Financial Performance Highlights

EFC (I) Limited reported strong consolidated financial results for FY26 with revenue growing 58% YoY to ₹10,367 million (₹103,667.96 lakhs) from ₹6,567 million in FY25. Profit After Tax increased 67% to ₹2,347 million, with PAT margin improving to 22.6% from 21.4%. EBITDA grew 43% to ₹4,683 million, while EBIT increased 49% to ₹3,651 million. ROCE improved to 33% from 30%, and Basic EPS stood at ₹16.87 compared to ₹10.35 in FY25.

Segment Performance

The company operates an integrated Real Estate-as-a-Service platform across three verticals:

  • Leasing Vertical: Revenue ₹5,357 million (44% growth), contributing 52% of total revenue with PBIT of ₹2,127 million
  • Design & Build Vertical: Revenue ₹4,378 million (66% growth), contributing 42% of revenue with PBIT of ₹1,197 million
  • Furniture Vertical: Revenue ₹632 million (202% growth), contributing 6% of revenue with PBIT of ₹156 million

Operational Metrics

EFC expanded its operational footprint to 25 cities across India with 117 centers under management and 78,782 seats (up from 60,012 in FY25). The company maintained 90%+ occupancy rates and served 750+ clients, with enterprise clients contributing 61% of revenue and maintaining an average tenure of 51 months. Top 10 client concentration reduced to 24% of rental revenue.

Corporate Actions & Capital Structure

The company completed several significant corporate events:

  • Merger with Whitehills Interior Limited: Approved by NCLT on November 12, 2025, effective November 28, 2025, with 3,77,30,000 equity shares issued at an exchange ratio of 770 EFC shares for every 1 Whitehills share
  • Direct NSE Listing: Equity shares directly listed on NSE effective August 20, 2025
  • Rights Issue: Completed allotment of 1,06,62,786 equity shares at ₹150 per share aggregating ₹159.94 crore on May 25, 2026
  • Capital Increase: Authorized share capital increased from ₹25 crore to ₹40.10 crore; paid-up capital increased to ₹27.45 crore post-amalgamation

Financial Position & Debt Management

The Group's net debt increased to ₹139,541.68 lakhs as of March 31, 2026, with a net debt-to-equity ratio of 1.62 compared to 1.27 in the previous year. Total financial liabilities stood at ₹103,266.01 lakhs, comprising borrowings (₹23,087.12 lakhs), lease liabilities (₹64,726.00 lakhs), and trade payables (₹8,075.60 lakhs). The company maintained cash and cash equivalents of ₹8,829.33 lakhs.

Auditor's Report & Compliance

Mehra Goel & Co., Chartered Accountants issued an unqualified opinion on the standalone financial statements but issued a disclaimer of opinion on internal financial controls, noting that the company was in the process of implementing internal control systems and formalizing policies during the year. Key audit matters included revenue recognition for lease arrangements and interior fit-out projects.

Related Party Transactions & Governance

Significant transactions included loans given to EFC Limited (₹13,073.40 lakhs), interest income from EFC Limited (₹474.56 lakhs), and revenue from EFC Limited (₹5,467.10 lakhs). Key Managerial Personnel compensation totaled ₹798.16 lakhs for executive directors. Promoter shareholding stood at 60.44%, with Umesh Kumar Sahay holding 38.74% and Abhishek Narbaria holding 20.53%.

Expansion & Growth Initiatives

The company added 8,919 seats under development and maintained 6,664 inventory seats. For FY27, EFC plans to add 18,000-20,000 revenue-generating seats, expecting ~40% growth in Design & Build and >50% growth in Furniture segments while maintaining 30%+ EBITDA margins. The company acquired 99.99% stake in Sprint Office Spaces LLP on June 5, 2025, accounted for as a business combination.

AGM & Corporate Governance

The 42nd Annual General Meeting is scheduled for September 30, 2026, to be held through video conferencing. Agenda items include adoption of audited financial statements, re-appointment of Mr. Abhishek Narbaria as director, and special business regarding shifting of registered office to Sprint Tower, Hinjewadi Phase-I, Pune. The company spent ₹19.78 lakhs on CSR activities focused on animal welfare, education, and skill development.

Risk Factors & Outlook

The company faces increased leverage with higher debt levels and auditor concerns about internal financial controls. However, strong revenue growth, expanding operational footprint, and diversified service offerings position EFC well for continued expansion in the real estate services sector, particularly in workspace solutions and interior fit-out services.