E Factor Experie — Q4 FY25 earnings call

Call held 3 Jun 2025

Management summary

E-Factor Experiences Limited reported robust financial growth for H2 and FY25, driven by its expanding presence in cultural tourism and large-scale experiential events, including the India Pavilion at World Expo Osaka. The company achieved significant year-on-year increases in revenue, EBITDA, and PAT, and set an ambitious revenue target of ₹250 crores for FY26. However, concerns were raised regarding a substantial increase in receivables, promoter share selling, and the seasonal nature of the business, which management is actively working to address.

Highlights

  • H2 FY25 operational revenue grew 21% YoY to ₹153.41 crores.

  • H2 FY25 EBITDA increased 29% YoY to ₹26.18 crores, with a margin of 17.06%.

  • FY25 net profit rose 31% YoY to ₹20.18 crores, achieving a 11.76% margin and EPS of ₹15.42.

  • Secured significant projects including the India Pavilion at World Expo Osaka and Maharashtra Mahaparyatan Mahotsav (₹20 crores).

  • Management aims for a top line of ₹250 crores in FY26, indicating strong growth expectations.

Concerns

  • Receivables doubled in FY25, with ₹70-75 crores of billing occurring at the very end of March, impacting cash flow.

  • Promoter selling of 4% equity capital led to a significant stock price drop, raising investor concerns about future intentions.

  • Net debt-to-equity ratio increased from 0.07 in FY24 to 0.21 in FY25, though management expects it to remain within 0.3-0.4.

Key financials

2 periods

H2

  • FY25 Operational Revenue
    ₹153.41 Cr
    YoY +21%
  • FY25 EBITDA
    ₹26.18 Cr
    YoY +29%
  • FY25 EBITDA Margin
    17.1%
  • FY25 PAT
    ₹19.9 Cr
    YoY +36%

FY25

  • Operational Revenue
    ₹171.55 Cr
    YoY +15%
  • EBITDA
    ₹26.69 Cr
    YoY +20%
  • EBITDA Margin
    15.6%
  • PAT
    ₹20.18 Cr
    YoY +31%
  • EPS
    ₹15.42
    YoY +31%
  • Net Debt
    ₹15.21 Cr
  • Net Debt-to-Equity
    0.21
  • Return on Capital Employed
    32%
  • Return on Equity
    28.5%

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

medium confidence
  • Capex Capex disclosed
    • Investment in subsidiary company (mentioned in IPO DRHP) ₹2 Cr
    • Investment in additional capital equipment for ballooning (after testing new destinations with leased equipment)
    No, no. We were talking about the investment in our subsidiary company, which is of about INR2 crores. So, we, you know, to be honest with you, we wanted to play a little safe. We best marketed, best launched these newer destinations with local partners, got them to kind of invest a little. But I think so that investment in additional capital equipment for ballooning should hopefully start later this year. If not later this year, then maybe early next year.
  • Debt Net ₹15.21 Cr
    The net debt stood at INR15.21 crores in FY '25, where the major part of the debt was short-term working capital. The net debt-to-equity ratio remained comfortable at 0.21, up from 0.07 in FY '24.

Guidance & targets

Revenue

  • Top Line Revenue Revenue · FY26 · High confidence ₹250 crores
    If I were to keep our numbers a little subdued and not throw out a lot of green light on optimism, we should be able to do a top line of INR250 crores in this financial year.

    — Samit Garg

  • Revenue from 10% Project IPs Revenue · FY26 · High confidence 10% of top line
    The 10% Project is our initiative where we are anticipating to get 10% of the company's top line through our engineered, customized IPs that we intend to roll out.

    — Samit Garg

Margin

  • EBITDA Margin Margin · FY26 · High confidence Maintain current year's level
    We should be definitely aiming to achieve the numbers that we have been able to achieve this year.

    — Samit Garg

Debt

  • Net Debt-to-Equity Ratio Debt · Ongoing · High confidence 0.3-0.4
    Technically, we talk about the debt to equity ratio will remain in the range of below 0.3 or 0.4 basically.

    — Mukesh Agarwal

What to watch in Q1 FY26

Receivables Collection

Next quarter (by June 15th for some, Osaka will take longer)
Current INR 112 crores outstanding, INR 70-75 crores billed at year-end
Target Significant reduction in receivables

Why it matters

High receivables can impact working capital and cash flow, so timely collection is crucial.

So I am assuming that because we've had a healthy cycle of payment with the Odisha government and the Odisha projects of the Eco Retreats, most of that money has come in in the last month. And whatever is balanced, I'm assuming maybe 15%-20% is balanced, should roll in by the 15th of June. Osaka project, on the other hand, will take a little more time because those were the terms of the tender.

Risks & concerns

  • Promoter selling of equity

    high

    Promoters sold 4% of equity, leading to a stock price drop; management stated it was a one-off historical commitment.

    Analyst acknowledged

  • Doubling of receivables due to year-end billing

    medium

    Receivables increased significantly in FY25, with ₹70-75 crores of billing from large projects occurring in late March, impacting cash flow.

    Analyst acknowledged

  • Seasonality of business

    medium

    The business has historically been seasonal, with lower volumes in the first half, but management is actively working to mitigate this.

    Analyst acknowledged

  • Political and bureaucratic delays

    medium

    Elections and changes in bureaucratic setup caused project delays and slower processes in March, impacting billing timelines.

    Management acknowledged

Q&A highlights

6 direct
Receivables doubling and year-end billing impact Partial
So, approximately, I think 75, maybe INR70 crores-INR75 crores of billing could only be completed towards the end of March. So, which is why one saw it skewed a little extra this year.

Analyst questioned the significant increase in receivables despite revenue growth, highlighting potential working capital strain due to late billing from large projects.

Asked by Agastya Dave

IPO asset acquisition and ballooning business expansion Direct
We opened up a new destination, Hampi. We test piloted Hampi on leased equipment before investing fresh. So, Hampi has very successfully worked as a new addition. And we are now testing another destination in Uttar Pradesh. I cannot name the place. And another destination in Rajasthan, at the borders of Rajasthan in Madhya Pradesh.

Clarified the status of IPO-mentioned asset acquisitions, indicating a cautious, asset-light approach to expanding the ballooning business by testing new locations with leased equipment first.

Asked by Agastya Dave

Promoter selling of equity and its impact on stock price Direct
There were certain commitments that as promoters of the company we had individually made to certain people historically and this was one-off, this is not to be considered that it's going to be made a practice.

Addressed concerns about significant promoter selling (4% equity) that led to a stock price drop, reassuring investors it was a one-off event due to historical commitments.

Asked by Agastya Dave

Frequency of communication with investors Direct
I think we will be mindful of being more communicative. And now that we have an agency that is helping us do this, so we will make it a point that if not 3 months, then at least between 3 to 4 months, we do a conversation like this, so that we can keep you more updated and address any questions that may come to your mind.

Analyst requested more frequent communication, especially given business seasonality and stock volatility, leading to management committing to more regular updates.

Asked by Agastya Dave

Seasonality of business and efforts to mitigate it Direct
As we had mentioned to you in our board meeting AGM last year, we wanted to make sure that this year onward this changes. And you will hopefully see that the first 4 months of financial year '25-26' are different to what they were in the previous years. And it's a conscious effort that has been made in that direction so that we don't remain a seasonal business driven enterprise anymore.

Management acknowledged the seasonal nature of the business and outlined conscious efforts to diversify revenue streams and achieve more consistent performance throughout the year, starting in FY26.

Asked by Agastya Dave

Contribution and margins from 'Religious Tourism' Direct
That is not a religious project. So, the Maha Kumbh was one. And even if we say, okay, let us say Shakti Vijayotsav. So, both of these put together is what? INR23 crores?

Clarified that their focus is on culturally and spiritually driven experiences rather than strictly 'religious tourism', quantifying the revenue from such projects (Maha Kumbh and Shakti Vijayotsav) at ₹23 crores.

Asked by Anamika More

Update on Andhra Pradesh Writ Petition court case Direct
So, fortunately, with the coming back of the old administration under the leadership of Mr. Naidu, this Writ Petition that we had filed is now being dealt directly at offices at the highest level. And if all goes well, by July, we should get the money.

Provided an optimistic update on a pending legal matter, expecting resolution and receipt of funds by July due to a change in state administration.

Asked by Sahil Singla

2 min read 6 chapters

Detailed narrative

Overview of E-Factor Experiences and Strategic Focus

E-Factor Experiences Limited, an award-winning experiential events company with a nearly 25-year legacy, specializes in diverse high-impact events including tourism festivals, multimedia shows, and private celebrations. The company, which became public in 2021 and listed in October 2023, is actively pursuing interests in cultural landmarks and spaces for public engagement. Its expertise spans destination promotion, immersive tourism, and high-profile state events, with a strong focus on innovation, culture, and audience engagement in museums and interpretation centers.

Landmark Projects and Global Recognition

A significant achievement in the last financial year was E-Factor's role in curating the India Pavilion at the World Expo 2025 in Osaka, a joint venture with Eco First (Tata company). This project, which opened in April 2025, is expected to attract over 28 million global visitors. The company also strengthened its global footprint by playing a significant role at the World Experience Summit in London in April, showcasing India's achievements in the experiential domain on a large scale.

Domestic Initiatives and Cultural Tourism Expansion

Domestically, E-Factor entered the realm of permanent narrative installations, designing four majestic gateways for the Maha Kumbh 2025 in Prayagraj. The company is also leading Maharashtra tourism initiatives, including an Eco-Glamping festival in Nasik. Recent work orders include the Maharashtra Mahaparyatan Mahotsav (₹20 crores), a cultural center on Rabindranath Tagore at Shillong, and an experiential forest zone in Nongkhyllem, Meghalaya, with these two projects expected to add ₹35-37 crores to revenue.

Financial Performance for H2 and FY25

For H2 FY25, E-Factor reported operational revenue of ₹153.41 crores, marking a 21% year-on-year growth. EBITDA stood at ₹26.18 crores, a 29% increase with a margin of 17.06%. Net profit after tax was ₹19.90 crores, up 36% YoY, with a 13% margin. For the full FY25, operational revenue reached ₹171.55 crores (15% YoY growth), EBITDA was ₹26.69 crores (20% increase, 15.56% margin), and net profit was ₹20.18 crores (31% increase, 11.76% margin), with EPS at ₹15.42.

Capital Structure and Future Growth Strategy

The company's net debt stood at ₹15.21 crores in FY25, primarily short-term working capital, with a net debt-to-equity ratio of 0.21 (up from 0.07 in FY24). Return on capital employed was 32%, and return on equity was 28.49%. E-Factor is committed to geographic expansion, cost optimization, and exploring inorganic growth. A '10% Project' aims to generate 10% of the company's top line from engineered, customized IPs, targeting a top line of ₹250 crores for FY26.

Addressing Receivables and Promoter Shareholding

Management addressed concerns regarding the doubling of receivables, explaining that ₹70-75 crores of billing from large projects (Osaka World Expo, Eco Retreat Odisha, Maharashtra Mahotsav) occurred at the very end of March, exacerbated by election-related bureaucratic delays. They expect these to normalize. Regarding promoter share selling, it was clarified as a one-off event due to historical commitments, not a recurring practice, with management reaffirming their commitment to long-term shareholder wealth creation.

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