EFC Q2 FY27 results: net profit up 36.2% to ₹77.26 crore, revenue up 30.4%

How did EFC perform in Q2 FY27?

On the consolidated basis, EFC reported revenue of ₹332.02 crore in the September 2026 quarter, up ₹77.43 crore or 30.4% from ₹254.59 crore in Q2 FY26 and ₹49.14 crore or 17.4% from Q1 FY27. EBITDA was ₹133.77 crore, up 20.7% year on year and 8.8% sequentially, while the EBITDA margin declined 3.2 percentage points from 43.5% to 40.3% in both comparisons.

Profit before tax rose to ₹110.83 crore from ₹75.55 crore a year earlier and ₹101.34 crore in the previous quarter. After tax of ₹33.57 crore, PAT was ₹77.26 crore, compared with ₹56.71 crore in Q2 FY26 and ₹70.85 crore in Q1 FY27. Basic EPS was ₹5.36, down ₹0.34 or 6.0% from Q2 FY26 but up ₹0.53 or 11.0% from Q1 FY27.

The board also approved standalone results for the quarter ended 30 September 2026. On that basis, revenue was ₹143.65 crore and PAT was ₹14.93 crore, against profit before tax of ₹8.18 crore in the year-ago period.

What changed in EFC's costs and profit?

Total expenses were ₹231.87 crore in Q2 FY27, up ₹50.60 crore or 27.9% from Q2 FY26. Cost of materials rose ₹28.91 crore or 23.9% to ₹149.87 crore, while employee cost increased ₹0.31 crore or 2.4% to ₹12.97 crore.

Other income rose ₹8.46 crore or 381.1% to ₹10.68 crore. Finance costs fell ₹1.90 crore or 29.4% to ₹4.57 crore, depreciation declined ₹1.96 crore or 6.3% to ₹29.05 crore, and other expenses fell ₹9.49 crore or 25.1% to ₹28.29 crore. There was no exceptional item.

Tax expense increased ₹14.70 crore or 77.9% to ₹33.57 crore. Management said material and service cost inflation created some pressure on quarterly margins. The standalone review also noted unbilled revenue of 7638 lakh, with customer confirmations awaited and the auditors qualifying their conclusion on this point.

How did the first half of FY27 go?

EFC reported H1 FY27 consolidated revenue of ₹614.9 crore, up ₹140.69 crore or 29.7% from ₹474.21 crore in H1 FY26. Total income increased ₹156.93 crore or 32.7% to ₹637.0 crore, while profit before tax rose ₹70.47 crore or 49.7% to ₹212.17 crore.

PAT for the first half was ₹148.11 crore, up ₹44.73 crore or 43.3% from ₹103.38 crore a year earlier. Basic EPS was ₹10.11, down ₹0.27 or 2.6% from ₹10.38 in H1 FY26.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets were ₹3,208.24 crore, up from ₹2,675.09 crore on 31 March 2026, and total equity was ₹1,121.9 crore, up from ₹813.69 crore. Borrowings fell to ₹263.52 crore from ₹307.57 crore, while cash declined to ₹7.0 crore from ₹10.5 crore.

Inventories increased to ₹54.12 crore from ₹37.51 crore, trade receivables declined to ₹239.83 crore from ₹244.65 crore, and trade payables rose to ₹201.39 crore from ₹143.0 crore. H1 FY27 operating cash flow was ₹75.24 crore, compared with ₹60.7 crore in H1 FY26.

Investing cash flow was negative ₹107.13 crore, compared with negative ₹46.88 crore a year earlier, while financing cash flow was ₹28.4 crore against negative ₹3.24 crore. Capital expenditure was ₹56.88 crore in H1 FY27, lower than ₹68.17 crore in H1 FY26.

How has EFC done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters and reached ₹332.02 crore in Q2 FY27, compared with ₹177.24 crore at the bottom of the eight-quarter series in Q3 FY25. Revenue fell from ₹292.88 crore in Q4 FY26 to ₹282.88 crore in Q1 FY27 before rising in the latest quarter.

PAT increased in each of the last eight quarters and reached ₹77.26 crore in Q2 FY27, against ₹40.47 crore in Q3 FY25. EBITDA margin peaked at 52.3% in Q3 FY25, fell to 40.3% in Q2 FY27, and recovered to 49.0% in Q4 FY26 before declining again.

Which businesses drove the quarter?

Rental revenue was ₹167.99 crore, up 30.2% from ₹129.0 crore in Q2 FY26, while segment EBIT was ₹66.24 crore, up from ₹50.35 crore. The reported EBIT margin was 39.4%.

Interior revenue rose 15.8% to ₹129.19 crore from ₹111.61 crore, with EBIT of ₹35.3 crore compared with ₹27.07 crore and an EBIT margin of 27.3%. Furniture revenue increased 149.2% to ₹34.84 crore from ₹13.98 crore; EBIT was ₹3.17 crore, compared with ₹2.37 crore, and the EBIT margin was 9.1%.

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 2026 on 2 November 2026. A limited review report issued by Mehra Goel & Co. LLP accompanied the results.

EFC also filed an investor presentation that said it had acquired 100% of Ultrafresh Modular Solutions Limited for ₹54 crore through a share swap involving 19,99,996 shares issued at ₹270 per share. The presentation described a proposed demerger that would retain owned-property operations in EFC Limited and place asset-light leasing and design-and-build operations in listed EFC. It stated that no shares would be allotted by EFC under the scheme.

What did EFC's management say?

Management maintained FY27 design-and-build revenue growth guidance of 50–60%, citing an order book above ₹300 crore and stronger expectations for Q3 and Q4. It also maintained annualised consolidated EBITDA margin guidance above 20%, with stabilised margins of approximately 25% for leasing, 18–22% for design-and-build and 24–25% for furniture at optimal manufacturing capacity.

Management expected portfolio occupancy to remain generally above 90% over Q3–Q4 FY27. It said the proposed demerger would place asset-light leasing and design-and-build in listed EFC while retaining owned property in EFC, and added that Ultrafresh brought modular products, North India manufacturing capacity and an established distribution network.

Management identified execution cycles, milestone billing, retention and performance guarantees as design-and-build risks. It also said working-capital intensity could constrain cash conversion, material and service inflation pressured quarterly margins, and furniture profitability depends on utilisation, procurement efficiency, inventory management and product mix. The proposed demerger remains subject to NCLT and other regulatory approvals and implementation requirements.

How did EFC shares react?

EFC rose 0.6% within five minutes of the filing appearing, then moved lower by 0.5% after 15 minutes and 4.1% after 30 minutes. The stock closed the reaction session 4.3% below its pre-results close and was 4.9% lower by the next day's close, measured from the same pre-results close.

On the reaction day, the Diversified Commercial Services industry median moved up 0.8%, so EFC underperformed the sector by 5.1 percentage points. By the next day's close, the industry median was up 2.3% and EFC’s relative performance was negative 7.2 percentage points.

Earlier reaction-day moves were negative 5.2% on 29 July 2026, negative 4.8% on 28 May 2026 and negative 2.7% on 14 February 2026, while the 11 November 2025 reaction-day move was positive 1.4%.

How did other Diversified Commercial Services companies do?

Twenty-four Diversified Commercial Services companies were compared for revenue growth, with a median growth rate of 15.6% as on 5 November 2026. Of these, 14 grew more slowly than EFC and 10 grew faster than EFC in Q2 FY27.

Among 30 peers for which profit data was available, 18 reported higher profit. The peer comparison therefore covered more companies for profit than for revenue growth.