EFC (I) Limited September profit reaches Rs 77.26 crore

EFC (I) Limited reported consolidated profit after tax of Rs 77.2602 crore for the quarter ended September 30, 2026, versus Rs 55.4967 crore a year earlier, while revenue from operations rose to Rs 332.0189 crore from Rs 254.5924 crore. Rental, interior and furniture each increased revenue, while the auditor qualified its conclusion on unbilled revenue and overdue receivables.

How did EFC (I)'s September-quarter earnings change?

EFC (I)'s consolidated profit after tax rose to Rs 77.2602 crore in the quarter ended September 30, 2026, from Rs 55.4967 crore in the corresponding quarter of 2025. Profit before tax increased to Rs 110.8276 crore from Rs 75.5847 crore, as total income rose to Rs 342.7022 crore from Rs 256.8170 crore.

Revenue from operations increased by Rs 77.4265 crore year on year to Rs 332.0189 crore. Other income was Rs 10.6833 crore, compared with Rs 2.2246 crore a year earlier, while total expenses rose to Rs 231.8746 crore from Rs 181.2687 crore. The increase in total income exceeded the rise in expenses, resulting in a Rs 35.2429 crore increase in profit before tax.

On a sequential basis, September-quarter revenue was higher than Rs 282.8799 crore in the quarter ended June 30, 2026. Profit before tax was also higher than Rs 101.3385 crore in June, while finance cost declined to Rs 4.5744 crore from Rs 10.3465 crore.

For the half year ended September 30, 2026, EFC (I) reported revenue from operations of Rs 614.8988 crore, compared with Rs 474.2142 crore in the corresponding six months of 2025. Half-year profit before tax rose to Rs 212.1661 crore from Rs 141.6959 crore.

Which EFC (I) businesses drove September-quarter revenue growth?

EFC (I)'s rental segment remained its largest business by September-quarter revenue, generating Rs 167.9910 crore versus Rs 129.0026 crore a year earlier. Rental segment result, measured before tax and interest, rose to Rs 66.2440 crore from Rs 50.3548 crore.

The interior segment reported revenue of Rs 129.1893 crore, compared with Rs 111.6080 crore in the September 2025 quarter. Its segment result increased to Rs 35.3033 crore from Rs 27.0675 crore, according to the consolidated segment statement.

Furniture revenue increased to Rs 34.8386 crore from Rs 13.9818 crore, the fastest percentage increase among the three reported segments. Its segment result rose to Rs 3.1715 crore from Rs 2.3742 crore, while rental added the largest absolute revenue amount, Rs 38.9884 crore, year on year.

For the half year, rental revenue reached Rs 321.9032 crore from Rs 251.8556 crore, interior revenue was Rs 229.5822 crore from Rs 196.2946 crore, and furniture revenue was Rs 63.4134 crore from Rs 26.7340 crore. Total segment result for the six-month period increased to Rs 204.9858 crore from Rs 153.8682 crore.

What do EFC (I)'s cash flow and balance-sheet figures show?

EFC (I) generated net cash from operating activities of Rs 75.2403 crore in the half year ended September 30, 2026, compared with Rs 60.6955 crore in the comparable 2025 period. Cash generated from operations was Rs 77.0382 crore before net income taxes paid of Rs 1.7979 crore.

Working-capital movements included an increase in other assets of Rs 215.0932 crore and an increase in other financial liabilities of Rs 139.4042 crore. Trade payables increased by Rs 58.8075 crore, while other financial assets increased by Rs 76.2771 crore during the six-month period.

Net cash used in investing activities was Rs 107.1266 crore, compared with Rs 46.8814 crore a year earlier. EFC (I) spent Rs 56.8840 crore on property, plant and equipment, intangible assets, capital work in progress and capital advances, and recorded Rs 53.6416 crore of net investment in fixed deposits.

Financing activities produced a net inflow of Rs 28.3959 crore, compared with a net outflow of Rs 3.2413 crore in the prior-year period. Equity-share issuance generated Rs 159.9418 crore, while lease principal and interest payments totalled Rs 111.8528 crore; cash and cash equivalents ended September 30 at Rs 7.0048 crore, down from Rs 10.4956 crore at March 31, 2026.

Total assets stood at Rs 3,208.24 crore at September 30, 2026, compared with Rs 2,675.0921 crore at March 31, 2026. Total equity increased to Rs 1,121.9004 crore from Rs 813.6867 crore, while total liabilities increased to Rs 2,086.3396 crore from Rs 1,861.4055 crore.

Why did EFC (I)'s auditor issue a qualified conclusion?

EFC (I)'s statutory auditor issued a qualified conclusion because customer confirmations for Rs 76.38 crore of unbilled revenue were awaited at the review date. The amount was included in other current assets at September 30, 2026 and represented revenue recognised under Indian Accounting Standard 115, or Ind AS 115, using an input method based on costs or stage of completion.

Management said independent technical experts had certified physical progress against approved scope and cost estimates, and it believed the related contract assets were fully recoverable. The auditor said it could not determine whether any adjustment to recognised revenue was necessary while customer confirmations remained outstanding.

The auditor also identified Rs 18.95 crore of trade receivables outstanding for more than six months, including Rs 8.31 crore outstanding for more than one year. Management was following up with customers, but the assessment of recoverability, expected credit loss under Ind AS 109, balance confirmations and details of subsequent realisation had not been finalised at the reporting date.

The audit committee reviewed, and the board approved, the unaudited consolidated results on November 2, 2026. The filing also states that EFC (I) completed the sale of its entire 100% shareholding in Sanvritti Alpha Private Limited, which ceased to be a subsidiary on September 4, 2026.

Conclusion

EFC (I)'s September-quarter expansion was reflected in higher revenue across rental, interior and furniture, alongside a rise in profit before tax to Rs 110.8276 crore. First-half operating cash inflow of Rs 75.2403 crore was accompanied by Rs 107.1266 crore of investing outflow and Rs 159.9418 crore of equity-issue proceeds.

The next disclosed matters to watch are the receipt of customer confirmations for the Rs 76.38 crore unbilled-revenue balance and finalisation of evidence on the Rs 18.95 crore of overdue receivables. EFC (I)'s subsequent filings can also show how the Rs 56.8840 crore of first-half capital expenditure and the September 2026 sale of Sanvritti Alpha affect segment assets, cash flow and consolidation.