Revenue jumps 49.19%, but operating margin falls 4.75 points
Expenses grew 65.43% QoQ, while higher interest costs and an 8.50-point tax-rate increase limited profit conversion.
Filed 03 Nov 2026, 19:06 IST · after market close · Dev Accelerator Ltd (DEVX)
Key takeaways
- Consolidated revenue grew +49.19% QoQ, but expenses rose +65.43%, cutting operating margin by 4.75 percentage points to 51.56%.
- Net profit increased +266.67% QoQ despite an +8.50 percentage-point rise in the tax rate and a +16.43% increase in interest costs.
- Operating margin was 30.06 percentage points above the 21.50% median for 37 Services peers that had reported.
Price around the results
Revenue growth came with faster cost expansion
Dev Accelerator's consolidated revenue grew +49.19% QoQ in Q2FY27, but expenses increased faster at +65.43%. As a result, operating profit growth of +36.59% lagged revenue growth and operating margin narrowed by 4.75 percentage points from Q1FY27.
Higher charges reduced profit quality
Interest costs rose +16.43% QoQ and depreciation increased +15.33%, adding pressure below operating profit. Other income fell -44.44% and still represented 26.11% of pre-tax profit, while the tax rate rose by 8.50 percentage points to 13.07%.
Margin remains well above the Services peer median
The 51.56% operating margin was 30.06 percentage points above the 21.50% median among 37 Services peers that had reported the same quarter. Sequentially, however, margin declined from 56.31% in Q1FY27, marking a weaker conversion of the quarter's revenue growth into operating profit.
Results were filed after market close
The company filed its consolidated Q2FY27 results at 19:06 IST on 03 Nov 2026, after market close. There is therefore no same-day market reaction to assess.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹80 cr | ₹54 cr | +49.19% |
| Other income | ₹2 cr | ₹3 cr | -44.44% |
| Expenses | ₹39 cr | ₹23 cr | +65.43% |
| Operating profit | ₹41 cr | ₹30 cr | +36.59% |
| Operating margin (%) | 51.56% | 56.31% | — |
| Interest | ₹16 cr | ₹14 cr | +16.43% |
| Depreciation | ₹20 cr | ₹18 cr | +15.33% |
| Profit before tax | ₹6 cr | ₹2 cr | +300.00% |
| Tax | ₹1 cr | ₹0 cr | +1085.71% |
| Net profit | ₹6 cr | ₹2 cr | +266.67% |
| EPS (₹) | ₹0.60 | ₹0.16 | +275.00% |
Operating margin of 51.56% compares with a Services sector median of 21.50% across 37 peers that have reported Q2FY27.
What to watch
- Whether expense growth moderates from +65.43% QoQ relative to revenue growth of +49.19%.
- Whether operating margin holds above 51.56% after falling from 56.31% in Q1FY27.
- Whether other income remains a material contributor to pre-tax profit after accounting for 26.11% this quarter.