EFC revenue rises 17.37%, but faster costs cut operating margin
Net profit grew 9.05% QoQ with lower interest costs, while other income remained a notable contributor to pre-tax profit.
Filed 03 Nov 2026, 02:02 IST · EFC (I) Ltd (EFCIL)
Key takeaways
- Consolidated revenue grew 17.37% QoQ, but expenses grew 23.97%, cutting operating margin by 3.18 percentage points.
- Net profit rose 9.05% QoQ as interest costs fell 55.85%, although other income contributed 9.64% of pre-tax profit.
- Operating margin at 40.29% was 23.64 percentage points above the 16.65% median for 33 reported Services peers.
Price around the results
Revenue momentum came with weaker operating leverage
EFC delivered consolidated revenue growth of 17.37% QoQ, but expenses expanded 23.97%, outpacing the topline and limiting operating-profit growth to 8.79%. That mismatch reduced operating margin to 40.29%, down 3.18 percentage points from Q1FY27. The result was sequential growth, but with less conversion of additional revenue into operating profit.
Lower interest costs cushioned the margin pressure
Interest expense fell 55.85% QoQ, helping pre-tax profit grow 9.36% despite the weaker operating conversion. The tax rate increased by 0.21 percentage points, so the 9.05% growth in net profit was not aided by a lower tax burden. Other income accounted for 9.64% of pre-tax profit, making it a meaningful part of reported earnings quality.
Margin remains well above the Services peer median
EFC’s 40.29% operating margin was 23.64 percentage points above the 16.65% median among 33 Services companies that had reported the quarter. Sequentially, however, margin declined from 43.47% in Q1FY27. The available quarterly trend therefore points to a setback in margin momentum even as revenue and net profit increased.
Management links expansion to platform and utilisation goals
Management said its focus is on strengthening enterprise relationships, scaling the integrated platform, improving asset productivity and delivering sustainable profitability. The presentation said EFC completed the acquisition of 100% of Ultrafresh Modular Solutions for Rs 54 crore through a share swap, extending its manufacturing and Design & Build footprint into North India. Management also said it is targeting utilisation of 60%-70% by FY27-end, while the company added a 95,897 sq ft A+ category building at Koregaon Park Annex on a five-year lease.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹332 cr | ₹283 cr | +17.37% |
| Other income | ₹11 cr | ₹11 cr | -6.48% |
| Expenses | ₹198 cr | ₹160 cr | +23.97% |
| Operating profit | ₹134 cr | ₹123 cr | +8.79% |
| Operating margin (%) | 40.29% | 43.47% | — |
| Interest | ₹5 cr | ₹10 cr | -55.85% |
| Depreciation | ₹29 cr | ₹23 cr | +28.03% |
| Profit before tax | ₹111 cr | ₹101 cr | +9.36% |
| Tax | ₹34 cr | ₹30 cr | +10.10% |
| Net profit | ₹77 cr | ₹71 cr | +9.05% |
| EPS (₹) | ₹5.36 | ₹4.83 | +10.97% |
Operating margin of 40.29% compares with a Services sector median of 16.65% across 33 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- EFC said it will focus on strengthening enterprise relationships, scaling its integrated platform, improving asset productivity and delivering sustainable profitability.
- EFC targets utilisation of 60–70% by the end of FY27.
Expansion
- EFC completed the acquisition of 100% equity in Ultrafresh Modular Solutions for ₹54 crore through a share swap.
- Ultrafresh expands EFC's manufacturing footprint and Design & Build platform into North India.
- EFC added an A+ category building of 95,897 square feet on a five-year lease at Koregaon Park Annex.
New initiatives
- EFC is exploring renewable energy procurement models and plans to develop a long-term renewable energy roadmap.
- EFC plans to integrate green building standards into future developments.
What to watch
- Whether operating margin holds above 40.29% after the 3.18-percentage-point sequential decline.
- Whether expense growth moderates from 23.97% QoQ and allows operating profit growth to catch up with revenue.
- Progress towards management’s stated 60%-70% utilisation target by FY27-end.