EFC H1 FY27 PAT rises 43% while EBITDA margin narrows

EFC (I) Limited reported profit after tax of Rs 148 crore in H1 FY27, up 43% year on year, as revenue increased 30% to Rs 615 crore; earnings before interest, tax, depreciation and amortisation (EBITDA) rose 21% to Rs 257 crore, implying a margin decline to about 41.8% from 44.9%.

What did EFC report in H1 FY27?

EFC reported revenue of Rs 615 crore in H1 FY27, compared with Rs 474 crore in H1 FY26, while profit after tax (PAT) increased to Rs 148 crore from Rs 103 crore. The company reported 30% revenue growth and 43% PAT growth, meaning PAT increased faster than sales over the first half of FY27.

EBITDA rose by Rs 44 crore to Rs 257 crore in H1 FY27 from Rs 213 crore in H1 FY26, a 21% increase. Earnings before interest and tax (EBIT) increased 42% to Rs 227 crore from Rs 160 crore, while earnings per share (EPS) rose to Rs 10 from Rs 7.

Return on capital employed (ROCE) was 16% in H1 FY27, against 14% in H1 FY26. EFC did not provide capital-employed values or a reconciliation for the two-percentage-point movement, but disclosed both ROCE figures with its half-year income measures.

Why did EFC’s EBITDA margin narrow in H1 FY27?

EFC’s implied EBITDA margin narrowed because EBITDA grew 21%, below the 30% rise in revenue. Dividing Rs 257 crore of H1 FY27 EBITDA by Rs 615 crore of revenue gives an implied margin of about 41.8%, compared with about 44.9% from Rs 213 crore of EBITDA and Rs 474 crore of revenue in H1 FY26.

The calculation indicates a decline of about 3.1 percentage points year on year, although EFC did not state an EBITDA-margin figure or identify drivers for the change. Revenue increased by Rs 141 crore between H1 FY26 and H1 FY27, while EBITDA increased by Rs 44 crore.

The Q2 FY27 data showed the same difference in growth rates: EFC reported revenue of Rs 332 crore, up 30% year on year, and EBITDA of Rs 134 crore, up 21%. These reported figures imply a Q2 FY27 EBITDA margin of about 40.4%, but EFC did not disclose Q2 FY26 revenue and EBITDA amounts to calculate a directly comparable quarterly margin.

Which EFC businesses drove H1 FY27 revenue growth?

EFC reported year-on-year growth in all three stated business lines during H1 FY27, with furniture expanding fastest. Leasing revenue rose 28% to Rs 321 crore, Design & Build revenue increased 17% to Rs 230 crore, and furniture revenue grew 137% to Rs 63 crore.

Leasing remained EFC’s largest stated H1 FY27 segment at Rs 321 crore, followed by Design & Build at Rs 230 crore and furniture at Rs 63 crore. The three segment figures total Rs 614 crore, against reported consolidated revenue of Rs 615 crore; the presentation does not explain the Rs 1 crore difference.

In Q2 FY27, leasing generated Rs 168 crore of revenue, up 30% year on year, while Design & Build generated Rs 129 crore, up 16%. Furniture contributed Rs 35 crore and recorded the largest percentage increase, at 149%, but remained the smallest of the three reported segments by quarterly revenue.

What acquisition and restructuring plans did EFC disclose?

EFC disclosed the acquisition of 100% of Ultrafresh Modular Solutions Limited for Rs 54 crore through a share swap. The consideration involved 19,99,996 EFC shares issued at Rs 270 each, and Ultrafresh became a wholly owned EFC subsidiary after previously being a 51% subsidiary of TTK Prestige Limited.

Ultrafresh reported turnover of Rs 36.3 crore in FY26, compared with Rs 32.5 crore in FY25 and Rs 31.2 crore in FY24. EFC described the three-year turnover compound annual growth rate as about 7.9% and said the acquisition adds Ultrafresh’s Nalagarh, Himachal Pradesh manufacturing facility and modular-home product offering.

EFC also outlined a proposed restructuring to consolidate leasing and Design & Build operations within the listed entity, including leasing subsidiaries and project special purpose vehicles (SPVs), except asset-owning entities. The proposal separates leased-premises and owned-property operations, retains asset-acquisition financing in EFC Limited, and provides for no new shares to be allotted by EFC under the scheme.

Management said the proposed asset-management model could create recurring assets-under-management-based management fees, while the ownership model is intended to enable participation in long-term real-estate upside. The presentation identifies separate oversight of workspace operations, property investments and acquisition-related borrowings as an intended governance outcome, rather than a reported H1 FY27 financial result.

Conclusion

EFC’s H1 FY27 results show PAT rising 43% to Rs 148 crore and EBIT increasing 42% to Rs 227 crore, both outpacing the 30% increase in revenue to Rs 615 crore. EBITDA rose 21% to Rs 257 crore, so the margin calculated from EFC’s reported figures declined from about 44.9% to about 41.8%.

The next disclosed matters to watch are the proposed separation of leased-premises and owned-property operations, including the retention of asset-acquisition financing in EFC Limited, and integration of Ultrafresh. EFC has identified North India expansion, manufacturing utilisation, combined procurement and supply chains, and shared infrastructure as the planned mechanisms following the Rs 54 crore acquisition.