EFC (I) Shares Rise 6% After Q2 Revenue Hits ₹332 Crore

Key numbers

Q2 Revenue	₹332 Cr30% YoY Growth
Net Profit	₹77 Cr36% YoY Growth
D&B Order Book	₹300+ CrAs of Sept 30, 2026
Market Cap	₹2601.12 CrRealty Sector

Key highlights

• Consolidated revenue from operations reached ₹332 crore, a 30% increase compared to ₹255 crore in the same period last year
• Net profit after tax stood at ₹77 crore for the quarter, growing 36% YoY from ₹57 crore
• The Design & Build (D&B) segment order book crossed ₹300 crore as of September 30, 2026, with over 85% from external clients
• Furniture vertical revenue grew by 149% YoY to approximately ₹35 crore, driven by expansion into institutional and modular home segments
• Operating EBITDA margins were maintained at 40%, despite slight compression from rising material and input costs

Integrated Platform Drives ₹332 Crore Topline

EFC (I) Limited continued its growth momentum in Q2 FY27, achieving a consolidated revenue of ₹332 crore, up from ₹282.88 crore in the previous quarter ended June 2026. This growth is underpinned by the company's triple-vertical strategy comprising managed office leasing, design and build services, and furniture manufacturing. The leasing segment remains the primary contributor, generating ₹168 crore during the quarter.

Management noted that large enterprises and Global Capability Centers are increasingly opting for integrated managed spaces to avoid upfront capital commitments. This trend has allowed EFC to improve asset productivity and cross-sell services across its ecosystem.

D&B Order Book and Manufacturing Scale

• The Design & Build (D&B) segment achieved ₹129 crore in revenue for Q2, marking a 16% YoY increase
• Management targets a 50-60% growth rate for the D&B vertical for the full fiscal year 2027
• External project participation is increasing, reducing reliance on internal leasing requirements
• Furniture manufacturing capacity was significantly bolstered through the acquisition of Ultra Fresh Modular Solutions
• The Ultra Fresh deal, valued at ₹54 crore via a share swap, provides a manufacturing footprint in Himachal Pradesh
• Synergies from the acquisition include entry into modular home segments and North Indian markets

Strategic Restructuring and NCLT Demerger

A pivotal strategic move is the proposed demerger and corporate restructuring filed with the NCLT. The scheme aims to segregate the asset-light managed office operations under EFC (I) Limited from the asset-heavy owned property business held by EFC Limited. This separation is intended to provide greater clarity on capital allocation and improve accountability for each business model.

The NCLT Mumbai Bench has scheduled the final hearing for this arrangement on November 27, 2026. Management expects this structure to better reflect the economics and risk profiles of managed services versus property ownership, ultimately assisting in asset management and real estate monetization.

Operational Efficiency and Margin Performance

Our ambition is not simply to build a larger EFC, but to build a stronger, more competitive and more valuable EFC, one that delivers consistent performance and creates long-term value for all stakeholders.

Margin Pressure and Working Capital Intensity

While the company reported a PAT margin of 23%, EBITDA margins saw a slight dip to 40% from 43.5% in the previous quarter. This compression was attributed to a substantial increase in material prices and service costs during the quarter. Additionally, the D&B business continues to be working-capital intensive due to milestone-based payments and retention requirements typically set at 5% of project value.

Management is focusing on milestone-based billing and timely collections to maintain a healthy cash flow. The company also executed an asset sale and leaseback transaction in Pune, generating a 39-40% return on capital while reducing asset-backed debt.

What to watch next

• Final NCLT hearing for the demerger scheme scheduled for November 27, 2026
• Integration of Ultra Fresh Modular Solutions and realization of operational synergies in North India
• Achievement of the targeted 18,000 to 20,000 billable leasing seat additions for FY27
• Execution of the ₹300+ crore D&B and Furniture order book in the second half of FY27

“The underlying market opportunity across all three verticals remain encouraging. India's office market recorded approximately 66 million square feet of absorption during the first nine months of 2026.”

“Our D&B capabilities further strengthen our ability to deliver high-quality commercial space efficiently, while furniture manufacturing expand our participation in the broader interior and furnishing market.”

EFC (I) · financial snapshot

Share price	₹173.47
Market capitalisation	₹2,601.12 Cr
Revenue (annual)	₹1,036.68 Cr
Net profit (annual)	₹231.55 Cr
Revenue (latest quarter)	₹282.88 Cr-3.41% vs previous quarter
Net profit (latest quarter)	₹69.00 Cr-0.58% vs previous quarter
P/E (TTM)	10.56×Sector 34.74×
Promoter holding	56.08%0.00% QoQ
FII holding	1.02%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.