EFC Q2 FY26 results: net profit up 55.1% to ₹56.71 crore, revenue up 53.0%

How did EFC perform in Q2 FY26?

EFC’s consolidated revenue for the July–September 2025 quarter was ₹254.59 crore, compared with ₹166.44 crore in Q2 FY25 and ₹219.62 crore in Q1 FY26. Revenue rose 53.0% year on year and 15.9% sequentially. Total income was ₹256.82 crore, while other income was ₹2.22 crore.

EBITDA increased to ₹110.81 crore from ₹79.34 crore a year earlier and ₹102.25 crore in the previous quarter. The EBITDA margin was 43.5%, compared with 47.7% in Q2 FY25 and 46.6% in Q1 FY26, declines of 4.2 percentage points and 3.1 percentage points, respectively.

Profit before tax was ₹75.55 crore, up from ₹55.67 crore in Q2 FY25 and ₹66.15 crore in Q1 FY26. After tax of ₹18.87 crore, EFC reported a net profit of ₹56.71 crore, compared with ₹36.56 crore and ₹46.67 crore. Basic EPS was ₹5.70, compared with ₹7.35 a year earlier and ₹4.69 in Q1 FY26. On a standalone basis, revenue was ₹10.96 crore and profit after tax was ₹8.18 crore.

What changed in EFC's costs and profit?

Total expenses increased by ₹65.86 crore to ₹181.27 crore from Q2 FY25. Cost of materials was ₹120.96 crore, up ₹60.86 crore, while employee cost rose ₹6.74 crore to ₹12.66 crore. Depreciation increased ₹10.03 crore to ₹31.01 crore and other expenses rose ₹16.71 crore to ₹37.78 crore; finance costs fell ₹0.86 crore to ₹6.47 crore.

Other income declined by ₹2.42 crore to ₹2.22 crore from ₹4.64 crore in Q2 FY25. Tax expense was ₹18.87 crore, lower by ₹0.24 crore from ₹19.11 crore. The quarter included no exceptional item, and the filed results do not provide a stated reason for the changes in the cost lines.

Against Q1 FY26, total expenses increased ₹24.16 crore to ₹181.27 crore. Cost of materials rose ₹39.14 crore and other expenses increased ₹16.12 crore, while finance costs fell ₹5.09 crore. Other income decreased ₹1.42 crore and tax expense was lower by ₹0.52 crore; no exceptional item was reported.

How did the first half of FY26 go?

In the first half of FY26, consolidated revenue was ₹474.21 crore, compared with ₹268.49 crore in H1 FY25, an increase of ₹205.72 crore or 76.6%. Total income rose 73.7% to ₹480.07 crore from ₹276.36 crore, while profit before tax increased 84.0% to ₹141.70 crore from ₹77.03 crore.

H1 FY26 net profit was ₹103.38 crore, up 97.5% from ₹52.34 crore in H1 FY25. Basic EPS was ₹10.38, compared with ₹10.51 in the earlier period, a decline of 1.2%.

What do the balance sheet and cash flow show?

At 30 September 2025, total assets were ₹2,171.38 crore, compared with ₹1,699.17 crore at 31 March 2025. Total equity was ₹684.69 crore against ₹581.05 crore, borrowings were ₹304.10 crore against ₹230.82 crore, and cash was ₹27.68 crore against ₹17.11 crore. Inventories were ₹29.04 crore, trade receivables ₹155.13 crore and trade payables ₹97.38 crore.

H1 FY26 operating cash flow was ₹60.70 crore, compared with ₹149.96 crore in H1 FY25. Investing cash flow was negative ₹46.88 crore against negative ₹494.85 crore, while financing cash flow was negative ₹3.24 crore against ₹363.24 crore. Capital expenditure was ₹68.17 crore, compared with ₹232.02 crore a year earlier.

How has EFC done over the last 8 quarters?

EFC’s revenue rose in each of the last eight quarters on a year-on-year basis, and profit also rose year on year in each of the last eight quarters. Revenue reached ₹254.59 crore in Q2 FY26, the highest level in the series, while net profit was ₹56.71 crore, also the highest.

The EBITDA margin reached its highest level, 56.1%, in Q4 FY24 and its lowest, 35.5%, in Q3 FY24. It was 43.5% in Q2 FY26, below 46.6% in Q1 FY26 and 47.7% in Q2 FY25, indicating that revenue and profit continued rising while the margin moved lower in the latest two quarters.

Which businesses drove the quarter?

Leasing, described as Rental in the reported segment data, generated revenue of ₹129.00 crore and EBIT of ₹50.35 crore in Q2 FY26. Its EBIT margin was 39.0%, and no year-ago revenue or EBIT comparison was provided.

Interior reported revenue of ₹111.61 crore and EBIT of ₹27.07 crore, with an EBIT margin of 24.3%. The company did not provide year-ago revenue, EBIT or growth figures for this segment. Furniture reported revenue of ₹13.98 crore, EBIT of ₹2.37 crore and an EBIT margin of 17.0%, also without a year-ago comparison.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025, along with the limited review report of the statutory auditors. The results were approved at the board meeting held on 11 November 2025.

The board also approved the request by Shefali Chintan Parikh and Niren Abhaykumar Jhaveri to move from the Promoter category to the Public category, subject to approval from BSE and NSE. In a separate filing on 12 November 2025, EFC said the National Company Law Tribunal had sanctioned its scheme of arrangement with Whitehills Interior Limited and that the order was awaited.

What did EFC's management say?

Management said furniture capacity utilisation was 40–45% in FY26 and targeted 70–80% in future years, with EBITDA margin above 30% at optimal utilisation. It said retail leasing revenue and margin would be specified in Q3 FY26 and would not affect the overall margin profile. The company launched its retail leasing vertical in November 2025 for large brand corporates using formats above 5,000 square feet.

How did EFC shares react?

After the filing appeared after market hours, EFC’s price rose 1.7% in the first five minutes, 2.0% after 15 minutes and 2.3% after 30 minutes. By the reaction-day close, the stock was up 1.4% from its pre-results close; by the next day’s close it was down 0.3%, and by the fifth session it was down 4.9%.

The Diversified Commercial Services sector’s median reaction-day move was 0.0%, while the Nifty Microcap 250 rose 0.9%. EFC outperformed the sector median by 1.4 percentage points on the reaction day; over one day it lagged the sector median by 0.1 percentage points, and over five days it lagged by 3.3 percentage points. No past results-day reaction data was provided.

How did other Diversified Commercial Services companies do?

Among 77 Diversified Commercial Services peers compared for the quarter, the median revenue growth was 18.9%. EFC’s revenue growth of 53.0% was higher than the median, with 56 peers growing more slowly than EFC and 21 growing faster than EFC. Of 103 peers for which profit was compared, 53 reported higher profit.