Signed pipeline grows to 2.3M sqft; Q1 revenue flat despite operational scale

Enterprise 70% (up from 52% YoY) confirmed. Occupancy 91.93% vs 88.6%. Capital One started end-FY26, only partial Q1 contribution.

₹2.75 Cr confirmed. Annualized ₹33 Cr = ₹1,044/sqft/year. First-year blended with 3–4 month rent-free/fit-out lag per management.

2.63x stated. No independent verification in call. Lease liabilities ₹226 Cr (5–9 years) inflate balance sheet under Ind AS.

Q1 only ₹53.8 Cr. Trajectory ₹215 Cr (×4) suggests miss on ₹330–350 Cr range. No reaffirmation this call.

70% of Q1 revenue (up from 52% YoY). Sticky, high-margin segment. Demonstrates Tier-2 enterprise demand is real.

Noida center closed mid-FY26 due to litigation. Lost ~₹4.5 Cr quarterly revenue post-closure. Three-center Noida portfolio now reduced to two; prior-year ₹11.5 Cr annual gone.

₹100 Cr NCD raised at 11.75%; ₹55 Cr prior debt repaid. Net debt ₹81 Cr (from ₹89 Cr). But 1.85 Cr shares (19.65%) encumbered; promoter holding 36.81% (above 19.65% minimum).

Prior FY27 target ₹330–350 Cr (from FY26 call) not reaffirmed or changed. Q1 trajectory ₹215 Cr annually suggests miss; management silent on revision.

Noida closure was end-of-year, so full FY26 was operational (~₹11.5 Cr annual). Remaining 2 centers grew occupancy/pricing. Post-closure, Q1 FY27 lost ₹4.5 Cr quarterly.

Ahmedabad is ₹100–125/sqft/month = ₹1,200–1,500/year, not ₹2,500. Capital One first-year blended: 3–4 month rent-free/fit-out lag means 8–9 months of actual rent paid, depressing first-year yield to ₹87/sqft/month effective.

Capex-to-revenue lag: centers take 6–9 months to mature. ₹1 capex may yield revenue next quarter/year. Lease liability is not borrowed money, no repayment schedule. Board advised investors look at borrowings separately.

One-time expenses depressed Q4. Needle & Thread books per Ind AS milestone, not full revenue. Subsidiary margins lag. Industry peers at 60–65% EBITDA; we are 66% standalone, 59% consolidated.

Scalex is 12% stake, JV with Savvy (real estate) and Talati & Talati (FP&A), only GIFT City focus. DevX still does GCC elsewhere. No conflict; Scalex redirects bundled GCC leads to Scalex only.

Q1 only ₹53.8 Cr; trajectory ₹215 Cr annually. Guidance appears off-track unless signed pipeline converts much faster than history suggests.

Not directly discussed this call. IGAAP EBITDA margin 23.2% vs 18.1% prior year. Standalone Ind AS 66% but consolidated 56.3% due to Needle & Thread accounting.

9L sqft of 1.13M sqft operational built by DevX at ₹1,300/sqft. ~₹118 Cr invested to date. ₹100 Cr next phase. Timeline: FY27 H2 onwards.

2.31M sqft signed but unproven conversion rate. Capital One (315k sqft) took 6+ months from signing to material revenue. FY27 guidance ₹330–350 Cr assumes faster ramp.

Noida center closed mid-FY26 due to litigation; ₹4.5 Cr quarterly revenue lost. Raises questions on legal/landlord risk across portfolio.

₹100 Cr NCD at 11.75% adds ₹11.75 Cr annual debt service. Lease liabilities ₹226 Cr (5–9 yr fixed) create real economic drag if occupancy/pricing reset. Net debt/equity 0.4x reported, but ~2.0x lease-inclusive.

FY27 revenue guidance ₹330–350 Cr (from FY26 calls) not reaffirmed this call. Q1 ₹53.8 Cr suggests full-year trajectory ~₹215 Cr (gap of ₹115–135 Cr = 33–41% miss).

Needle & Thread (design & build) ₹57 Cr in FY26 is project-based, booked per Ind AS milestone, not fully recurring. Inflates reported group numbers. SaaSJoy and Scalex are pre-revenue.