Financial Performance Highlights

Q2 FY27 Consolidated Results (₹ Crore)

  • Revenue from Operations: ₹332.02, up 30% YoY (Q2 FY26: ₹254.59)
  • EBITDA: ₹133.77, up 21% YoY (Q2 FY26: ₹110.81)
  • EBITDA Margin: 40% (Q2 FY26: 44%)
  • Profit After Tax (PAT): ₹77.26, up 36% YoY (Q2 FY26: ₹56.68)
  • PAT Margin: 23% (Q2 FY26: 22%)
  • EPS: ₹5.36 (Q2 FY26: ₹3.98)

H1 FY27 Consolidated Results (₹ Crore)

  • Revenue from Operations: ₹614.90, up 30% YoY (H1 FY26: ₹474.21)
  • EBITDA: ₹256.73, up 20% YoY (H1 FY26: ₹213.05)
  • EBITDA Margin: 42% (H1 FY26: 45%)
  • Profit After Tax (PAT): ₹148.16, up 43% YoY (H1 FY26: ₹103.43)
  • PAT Margin: 24% (H1 FY26: 22%)
  • EPS: ₹10.11 (H1 FY26: ₹7.09)

Consolidated Balance Sheet (H1 FY27, ₹ Crore)

  • Total Assets: ₹3,208.2 (H1 FY26: ₹2,675.1)
  • Non-Current Assets: ₹2,167.3 (H1 FY26: ₹1,951.7)
  • Property, Plant and Equipment: ₹268.1
  • Right-of-Use Assets: ₹311.6
  • Intangible Assets: ₹64.2
  • Intangible Assets under development: ₹4.6
  • Current Assets: ₹1,040.9 (H1 FY26: ₹723.4)
  • Inventories: ₹54.1
  • Trade receivables: ₹239.8
  • Cash and cash equivalents: ₹7.0
  • Bank balances other than cash: ₹131.4
  • Total Equity: ₹1,121.9 (H1 FY26: ₹813.7)
  • Equity Share Capital: ₹29.6
  • Other Equity: ₹7.6
  • Non-Controlling Interest: ₹1,084.7
  • Non-Current Liabilities: ₹1,293.6 (H1 FY26: ₹1,236.4)
  • Borrowings: ₹205.5
  • Lease Liabilities: ₹833.4
  • Current Liabilities: ₹792.8 (H1 FY26: ₹625.1)
  • Borrowings: ₹58.0
  • Lease Liabilities: ₹289.4
  • Trade Payables: ₹201.4 (Micro & Small Enterprises: ₹36.4; Others: ₹165.0)

Cash Flow (H1 FY27, ₹ Crore)

  • Cash from Operating Activities: ₹75.2
  • Cash from Investing Activities: -₹107.1
  • Cash from Financing Activities: ₹28.4
  • Net change in Cash & Equivalents: -₹3.5

Strategic Updates

Acquisition of Ultrafresh Modular Solutions Limited

The company completed the acquisition of 100% equity in Ultrafresh Modular Solutions Limited, an established modular furniture player. This acquisition strengthens EFC's furniture manufacturing and Design platform, expands its presence in North India, and provides access to a $6.54 billion market opportunity. Ultrafresh brings an established operating platform encompassing a brand, manufacturing capabilities, design, execution, and market access.

Proposed Corporate Restructuring

The company is undertaking a corporate restructuring aimed at:

  • Consolidating leasing and design & build operations within the listed entity
  • Folding in all leasing subsidiaries and project SPVs except asset-owning entities
  • Separating leased-premises and owned-property operations
  • Enabling separate oversight of workspace operations, property investments, and acquisition-related borrowings
  • Improving capital management and deployment
  • Implementing an asset management model for stable, recurring AUM-based management fees

The restructuring involves no new share issuance by EFC (I) Limited.

Business Model and Operational Highlights

Integrated Business Verticals

EFC operates three core business verticals:

1. Managed Office Leasing: Premium furnished spaces with tailored fit-outs

  • Unit Economics: EBITDA margin ~35% (₹64.0 per sq. ft. from selling price of ₹181.0)
  • >90% occupancy at stabilized centres; >95% retention since 2023
  • ~₹7,300-7,500 monthly realization per seat

2. Design & Build: End-to-end interior solutions

  • Unit Economics: EBITDA margin 24.6% (₹24.6 lakh per ₹1 crore order)
  • ₹300 crore order book; >85% of FY26 utilization
  • Designed 6.26 million sq. feet across 21+ locations

3. Furniture Manufacturing: Custom and ready-made high-quality furniture

  • Unit Economics: EBITDA margin 25.8% (₹25.8 lakh per ₹1 crore sales order)
  • Serves real estate, co-living, IT, ITES, hospitality, and education sectors
  • Multiple sales channels: white label, OEM supply, marketplaces, dealer network, project supply, exports
  • BIS certification in process for various products

Manufacturing Capabilities

  • Phursungi, Maharashtra: West Zone operations
  • Nalagarh, Himachal Pradesh: North Zone operations (through Ultrafresh acquisition)
  • Capabilities include: Modular Furniture, Metal Fabrication, CNC (Metal & Wood), Wood Working, Soft Seating, Office Chair Assembly

Client Relationships

The company serves diverse enterprise clients including Policybazaar, Standard Chartered, Hitachi, Red Bull, Exide, Swiggy, Tech Mahindra, Reliance Broadcast, Razorpay, Aditya Birla Group, Bosch, and many others.

Leadership Team

  • Umesh Kumar Sahay: Chairman & MD, 20+ years experience in real estate and infrastructure
  • Abhishek Narbaria: Director, technocrat entrepreneur with 20+ years experience
  • Nikhil Bhuta: Whole Time Director, qualified Chartered Accountant with 25+ years experience
  • Rajesh Vaishnav: Independent Director, 27+ years entrepreneurial experience
  • Gayathri Iyer: Independent Director, Chartered Accountant with 25+ years experience
  • Mangina Srinivas Rao: Independent Director, experienced with ITC Ltd, IRRI, ICRISAT
  • Uday Vora: Chief Financial Officer, 15+ years in finance
  • Aman Gupta: Company Secretary, 10+ years experience

ESG Framework & Progress

EFC has implemented a structured ESG integration through BRSR-aligned reporting framework with:

  • IMS certifications for Ek design
  • Sustainable workspace concepts across operations
  • Water-saving aerators across facilities
  • Solid waste segregation practices
  • Renewable energy procurement models
  • 70+ employee training programs
  • 24 ESG-related policies
  • 673.08 tonnes of waste recycled
  • 39% inputs sourced from MSMEs/small producers
  • 442 hours of ESG training for site teams

Market Outlook

India Office & Flex Workspace (FY26 Position & FY27 Outlook)

  • ~16% vacancy in top-7 cities (Q3 2026)
  • +7% YoY average rentals in top-7 cities (Q3 2026)
  • 85-90 MSF FY27E office leasing expected
  • 12-14% expected YoY growth (FY27)
  • 51 MSF completions in 9M 2026 (record)
  • 44% GCC share of flex seats leased in H1 2026
  • 4-6% FY27E pan-India rent growth expected
  • 100+ MSF expected flex stock by 2027

Design & Build Market

  • ~₹43,820 crore office leasing revenue (Jan-Sep 2026)
  • ~₹2,080 crore D&B revenue potential from new data-centre capacity added in H1 2026
  • ~₹31,140 crore D&B revenue potential in data-centre pipeline to 2030

Furniture Manufacturing Market

  • US$25-29 billion estimated market size in 2025
  • 6-8% yearly growth expected to 2031-2035
  • ~80% of furniture sales from unorganized segment
  • US$5.3 billion Indian office furniture market in 2025