TTK Prestige Limited has entered into a Share Acquisition Agreement with EFC (I) Limited to sell its 51% controlling stake in its subsidiary, Ultrafresh Modular Solutions Limited. Concurrently, EFC (I) has announced the acquisition of the remaining 49% equity held by other shareholders, resulting in a 100% ownership transfer of Ultrafresh. This transaction marks the complete exit of TTK Prestige from the modular home solutions business, transferring full control to EFC (I). The agreements were disclosed on August 13, 2026, under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

The sale consideration for TTK Prestige’s 51% holding is ₹27.54 crore. The total valuation of Ultrafresh at ₹54 crore implies that EFC (I) is acquiring the remaining 49% equity for the balance amount. The entire consideration for TTK’s stake is being discharged through a share swap mechanism, where TTK Prestige and other shareholders will receive fresh equity shares of EFC (I) instead of cash. The share swap ratio was determined based on an independent valuation report as per the Share Acquisition Agreement.

Financial Contribution of Ultrafresh

Ultrafresh Modular Solutions contributed significantly to TTK Prestige’s consolidated numbers prior to this disposal. For FY26, the subsidiary reported a turnover of ₹36.3 crore, which constituted 1.2% of TTK Prestige’s consolidated turnover.

The net worth of Ultrafresh stood at (₹16.66) crore as on March 31, 2026, representing (0.8)% of the parent company’s consolidated net worth. The negative net worth indicates accumulated losses or reserves adjustments within the subsidiary over its operational history since its incorporation in December 1992.

Strategic Rationale and Buyer Profile

EFC (I) Limited, a publicly listed company engaged in Managed Office Solutions, Design & Build turnkey solutions, and furniture manufacturing, aims to expand its presence in the organised modular home solutions market. Ultrafresh specialises in modular kitchens, wardrobes, and customised home interior solutions, operating a manufacturing plant in Nalagarh, Himachal Pradesh.

The acquisition allows EFC (I) to leverage Ultrafresh’s integrated design, manufacturing, supply, and installation capabilities. It also provides strategic access to North India through Ultrafresh’s existing factory and warehouse presence. Mr. Umesh Sahay, Chairman & Managing Director of EFC (I), stated that the acquisition strengthens their established furniture manufacturing and Design & Build businesses while adding a strong modular solutions platform to their portfolio.

Regulatory and Procedural Details

The sale was carried out outside a Scheme of Arrangement through a direct Share Acquisition Agreement. Consequently, Regulation 37A of the SEBI (LODR) Regulations, 2015, which governs the sale of substantially the whole undertaking, was not applicable. The transaction requires approval from the shareholders of EFC (I) Limited due to the issuance of fresh equity shares as consideration. No specific governmental approvals are required for the deal itself.

Completion of the acquisition is scheduled on or before October 31, 2026, subject to the fulfillment of conditions precedent outlined in the agreement. TTK Prestige disclosed the transaction pursuant to SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

EFC (I) Limited reported a 52% year-on-year increase in consolidated profit after tax (PAT) to ₹708.5M for Q1FY27, driven by a 29% rise in revenue from operations to ₹2,828.8M. The strong performance was underpinned by robust growth across its core verticals, with the furniture division emerging as a key growth driver, expanding 124% YoY. This result reinforces the company’s position as a leading real estate-as-a-service platform in India, leveraging an integrated model of leasing, design & build, and furniture manufacturing.

The financial disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors Mehra Goel & Co. LLP issued a limited review report confirming compliance with Ind AS 34. Concurrently, the Board withdrew the proposed Scheme of Arrangement for the demerger of its subsidiary, EFC Limited, citing regulatory and operational considerations. An application to withdraw the scheme will be filed with the Hon'ble Regional Director, Mumbai.

Financial Performance Highlights

Consolidated EBITDA grew 20% YoY to ₹1,229.6M, though the margin contracted to 43.5% from 46.5% in the prior year period. Other income surged to ₹114.2M from ₹36.4M, supporting the bottom line. Profit before tax rose 53% YoY to ₹1,013.3M. On a quarterly basis, revenue declined 3% QoQ from ₹2,928.8M in Q4FY26, while EBITDA fell 14% QoQ to ₹1,229.6M from ₹1,435.7M.

Standalone revenue grew 4.6% to ₹985.7 crore, but standalone PAT declined 50.7% to ₹122.8 crore, highlighting the group's reliance on subsidiary operations for consolidated profitability.

Segmental Growth and Operational Metrics

The furniture division led the growth surge, with revenue jumping 124% YoY to ₹285.7M and 36% QoQ to ₹210.2M. The rental business, which forms the stable annuity foundation, grew 26% YoY to ₹1,539.1M and 3% QoQ. The interior design segment recorded 19% YoY growth to ₹1,003.9M, though it contracted 18% QoQ.

Chairman & Managing Director Umesh Sahay highlighted that the company managed over 84,000 seats across 25 cities during the quarter. The interior design business maintained an order book of over ₹2,280 million with execution across 5.91 million sq. ft. The furniture division delivered 75,000+ units across 2,200+ SKUs, leveraging in-house production for cost optimization.

Strategic Developments

The withdrawn demerger scheme involved EFC Estate Marisoft 1 Private Limited, EFC Estate Marisoft 2 Private Limited, and EFC Estate Wakadewadi GF Private Limited. A separate Scheme of Arrangement to demerge EFC Limited's asset-light managed office solutions business into EFC (I) Limited remains pending NCLT approval; this division accounted for 34.92% of total turnover as of March 31, 2026. Enterprise clients contributed 65% of revenue, with strong demand from GCCs, technology, and BFSI sectors. The Board also approved amendments to the Memorandum of Association to broaden operational scope into flexible workspaces and real estate development.

What the Numbers Show

The 52% PAT growth significantly outpaced the 29% revenue growth, indicating improved operational leverage despite the EBITDA margin contraction. The surge in other income played a material role in boosting net margins to 25.1%. However, the standalone segment’s sharp profit decline underscores that consolidated strength is heavily dependent on subsidiary performance. The rapid expansion in the furniture vertical (124% YoY) suggests a strategic shift towards higher-margin manufacturing capabilities, complementing the stable rental income base.

During the earnings call, management clarified that the quarterly dip in EBITDA was primarily due to Ind AS accounting treatments rather than weaker operating performance. Whole-Time Director Nikhil Bhuta emphasized that the Design & Build segment’s QoQ revenue decline is typical for Q1, as projects are usually executed in H2. He noted that the current order book of ₹2,280 crore provides strong visibility for achieving the targeted 50% YoY growth in the segment. Additionally, Bhuta highlighted that over 85% of the furniture and Design & Build order books are from external third-party clients, reinforcing the diversification of revenue streams beyond internal requirements.