E Factor Experie — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

E Factor Experiences reported a strong H1 FY26, with revenue growing 190% YoY to INR52.6 crores and EPS rising to INR3.87. The company successfully delivered several marquee projects, including the World Expo in Osaka and the Maha Paryatan Utsav, and launched new IPs. Management expressed confidence in achieving the FY26 revenue target of INR250 crores while maintaining profitability, despite ongoing working capital challenges from government payment cycles.

Highlights

  • Revenue from operations for H1 FY26 increased to INR52.6 crores, a 190% growth compared to INR18.14 crores in H1 FY25.

  • EBITDA margin was healthy at 14.71%, translating to INR7.71 crores.

  • PAT stood at INR5.06 crores, with a robust PAT margin of 9.62%.

  • EPS saw a substantial rise to INR3.87 per share in H1 FY26 from INR0.19 in H1 FY25.

  • Successfully executed marquee projects including the World Expo at Osaka, where India won bronze for pavilion design, and the Maha Paryatan Utsav in Mahabaleshwar.

Concerns

  • Working capital requirements remain high due to stretched payment cycles from government clients, directly impacting debt levels.

Key financials

  1. Revenue from Operations ₹52.6 Cr +190%YoY
  2. EBITDA ₹7.71 Cr
  3. EBITDA Margin 14.7%
  4. PAT ₹5.06 Cr
  5. PAT Margin 9.6%
  6. EPS ₹3.87 +1,936%YoY

What they filed

Q4 FY26: revenue up 9.4%, net profit up 0.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue19 100 21 127 18 −5%153 +53%53 +152%139 +9%
EBITDA0 12 2 20 1 26 +117%8 +300%21 +5%
Net profit-1 8 1 15 0 +100%20 +150%5 +400%15 +0%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Debt Net ₹20.17 Cr
    Net debt stood at approximately INR20.17 crores as on 30 September 2025, with the majority of being short-term working capital earnings. Net debt-to-equity ratio remained comfortable at around 0.28, which is within the well-industry benchmark.

Guidance & targets

Revenue

  • Revenue Target Revenue · FY26 · High confidence INR250 crores
    Now, friends, as we look ahead, we remain confident of achieving our financial year '26 revenue targets of about INR250 crores

    — Samit Garg, Managing Director; Mukesh Agarwal, Chief Financial Officer

  • Revenue Growth Revenue · FY27 · Medium confidence 30-40%
    And for financial year '26-'27, I may not be totally out of place to say that over and above what we exhibit in financial year '25-'26, we will be able to exhibit a growth of between 30% to 40%.

    — Samit Garg, Managing Director

Profitability

  • Operating Margins and PAT Profitability · Next 2-3 years · High confidence Maintain current levels
    see our endeavour and attempt is going to be to continue maintaining the operating margins or the percentage level of PATs that we've been exhibiting over the last 2, 3 years.

    — Samit Garg, Managing Director

Capex

  • SIVA Immersive Project Capex Capex · Ongoing · Low confidence INR15-50 crores
    The future numbers will be derived and this range could anywhere be between INR15 crores to INR50 crores of rupees, but it is too premature for us to comment on it till the time we have not successfully gone through the test launch of the first project.

    — Samit Garg, Managing Director

Project Timeline

  • SIVA Immersive Premiere Date Project Timeline · 2026 · High confidence December 22, 2026
    And it will premiere in Delhi on the 22nd of December 2026.

    — Samit Garg, Managing Director

Volume

  • Sports Tournament Execution Volume · FY26-27 · High confidence At least two tournaments
    we are hopeful that we will see ourselves executing at least two of these four [tournaments].

    — Samit Garg, Managing Director

What to watch in Q3 FY26

FY26 Revenue Target Achievement

Next quarter (Q3 FY26)
Current INR52.6 crores achieved in H1 FY26
Target Progress towards INR250 crores

Why it matters

This is a key indicator of the company's full-year performance and its ability to meet stated growth objectives.

Now, friends, as we look ahead, we remain confident of achieving our financial year '26 revenue targets of about INR250 crores

Risks & concerns

  • Working capital stress from government payment cycles

    medium

    Government payment cycles are stretched, leading to higher working capital requirements and impacting net debt, though the company has developed strategies to manage this.

    Management acknowledged

Q&A highlights

7 direct
Regulatory and policy changes in the tourism ecosystem Direct
With the opening up of the experiences economy and the government's focus now on creating a specific policy that enables the growth of the creative economy in this country, there are changes expected at the level of the government on the policy front... the changes that will be brought about are only going to be more positive and will open the field, I would say, more pragmatically for players like us.

Provides insight into the positive regulatory environment supporting the company's growth in the experience economy.

Asked by Vikrant Sahu

Managing execution challenges in government-led projects (timeliness, approvals, payments) Direct
it is not easy and it is not everybody's cup of coffee. And this is where I think we stand a better advantage and chance over the others because we've learnt it over a period of time. We found our ways. How to make more decision making in less time? How to create an impact?

Highlights the company's core competency and competitive advantage in navigating complex government projects, a significant part of their business.

Asked by Vikrant Sahu

Increase in borrowings in H1 FY26 and its nature (working capital vs. project-specific) Direct
So, as the business landscape will increase, Mandira, these numbers will only be rising because it is a given that where 80%-85% of our business comes from governments... The life cycles of payments are a little stretched... So, because of the growth, you are possibly seeing this, but this is cyclical.

Clarifies that increased borrowings are primarily due to the cyclical nature of government project payments and growth, rather than project-specific issues, addressing potential concerns about financial health.

Asked by Mandira A

Sustainability of margin improvement seen in H1 FY26 Partial
I would say that the healthier margins that you are seeing in the half year ended September should not be looked at in solitude. By the end of the year, I think we will average out, as I said, to the same numbers that we have been doing in the last 2 years.

Suggests that the high margins in H1 might normalize by year-end, indicating that the current performance might not be fully sustainable at the same elevated level.

Asked by Atul Daga

Plans for inorganic growth and acquisition targets Direct
We are evaluating possibilities, Nimesh. As a matter of fact, we started this process almost 6, 7 months ago. And but we are being careful because we want to make sure that whatever possibility and avenues of inorganic growth... the alignment of our cultural ethos as how the enterprise wants to function is most important for us.

Indicates a strategic focus on inorganic growth, but with a cautious approach emphasizing cultural fit, providing insight into future expansion strategy.

Asked by Nimesh Pandya

Permanent installations as higher margin projects and contribution to annuity revenue Direct
But with the government also restructuring how they want longevity of these projects in terms of permanent installations to be consumed by the society. There is now an opportunity of annuities that is coming about... it may probably lean towards a heavier capex, but also opportunities of a better top line and a bottom line because then you are allowed to in some way or the other become partners to revenue that accrues because of visitors coming into the space.

Reveals a strategic shift towards permanent installations offering annuity revenue, indicating a potential change in business model and revenue quality.

Asked by Sana M

Competitive edge in executing large-scale tourism or cultural events Direct
the organization structure is structured in a way that now we have a lot of independent leadership on projects. And apart from that, we have a very strong supply chain, which is spread across the territories that we are operational in. So, it's more like an automated process... we have a robust purchase and supply chain management system coming in place.

Explains the operational strengths and structural advantages that enable the company to execute complex, large-scale events effectively.

Asked by Sana M

Business mix for H1 FY26 across various segments Direct
I think it was a good distributed mix. And so, some business, what would I say, I think about 25%, 28% of the business came through tourism festivals. About 15%, 17% business came through permanent installations. About 25% of the business came through the eco-retreats. And the balance number came through other initiatives like the World Expo and a couple of other things.

Provides a clear breakdown of revenue contribution from different business segments, showing a diversified portfolio.

Asked by Parisha Shah

3 min read 7 chapters

Detailed narrative

H1 FY26 Financial Performance Overview

E Factor Experiences reported robust financial performance for H1 FY26. Revenue from operations surged by 190% year-over-year to INR52.6 crores, compared to INR18.14 crores in H1 FY25. The company achieved an EBITDA of INR7.71 crores, resulting in a healthy EBITDA margin of 14.71%. Profit after tax (PAT) stood at INR5.06 crores, with a PAT margin of 9.62%, and earnings per share (EPS) significantly increased to INR3.87 from INR0.19 in H1 FY25.

Strategic Focus and Growth Drivers

The company continues to consolidate its position as a leading experience design and destination management firm, focusing on storytelling, curating events, and expanding into new geographies. Strategic priorities include diversifying revenue streams across cultural tourism, destination experiences, and spiritual tourism. Management aims to improve execution cycles for more consistent revenue realisations and is preparing for international expansion, particularly in the Indian subcontinent.

Marquee Projects and New IPs

During H1 FY26, E Factor Experiences delivered several marquee projects. The World Expo at Osaka was a highlight, where India secured a bronze for its pavilion design. Other notable projects included the Maha Paryatan Utsav in Mahabaleshwar, a high-impact destination festival, and the launch of 'The Bridal Retreat,' a new IP in premium lifestyle and wedding wellness, with Karan Johar as its brand ambassador. The company also created architectural gateways for the Maha Kumbh 2025 and continued its eco-retreats and Brahmaputra Carnival.

SIVA Immersive Project

The company is producing 'SIVA Immersive,' a first-of-its-kind immersive storytelling show in the mythological and spiritual space. This project, involving international studios, is slated to premiere in Delhi on December 22, 2026. The estimated capital expenditure for this project is in the range of INR15 crores to INR50 crores, though management noted it is too early to provide definitive figures before the test launch.

Government Projects and Working Capital Dynamics

A significant portion of the company's business (80-85%) comes from government projects, which often involve stretched payment cycles. This impacts working capital requirements, leading to a cyclical increase in debt, with net debt at INR20.17 crores as of September 30, 2025. Despite these challenges, the company maintains a net debt-to-equity ratio of 0.28 and leverages its experience to manage execution and payment cycles effectively.

Geographic Expansion and Market Outlook

E Factor Experiences is actively working in key Indian states such as Maharashtra, Odisha, and Andhra Pradesh, with plans to explore opportunities in Bihar following its government stabilization. The company is also preparing for international expansion, aligning with the global growth of the experiential economy. Management is confident in the positive impact of new government policies supporting the creative economy.

Inorganic Growth and Operational Capabilities

The company is evaluating selective inorganic opportunities to strengthen its creative and digital capabilities, having initiated this process 6-7 months ago. However, a cautious approach is being taken to ensure cultural alignment. Operationally, the company benefits from an organizational structure with independent project leadership, a strong supply chain across territories, and ongoing efforts to implement a robust purchase and supply chain management system.

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