EFC (I) Limited Stock Analysis

Consolidated revenue grew 52% YoY in Q3 to ₹26,959 lakhs and 67% YoY for nine months to ₹74,380 lakhs, indicating strong demand across all business verticals / Consolidated profit after tax surged 54% YoY to ₹6,241 lakhs in Q3 and 79% YoY to ₹16,580 lakhs for nine months, demonstrating excellent operating leverage and margin expansion / Rental segment revenue increased 40% YoY to ₹13,508 lakhs with segment result of ₹5,224 lakhs, showing robust growth in recurring revenue stream / Interior segment revenue jumped 75% YoY to ₹11,903 lakhs with segment result improving to ₹3,045 lakhs, reflecting strong project execution capabilities / Strategic acquisitions completed including raising stake in Ek Design Industries to 89.59% (₹18.13 crore investment) and converting EFC Retail Spaces to wholly-owned subsidiary, enhancing business consolidation / Consolidated total assets grew 67% YoY to ₹2,53,553 lakhs while maintaining manageable debt levels with finance costs at ₹1,047 lakhs in Q3

Consolidated segment liabilities increased significantly to ₹1,79,311 lakhs from ₹88,971 lakhs YoY (101% growth), outpacing asset growth and raising leverage concerns / Non-controlling interest losses widened to ₹82.47 lakhs in Q3 from gains of ₹121.52 lakhs in Q2, indicating challenges in minority-owned subsidiaries / Negative inventory change of ₹431 lakhs in Q3 and ₹2,893 lakhs for nine months suggests potential working capital pressure or inventory build-up issues / Finance costs increased 287% YoY to ₹1,047 lakhs in Q3 and 239% YoY to ₹2,851 lakhs for nine months, reflecting higher debt servicing burden from expansion / Deferred tax expense surged to ₹1,450 lakhs in Q3 from ₹504 lakhs YoY, increasing tax burden and reducing net margins / Merger integration risk with Whitehills Interior Limited (effective November 28, 2025) may create operational complexities and one-time integration costs in coming quarters

Consolidated Q3 FY26 revenue grew to Rs 26,958.50 lakhs from Rs 17,724.12 lakhs in Q3 FY25 (~52% YoY), with additional QoQ growth vs Rs 25,459.24 lakhs. / Profitability scaled well: Q3 PAT rose to Rs 6,241.43 lakhs from Rs 4,047.12 lakhs (~54% YoY), and Q3 PBT increased to Rs 8,230.29 lakhs from Rs 5,227.61 lakhs. / Nine-month trajectory is robust: 9M revenue reached Rs 74,379.92 lakhs vs Rs 44,573.10 lakhs (~67% YoY), while 9M PAT increased to Rs 16,579.78 lakhs vs Rs 9,280.65 lakhs (~79% YoY). / Growth is broad-based across segments in Q3: Rental revenue Rs 13,508.15 lakhs (+~40% YoY), Interior Rs 11,902.72 lakhs (+~76% YoY), and Furniture Rs 1,547.63 lakhs (+~16% YoY).

Balance-sheet leverage risk increased, with consolidated segment liabilities rising to Rs 179,310.87 lakhs from Rs 88,971.05 lakhs YoY (about 2x), outpacing growth in some periods. / Finance cost pressure is visible sequentially in consolidated results (Rs 1,047.70 lakhs in Q3 vs Rs 647.29 lakhs in Q2), which can compress future margins if debt-funded expansion continues. / Earnings comparability is affected by merger-related restatement (Whitehills merged effective November 28, 2025), so YoY/QoQ trends are not fully like-for-like. / Audit dependency risk exists because auditors relied on other auditors for multiple subsidiaries (noted revenues of Rs 17,045.38 lakhs in Q3 and Rs 49,923.12 lakhs in 9M before eliminations).