Dev Accelerator Limited (DEVX) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Dave Accelerator Limited Q4 and F526 on Wisconsin's call. I have with me Mr. Umesh Uttam Jandani, Managing Director, Mr. Pari Jep, Joint Chief Financial Officer, Mr. Parthiv Panchal, Joint Chief Financial Officer, Mr. Anjan Krivedi, Company Secretary and Compliance Officer, Mr. Yesha, Non-Executive, Non-Interpendent Director. Before you proceed, I would like to bring to your attention that certain statements made during this discussion will constitute forward-looking statements. These statements are based on our current expectations, assumptions, and beliefs regarding future developments, and are inherently subject to various risks, uncertainty, and factors beyond our control. Such forward-looking statements involve both known and unknown risks, and we advise you to interpret them with caution. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on the touchstone phone. Please note that this conference is being recorded. I now have the conference overview. Mr. Umesh Uttamchandani, Managing Director. Thank you and over to you, Mr. Uttamchandani.

Thank you so much for initiating the call.

Good afternoon, everyone, and a warm welcome to Lake Exiliter Limited's earnings consult call for the fourth quarter and two years ended March 31, 2026. I am assuming you all had the opportunity to review the audited results, the illustrator presentation, and the media review that we have shared with the talk exchanges. I'll start with this year's numbers. This year has been extremely meaningful for all of us at DERICS, as it completes the full financial year as public-listed entities. Our thesis of focusing on India's Tier 2 cities has now become the frontier to the entire country, not only from a real estate perspective, but also from other growth parameters. Tier 2 cities have spread out in a number of extreme years. And I will tell you through all of the numbers in the next 20, 25 minutes. For the full year, FY26, our uncertainty has reached to a phenomenal outcome of 226 growth. That's an annualized growth of 32 success, wherein our FY27 was 159 growth. I am sure a lot of people who are there on the call today, who have been monitoring and tracking us. During our pre-IQ award shows, I had showcased the numbers of achieving an outcome of 225 crores, and today, we have achieved one share additional to what we had envisioned a year ago. Our consolidated EBITDA has come down to 109 crores, which is a margin of 48.4%. Thank you very much. It is excluding our design and build company and technology community. It reflects a strong unit economics of our core managed workspace platform. The standalone numbers have increased 34% on an annualized period, and we have achieved a phenomenal number of 171 crores for FY26. And our margin, EBITDA margin, has been achieved at 60.5%, which last year was 59.8%. Just to help you understand this amount of peers who are listed in the Flexible Workspace sector, this is one of the highest numbers to be achieved. The headline profitability that we have achieved in our standard numbers at an I-GAS basis It is extremely strong on code-managed workspace operations. So, normalized EBITDA for FY26 is 36.55 rows, which is 21.38% margin. At an industry far-long, 15 to 18% is assumed to be a better outcome. We have exceeded that industry peers as well. So, normally, it's a big TV. This has been achieved at a number of 20 crores, which is a staggering 13.23 percentage, and this has been the second consecutive year, when we have achieved a positive normalized problem to Sotex, which is supported by operating leverage from our matured sensors, and efficiencies that we have built in our operations. So, the last water. The consolidated revenue stood at 59 crores. One of the key highlights of the fourth quarter has been the goal line of our dream project of Capital One campus on Amri Doppel Road. I still recall that we signed this asset back in 2022, wherein two and three cities were not looked upon as the 20th store flexible office spaces. It is a 19-story building with 3.15 lakhs square feet. That entire asset has been free-leaved by us with a 95% occupancy achieved even before going live. Immediately after we received business operations or the O.C. of the asset, the next month itself we had operations running in that space. The asset is EBITDA-positive from day 1, and we would be achieving a revenue run rate of 2.652.215 crores per month. The revenue from this center would be reflecting in our books from Q1-FY27. Let me now elaborate a little bit on what we are actually building at DayX. Because the opportunity here is not just the quarterly course of the course, but it is an entire platform that produces this number. India as a country today hosts 1,800 global capability centers, employing more than 1.6 million professionals. And this workforce has gone track to cost 2 million professionals between the 12 countries. Globally, GCCs are now no longer confined to metros. Hiring in Tier 2 cities is growing at a massive 21% year-on-year because it gives them cost arbitrage of 35% over Tier 1 cities on real estate and a very big deal of a massive digital skills talent pool of 800,000 professions. Today, India looks towards Bharat. The Indian flexible workspace market has already crossed 100 million square feet of stock and it is expected to reach 11.4 billion dollar in valuation by 2030. This is a structural migration, and this probably It ignites or starts the dream that we had thought of back in 2018 when we were starting Derex. It is our deliberate choice to focus on Teotihu City and create that as a strong foundation. While Derex is focusing on operating managed office spaces in Teotihu City, Our real differentiating factor is in creating institutional-grade supply in markets, Well, land ownership is unorganized, fragmented, and non-institutional. Our proprietary landowner's first development management model, which we had introduced a couple of years ago, partners us, that is Derex, directly with non-institutional landowners. What we bring on the table for landowners is strong capability execution skill sets. Technical specifications, construction discipline, BCC and institutional client relationships, and a confirmed demand over a longer period of time. This also gives landowners ownership of their assets for long-term business, which in turn helps them to generate 30 percentage higher return as compared to traditional leasing management. What Dayrix builds for them is a Grave A-plus asset, which is specifically designed for institutional clients, including ECCs. As Dayrix, we are not putting the construction risk or the land risk onto our balance sheet. What we are committing is operational expertise and leave obligation against assets where we have already received a committed demand. This is one of the strongest key modes for us.

And it also solves the biggest concern

in the country, and specifically for institutional plans, like for office spaces, is the availability of grade A supply in tier 2 cities. The micro market called Amlu Rotel in Anderbanh is an example how this model works at scale. And the entire last year, which is quite only six, Baywix has signed and secured approximately 15.75 lakhs per fee of contracted space in one micro market. I will break that down for you to understand. 2.15 lakhs per seat at Capital One, wherein we have delivered that asset, achieved 95% occupancy levels even before going live. It has 4,000 seats. This is anchored by one of our largest client which has been with us since last six years, Manubai Insha. Typically, a similar size asset just leaves in 12 to 18 months of time frame. The single client Manubai Insha has contracted with us for basically a revenue of 100. The second asset is 8.1 lakhs per week. We have committed investment of 100 crores across 4 years, which will ultimately help us achieve an annualized revenue of 120 crores with 80% occupancy and 8,500 seats. Recently, it is last quarter, we also signed 4.5 lakhs per week. They are still called this, which is devourced by a company that has a company. It is the same. And the same is the same. Two propositions. Three contracted assets, one single micro market. Almost 16 lakhs traded in a single product. This is what we intend to build in other CO2 cities as well. Identify certain corridors wherein we can grow stronger, which ultimately creates a challenge for our peers to enter that micro market. And this is 100% replicable as it is asset-like for us. We have already started landowner conversations in multiple cities, in multiple tier 2 cities, to say so. Inbox, Jaipur, Surat, Baroda, these are few of the cities when we are already present, we understand the ecosystem strongly, and we now would be growing stronger in those micro markets. There will be two development and management partnerships that we will be announcing in this F527. Understanding this strategic platform, I will run you through certain operating metrics that are the indicators of our revenue dealership. On client side, 75% of our revenue comes from enterprise clients, which is on day-to-shoot contracts. So, typically, an enterprise client would come to us, share the requirements, and we would design and build their entire office right from scratch. Hence, we call it day-to-shoot. 65% of our revenue comes from such nature of the contract. The client retention is unheard of. We have a 99.7% retention this year. Almost negligible 0.003% of turn that we achieved last year. Among our clients of 300 plus, the average blocking that we have is of 34 months. One third of our clients, that is more than 100 clients with us, are present with us in multiple cities. So the revenue base is structurally contracted and not transactional in detail. The typical industry average of rent-to-revenue ratio is 2.2x in Tier 1 cities. While the cities are re-operating, we will be able to achieve a rent-to-revenue ratio of 2.4x in Equator 26. On our suburbines, which is our design and build, in Netherlands, we were able to achieve a 52.3 promos revenue with 7.2% milliliter margin. Just to help everyone recall, we started this company as a back office for Davex to build offices only for Davex. Since we were able to build the processes and make it stronger, we now offer it as a full-fledged solution to external clients as well. And we were recently recognized as India's most futuristic interior design and build from 2026 and a revenue of 52.3 crores. As an organization, we are extremely proud of this achievement. A technology subsidiary, which is Science Go Solutions. Continues to scale on providing recruitment, payroll, and HRMS solutions to our GCC clients, wherein we intend to position ourselves as a full-stack offering to our GCC leads that we interact with. It is also heartening to mention that as an organization, we were named Co-Working Startup of the Year at the Economic Times and Supplier Awards 2026. for the second consecutive year. We recently raised, our board recently approved a presidential issue of 35 crores, which was largely to pay the growth and take-up of 4.5 lakhs per bit, which rinsed them as a matter. Out of these 35 crores, 15 crores have been subscribed directly by the promoter and promoter group to convertible warrants. And additional 20 throws coming in from non-promoter investors. The promoter participation is a clear signal of our internal connection in the asset and the corridor strategy that we are building on. Q1, F527, we are anticipating a significant capital event through monetization of our holding in one of our subsidiaries When we are building almost half a million scripted, That capital event would result into a liquidity of 110 to 120 crores within the works. Largely, the priority of utilization of the funds would be to accelerate growth across the country and build similar corridors like Amiripal in at least 4 to 5 cities across the nation, I started with development management partnerships with landowners based in clear to cities. So that it can strengthen our future system, and obviously strengthen our damage sheet. The Lord has also approved a non-conemitable dementia issuance at a project level

to further optimize our financing mix. To help you on an outlook of FY27 and FY28,

we would be, we are planning to invest roughly 200 to 225 groups in the next two years of time frame. It specifically would empower us to reach from current 1.2 million square feet to 3 million square feet of operation in the FY28. The substantial portion of this capacity that is getting added in our VIX is normally contracted from the demand side, as well as from the supply side, which has a mix of ready-to-use and development management partnership that we're finding them. FY26 has been the year, Davex transitioned from a flexible workspace operator in PL230 to becoming an institutional infrastructure platform. For the BCC migration and institutional migration into tier two cities, we have delivered our highest revenue, our highest margins in the last eight years of our journey, and the largest contract not only in the community's history but also across the industry's history by contracting eight and a half lakhs per week of single managed office space asset. And this is just getting started. This is first year of full operational entity as a public business company. We are not compromising on new economics, neither on balance sheet quality. With this business model, we believe we are well positioned to capitalize on the upcoming opportunities and the future scale. I thank you everybody for your continued support. And now open up the floor for questions.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch door telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions will assemble. The first question comes to the line of Urmisha from Money Wise Up, please go ahead.

Yeah, I hope I'm audible.

Yes, yes, sir, we can hear you.

Yeah, sir, my question is on the mature occupancy first. In FY26, we saw a very steep decline because we have maintained the range of plus 90s and in FY26, we are at 70. So, and also the occupied seats have gone on the lower side, or have been stagnant. So, could you just give some color on that?

No, your voice is stagnant.

Just for the patient, I just wanted to give you the understanding about the Mercury Center. Earlier, whatever the number we have presented in the investor presentation, where we are presenting the occupancy understanding is the more than 85% of the across all the centers. That's why we consider a mature center. But then now, considering the operational efficiency and we consider and putting our benchmark at a higher level, basically we say that the 100% occupancy is the higher benchmark for the business. So considering the 70% mature centers, like we are saying that out of whatever area we are managing, like 0.83 million square foot, 70% of all the centers are achieving 100% occupancy. So basically, we don't want to change the previous numbers. That's why we see the dip in the occupancy percentage in a mature center.

Then, sir, why were you considering 85% before?

So, in the industry, all other players, basically, basically, 85% is the right metrics where we generate the more revenue and more than the achievement. So, that's why in earlier, if we have understanding, in the discussion, like 85% is the right benchmark and the right metrics to evaluate the business. But then we also see that if we can also achieve the more than 85%, that is good for the business. So that's why we are keeping our benchmark high. So that's why we are updating the numbers at our material center.

Okay, and you know, if I see quarter four numbers on a console basis, year on year, our revenue has gone down a bit and also the margins. So, and how do you see the industry outlook going forward for F527? So, you know, will these margins be sustained or will we be back on F525 margins?

So, if you dig down on the

numbers, at a standalone matrix, the numbers are not big. In fact, the margins are slightly improved as well. Across the year, as you see, we have been able to achieve a higher margin number as compared to the previous year. So, just to contextually help you, we have achieved a revenue of 170 crores at a standalone basis.

Sir, I am talking about quarter four year-on-year. I am not talking about the full year.

So, quarter four is the revenue of the schedule.

You are comparing that with TVS year or this year?

I am comparing quarter four FY26 to quarter four FY25. I am talking about EBITDA margin, sir. Obviously, the drop has been there, but it's flat, but I just wanted to know the reason.

So, there has been a dip in the revenue compared to last quarter, because one of the assets that we were operating is NOIDA, that we had closed down. And that was the primary reason why the dip of that revenue comes in on compared to previous quarter. On the UBITDA percentage, we are almost kind of achieving the similar outcome.

Right. So, why was the NOIDA asset shut down?

So, Navada asset was typically operated by a landowner, which was going through a very difficult case. And the common area maintenance was their responsibility. And the asset was not being able to maintain or manage by them. And we were not happy with the services that were being delivered to us. So, there were instances where in the elevators, they were getting stopped on a returning basis. The AACs, I mean, the systems from there, the AACs were being powered. They were not being serviced and maintained in a right full manner. So, we were extremely unhappy with the services. And that was the final reason why we had to close down this data.

Okay. And as brokerage, as a percentage of revenue from Ops, I was also being a bit on the lower side compared to FY25, if I see that correctly.

So, typically in our business, when we take up a new center, that is the time when we see higher amount of quantum of brokerage is kind of getting registered. Last six months largely has been delivery of the centers that were already contracted earlier. So, the conviction of me saying the only number 6-7 months before was largely coming up because of their own T-COVID agreement with the client. And for those, brokerages were already paid beforehand. Having said that, our brokerage payout is way better as per industry standards because 65% of our leasing in Gujarat happens directly. While 35% of our company comes from brokerages. When it comes outside Gujarat, we have a 50 to 50 ratio, where 50% of our client comes directly, and 50% comes from the brokerage or our channel partners.

Right. Sir, one question before I join back. You know, how do you see the industry going forward? You know, obviously, we are not directly impacted by the geopolitical situation, but, you know, the government calling for work from home again and, you know, things like that. So, do you see certain shift in the industry or how do you foresee the, I mean, just as an outlook?

Sure, sure. So I've always been sharing on these lines that whatever we see with respect to digital payments, the UTI number that I've kind of extrapolated in the recent years, the credit goes to demonetization and COVID. The adoption of technology from all users came largely because of these two primary drivers. The same thing that demonetization did for Digital Payment Gateway is what COVID has done, or hybrid work culture has done for flexible office spaces. Geopolitical tensions obviously should curtain down. It is extremely not the right situation for the country and the world to be in. We are obviously standing strong against those measures, but it is definitely acting as an advantage for the entire sector and the industry. The moment the hybrid culture becomes much more prominent, much more better and much more adopted, the better it is for the flexible office space sector overall. Because, I'll cite an example, one of our biggest clients, I cannot name the client because of the contractual agreement, but one of the coaching clients in the community which is sitting with us in J2, they have 485 people that are working from that city. The number of seats that they have signed up with us is 240. So they are almost having one seat for two people that are working in that city. So it gives them the flexibility to design their workplace which can accommodate hybrid function. So what we, we actually empower that. So tomorrow any organization wants to inculcate a hybrid work culture, we give them our technology access. Where each individual that is working in the office gets to pre-book a seat and then come to office. So that empowers the organization as well to enable people to come to offices on few days of the week. And that is where the power of flexible workspace comes into pictures.

Okay, sir, that helps. I'll join back to you for further questions. Thank you.

Sure, thank you. Thank you. A reminder to all the participants that you have a star and want to ask a question. Next question comes from the line of Anike Tavadeh, an individual next to the school.

Thank you for the opportunity. So, sir, I have a few questions. First, can you share the contributions on the enterprise plan versus the startup plan? Contribution?

So, we have 65% of our revenue coming into an enterprise client, wherein the average locking is 34 months.

Okay. And what about the startup client?

And these are all build-to-ship. So, in our client profile, or client mix, all the enterprise clients that we have, wherein we do build-to-ship, We have almost negligible exposure in the startup sector. We do have startups using our offices, but that is largely on the co-working side, which is contributing 15 percentage of our business.

Okay, okay. So, just to compare with the both, most of the demand is from the enterprise plant only.

Right, right. Enterprise, institutional clients, and GCSEs.

Sir, what is the trend in the seat addition and occupancy during the FY26, and what is our target for FY26?

What is the trend in S526? Yes, yes.

So we had 13,500 seats in S526, wherein 4,000 seats got added in last quarter, which is quarter 4 S526, but the revenue would be coming in Q127. So, today, if you ask me, we are at 17 and a half thousand seats.

Okay. Okay. Okay. Got it. Okay. Um, just to, uh, try to more on this Bangalore related. So, earlier we had, uh, we had mentioned that the expansion plans about the new centers, including the Bangalore. So, can you throw some light on it? Sure. In terms of the rollout and the expected topics.

Absolutely. So, we have a healthy mix of our expansion in tier 2 cities and tier 1 cities. Our tier 2 cities proposition is having a presence of 65% of our portfolio and tier 1 cities we have a exposure of 35% of our portfolio. On the same line, just to balance that portfolio, we have added 1.1 lakh square feet of area in Bangalore. Actually, we have partnered with one of the largest developers there, which is called Prestige. We have partnered with them, and we have taken up two assets from them on outer ring route. So, just to contextually help everybody understand, Outer Rain Road is where 40% of the entire leasing happens in Bangalore. Bangalore does 22 million square feet of leasing on an annual basis. So, technically, 10 million square feet gets leased on a year-on-year basis,

just in that stretch of Outer Rain Road.

Okay. Okay. Got it. Got it.

And sir, one last question. As we raise the fund through this MCD, so what is the intended utilization of this fund and how are we going to use this?

Sure. So we are at least planning for an investment of total 220 to 230 euro. The breakup of this is... Three phases. One, we have taken a board approval for 100 crores of NCDs. We are expecting a liquidity event of 110 to 120 crores from the proceeds of certain assets. And the potential allotment of 35 crores.

Okay. It's a great statement.

Total investment would be deployed across two years of time frame. From the current 1.2 million square feet, which is SI26 being 0.84 million square feet and an additional of 0.3 million square feet with capital one, that is 1.2 million square feet. From here on, we intend to add additional 3 million square feet with this extra liquidity of, with this extra capital intrusion of 220 to 230 crores.

Okay, okay, got it, got it. And sir, uh, are you seeing any balancing pressure or interest competition from such free operating markets?

On the demand side, we are not seeing any pressure. On the supply side, there was certain crunch of critical supply chain or public value chain products. Like, for a short period, the availability of tiles was not there because of... We have availability of gas and our suppliers kind of not operating in that place, but now the supply chain seems to be, you know, streamlined, we have availability of labor as well on site, and all the raw material which was there is now accessible. Got it. Got it, sir.

Thank you so much, sir, and all the best for the future.

Thank you so much.

Thank you. A reminder to all the participants that you have a star and want to ask a question. Next question comes from the line of Nikita Mepo, an individual investor.

Thank you. Thank you, sir, for the opportunity. So, I have a couple of questions. Sir, one is how much contribution is expected from our non-cold businesses like Needle and Thread and FastDoy over the next two to three years? Thank you.

To be, so in terms of revenue, there are contributors roughly around 20-25 percentage towards the revenue. But I will not probably categorize them in non-core domain because those entities kind of play a very strategic role in the journey that we are kind of creating for us. So, design and build entity, needle and thread, plays a very pivotal role in giving. Commitment to our end clients that we would deliver their office from day one to the day when they enter the office anywhere between 75 to 90 days of pension. So that commitment or that connection to commit within that pension comes because of the resources that we have built, the processes that we have created in the last four years of pension. Second, Going forward, and currently as well, GCCs are now becoming a very strong contributor to office space living in India. And to attract GCCs, we need to be a full-fledged solution provider, and that is where the other subsidiaries charge their solutions and all. So the recruitment, payroll, technology, tax, all of that offering comes under that umbrella. So, both the subsidiaries play a very pivotal role in ensuring or public

defining what we intend to achieve in the next couple of years.

Okay, okay, sir. I think...

Is I considered correctly?

Yeah, yeah. Okay. Sir, I have one more question. Like, can you explain the economies of development management model versus the trade, please?

Super. I think, I mean, this helps me to address the model that we are extremely proud of.

So, one fundamental challenge that our country has today, in tier 2 today specifically, So, when a larger enterprise client comes to any tier 2 suite, they literally feel that they do not belong here because the quality of supply, quality of assets that are available here are not to the status that they are used to operating from. And we identified this channel. So, what we are doing here is we partner with planned over. Tell them that we would be leaving this asset, we would be bringing in clients, it is our commitment to bringing in the client. However, the inclusion of capital to build the asset is to be done by the landowners. So we charge them a fee for managing and designing that asset. The revenue that we generate is a first perfect revenue which ranges anywhere between 300 rupees to 500 rupees first perfect. Which spans across 2 years to 4 years of pension. So, if I am building an asset of, let's say, 4 lakhs profit, my revenue at the books of J-Dex would be anywhere between 12 crores to 20 crores. That is what our fees would be to the landowner. And the landowner would be contractually minded. To interact for building an asset, which is grade A plus quality, which is pertinent to certain specifications of

technicalities and even building a green building asset.

Okay. Okay, sir. I think, yeah, I think that was great. It answers my question, and thank you, sir, so much for this opportunity.

Thank you. Thank you, Mr. President. Thank you. A reminder to all the participants that you must have star and want to ask questions. Next question comes from the line of Sano, an individual in a topic.

Hi, sir. Good afternoon, and thank you for the opportunity. Sir, I have a few questions. Can you please tell us if the margins will remain stable if the company accelerate expansion into New York City?

I mean, that's a very interesting question.

Um, and similarly, as promoters, we kind of keep on discussing this. So, fundamentally, when we started this company, we achieved the profitability in first year itself. Um, with scale, we realized that to this point, we have been extremely hands-on into doing things. The next wave of growth directs from this 1.2 million square feet to adding more 3 million square feet in the next 2 years of pension. This will obviously be requiring more brains and more leadership team in the system. The moment that comes in, it can result into two outcomes. Either it becomes way efficient if we have earlier, or probably we lose out on track and there arises some leakages in the system. The other option becomes a probability if DA's promoters are not hands-on. Our daily time in our personal life is coming to office at morning 10, 10.30 and leaving the office to work with you.

Is this better? Can you hear me now? Hello, everyone.

My son, I can't hear the speaker.

Then I'll be talking to you.

Ms. Hanna, can you hear? Since there is no response from the line, Ms. Hanna will move to the next part. The next question comes from the line of Vikram and Zahu with RKYT. Please go ahead.

Hi, sir. I just have a few questions. Like, how much free cash flow generation do you expect in FF27?

We have a lot.

Free cash flow generation do you expect in FF27?

So, if you see, I mean, the core, I mean, strength of the business is the fact that the availability of free cash flows empowers us to kind of scale rampantly. So, the cash EBIT item that we see in our books that is ranging between 21 to 22 percentage has been very steady since last couple of years. The next one. Um, at the revenue rate of 330 to 350 crores, we expect to have a cash debit of 21 to 22 percentage.

And one more question I have, like, how scalable and replicable is the Amboli Bhopal development model across other sea cities and macro markets?

Well, um, that is actually what we are trying to do right now. So, the journey that we live in every city is between two years to four years of time. So, let's take an hypothetical example of Jaipur. Today, in Jaipur, we are almost 1.2 lakh square feet of area, which is operational. We have spent three years in the city. In these three years, we have identified who all are our vendors. Who can be the developers that we partner with? And what is the probable list of clientele that we can cater to? Once we establish this understanding in the system, the next step is to build what we have built at Amnibutal. So we will start growing vertically in all the cities when we are present beyond 2-3 years of time.

Okay. And one more question. What are the management's top three priorities for FF23?

The first and foremost priority

is to bringing senior leadership team at multiple city level so that we can kind of build autonomous growth across the organization but driven from those specific cities. That's the first agenda. Second is to become AI native in meter. So, currently, we are building and developing a lot of micro tools, which are helping us increase our productivity. We, in fact, hosted an AI hackathon for our internal team members, wherein the entire team participated, and they came up with solutions that we had never thought of. So, the objective in the next one year would be to become complete AI native. And there is certain processes which can scale naturally. That's second. And third is identify at least 5 to 7 lakhs square feet of projects under development management model in the next 12 months of time. These are three priorities, I would say, so for us.

I got it. I got it. Thank you so much, sir. Thank you.

Thank you. A reminder to all the participants that you know the best are and want to ask a question. Next question comes from the line of Arvind Singh with Mountain Capital Peaceful.

Hello, how are you, sir?

Yeah, absolutely. I can hear you.

Sir, good afternoon. My question is on the broader terms. Like, there is a lot of talking about the IT services are reflecting by AI. So, how do you see this trend in terms of the real estate? Like, majority of the occupancy is driven by the IT industry. So, how do you see this trend?

Good morning, everyone. I saw you resonate with this question. In fact, that was one of the fear that was in our brains probably five, six months ago when AI was kind of becoming very old. What we did was we started speaking with all our existing clients to pick up their brains and understand as to what are they thinking on the lines of what AI is doing. What we ultimately realize, all the noise that is happening outside these companies, wherein IT companies stocks being bashed out, there are news, wherein larger IT companies are revealing people, all these negative news, what is getting created as noise, when we spoke with these companies internally, because they use our offices daily, and we don't see any turn within them. When we had a good elongated conversation with them, what we realized is that earlier they used to, let's say, target 15 industries. Now they are able to have conversations with at least 30-35 industries. Second, the projects that they used to take and deliver in a time frame of 18-24 months, now they are able to deliver those projects in 9-12 months of time frame. So ultimately what we are sensing and what they are echoing is in the next 15 to 24 months of pension, their margins are going to shoot up drastically than what has happened in the last decade.

Their productivity is going to blast out.

Yes, sir, sir, much appreciated your response, but sir, you have said correctly they have a lot of productivity gain, but my issue is if we look at the data, then the number of addition of the job has subdued or I think it has begun in the IT industry. So, it will impact one way or other way the occupancy and the real estate area required for the utility. So, that's the point I want to know.

On that one, I am saying that since the productivity is increasing, they are bouncing, add more number of people. What we are witnessing, so you create a funnel in your brain, which is an open-ended funnel, right? On one side, there is an influx of talent which was pushed in, let's say, in 2020-2021, when there was massive outbursts of projects that they, all these IT companies grew up. So now this entire tunnel is stacked with people. Now suddenly AI comes in. The projects are already there, right? The business is there. Now this tunnel needs to be filled in with people who are extremely adaptive on AI technologies. If those set of people which are in this tunnel are not adopting the technology, they will be kind of moved out of the tunnel, but they would mandatally be replaced by people who understand using the technologies which are currently required. So to answer your question, is real estate going down the drain because of talent school being fired by these IT companies and that sector being one of the largest consumers of real estate? I think it is the other way now. That tunnel or the tunnel that I am referring to needs to be packed in with more number of people. It is probably getting drained by set-up people who are not able to adopt the newer technologies.

Okay, great, sir. But, sir, I think I have a greater point that TCAS and other public schools are getting less and less from the campus recruitment. So, that's the point I want to highlight.

Yes, we all have the data points. Times of India had this news published as a newsletter wherein India from the top 5 IT-ITS companies hired 1,500 net new people in the last year, wherein somebody fired 11,000 people, somebody hired 4,000 people, somebody fired 10,000 people, and all that stuff. So that is, I mean, I am addressing that point on this. You need to create that tunnel in your brain right now. Imagine a pipe, a water pipe, right, when the water is flowing. Till this point, the end point was chopped up. So there was, the entire pipe was filled with water. Today, the end point is opened up and the new influx of water is being put into that pipe. What eventually would happen is that pipe will be filled with water which can understand what these new technologies are. It cannot be a fact that we continue with individuals, people in the system which are not able to or not willing to reframe themselves.

Okay, so thank you.

Business head, okay, you're saying this. So that is a mandatory also.

Okay, so thank you for your time. Thank you. A reminder to all the participants that you're the best star and want to ask a question. Next question comes from the line of Atul Daga with Daga Securities, please go ahead.

Hi, sir. Just two questions. What are the milestones that investors track over the next four quarters?

As I said before, I mean, before IPO, I only remember, during the roadshows, I was kind of sharing as to what has been signed by us, and we forecasted a revenue of 225 crores. Today, by God's grace, we have been able to achieve 226 crores of revenue. In our business, there is certain predictability as well. So for the next two years, What we need to track us is, how much we are adding in terms of the supply that we are committing today. So, if I am committing a 3 million square feet of area in the next two years of time chain, how much are we adding on a quarter-on-quarter basis? And probably, where are we on that supply which we have signed up? That's one. Second, the demand that has been contracted for all these 3 million square feet. The moment this supply gets ready, are the clients that we have signed up ready to consume that supply at the same time? Or is there a gap in that? So that's the second thing that you should track up on. The third thing, as my shareholder, what is the leadership team that I am building in the next two years of time? And that is the third most critical aspect that I should be monitored on. And certain fundamental things, am I ensuring that my cash limit remains in the range of 20 to 22 percentage? Am I ensuring that my rent-to-revenue ratio is more than 2.2x? And am I ensuring that my debt-to-equity ratio is less than 1? And these are some of the hygiene things that I should be, you know, trying better.

Got it, sir, got it. You have any questions?

Yes. The second question that I had was, does management expect FI27 to be more, you know, back-end loaded in terms of revenue recognition?

Um, and I think we moved in. Hello, sir. Is there a question? Yes, sir. What is the management expect back-end loaded for the revenue in FY27?

In terms of revenue recognition, how do you see that for the year 27?

Can you help me with the term back-end loaded?

Can you specify how the revenue recognition is to include before from FY26, FY27?

So, for the first two quarters, this year, we can expect the revenue to be coming in from a couple of assets that were in pipeline, which is Capital One and Million Binds and one asset in Pune. So, the first two quarters would have revenue recognized from these few assets. There are two other assets which are in pipeline, which can be going live in the quarter three. So that quarter I am assuming to be slightly slower in terms of newer revenue to be added. But these two quarters would definitely be pumped up with new addition of revenues. And last quarter would again get pumped up with the delivery of half a million square feet of assets in Kandabar. So that is how currently I would break it up with respect to revenue as we are focused on.

Got it, sir. Thank you so much. And all the best. Thank you.

Thank you. A reminder to all the participants, that is not a star and one spot question. Next question comes from the line of Viraj Shah with Tyco Ventures Private Limited. Cheers for that.

Hi, sir. Thank you for the opportunity. Most of my questions have been answered. I just have one question. The revenue that we are projecting for FY27, C30 crores to 350 crores. So can we expect that the majority of the growth over FY26 will be coming from the capital one center, the remaining

capacity that is pending to be utilized?

Hello, sir. So, Capital One would be contributing 0.3 million square feet, that is, I mean, on a revenue terms, it's anywhere between 2.6 to 2.75 crores monthly. But on top of that, in the coming three quarters, there are at least four or five assets which are, which are buying light. There is one asset on Reshna Devi, which is Million Mines, which was the asset was recently inaugurated by our Honorable Home Minister. We have 84,000 square feet there. Then we have 40-odd thousand square feet in Pune. We have half a million square feet going live in the last quarter of this year in Ahmedabad. Then we have other 3-4 assets, which are on the verge of kind of getting signed up, which are demand-backed, which I am sure at least couple of them would materialize in the next couple of quarters. And so this is, in terms of the existing contractual demand and supply, then we have just the supply which is... 1 lakhs, 10 lakhs, 10,000 square feet that we have signed up with prestige. That would start the, we will start the pickouts from 1st of June. So we can expect the revenue in the month of August, mid, or end. Then we have 2 lakhs square feet going, coming up in Pune. The position that we will get up. That is in September or October. So, we can expect the revenue to start hitting in the books in the month of January. So, there is a strong pipeline that is kind of, let me know, Capital One probably, I'm assuming, would be just like 3-3-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5-5 The presence of the revenger.

Sir, what would be there? What would be the impact that you can use for the cost of the dementia?

We are looking to kind of issue dementia in the range of 11 to 12 weeks. Okay, sir, and by when can we see the impact of this coming?

So, if we are marking a total issue of 100 codes, we would be issuing those credentials as and when we are ready with the properties. Okay. Later, yeah.

Enjoy.

Thank you.

Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of the question and answer session. And now, I'm going to talk to you, Mr. Fumish, with the gentleman, managing director, Dave Accelerator Limited, for closing call.

First of all, thank you so much everybody for joining us today and sharing

your questions with us. It gives us strong confidence when our shareholders are actively participating in our growth story. Our focus absolutely remains on ensuring that we are generating value for all our stakeholders. Thank you so much for joining on the call again.

Thank you. On behalf of Dave Accelerator Limited that controls this content, thank you for joining us. You may now disconnect your line.