DevX Q2 Shocker: Profit PLUMMETS 71%, But Revenue SOARS 50%! What's Next?

DevX, a listed coworking space provider, has announced its financial results for the second quarter of fiscal year 2026. The company posted a net profit after tax (PAT) of INR 1.8 Crore for the quarter ending September 30, 2025. This figure represents a sharp decline of over 71% when compared to the INR 6.2 Crore PAT reported in the same quarter of the previous fiscal year.

However, the profitability picture shows a strong recovery on a sequential basis, with profit jumping multifold from INR 14 Lakh reported in the previous quarter (Q1 FY26).

On the revenue front, DevX demonstrated robust growth. Operating revenue surged by 50% year-over-year, reaching INR 51.8 Crore compared to INR 34.5 Crore in the year-ago quarter. Despite this strong YoY performance, the company's top line experienced a slight dip of nearly 7% on a sequential basis from INR 55.6 Crore in Q1 FY26.

Including an 'other income' of INR 2.7 Crore, the company's total income for the quarter stood at INR 54.5 Crore. Total expenses for the quarter amounted to INR 52.8 Crore, an increase of about 26% year-over-year from INR 42.1 Crore.

Impact: This news can significantly impact DevX's stock price as investors react to the sharp year-over-year profit decline, despite strong revenue growth and sequential profit recovery. It raises questions about cost management and the sustainability of profit margins. The market will be watching closely for management's commentary on these results and future outlook.

Rating: 6/10

Difficult Terms: Net Profit (PAT): Profit After Tax is the profit a company has left after paying all its taxes. It is often referred to as the 'bottom line'. Operating Revenue: This is the income generated from a company's normal business operations, excluding any other income sources. Year-over-year (YoY): A comparison of financial data over a specific period with the data from the same period in the previous year. Sequential basis: A comparison of financial data from one reporting period to the next (e.g., comparing Q2 results with Q1 results of the same fiscal year).