EFC Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of Rs 242.44 crore raised through a preferential issue of equity shares. CARE Ratings Limited, serving as the monitoring agency, reported no deviation from the stated objectives.

Fund Utilization Breakdown

The company has utilized Rs 144.77 crore across three main objectives:

Unutilized Funds Deployment

The remaining Rs 97.67 crore of unutilized funds have been deployed as follows:

• Rs 80.00 crore in fixed deposits with HDFC Bank, earning a 5.87% return
• Rs 17.67 crore maintained in current accounts of various subsidiaries

Key Observations

Working Capital Utilization

In Q2FY26, EFC Limited (a subsidiary) made a payment of Rs 2.20 crore to Brantford Limited (a related party) for leasing machinery and equipment.

Fund Deployment in Subsidiaries

The monitoring agency noted that the company has parked part of the unutilized proceeds in its subsidiaries' and step-down subsidiaries' current accounts. This practice is not explicitly allowed under the offer document, although the Board had passed resolutions in May 2024, and members approved modifications in an extraordinary general meeting in July 2024 to allow fund utilization in subsidiaries for working capital requirements.

No Timeline Delays

The report indicates no delays in the implementation of the stated objectives, as no specific timelines were mentioned in the offer document.

Corporate Actions

The company also announced that the Hon'ble National Company Law Tribunal, Mumbai Bench, has sanctioned the Scheme of Arrangement between EFC Limited (Transferee Company) and Whitehills Interior Limited (Transferor Company), and their respective shareholders and creditors.

While the fund utilization appears to be progressing as planned, investors should note the company's practice of parking funds in subsidiaries' accounts and monitor future developments closely.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with financial professionals before making investment decisions.

EFC Limited , a real estate-as-a-service company specializing in managed office spaces, interior designing, and furniture manufacturing, has reported robust financial results for the second quarter of fiscal year 2026. The company's performance showcases significant growth across key financial metrics.

Financial Highlights

• Revenue: EFC Limited's consolidated revenue from operations surged by 53% year-over-year to ₹2,545.90 crore in Q2 FY26, up from ₹1,664.40 crore in the same quarter last year.
• Net Profit: The company's consolidated net profit after tax witnessed a substantial increase of 55.1% year-over-year, reaching ₹567.10 crore compared to ₹365.60 crore in Q2 FY25.
• EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) grew by 39.7% to ₹1,108.40 crore, up from ₹793.40 crore in the corresponding quarter of the previous year.

Segment Performance

EFC Limited's growth was driven by strong performance across its business segments:

Operational Highlights

• The company achieved a managed area of 3.23 million sq. ft. by Q2 FY26.
• Seating capacity expanded to over 68,000, delivering an average revenue of approximately ₹6,750-7,250 per seat.

Management Commentary

Mr. Umesh Sahay, Chairman & Managing Director of EFC Limited, commented on the results: "We are experiencing robust growth across every segment of our business. Our successful listing on NSE is an incremental step to enhance our visibility and credibility amongst the investor community."

He further added, "In the leasing vertical, we have implemented an OpCo – PropCo model with current AUM of 3.23 Mn+ sq ft. We have also launched 'EFC Retail Spaces' to capture high-value retail leasing opportunities in metro and Tier-1 cities, with plans to launch the first phase by January 2026."

Future Outlook

EFC Limited continues to focus on expanding its operations and capturing a larger share of the institutional furniture market. The company has secured vendor registration and executed trial orders with three leading multinational and large corporate clients in the office and modular furniture segment.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making any investment decisions.