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    EFC (I)

    512008Good
    Services·12 Nov 2025
    Management Summary

    EFC (I) Limited reported robust financial performance for Q2 and H1 FY26, driven by strong growth across all its integrated business verticals. Consolidated revenue and EBITDA saw significant year-on-year increases, with the Design & Build and Leasing segments leading the charge. The company continues to expand its managed office footprint, grow its order book in Design & Build, and leverage synergies from its Furniture segment, while also venturing into retail leasing.

    Highlights

    8

    • Consolidated revenue from operations reached ₹254.6 crores in Q2 FY26.

    • EBITDA for Q2 FY26 stood at ₹110.8 crores, marking a 40% year-on-year jump.

    • H1 FY26 revenue from operations grew by 76.6% year-over-year.

    • H1 FY26 EBITDA jumped by 69.4% year-over-year.

    • The Managed Offices (Leasing) segment's rental revenue grew by 61% year-over-year in H1 FY26.

    • The Design & Build segment achieved a turnover of ₹196 crores in H1 FY26, growing 74% year-on-year.

    • Total seats managed reached over 68,000, including 5,900 under development, across 3.23 million square feet.

    • The Furniture segment's H1 FY26 turnover crossed ₹26 crores.

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue from Operations₹254.6 Cr
    2. 02EBITDA₹110.8 Cr+40%YoY
    3. 03H1 FY26 Revenue Growth76.6%
    4. 04H1 FY26 EBITDA Growth69.4%

    Segment breakdown

    Managed Offices (Leasing)
    68,241 seats Total Seats (Q2 FY26 end)5,900 seats Seats Under Development3.23 Mn Managed Area61% H1 FY26 Rental Growth9% Owned Properties (of AUM)
    Design & Build
    ₹196 Cr H1 FY26 Turnover74% H1 FY26 Growth₹145 Cr New Order Book (Q2 FY26)₹450 Cr Total Order Book (FY26 YTD)
    Furniture Manufacturing
    ₹26 Cr H1 FY26 Turnover
    List

    Guidance & targets

    8
    CategoryTargetPriority
    Capacity
    Annual Seat Addition (Leasing)
    20,000+ seats
    		High
    Capacity
    Furniture Capacity Utilization
    40-45%
    		Medium
    Capacity
    Furniture Capacity Utilization
    70-80%
    		High
    Utilization
    Occupancy Level (Leasing)
    90%+
    		High
    Revenue
    Design & Build Growth Rate
    50-60%
    		High
    Profitability
    Design & Build Sustainable Margins
    25-26%
    		High
    Profitability
    Furniture Margin at Optimal Capacity
    30%+
    		High
    Market Share
    Owned Property Portfolio (of AUM)
    20%
    		High

    Risks & concerns

    4
    RiskSeverity

    Working capital stress in fast-growth phase for D&B and Furniture segments

    Design & Build and Furniture verticals are working capital-heavy, and the company is in the process of planning for working capital facilities to improve the cycle. — Management acknowledged

    medium

    Areas of Evasion(3)

    • Specific H1 net profit number
    • Detailed cash flow reconciliation
    • Specific targets for new retail leasing venture

    Q&A highlights

    3

    “What we are getting into is basically tying up and partnering with large corporates who have kind of retail chains across India... helping them to kind of expand rapidly with our ability to not just lease, identify the right property for them because you understand for retail businesses, opening the right stores at the right location is very critical.”

    Clarifies that the company will partner with large retail chains, leveraging its integrated model, rather than managing malls or individual shops, which is crucial for understanding the business model and risk profile.

    asked by Sahil Sharma

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Q2 & H1 FY26 Financial Performance

    EFC (I) Limited delivered a robust performance in Q2 and H1 FY26. Consolidated revenue from operations for Q2 FY26 reached ₹254.6 crores, with EBITDA jumping 40% year-on-year to ₹110.8 crores. For the first half of FY26, revenue grew by an impressive 76.6% year-over-year, and EBITDA increased by 69.4% year-over-year. The company also reported that its net profit nearly doubled during H1 FY26, underscoring strong operational leverage.

    02

    Expansion in Managed Offices (Leasing) Segment

    The Managed Offices segment continued its growth trajectory, with the total number of seats, including 5,900 under development, exceeding 68,000 by the end of Q2 FY26. The company currently manages 3.23 million square feet across 86 sites in 10 cities. Management aims to add over 20,000 seats annually and maintain a high occupancy rate of 90%+. Rental revenue for this segment grew by 61% year-over-year in H1 FY26, reflecting strong demand.

    03

    Momentum in Design & Build Vertical

    The Design & Build segment demonstrated significant momentum, achieving a turnover of ₹196 crores in H1 FY26, representing a 74% year-on-year growth. The company secured new orders worth ₹145 crores in Q2, contributing to a total order book of over ₹450 crores for FY26 year-to-date. Management is confident in sustaining a 50-60% year-on-year growth rate for this vertical over the next two years, with sustainable margins targeted at 25-26%.

    04

    Furniture Manufacturing and Pepperfry Synergy

    The Furniture manufacturing segment recorded a turnover exceeding ₹26 crores in H1 FY26. The company targets a capacity utilization of 40-45% for the current fiscal year, with plans to increase it to 70-80% in the next financial years, aiming for margins of over 30% at optimal capacity. The acquisition of Pepperfry is viewed as a strategic move to leverage its technology platform, providing EFC with pan-India access for its Ek Design products and enhancing cross-selling opportunities.

    05

    Strategic OpCo-PropCo Model and REIT Pursuit

    EFC is actively implementing an OpCo-PropCo model to enhance its margin profile and asset base. Currently, 9% of its total AUM, approximately 270,000 square feet, is under direct ownership. The strategic goal is to increase this ownership to 20% of the AUM, which will reduce rental expenses and allow the company to benefit from property appreciation. The company is actively pursuing a REIT structure to further facilitate asset ownership and create a stable, profitable business model.

    06

    New Foray into Retail Leasing

    In November 2025, EFC announced its entry into retail leasing, focusing on premium showroom and shop spaces in key commercial hubs across India. This new venture aims to partner with large corporates and retail chains, offering them capex-light solutions by leveraging EFC's integrated capabilities in property identification, design & build, and furniture provision. While specific financial targets for this segment are yet to be disclosed, the company expects to provide more details in the upcoming quarter.

    07

    Working Capital Management Focus

    Management acknowledged that while the leasing vertical generates stable cash flow, the Design & Build and Furniture manufacturing segments are working capital-heavy. The company is actively planning to secure substantial working capital facilities from banks. This initiative aims to improve the working capital cycle and enhance overall operating cash flow, supporting the rapid growth across these verticals.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.