EFC (I) Limited
Financial Performance Highlights
Q2 FY27 Consolidated Results:
- Revenue from operations: ₹332 crore (vs. ₹255 crore in Q2 FY26, +30% YoY)
- EBITDA: ₹134 crore (vs. ₹111 crore in Q2 FY26, +21% YoY)
- Profit After Tax: ₹77 crore (vs. ₹57 crore in Q2 FY26, +36% YoY)
- EBITDA margin: 40%
- PAT margin: 23%
H1 FY27 Consolidated Results:
- Revenue from operations: ₹650 crore (vs. ₹474 crore in H1 FY26, +30% YoY)
- EBITDA: ₹257 crore (vs. ₹213 crore in H1 FY26)
- Profit After Tax: ₹148 crore (vs. ₹103 crore in H1 FY26, +43% YoY)
- Earnings Per Share: ₹10.11 (vs. ₹7.09 in H1 FY26)
Segment-wise Performance
Leasing Business (Q2 FY27):
- Revenue: ₹168 crore (vs. ₹129 crore in Q2 FY26, +30% YoY)
- H1 FY27 Revenue: ₹322 crore (vs. ₹252 crore in H1 FY26)
- Focus on enterprise relationships and recurring revenue
- Maintains >90% occupancy across portfolio
Design & Build Business (Q2 FY27):
- Revenue: ₹129 crore (vs. ₹112 crore in Q2 FY26, +16% YoY)
- H1 FY27 Revenue: ₹230 crore (vs. ₹196 crore in H1 FY26)
- Expanding beyond internal workspace requirements to external commercial projects
- Current order book: ₹300+ crore
- Target annual growth: 50-60%
Furniture Manufacturing (Q2 FY27):
- Revenue: ₹35 crore (vs. ₹14 crore in Q2 FY26, +149% YoY)
- H1 FY27 Revenue: ₹63 crore (vs. ₹27 crore in H1 FY26)
- Operating through Ek Design subsidiary
- Focus on capacity utilization and operational efficiency
Strategic Initiatives
Corporate Restructuring:
- Proposed demerger filed with NCLT to separate asset-light leasing operations from owned property business
- Leased premises managed office operations to remain in EFC (I) Limited (listed entity)
- Owned property operations to remain in EFC Limited (wholly-owned subsidiary)
- Objective: Greater business focus, clearer capital allocation, improved accountability
- Expected to receive NCLT approvals soon
Ultrafresh Acquisition:
- Acquired Ultrafresh Modular Solutions via share swap valued at ₹54 crore
- Valuation based on 1.49x FY26 revenue (approximately 1.5x revenue multiple)
- EFC shares valued at ₹270 per share for transaction by Big Four valuation agency
- Strategic rationale: Access to modular furniture capabilities, manufacturing infrastructure in Nalagarh (Himachal Pradesh), established brand and distribution network with 160+ touchpoints
- Focus on manufacturing optimization, geographical expansion, product diversification, and market access
Operational Highlights
Leasing Business:
- Maintains >90% occupancy across mature and new centers
- Asset-light model focused on scalability and capital efficiency
- Enterprise customers increasingly seeking flexibility and multi-location support
Design & Build Business:
- Developing capabilities in commercial interior design, turnkey executions, project management, and MEP services
- Working capital cycle: 90-120 days with 5% retention on project value
- Project-level profitability focus with milestone-based billing
Furniture Manufacturing:
- Developing institutional and customized furniture solutions
- Target margins: 24-25% at optimal capacity
- Integration with Ultrafresh to create synergies
Transaction Details
Sanvritti Alpha Transaction:
- Asset sale and leaseback transaction involving Pune property
- Property acquired over a year ago, re-developed, and leased to long-term customers
- Generated 39-40% return on capital
- Reduced asset-backed debt through transaction
Management Outlook
Growth Targets:
- Confident in achieving annual targets across all verticals
- H2 expected to be stronger across all business segments
Margin Guidance:
- Consolidated EBITDA margin: 20%+ (annualized)
- Leasing business: 25% at corporate level, 30% at center level
- Design & Build: 18-22%
- Furniture Manufacturing: 24-25% at optimal capacity
Strategic Focus:
- Strengthening enterprise relationships
- Maintaining execution excellence
- Improving capital efficiency
- Pursuing profitable, sustainable growth
- Working capital management and cash flow generation