EFC (I) Limited: Q2 & H1 FY26 Performance Highlights and Strategic Outlook

EFC (I) Limited, a prominent real estate as a service company, has reported a robust financial performance for the second quarter and first half of the fiscal year 2025-26. The company's consolidated revenue from operations surged by 53% year-on-year in Q2 FY26, reaching ₹254.6 crore. For the first half, revenue grew an impressive 76.6% year-on-year to ₹474.2 crore. This strong top-line growth translated into significant profitability, with EBITDA improving by 40% in Q2 to ₹110.8 crore and 69.4% in H1 to ₹213 crore. Notably, the net profit for H1 FY26 nearly doubled compared to the previous year, underscoring the effectiveness of its integrated business model.

The growth was broad-based across all three key business verticals: Leasing (managed offices), Design & Build (interior solutions), and Furniture manufacturing. In Q2 FY26, the Leasing segment contributed ₹129 crore (50.7%) to the total revenue, driven by strong demand for managed office spaces. The Design & Build segment recorded ₹111.6 crore (43.8%), reflecting robust project execution. The Furniture segment, a newer but rapidly establishing vertical, added ₹13.9 crore (5.5%). The company's total operational seat capacity has expanded to over 68,000 across 86 sites in 10 cities, maintaining a high occupancy rate of over 90%.

Financial Performance Summary (Consolidated)

Strategic Initiatives and Market Expansion

EFC (I) Limited is actively pursuing several strategic initiatives to sustain its growth trajectory. A significant development is its foray into retail leasing, announced in November 2025. This move aims to leverage the company's deep expertise in office real estate to tap into the expanding retail market. By partnering with large corporates, EFC will offer end-to-end solutions, including property identification, design, build, and furniture supply, enabling retail clients to operate with a 'capex-light' model. This strategy not only diversifies the company's revenue streams but also strengthens its integrated service offering.

Another key initiative is the implementation of an OpCo-PropCo model. The company currently owns approximately 9% of its 3 million+ square feet AUM and aims to increase this to 20%. This strategy is expected to enhance margin profiles and generate capital appreciation from owned properties, with funding secured through competitive debt. Management emphasized that this model provides substantial long-term value and stability.

Segmental Contribution (Q2 FY26)

Management Outlook and Future Growth

Management expressed strong confidence in the company's future growth, projecting an addition of over 20,000 seats annually to its leasing portfolio for the next two years, while maintaining a 90% plus occupancy rate. The Design & Build segment is targeted to grow at 50-60% year-on-year for the next two years, supported by a robust order book of ₹450 crore. The Furniture segment is also poised for significant expansion, with capacity utilization expected to reach 40-45% this fiscal year and 70-80% in subsequent years, driven by margin-accretive backward integration and growing consumer demand.

EFC (I) Limited's focus on an integrated real estate as a service model, coupled with strategic expansions and disciplined execution, positions it well for sustained growth. The company's commitment to enhancing client experience through technology and its prudent financial management, as evidenced by a low debt-equity ratio, reinforce investor confidence. The management anticipates the next three financial years to be particularly exciting, as EFC continues to redefine intelligent, design-led, and fully integrated office environments.