Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Dev Accelerator Ltd (NSE: DEVX) Q4 2026 Earnings Call dated May. 20, 2026
Corporate Participants:
Umesh Uttamchandani — Managing Director
Analysts:
Unidentified Participant
Anant Mundra — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Dave Accelerator Limited Q4 and FY26 earnings conference call. I have with me Mr. Umesh Uttam Chandani, Managing Director. Mr. Pareep Shah, Joint Chief Financial Officer. Mr. Parveev Panchal, Joint Chief Financial Officer. Mr.— Anjan Trivedi, Company Secretary and Compliance Officer. Mr. Yash Shah, Non executive, non independent Director. Before we proceed, I would like to bring to your attention that certain statements made during this discussion may 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, uncertainties 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 should 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 Stars and zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Umesh Uttam Chandani, Managing Driver. Thank you. And over to you, Mr. Uttan Chandan.
Umesh Uttamchandani — Managing Director
Thank you so much for initiating the call and good afternoon everyone and a warm welcome to Dev Accelerator Ltd. Earnings conference call for the fourth quarter and full year ended March 31, 2026. I am assuming you all had the opportunity to review the audited results, the investor presentation and the media release that we have shared with the stock exchanges. I’ll start with this year’s numbers. This year has been extremely meaningful for all of us at Barix as it completes the full financial year as public listed entity.
Our thesis of focusing on India’s tier 2 cities has now become the frontier for the entire country. Not only from a real estate perspective but also from other growth parameters. Tier 2 cities has played out in a number of extreme deals and I would run you through all of those numbers in the next 2025 minutes. For the full year FY26, our consolidated revenue has reached to a phenomenal outcome of 226 crores. That’s an annualized growth of 42% wherein our FY20 revenue was 159 crores. I’m sure a lot of people who are there on the call today who have been monitoring and tracking us during our pre IPO road shows I had showcased the numbers of achieving an outcome of 225 crores.
And today we have achieved 1cr 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% on a standalone basis which is excluding our design and build company and technology company. It reflects a strong unit economics of our core managed workspace platform. The standalone numbers have increased 34% on an annualized basis and we have achieved a phenomenal number of 171 crores for FY26 and our margin EBITDA margin has been achieved at 60.5 percentage which last year was 59.8%.
Just to help you understand this, amongst our 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 IGAAP basis is extremely strong on core managed workspace operations. So normalized EBITDA for FY26 is 36.55 crores which is 21.38 percentage margin. At an industry parlance 15 to 18 percentage is assumed to be a better outcome. We have exceeded that industry peers as well.
The normalized EBIT EBITD 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 profit before tax which is supported by operating leverage from our matured centers and efficiencies that we have built in our operation. For the last quarter the consolidated revenue stood at 59 crores. One of the key highlights of the fourth quarter has been the Go live of our dream project of Capital One Campus on Amri Gopal Road.
I still recall that we signed this asset back in 2022 wherein tier 2 cities were not looked upon as the frontiers for flexible office spaces. It is a 19 story building with 3.15 lakh square feet. That entire asset has been pre leased by US with a 95% occupancy achieved even before going live. Immediately after we received business operations or the OC of the asset the next month itself, we had operations running in that premises. The asset is EBITDA positive from day one and we would be achieving a revenue run rate of 2.65 to 2.75 crores per month.
The revenue from this center would be reflecting in our books from Q1FY27. Let me now elaborate a little bit on what we are actually building at Davix because the opportunity here is not just the quarterly growth but is an Entire platform that produces this. India as a country today hosts 1800 global capability centers employing more than 1.6 million professionals. And this workforce is on track to cross 2 million professionals within the current year. Crucially, 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 percentage over tier 1 cities on real estate and availability of a massive digital skilled talent pool of 800,000 professionals. Today, India looks towards Bharat to achieve a $5 trillion economy of our honorable Prime Minister by 2030. The Indian flexible workspace market has already crossed 100 million square feet of stock and it is expected to reach $11.4 billion in valuation by 2030. This is a structural migration and this probably ignites or starts the dream that we had thought of back in 2018 when we were starting Devix.
It is a deliberate choice to focus on tier 2 cities and create that as a strong foundation. While Devix is focusing on operating managed office spaces in tier 2 cities, our real differentiating factor is in creating institutional grade supply in markets where land ownership is unorganized, fragmented and non institutional. Our proprietary landowner first development management model which we had introduced a couple of years ago partners us that is DEVIC directly with non institutional landowners.
What we bring on the table for landowners is strong capability, execution, skill sets, technical specifications, construction discipline, VCC and institutional client relationships and a confirmed demand over a longer period of time. This also gives landowner ownership of the asset for long term basis which in turn helps them to generate 30% higher returns as compared to traditional leasing arrangements. What DEVICS builds for them is a grade A asset which is specifically designed for institutional clients including gccs.
As devics, we are not putting the construction risk or the land risk onto our balance sheet. What we are committing is operational expertise and lease obligation against assets where we have already received a committed demand. This is one of the strong key moves for us. And it also solves the biggest constraint in the country and specifically for institutional clients working for office spaces. If the availability of grade A supply in tier 2 cities. The micro market called Amlokal in Ahmedabad is an example how this model works at scale.
In the entire last year which is FY26 Devex has signed and secured approximately 15.75 lakh square feet of contracted space in one micro market. I’ll break that down for you to understand. 3.15 lakh square feet at Capital One wherein we have delivered that asset achieved 95% occupancy levels even before going live. It has 4,000 seats which is anchored by one of our largest client which has been with us since last six years, Manubayinsha. Typically a similar sized asset gets used in 12 to 18 months of time frame.
The single client Manubha Insha has contracted with US for the second asset is 8.1 lakh square feet which also starts our revenue management journey. In the city. We have committed an 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 this last quarter we also signed 4 and a half lakh square feet which is being launched by MD. And the thing is through preparationship, three contracted assets, one single micro market, almost 16 lakh square feet.
This is what we intend to build in other tier 2 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 light for us. We have already started landowner conversions in multiple cities in multiple tier 2 cities to say Indore, Jaipur, Surat, Barora. These are a few of the cities where we are already present. We understand the ecosystem strongly and we now would be growing stronger in those micro markets.
There will be few development management partnerships that we will be announcing in this FY27. Underpinning this strategic platform, I’ll run you through certain operating matrices that are the indicators of our revenue durability. On client side, 75% of our revenue comes from enterprise clients which is on built in suit contents. So typically an enterprise client would come to us share the requirements and we would design and build the entire office right from scratch. Hence we call it build to suit.
65% of our revenue comes from such nature of the contract. The client retention is unheard of. We have a 99.7 percentage retention this year, almost negligible 0.003 percentage of churn that we achieved last year. Amongst our clients of 300 plus teams. The average lock in 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 nature. The typical industry average of rent to revenue ratio is 2.2x in tier 1 cities.
While the cities that we operate in we have been able to achieve a rent to revenue ratio of 2.4x. In FY26 on our subsidiaries which is our design and build Nederland thread, we were able to achieve a 52.3 kilos revenue with 7.2% EBITDA margin. Just to help everyone recall, we started this company as a back office for Devex to build offices only for Devex. Since we were able to build 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. Our technology subsidiary which is SAS Joy 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 Entrepreneur Awards 2026 for the second consecutive year. We recently raised Our board recently approved a preferential issue of 35 crores which was largely to fund the growth and take up a 4.5 lakh square feet with Winston as an asset.
Out of this 35 crores, 15 crores had been subscribed directly by the Promoter and Promoter Group through convertible warrants and additional 20 crores coming in from non promoter investors. The Promoter participation is a clear signal of our internal conviction in the asset and the corridor strategy that we are building up. Q1FY27 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 square feet. That capital event would result into a liquidity of 110 to 120 crores between buildings.
Largely the priority of utilization of the funds would be to accelerate growth across the country and build similar corridors like Amali Vocal in at least four to five cities across the nation. Establish development management partnerships with landowners based in tier 2 cities so that it can strengthen our future supply and obviously strengthen our balance sheet. The Board has also approved a non convertible debenture 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 crores in the next two years of time frame which technically would empower us to reach from current 1.2 million square feet to 2 million square feet of operational area.
Ify the substantial portion of this capacity that is getting added in our books is already contracted from the demand side as well as from the supply side which has a mix of ready to use and development management partnerships that we are finding them. FY26 has been the year Devic’s transition from a flexible workspace operator in tier 2 cities to becoming an institutional infrastructure platform for the GCC migration and institutional migration into tier 2 cities. We have delivered our highest revenue, our highest margins in the last eight years of our journey in the largest contract not only in the company’s history but also across the industry history by contracting 8 and a half lakh square feet of single managed office space and asset.
And this is just getting started. This is first year of full operational entity as a public listed company. We are not compromising on unit 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 up. I thank you everybody for your continued support. I’ll now open up the floor for questions.
Operator
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 Touchstone 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 question to assemble. The first question comes from the line of Ur Misha from Money Wiser. Please go ahead.
Questions and Answers:
Unidentified Participant
Yeah, hope I’m audible.
Operator
Yes, yes,
Umesh Uttamchandani
We can hear you.
Unidentified Participant
Yeah. So my question is on the mature occupancy first in FY26 we saw very steep decline because we have maintained the range of +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? Your voice is cracking. Yes, I just wanted to give you the understanding about the maturity centers 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 a benchmark at a higher level. So basically we say that the hundred percent 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 a hundred percent occupancy. So basically we don’t want to change the previous numbers.
That’s why we see the dip in the occupancy percentage in our mature center. Then sir, why were you considering 85% before? So in an industry all other players will be digitally. 85% is the right matrix where we generate the more revenues and more than break even. So that’s why in earlier we have understanding Internet 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 keeping our benchmark high. So that’s why we updating the numbers at a mature 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 FY27? So you know, will these margins be sustained or will we be back on FY25 margins?
Umesh Uttamchandani
If you dig down in the numbers as a standalone metrics, the numbers are not good. In fact, the margins are slightly improved as well across the year. If 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.
Unidentified Participant
So I’m talking about quarter four year on year. I’m not talking about the full year.
Umesh Uttamchandani
You are comparing that with previous year or this year? I
Unidentified Participant
Am, I am comparing Quarter 4 FY26 to Quarter 4 FY25 on standalone basis. I’m talking about EBITDA margin, sir. Obviously the drop has been there, but it’s flat. But I just wanted to know the reason.
Umesh Uttamchandani
So there has been a dip in the revenue compared to last quarter because one of the assets that we were operating in Noida
Unidentified Participant
That we
Umesh Uttamchandani
Had closed down. And that is the primary reason why the dip of that revenue comes in on compared to previous quarter
Unidentified Participant
On
Umesh Uttamchandani
The EBITDA percentage. We are almost kind of achieving the similar outcome.
Unidentified Participant
Right, so why was the Noida, why was the Noida asset shut down
Umesh Uttamchandani
Was typically operated by a landowner which was going through a very difficult phase and the common area maintenance was their responsibility and the asset was not being able to maintained or managed by them. And we were not happy with the services that were being rendered to us. So there were instances when the elevators were getting Stopped on a recurring basis. The AFUs, I mean the systems from where the ACs were being powered, they were not being serviced and maintained in a rightful manner.
So we were extremely unhappy with the services. And that was the primary reason why we had to close down this inter.
Unidentified Participant
Okay. And as brokerage as a percentage of revenue from OPS has also been a bit on the lower side compared to FY25, if I see that correctly.
Umesh Uttamchandani
Correct. In our business, how it. Yeah, I’ll run you through that. So typically in our business when we take up a new center, that is the time when we see higher amount of quantum of brokerages kind of getting the getting registered last six months largely has been delivery of the centers that we already contracted earlier. So the conviction of me saying a revenue number six, seven months before was largely coming up up because of their agreement with the clients and for those brokerages were already paid beforehand.
Having said that, our brokerages payout is way better as per industry standard. Because 65% of our leasing in Gujarat happens directly while 35 comes. 35% of only comes from brokerages. When it comes outside Gujarat. We have a 50:50 ratio when 50 percentage of our client comes directly and 50% comes from the brokerage or channel partners.
Unidentified Participant
Right. So one question before I join back. You know, how do you see the industry going forward? You know, obviously we are not directly impact 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.
Umesh Uttamchandani
Sure, sure. So I always been sharing on these lines that whatever we see with respect to digital payments, the UPI number that I’ve kind of extrapolated in the recent years, the credit goes to demonetization and code. The adoption of technology from all users came largely because of these two primary drivers. The same thing. What 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 curtail 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.
Unidentified Participant
Because
Umesh Uttamchandani
I’ll cite an example, one of our biggest client. I cannot name the client because of the contractual agreement, but one of the Fortune 500 companies which is sitting with us in Jai2 they have 485 people that are working from that city. The number of seats which 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 culture. So what we actually empower that.
So tomorrow any organization wants to inculcate a hybrid work culture. We give them our technology access wherein each individual that is working in the office gets to pre book a seat and then come to office.
Unidentified Participant
So that
Umesh Uttamchandani
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 picture.
Unidentified Participant
Okay, so that helps. I’ll join back to Q for further questions. Thank you.
Umesh Uttamchandani
Sure. Thank you.
Operator
Thank you. A reminder to all the participants that is a press star and want to ask a question. Next question comes from the line of Aniket rade an individual Mr. Please go.
Anant Mundra
Yeah. Thank you for the opportunity. So sir, I have a few questions first can you share the contribution from the enterprise client versus the startup client contribution?
Umesh Uttamchandani
So we have 65% of our revenue coming in from enterprise clients wherein the average locking is 34 months.
Anant Mundra
Okay. And what about sir startup clients.
Umesh Uttamchandani
So in our client profile or client mix, all the enterprise clients that we have, wherein we do build to suit, we have almost negligible exposure in the startup sector. We do have startups uses our offices but that is largely on the co working side which is contributing 15 percentage of our.
Anant Mundra
Okay, okay. So so just to compare with the both, most of the demand is from the enterprise client only.
Umesh Uttamchandani
Right, Right. Enterprise institutional clients and GCCs.
Anant Mundra
Answer what is the trend in the seat addition and the occupancy during the during the FY26 and what is our target for FY26?
Umesh Uttamchandani
What is the trend in FY26?
Anant Mundra
Yes. Yes.
Umesh Uttamchandani
So we were 13,500 seats in FY26 wherein 4,000 seats got added in last quarter. That is quarter four FY26. But the revenue would be coming in Q1 27. So
Anant Mundra
Today
Umesh Uttamchandani
If you ask me we are at 17 and a half thousand seats.
Anant Mundra
Okay, okay, okay, got it. Just to try to more on this Bangalore related. So earlier we had you had mentioned that the expansion plans about the new central centers including the Bangalore. So can you throw some light on it?
Umesh Uttamchandani
Sure. In
Anant Mundra
Terms of the rollout.
Umesh Uttamchandani
Absolutely. So we have a healthy mix of our expansion in Tier 2 cities and Tier 1 cities. Our Tier 2 city proposition is having a presence of 65% of our portfolio. And Tier 1 cities we have a exposure of 35 percentage 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 road.
So just to contextually help everybody understand, outer ring Road is where 40 percentage 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 ingot.
Anant Mundra
Okay. Okay. Got it. Got it. And sir, one last question. As we raise the fund through this ncds. So what the intended utilization of this fund and how are we going to use this?
Umesh Uttamchandani
Sure. So we are actually planning for an investment of total 220 to 230 odd crores. The breakup of this is three phases. One we have, we have taken a board approval for 100 crores of entities. We are expecting a liquidity event of 110 to 120 crores from the proceeds of silver asset and the preferential allotment of 35 crores.
Anant Mundra
Okay.
Umesh Uttamchandani
People. Total investment would be deployed across two years of time frame from the current 1.2 million square feet which is FY26 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 infusion of 220 to 230 crores.
Anant Mundra
Okay, perfect. Got it. Got it. And sir, I mean are you seeing any pricing pressure or increased competition from such pre operating markets?
Umesh Uttamchandani
On the demand side we are not seeing any pressure.
Anant Mundra
Okay. On
Umesh Uttamchandani
The supply side there was certain crunch of critical supply chain or probably value chain products. Like for a short period the availability of tiles was not there because of availability of gas and our suppliers kind of not operating during that period. But now the supply chain seems to be streamlined. We have availability of labor as well on site and all the raw material which was there is now accessible.
Anant Mundra
Got it. Got it sir. Thank you so much sir. And all the best for the future.
Umesh Uttamchandani
Thank you so much.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the Line of Nikita Mehta, an individual investor. Please.
Unidentified Participant
Thank you. Thank you sir for the opportunity. So I have couple of questions sir. One is how much contribution is expected from our non coal businesses like Needle and Thread and sasjoy over the next two to three years. Well
Umesh Uttamchandani
To be so in terms of revenue there are contributors roughly around 2025 percentage towards the revenue. But I would not probably categorize them in non core domain because both entities kind of play a very strategic role in the journey that we are kind of creating for ourselves. So design and build entity, Netherlands said 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 conviction to commit within that time frame comes because of the resources that we have built, the processes that we have created in the last four years of time frame. Second, going forward and currently as well, GCCs are now becoming a very strong contributor to office space leasing in India. And to attract GCCs we need to be a full fledged solution provider. And that is where the other subsidiary SaaS Joy Solutions plays a role. So the recruitment, payroll, technology stack, all of that offering comes under that umbrella.
So both the subsidiaries play a very pivotal role in ensuring or with defining as to what we intend to achieve in the next couple of years.
Unidentified Participant
Okay. Okay sir, I think it may
Umesh Uttamchandani
Answer that correctly.
Unidentified Participant
Yeah, yeah. So I have one more question like can you explain the economies of development management model versus the straight lease?
Umesh Uttamchandani
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 cities specifically is the unavailability of institutional grade supply. So when a larger enterprise client comes to any tier two city, 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 landowners, tell them that we would be leaving this asset, we would be bringing clients.
It is our commitment to bring in the client. However, the infusion 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 per square feet revenue which ranges anywhere between 300 rupees to 500 rupees per square feet which spans across two years to four years of time period. So if I’m building an Asset of let’s say 4 lakhs square feet. My revenue at the books of Devex 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 binded to invest for building an asset which is grade A plus quality, which is. Which is pertaining to certain specifications of technicalities and even building a green building asset.
Unidentified Participant
Okay, okay. So I think. Yeah, I think that was great. It answers my question and thank you sir so much for this opportunity.
Umesh Uttamchandani
Thank you, thank you.
Operator
Thank you. A reminder to all the participants that you may press star and want to ask questions. Next question comes from the line of Sana and individual minister. Please go ahead.
Unidentified Participant
Hi sir, good afternoon and thank you for the opportunity. So I have few questions. Can you please tell us if the margins will remain stable if the company accelerate expansion into newer cities?
Umesh Uttamchandani
I think that’s a very interesting question. Internally as promoters we kind of keep on discussing this. So fundamentally when we started this company we achieved the profitability in first year itself which skill we realized that till this point we have been extremely hands on into doing things. The next wave of growth that is from this 1.2 million square feet to adding more 3 million square feet in the next two years of time frame 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 ahead, we probably lose out on track and there arises some leakages in the system. The other option becomes a probability if we as promoters are not hands on our daily time in our personal life is coming to office at morning 101030 and leaving the office premises. Is this better? Can you hear me now? Am I audible?
Operator
Ms. Sana, can you hear the speaker? Am I
Umesh Uttamchandani
Audible to
Unidentified Participant
You?
Operator
Ms. Sana, can you hear? Since there is no reply from the line I. Ms. Sana, we’ll move to the next participant.
Unidentified Participant
Sure.
Operator
The next question comes from the line of Vikrant Sahu with RK advice. Please go ahead.
Unidentified Participant
Hi sir, I just have few questions like how much free cash flow generation do we expect in FY27?
Umesh Uttamchandani
How much
Unidentified Participant
Free cash flow generation do you expect in FY27?
Umesh Uttamchandani
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 item that you see in our books that Is ranging between 21 to 22 percentage has been very steady since last couple of years. So next year at the revenue run rate of 330 to 350 crores. We expect to have a cash bit of 21 to 22 percentage.
Unidentified Participant
And one more question I have, like how scalable and replicable is the Amboli Bhopal development model across other key cities and micro markets?
Umesh Uttamchandani
Well 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 frame. So let’s take a 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 Ambiental.
So we would start growing vertically in all those cities when we are present beyond two to three years of pension.
Unidentified Participant
Okay sir, and one more question and like what are the management top three priorities for ASTA 27?
Umesh Uttamchandani
First and foremost priority is to bring in 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 nature. So currently we are building and developing 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 build certain processes which can scale massively. That’s second and third is identify at least 5 to 7 lakh square foot of projects on the development management model in the next 12 months of time. These are three priorities I would say so.
Unidentified Participant
Got it, got it. Thank you so much sir.
Umesh Uttamchandani
Thank you.
Operator
Thank you. A reminder to all the participants that you must star and one to ask a question. Next question comes from the line of Arvind Singh with Month Capital. Please go ahead.
Unidentified Participant
Hello. Am I audible sir?
Umesh Uttamchandani
Yeah, absolutely, I can hear you.
Unidentified Participant
Good afternoon. My question is on the broader terms. Like, like there’s a. There’s a lot of talking about the IT services are replacing by AI. So how do you see this trend in terms of the real estate? Like majority of the majority of the occupancy is driven by the IT industry. So how do you see this trend?
Umesh Uttamchandani
I truly 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 common. 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 realized, all the noise that is happening outside these companies wherein IT companies stocks being bashed out their news, when larger IT companies are relieving people, all those 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 churn within them. When we had a good elongated conversion 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 to 24 months. Now they are able to deliver those projects in 9 to 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 time frame their margins are going to shoot up drastically than what has happened in the last decade.
Their productivity is going to blast out. Sorry,
Unidentified Participant
Yes, but sir, you have said correctly. They, they have a lot of productivity gain. But my, my issue is if we look at the data then the number of addition of the job has subdued or I think it has been grown in the IT industry. So it will impact one way or other way the occupancy and the real estate area required for the IT industry. So that’s, that’s the point. I want to know number of.
Umesh Uttamchandani
Since the productivity is increasing, they are bound to 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 the one side there is an influx of talent which was pushed in, let’s say in 2020, 2021 when there was massive outburst of projects that they all these IT companies got. So now this entire tunnel is packed 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 adoptive on, 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 mandatory be replaced by people who understand using the technologies which are currently required. But to answer your question, is real estate going down the drain because of talent pool 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 down that funnel or the tunnel that I’m referring to needs to be packed in with more number of people.
It is, it is probably getting drained by set of people who are not able to adopt the newer technologies.
Unidentified Participant
Okay, great. But sir, I think I. I have a Data point that TCAs and other big firms are less and less from the campus recruitment. So that’s the point I want to highlight if you can.
Umesh Uttamchandani
We had this news publish of the newspaper wherein India from the top five it comes hired 1500 net new people in the last year when 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’m addressing that point only. Sir. You need to create that tunnel in your brain right now. Imagine, imagine your. Imagine a pipe, a water pipe, right? Wherein the water is flowing till this point. The. 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 putting. Put into that pipe. What eventually would happen is that pipe will be filled with water which can understand what these newer 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 retrain themselves.
Unidentified Participant
Okay sir, thank you
Umesh Uttamchandani
Business. So that, that is a mandatory outcome.
Unidentified Participant
Okay. Okay. Thank you. Thank you for your time.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Atul Daga with Daga Securities. Please go ahead.
Unidentified Participant
Congrats. Just two questions. What are the milestones should investors track over the next four quarters?
Umesh Uttamchandani
I mean before ipo I only remember during the road shows I was kind of sharing as to what has been signed by us. And we. We forecasted a revenue of 225crores 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 you need to track us is how much we are adding in terms of the supply that we are committing today. So if I’m committing a 3 million square feet of area in the next two years of time frame, how much are we adding on a quarter, on quarter basis and probably where are we on that supply which, 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 issue that you should track upon. The third thing, as my shareholder, what is the leadership team that I am building in the next two years of time frame? I think that is the third most critical aspect that I should be monitored on and certain fundamental things.
Am I ensuring that my cash 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, tracked upon.
Unidentified Participant
Got it, sir. Got it. Yes. The second question that I had was does management expect FY27 to be more, you know, back end loaded in terms of revenue recognition? Hello.
Umesh Uttamchandani
Will the management expect back end loaded revenue in FY27
Unidentified Participant
In terms of revenue recognition? How, how do you see that for the year 27?
Umesh Uttamchandani
So you like to help me with the term back end loaded.
Unidentified Participant
Can you specify how the revenue recognition is going to differ from FY26? FY27?
Umesh Uttamchandani
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 mines and one asset in Pune. So the first two quarters would have revenue recognized from these few assets. There are few other assets which are in pipeline which can be going live in the quarter three. So that quarter I’m 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 assetting and the bus. So that is how currently I would break it up with respect to revenue that we are forecasting.
Unidentified Participant
Got it sir. Thank you so much and all the best.
Umesh Uttamchandani
Thank you.
Operator
Thank you. A reminder to all the participants that you may press star and one question. Next question comes from the line of Viraja with Tyco Ventures Private Limited. Please go ahead.
Unidentified Participant
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, 330 crores to 350 crores. So can we, can we expect that the majority of the growth over FY26 will be coming from the Capital One Center? The remaining capacity that is that is pending to be utilized.
Umesh Uttamchandani
So Capital One would be contributing 0.3 million square feet. That is, I mean in revenue terms it’s anywhere between 2.6 to 2.75 crores monthly. But on top of that in the coming 3/4 there are at least 4,5 assets which are going live. There’s one asset on Vaishnavi which is million mines which was the asset was recently inaugurated by 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’m 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 lakh, 10 lakh 10,000 square feet that we signed up with esteemed that would start the will start the fit outs from 1st of June so we can expect the revenue in the month of August mid hour end. Then we have 2 lakh square feet going coming up in Pune.
The position that we’ll get up, that is in September or October. So we can expect the revenue to start hitting the books in the month of January. So there’s a strong pipeline that is kind of coming up. Capital one probably I’m assuming would be just like 20, 25 percentage of the future supply that’s coming up.
Unidentified Participant
Noted, noted. That was helpful. I answered what would be the approximate interest rate that would be charging on the issue of issuance of the debentures?
Umesh Uttamchandani
Sorry, what would be done?
Unidentified Participant
What would be the interest. Yeah, yeah, sorry. Cost for the debentures.
Umesh Uttamchandani
Looking to kind of issue debentures in the range of 11 to 12 percentage.
Unidentified Participant
All right sir. And by when can we see the impacts of this coming?
Umesh Uttamchandani
So we are earmarking a total issue of 100 crores. We would be issuing those credentials as and when we are ready with the properties. Okay. All right sir. Yeah. Thank you. All right, thank you.
Operator
Thank you ladies and gentlemen. As a. No further questions. We have reached the end of question and answer session. I now hand the conference over to Mr. Umesh Uttam Chandani, Managing Retail Dave Accelerator Limited for closing comments.
Umesh Uttamchandani
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,
Operator
Thank you on behalf of Dave Accelerator Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.