

Global supply chain diversification and manufacturing expansion are attracting multinational investments, boosting demand for office and industrial real estate.

Skilled Talent Pool

Indias large STEM workforce, English proficiency and cost competitiveness continue to attract global businesses and technology investments.

Growth of GCCs

Rising Global Capability Centre investments are driving office space absorption, supported by Indias talent, innovation and operational advantages.

The Rise of Integrated Workspace Solutions

The Rise of Integrated Workspace SolutionsThe sectors footprint has expanded at an approximately 23% 23% CAGR over the past three fiscals, increasing significantly as a share of Indias commercial real estate market. This trajectory is expected to continue, with the operational flex stock projected to reach approximately 140 to 145 Million Sq. Ft. by FY 2027- 28. The outlook remains supported by sustained enterprise demand, GCC expansion and evolving hybrid workplace dynamics.

[Source: Crisil Rating, May 2026]

OUTLOOK

Indias flex market is projected to nearly double to around 140- 145 Million Sq. Ft by FY 2027- 28. Flex operators are now regarded as integral to the liquidity and functioning of the office market rather than a niche segment. Enterprise demand, quality- focused occupiers, GCC expansion and Tier II growth are expected to support sustained growth. However, the sector remains exposed to the broader office cycle and competition- driven pricing pressure in crowded submarkets.

COMPANY OVERVIEW

Dev Accelerator Limited (referred to as DevX or Our Company) is the largest managed workspace operator in Indias Tier II markets in terms of operational flex stock. Our Company provides fully managed, technology- enabled office solutions - sourcing the space, customising and building it out, and operating it end- to- end, for enterprises, MNCs and GCCs. Workspace is a strategic asset that enables talent attraction, business agility and growth rather than simply an operating cost. DevX delivers that infrastructure on a model that requires zero capital expenditure from the client.

FY 2025- 26 marked a significant milestone for DevX with its successful IPO and stock exchange listing. The proceeds strengthened our Companys capital structure, supporting strategic expansion and debt reduction. Consequently, the debt- to- equity ratio improved to 0.78x in FY 2025- 26 from 2.39x in FY 2024- 25, while lower finance costs following debt repayment contributed to stronger profitability and enhanced financial flexibility.

BUSINESS AND MARKET POSITION

BUSINESS AND MARKET POSITIONFounded in 2017 and listed during FY 2025- 26, DevX operates as an integrated workspace platform across design, fit- outs, management and allied services. Its strategic focus is the growing shift of enterprise and global occupiers into Indias Tier II cities. Lower real- estate costs and a deepening talent pool continue to support this transition. Our Company has a presence across four

2025- 26. Looking ahead, DevX targets approximately 12 Lacs Sq. Ft. of operational area by FY 2027- 28. This will be driven by the addition of eight new centres ( ~ 7.99 ~ 7.99 Lacs Sq. Ft.), expansion across Ahmedabad, Pune and Bengaluru, execution of its signed pipeline, and scaling of its asset- light OpCo- PropCo model, while maintaining disciplined unit economics.

of Indias leading Tier I markets, including Mumbai, Pune, Hyderabad and Noida, while being among the largest operators across Tier II markets, including Ahmedabad, Gandhinagar and GIFT City, Vadodara, Rajkot, Jaipur, Udaipur and Indore.

THE INTEGRATED ECOSYSTEM

Three capabilities distinguish DevX from a standalone office lessor.

Managed Workspace Business (hereinafter referred to as DevX Spaces): Serves large enterprises under built- to- suit contracts, with lease tenures of five to nine years and lock- in of 3.5 to five years, providing a stable, long- duration revenue base

Subsidiary: Neddle and Thread Designs LLP (hereinafter referred to as DevX D&B): Provides in- house design- and- build services, enabling delivery of customised bespoke workspace within 75- 90 days and removing the largest source of delay and risk in a clients expansion

Subsidiary: Saasjoy Solutions Private Limited (hereinafter referred to as DevX GCC): Offers software, cloud and allied technology services and supports Global Capability Centres (GCCs), extending DevXs role beyond workspace solutions

ASSET-LIGHT PROCUREMENT AND INNOVATION

Most of our Companys centres operate under the straight- lease model, where it bears the fit- out costs and retains the full revenue upside. DevX DM has also begun developing space under development- management approach, partnering with asset owners to create purpose- built, institutional- grade supply rather than leasing it ready- made. This enables DevX to align new supply with enterprise demand while maintaining an asset- light balance sheet.

OPERATIONAL AND FINANCIAL EXCELLENCE

In FY 2025- 26, DevX reported a consolidated revenue of 226 Crores, marking a 42.2% 42.2% YoY growth. Our Company maintains strong unit economics, with an EBITDA margin of 48.4% 48.4% and overall occupancy of 90% 90% . Revenue visibility is supported by an average client tenure of ~ 3.5 ~ 3.5 years, lease terms of 5- 9 years and zero net churn in FY 2025- 26. Looking ahead, DevX targets approximately 12 Lacs Sq. Ft. of operational area by FY 2027- 28. This will be driven by the addition of eight new centres ( ~ 7.99 ~ 7.99 Lacs Sq. Ft.), expansion across Ahmedabad, Pune and Bengaluru, execution of its signed pipeline, and scaling of its asset- light OpCo- PropCo model, while maintaining disciplined unit economics.

Portfolio Overview

FeatureDetailsOperational Centres/Cities28 Operational Centres across 12 Cities in IndiaOperational Footprint0.83 Million Sq. Ft of Operational FootprintSeating Capacity13,604+ Seating CapacityAverage Occupancy90.31%+ Average Occupancy RateNet Churn/Seat Retention0.0% Net Churn and 99.7% Seat Retention Rate in FY 2025-26Revenue (FY 2025-26)226 Crores, Representing 42% Annualised GrowthProfitability48.4% EBITDA Margin and 16 Crores PBT

CLIENT BASE

As of FY 2025- 26, DevX served over 335 clients across information technology, IT- enabled services, BFSI, media and consulting sectors. Its client base includes large corporates, MNCs, SMEs and startups, with anchor relationships including QX Global Services, Zomato (Eternal Limited), Wipfli India and Darwinbox. The top 20 clients contributed around 43% 43% of revenue. It reflects strong enterprise relationships and sustained client retention, supported by the quality and reliability of its spaces.

DevX Spaces account for close to 60% 60% of revenue. The remaining revenue is derived from DevX D&B, coworking and DevX GCC introduced in FY 2025- 26. The design- and- build capability, delivered through Neddle and Thread Designs LLP, also serves external clients beyond DevX centres.

HUMAN RESOURCE AND GOVERNANCE

The team is led by the promoters Parth Naimeshbahai Shah, Umesh Satishkumar Uttamchandani and Rushit Shardulkumar Shah. Together they bring over 21 years

2025- 26 our Company employed 210 professionals across its operations.

The governance structure comprises a ten- member Board, including five Independent Directors, supported by a senior management team with decades of experience. The processes are certified under ISO 9001:2015 for service quality and ISO 27001:2022 for information security.

FINANCIAL PERFORMANCE

Consolidated Financial Highlights

In FY 2025- 26, DevX recorded consolidated revenue from operations of 226 Crores, a 42.2% 42.2% increase over 159 Crores in FY 2024- 25. Growth was led by our Companys enterprise- focused business model. Managed office solutions contributed 67.12% 67.12% of revenue, with built- to- suit mandates for large corporates and Global Capability Centres (GCCs) anchoring demand.

Design- and- execution services, delivered through the subsidiary Neddle and Thread Designs LLP, contributed 25.59% 25.59% of revenue. The business supports DevX centres within 75- 90 days and also serves external client offices through its in- house execution capabilities. Coworking contributed 6.04% 6.04% of revenue. IT/ITeS, facility management and Saasjoys payroll services accounted for the remaining revenue.

Profitability strengthened significantly during the year. Profit before tax rose to 16 Crores from 3 Crores, moving well beyond breakeven. EBITDA increased to 109 Crores. The EBITDA margin moderated to 48.4% 48.4% from 50.7% 50.7% reflecting the inclusion of DevX D&B and Saasjoy Solutions, which operate at lower EBITDA margins than the core managed workspace business. As these businesses scale, our Company expects operating leverage to support margin improvement over time.

Revenue durability remained a defining feature, supported by long- tenure managed- office contracts, a 99.7% 99.7% seat- retention rate and negligible net churn.

Metric	FY 2025-26	FY 2024-25	Growth
Revenue from Operations	D226 Crores	D159 Crores	+42.2%
EBITDA	D109 Crores	D81 Crores	+35.8%
EBITDA Margin	48.4%	50.7%	(230 bps)
Cash EBIT	D42 Crores	D22 Crores	+96%
Cash EBIT Margin	18.8%	13.6%	+520 bps
Profit	D16 Crores	D3 Crores	+468%

Three-Year Historical Trend (Consolidated)

Between FY 2023- 24 and FY 2025- 26, DevX scaled materially while strengthening its balance sheet. Revenue roughly doubled over the two years, representing a CAGR of about 45% 45% , while occupancy improved to 90% 90% . A notable shift was seen in capital efficiency. Return on capital employed increased from around 5% 5% to 14% 14% , while the debt- to- equity ratio sharply fell from 3.51x 3.51 x to 0.78x 0.78 x . While EBITDA margins moderated with capacity expansion, the broader trajectory reflects a business converting scale into returns, with improving operational maturity and stronger capital efficiency across Indias Tier II markets.

Metric	FY 2023-24	FY 2024-25	FY 2025-26
Revenue (D Crores)	108	159	226
EBITDA Margin	60%	51%	48%
ROCE	5%	12%	14%
Debt-to-Equity	3.51x	2.39x	0.78x
Occupancy Rate	83%	89%	90%

KEY FINANCIAL RATIOS

KEY FINANCIAL RATIOSThe following key financial ratios provide an overview of our Companys liquidity, capital structure, working capital efficiency and shareholder returns during FY 2025- 26. Significant movements in these ratios primarily reflect the impact of the successful IPO, debt reduction initiatives and our Companys continued operational growth.

Ratio	FY 2025-26	FY 2024-25	Remarks
Current Ratio	1.26	0.72	Improved following the strengthening of our
			Companys liquidity position.
Debt-to-Equity Ratio	0.78x	2.39	Improved as IPO proceeds were utilised
			towards debt reduction, resulting in a
			healthier capital structure.
Return on Capital Employed (ROCE)	14%	12%	Reflects improved efficiency in the
			utilisation of capital employed.
Return on Equity (ROE)	7.35%	4%	Reflects improved returns generated for
			shareholders during the year.

OPERATIONAL EXPANSION

OPERATIONAL EXPANSIONDuring FY 2025- 26, DevX continued to scale its platform by expanding its operational footprint from 26 centres to 28 centres across 12 cities, adding 2 centres and entering 1 new city during the year. Our Companys operational footprint stood at 8.3 Lacs Sq. Ft with a seating capacity of 13,604 seats.

Parameters	Existing	Additions	Total
Operational Centres	26	2	28
Cities	11	1	12
Occupancy (%)	87.61	2.76	90.37

RISK MANAGEMENT AND MITIGATION

RISK MANAGEMENT AND MITIGATIONOur Company operates a structured framework to identify, assess and mitigate the risks most material to its business.

Risk	Description	Mitigation Plan
Lease- Commitment Mismatch	Long landlord leases (5-9 years) against flexible client contracts create a lease- commitment mismatch. Fixed rental obligations persist even if occupancy softens.	- Align client and landlord commitments through long lock-ins on enterprise contracts - Focus on Grade A assets and disciplined site selection, while recognising cyclical exposure
Client Concentration	A significant share of revenue is derived from the top 20 clients. The loss or non-renewal of a major occupier could affect revenue.	- Maintain long contractual tenures, high retention while expanding client base across sectors to reduce dependence - Client concentration is monitored as our Company scales
Technology/AI Demand Shift	AI and automation may moderate headcount growth among IT/ITeS and GCC occupiers, softening seat demand, even as higher-value GCC mandates expand.	- Focus on premium managed workspaces and GCC- oriented offerings that support AI, R&D and other knowledge-intensive operations - Monitor evolving demand patterns thoroughly

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Our Company maintains internal control systems that are adequate and commensurate with the size, scale and nature of its operations. These controls provide reasonable assurance over the safeguarding of assets and the prevention and detection of fraud and error. They also support the accuracy and completeness of accounting records, the timely preparation of reliable financial information, and compliance with applicable laws, regulations and internal policies.

Operations are supported by integrated technology platforms spanning client onboarding, agreement and billing management, facility operations and financial reporting. These systems support process consistency and provide management with timely oversight across our centres.

The internal control framework is reviewed and tested periodically. The Audit Committee of the Board reviewed the status of audit findings and the implementation of corrective actions. Our Company continues to strengthen its control environment in line with its growth and responsibilities as a listed entity. The Board considers the internal control systems adequate and effective during the year under review.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing our Companys objectives, projections, estimates, expectations and plans may constitute forward- looking statements within the meaning of applicable laws and regulations. These statements are based on current expectations, assumptions and projections regarding future events and business performance. Actual results may differ materially from those expressed or implied. Readers are advised not to place undue reliance on these forward- looking statements, which speak only as of the date of this discussion. Our Company undertakes no obligation to publicly update or revise any forward- looking statements in response to new information, future events or otherwise.