EFC Q2 revenue climbs to Rs 332.02 crore, PBT Rs 110.83 crore

EFC (I) Limited reported consolidated revenue from operations of Rs 332.02 crore for the quarter ended September 30, 2026, up from Rs 254.59 crore a year earlier, while profit before tax rose to Rs 110.83 crore from Rs 75.55 crore. Rental, interior and furniture each increased quarterly revenue.

What drove EFC’s Q2 revenue growth?

EFC’s Q2 revenue growth came from higher revenue in all three operating segments, with revenue from operations rising by about 30% year on year to Rs 332.02 crore for the quarter ended September 30, 2026. The total was also above Rs 282.88 crore in the preceding quarter ended June 30, 2026.

Rental remained EFC’s largest business by revenue, contributing Rs 167.99 crore in Q2, compared with Rs 129.00 crore in the quarter ended September 30, 2025. Interior revenue increased to Rs 129.19 crore from Rs 111.61 crore, while furniture revenue rose to Rs 34.84 crore from Rs 13.98 crore. Rental therefore delivered the largest absolute year-on-year increase, at Rs 38.99 crore.

Furniture recorded the fastest percentage expansion because its revenue was more than twice the prior-year level, although it remained EFC’s smallest reported operating segment in Q2. The segment figures reconcile with consolidated revenue from operations of Rs 332.02 crore, with no unallocated revenue reported in the segment disclosure.

How did EFC’s Q2 profit change?

EFC’s profit before tax increased to Rs 110.83 crore in the quarter ended September 30, 2026, from Rs 75.55 crore in the corresponding quarter a year earlier and Rs 101.34 crore in Q1 ended June 30, 2026. Total income, including other income, reached Rs 342.70 crore, compared with Rs 256.82 crore a year earlier.

Segment result before finance cost and unallocated income was Rs 104.72 crore in Q2, up from Rs 79.80 crore in the September 2025 quarter. Rental accounted for Rs 66.24 crore of segment result, interior contributed Rs 35.30 crore and furniture contributed Rs 3.17 crore. Rental was consequently the largest contributor to both segment revenue and segment result.

Finance cost fell to Rs 4.57 crore from Rs 6.47 crore a year earlier, while net other unallocable income rose to Rs 10.68 crore from Rs 2.22 crore. EFC reported tax expense of Rs 33.57 crore, including Rs 20.17 crore of prior-period tax, and profit after tax of Rs 77.26 crore for Q2, compared with Rs 55.80 crore in the prior-year quarter.

What do EFC’s first-half figures show?

EFC generated revenue from operations of Rs 614.90 crore in the half year ended September 30, 2026, compared with Rs 474.21 crore in the corresponding six months of 2025. Profit before tax increased to Rs 212.17 crore from Rs 141.70 crore, following Rs 282.88 crore of revenue from operations in the June 2026 quarter.

Rental contributed Rs 321.90 crore of first-half revenue, versus Rs 251.86 crore a year earlier. Interior revenue increased to Rs 229.58 crore from Rs 196.29 crore, and furniture revenue rose to Rs 63.41 crore from Rs 26.73 crore. Total segment result increased to Rs 204.99 crore from Rs 153.87 crore, including Rs 130.57 crore from rental.

Net cash generated from operating activities was Rs 75.24 crore in the half year ended September 30, 2026, compared with Rs 60.70 crore in the prior-year period. Investing activities used Rs 107.13 crore, including Rs 56.88 crore spent on property, plant, equipment, intangible assets and capital work in progress, as well as Rs 53.64 crore of net investment in fixed deposits.

EFC ended September 30, 2026 with cash and cash equivalents of Rs 7.00 crore, down from Rs 10.50 crore at March 31, 2026. The cash-flow statement recorded proceeds of Rs 159.94 crore from issuance of equity shares during the half year, while lease principal and interest payments totalled Rs 111.85 crore.

How did EFC’s assets and liabilities change?

EFC’s total segment assets stood at Rs 3,208.24 crore at September 30, 2026, up from Rs 2,675.09 crore at March 31, 2026. Rental assets were Rs 2,546.57 crore, interior assets were Rs 304.13 crore, furniture assets were Rs 130.91 crore and unallocated assets were Rs 226.63 crore.

Total segment liabilities were Rs 2,086.34 crore at September 30, 2026, compared with Rs 1,861.41 crore at March 31, 2026. Rental liabilities were Rs 1,610.80 crore, interior liabilities were Rs 239.12 crore, furniture liabilities were Rs 57.22 crore and unallocated liabilities were Rs 179.20 crore.

The consolidated balance sheet reported total equity of Rs 1,121.90 crore at September 30, 2026, against Rs 813.69 crore at March 31, 2026. EFC’s reported total assets of Rs 3,208.24 crore and total liabilities of Rs 2,086.34 crore include the positions of subsidiaries consolidated in the financial results.

Why did EFC receive a qualified review conclusion?

EFC received a qualified review conclusion because other current assets included Rs 76.38 crore of unbilled revenue at September 30, 2026. The amount represented revenue recognised under Indian Accounting Standard 115, or Ind AS 115, using an input method based on cost-to-cost or stage of completion for work performed but not billed under contractual milestones.

Management said independent technical experts had certified physical progress against approved scope and cost estimates, and it believed the contract assets were fully recoverable without a revenue adjustment. The auditors qualified their conclusion because customer confirmations of the work performed were still awaited at the review date.

The auditors 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. They said EFC’s recoverability assessment, expected credit-loss allowance under Indian Accounting Standard 109, balance confirmations and details of subsequent realisation had not been finalised.

EFC’s board approved the unaudited consolidated results on November 2, 2026, and the statutory auditors dated their review report November 3, 2026. The company also disclosed that Sanvritti Alpha Private Limited ceased to be its subsidiary after EFC completed the sale of its entire 100% shareholding in that entity.

Conclusion

EFC’s September 2026 quarter combined higher revenue from all three operating segments with a year-on-year increase of Rs 35.28 crore in profit before tax. Rental remained the principal contributor to revenue and segment result, while furniture delivered the fastest revenue growth from a smaller base and first-half operating cash flow increased to Rs 75.24 crore.

The next disclosed matters to watch are customer confirmations supporting the Rs 76.38 crore unbilled-revenue balance and the finalisation of recoverability and expected credit-loss analysis for Rs 18.95 crore of receivables overdue by more than six months. Management said it was following up with customers for recoveries, while the qualified conclusion remains tied to evidence outstanding at the review date.