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EFC (I) LIMITED — Call Transcript 2026
Jun 3, 2026
62498_rns_2026-06-03_22e516ef-1816-4735-8501-afc64a98c947.pdf
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EFC Real Estate as a Service Company
June 3, 2026
To,
BSE Limited
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai-400001.
Scrip Code: 512008
To,
National Stock Exchange of India Limited,
Exchange Plaza, 5th floor, Plot no. C/1,
G Block, Bandra Kurla Complex, Mumbai-400051.
NSE Symbol: EFCIL
Sub.: Earnings Conference Call – Transcript.
Dear Sir/Ma’am,
Pursuant to Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith copy of the transcript of Analyst/ Investor Meet held on Friday, May 29, 2026.
Pursuant to Regulation 46 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the above information is also being hosted on the Company’s website at https://www.efclimited.in/investor-relation/investor-presentation/.
Kindly take the above information on record.
Yours faithfully,
For EFC (I) Limited
Aman Kumar Gupta
Digitally signed by Aman Kumar
Date: 2026.06.03 17:30:03 +05'30'
Aman Gupta
Company Secretary
Encl.: As above
EFC (I) Limited
Regd. Office: 6th Floor, VB Capitol Building, Range Hill Road, Opp. Hotel Symphony, Bhoslenagar, Shivajinagar,
Pune-411007, Maharashtra | CIN: L74110PN1984PLC216407
Tel.: 020 2952 0138 | Email Id: [email protected] | Website: www.efclimited.in
AGFC Real Estate as a Service Company
"EFC (I) Limited
Q4 FY '26 Earnings Conference Call"
May 29, 2026
AGFC Real Estate as a Service Company
MUFG
CHORELLE
MANAGEMENT: MR. UMESH SAHAY - CHAIRMAN AND MANAGING DIRECTOR - EFC (I) LIMITED
MR. NIKHIL BHUTA - WHOLE-TIME DIRECTOR - EFC (I) LIMITED
MR. UDAY VORA - CHIEF FINANCIAL OFFICER - EFC (I) LIMITED
MR. AMAN GUPTA - COMPANY SECRETARY - EFC (I) LIMITED
MODERATOR: MR. NIKUNJ SETH - MUFG INTIME INDIA PRIVATE LIMITED
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EFC
EFC (I) Limited
May 29, 2026
Moderator:
Ladies and gentlemen, good day and welcome to the EFC India Limited Q4 FY '26 Earnings Conference Call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Nikunj Seth from MUFG. Thank you and over to you, sir.
Nikunj Seth:
Thank you, Alrik. Good morning, everyone. Welcome to Q4 and FY '26 Earnings Conference Call of EFC India Limited.
To discuss this quarter performance, we have from the Management, Mr. Umesh Sahay – Chairman and Managing Director; Mr. Nikhil Bhuta – Whole-Time Director; Mr. Uday Vora, Chief Financial Officer; and Mr. Aman Gupta – Company Secretary.
Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the Company's website and Stock Exchanges.
With that, I would like to hand over the call to Mr. Umesh Sahay for his opening remarks. Thank you, and over to you, sir.
Umesh Sahay:
Thank you, thank you. Good morning, all. On behalf of EFC India Limited, I warmly welcome all of you to our Earnings Conference Call for the 4th Quarter and full-year ended March 31, 2026.
At the outset, I would like to thank all of our shareholders, investors, analysts, bankers, clients, partners and every member of the EFC family for their continued trust, encouragement and support. Your confidence in our journey has been a very important source of strength for us.
Financially at all, 2026 has been a year of strong progress, discipline, execution and deeper strategy, clarity for EFC. During the year, we continue to strengthen our position as a differentiated real estate as a service company built around one integrated platform across space, design and furnishing.
Our Leasing business continues to provide a strong annuity-led foundation. Our Design & Build vertical is gaining momentum through turnkey and multi-city execution.
Our Furniture business is strengthening backward integration and helping us improve control over cost, quality and delivery timelines. Together, these three verticals create a platform that is
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EFC
EFC (I) Limited
May 29, 2026
much stronger than each business on a stand-alone basis. Leasing gives us recurring revenue and client stickiness. Design & Build give us execution capability and growth momentum. Furniture gives us supply chain control and margin resilience. This combination is what makes EFC differentiated.
We also continue to focus on the quality of growth, enterprise centering revenue, long client tenure, improving portfolio diversification and a disciplined approach to expansion are important pillars of our strategy. We are not pursuing growth for the sake of growth. We are building a Company that can scale sustainably, long-term value creation at its core.
The opportunity had remained very strong. India continues to benefit from the expansion of GCC Global Capability Center, technology Company, financial services, consumer business and new age enterprise. Across sector, companies are increasingly looking for manage flexible and integrated workspace solutions that reduce upfront capital expenditure and improve speed to market.
We believe EFC is very well positioned to benefit from these structural trends our platform has the reach, execution, depth, client relationship and integrated capabilities required to serve this demand across India.
As we enter FY '27, our focus will remain clear. We will continue to expand with discipline, improve asset efficiency, strengthen enterprise relationship, scale our Design & Build capability, enhance our Furniture manufacturing advantage and create long-term value for all stakeholders.
I would also like to take this opportunity to thanks our Board, leadership team, employees, clients, partners and shareholders. The progress we have made is the result of collective effort, resilience and belief in a shared vision. We remain humble about what we have achieved but very confident about the road ahead. EFC today is stronger, more integrated and better prepared for the next phase of growth.
With that, I now hand over the call to Mr. Nikhil Bhuta – Whole-Time Director, who will take you through the business performance and strategic progress, our vertical. Nikhil sir?
Nikhil Bhuta:
Thank you very much, Umesh sir. Good morning, everyone and thank you so much for joining us today. It's genuinely a pleasure to welcome all of you and share about the Business Performance of EFC India Limited for FY '26.
This has been an important year and a milestone year for the Company because the strength of our integrated real estate as a service platform has become more visible across all our operating verticals.
At EFC, our business is built around three specialized but deeply connected verticals as we understand, which is Leasing, Design & Build and Furniture. Together, this vertical allows us to
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EFC
EFC (I) Limited
May 29, 2026
work across the complete workspace lifecycle from identifying and managing spaces to designing and building it to manufacturing and supplying Furniture.
This is the essence of EFC's model, one platform, multiple engines and unified value creation. Our aim is to become a trusted partner for enterprises that want to outsource their workplace infrastructure to a professional, scalable and accountable platform like ours. We are not only offering office spaces, we are offering speed, convenience, cost efficiency, execution certainty and long-term operating support.
Let me begin with the Leasing vertical, which continues to remain the foundation of our business:
Our Leasing vertical has delivered strong performance and continues to demonstrate a sticky enterprise demand at scale. We now have presence across 25 cities and served more than 750 clients across multiple sectors.
Our average enterprise client tenure is about 51 months, which reflects the strength, trust and stickiness of our client relationship. The Leasing business provides customized, scalable and fully furnished office solutions. These include enterprise offices, managed offices and customized offices.
Our solutions are designed for companies that want privacy, control, flexibility, operational efficiency and the speed of deployment without taking on the burden of building and managing real estate infrastructure themselves.
During the year, the quality of our Leasing portfolio continued to improve. Enterprise centric revenue contributed a majority share of the business and the contribution from the top 10 clients has reduced to around 24%, reflecting lower concentration risk and hence better diversification. This gives the platform great resilience and revenue visibility.
Operationally, the Leasing business has also scaled well. The build seat base has increased meaningfully and we continue to have additional capacity and development. This gives us confidence in our ability to support future growth. The business also continues to demonstrate attractive unit economics with a payback period around 18 to 20 months and healthy revenue to rent dynamics.
Geographically, our business is well diversified. While the West remains our largest region, we have a meaningful presence across North, South and East India. This national wide presence is important because many of our enterprise clients are expanding across multiple cities and want a partner who can support them consistently across locations across the country.
The demand environment for managed offices remains structurally strong. Enterprises today are increasingly moving from ownership-heavy CAPEX-led real estate models to flexible, professionally managed and OPEX-led models. Global capability centers, GCCs, technology
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EFC Real Estate as a Service Company
EFC (I) Limited
May 29, 2026
companies, BFSI clients, consumer platforms and other enlarged enterprises are all looking for faster market entry, better employee experience and lower setup risk and greater flexibility. EFC is well positioned to serve this demand because we provide not only space but a complete workplace infrastructure solution.
Let me now move to our Design & Build vertical, which is also slowly but steadily has become a very strong foundation for our Company's growth:
This business has become a very important growth engine for EFC. In FY '26, Design & Build revenues stood at approximately 437 crore, growing 66% year-on-year. This performance reflects stronger execution, increasing turnkey mandates and growing acceptance of our capabilities among enterprises and institutional clients.
Our Design & Build vertical provides end-to-end workplace development solutions. We work across concept planning, workplace design, fit-outs, MEP services, project management, execution and delivery.
The business has over 80 designers and engineers, more than 45 reputed clients, presence across more than 15 locations and a design footprint of approximately 5.5 million square feet. The order book also remains very healthy and really strong. This vertical is strategically important because it strengthens the entire EFC platforms.
It enables faster fit-outs for our Leasing businesses, better customization for clients, quicker go-live timelines and stronger execution control. It also allows us to take up large complex and multi-locational projects with confidence.
Another important advantage is our execution model. We execute a large part of the work through in-house capabilities, supported by bulk procurement, strong vendor relationship and disciplined project management. This helps us control costs, quality and timeliness. In a market where clients increasingly demand transparency, speed and reliability, this is a major differentiator.
The Design & Build vertical also creates significant cross-selling opportunities. A client may begin with a Design & Build mandate and a large later become a managed office client. Similarly, a Leasing client may use us for expansion, fit-outs, refurbishment or multi-city workplace development. This interconnection increases client lifetime value and strengthens our platform economics.
Now let me speak about the Furniture manufacturing vertical also:
Our Furniture business is still in a relatively early stage compared to the Leasing and design build verticals, but it is strategically very, very important.
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EFC Real Estate as a Service Company
EFC (I) Limited
May 29, 2026
In FY '26, Furniture revenue stood at more than 63 crore, growing 200% YoY. This strong growth demonstrates the potential of this vertical and its role in our integrated model. Through our Furniture capabilities with design and manufacture workstations, execution desk, lounge seating, storage solutions, modular Furniture and other products for commercial and allied spaces, our Pune manufacturing facility spans across 1.2 lakh square feet and gives us better control over quality, cost, customization and delivery.
The Furniture business has more than 1,500 SKUs, has delivered more than 60,000 units and has manufactured capacity of approximately anything around 200 crore plus to 275 crore in value terms. The business serves sectors such as real estate, co-living, hospitality, IT, ITES, education and allied services.
For EFC, Furniture is not just a manufacturing business, it is a margin accretive backward integration engine. It supports our internal Leasing and Design & Build requirements, reduces vendor dependency, improves turnaround time and allows us to capture additional value across the workplace life cycle. This is where the synergy of EFC platforms becomes very powerful.
When we take up a workplace opportunity, our Leasing team understands the client's requirement. Our Design & Build team converts the requirement into a functional and efficient workplace and our Furniture team supports execution through in-house manufacturing and supply chain control and provides furnitures which are really making a difference to their daily work life. This reduces external dependency, improves execution speed, enhances quality control and supports margin resilience.
This integrated model also improves value unlocking for investors over time. As each vertical scales, the benefits do not remain limited to those verticals alone. The Leasing and business creates recurring revenue and long-term client relationship. The Design & Build business increases executional depth and cross-selling opportunities and the Furniture business improves cost control, captures additional margin. Together, they create a platform with multiple revenue streams, better operating leverage and a stronger client stickiness. This is the core of our value creation strategy at EFC.
We believe that the market would increasingly reward platforms that are integrated, scalable, asset efficient and execution focused. EFC is building exactly such a platform and has really come a long way in building this with the result that we have delivered for FY '26. Our business is no longer dependent on only one revenue stream. We are creating a broader ecosystem that can serve clients across the full workplace journey and capture value at multiple points.
Operationally, FY '26 has been a year of strong progress across all fronts. We scale capacity, deepen enterprise relationships, reduce concentration risk, strengthen Design & Build execution, expanded furniture capabilities and improve integration across all verticals. This result is a business that is more diversified, more efficient and better prepared for sustainable growth.
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EFC
EFC (I) Limited
May 29, 2026
As we look ahead, our priorities are very clear. We will continue to deepen enterprise relationships, expand capacity in a disciplined manner, improve asset efficiency and strengthen project execution, scale our Design & Build business and build furniture manufacturing into meaningful but a strategic advantage.
We are optimistic about the future because the structural opportunity is large, the demand environment is favorable, and our integrated platform is becoming stronger with every passing year. At the same time, we remain grounded and focused on execution. Our objective is to build EFC with discipline, professionalism, governance and long-term thinking. We want to create a Company that delivers value not only through growth but through quality of growth.
In summary:
FY '26 has validated our business model. Leasing gives us stability, Design & Build gives us growth and execution strength, while Furniture gives us integration and margin opportunities. Together, these verticals create a strong, scalable and differentiated real estate as a service platform. We believe this platform can unlock significant value for stakeholders in the years ahead.
With that, I will hand over the call to our Chief Financial Officer, Mr. Uday Vora, who will take you through the financial performance. Thank you all. Thank you all for being with us today.
Uday Vora:
Thank you, Nikhil sir. Good morning, everyone, and thank you for joining us on the call.
I will now take you through the Financial Performance of EFC India Limited for the 4th Quarter and full-year ended March 31, 2026:
FY '26 has been a strong year of financial delivery for the Company. We have delivered broad-based growth across revenue, profitability, return ratios and segmental performance. The year also reflects the operating strength of our integrated platform and the benefits of scale across our Leasing, Design & Build and Furniture business.
For the full year, FY '26, consolidated revenue from operations stood at 10,367 million compared with 6,567 million in FY '25, representing year-on-year growth of 58%. EBITDA for FY '26 stood at 4,683 million compared with 3,277 million in FY '25, reflecting a strong growth of 43%.
Profit after tax stood at 2,347 million compared with 1,408 million in FY '25, registering a strong growth of 67%. Our PAT margin improved from 21.4% in FY '25 to 22.6% in FY '26. This improvement reflects the benefits of operating leverage, stronger execution, better integration across verticals and disciplined cost control.
Our return profile also remained strong. The return on capital employed stood at 33% in FY '26 compared with 30% in FY '25. This is an important metric for us because it shows that the Company is not only growing but growing with capital efficiency.
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EFC Real Estate as a Service Company
EFC (I) Limited
May 29, 2026
Coming to the 4th Quarter performance:
Revenue from operations in Q4 FY '26 stood at 2,929 million compared with 2,110 million in Quarter 4 FY '25, representing growth of 39% year-on-year. EBITDA for the quarter stood at 1,436 million compared with 1,093 million in Quarter 4 FY '25, registering a growth of 32%.
Profit after tax for Q4 FY '26 stood at 689 million compared with 480 million in Quarter 4 FY '25, reflecting growth of 45%. The PAT margin for the quarter improved to 23.5% from 22.7% in Q4 FY '25. This shows that even as the business scales, we are continuing to maintain healthy profitability.
Let me now briefly cover the segmental performance:
The Leasing business remained the largest contributor to revenue. Full-year rental revenue stood at approximately 5,356 million compared with 3,722 million in FY '25, representing growth of around 44%. This vertical continues to provide a stable, recurring revenue base and strong operating visibility.
The Design & Build business delivered revenue of approximately 4,378 million in FY '26 compared with 2,636 million in FY '25, reflecting growth of around 66%. This has been driven by stronger execution, increasing turnkey mandates and cross-selling opportunities across the EFC platform.
The Furniture business delivered revenue of approximately 632 million in FY '26 compared with 209 million in FY '25, registering growth of around 202%. While this vertical is still scaling, it is strategically important because it supports backward integration, improves execution speed and strengthens margin potential across the ecosystem.
From a segment profitability perspective also, all three businesses contributed meaningfully. The rental segment delivered profit before tax and interest of approximately 2,127 million The Interior segment delivered approximately 1,197 million and the Furniture segment delivered approximately 156 million. This reflects a healthy and broad-based contribution from the platform.
Moving to the balance sheet:
Total assets increased to approximately 26,751 million as of March 31, 2026 compared with 16,992 million as of March 31, 2025. Total equity increased to approximately 8,137 million compared with 5,811 million in the previous year. This strengthening of the balance sheet reflects retained earnings and the continued growth of the Company.
During the year, non-current assets increased driven by property, plant and equipment, right-of-use assets and other financial assets. This reflects our continued investment in building long-term capacity and operating infrastructure.
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EFC
Real Estate as a Service Company
EFC (I) Limited
May 29, 2026
On the liabilities side:
Lease liabilities and borrowings have increased in line with the expansion of our operating footprint and business scale. We remain conscious of capital discipline and will continue to focus on efficient capital deployment and prudent leverage.
On cash flows:
Profit before tax for FY '26 stood at approximately 3,098 million. As the business scaled across verticals, working capital requirements increased particularly in trade receivables, inventories and other financial assets. Improving working capital efficiency and collections will remain an important priority for us in FY '27.
Finance costs for the year stood at approximately 562 million and depreciation and amortization stood at approximately 1,202 million. These are aligned with the scale of our asset base and right-of-use assets.
Basic and diluted earnings per share for FY '26 stood at 16.87 compared to 10.35 in FY '25.
Overall, FY '26 has been a year of strong financial performance. Revenue growth has been robust, EBITDA has grown meaningfully, PAT growth has been strong, margins have improved, return ratios remain healthy and all three business verticals have contributed to the Company's performance.
What is important is that this performance has not come from a single lever. It has come from broad-based execution across the platform. Leasing has provided stability. Design & Build has provided growth momentum. Furniture has added integration and margin potential. Together, these businesses are creating a stronger and more resilient financial model for EFC.
As we move into FY '27, our financial priorities will remain very clear. We will continue to focus on profitable growth and disciplined capital allocation, efficient working capital management, prudent leverage, stronger cash generation and sustainable value creation. We believe the Company is well-placed to continue its growth journey while maintaining financial discipline and creating long-term value for shareholders.
With this, I would like to thank all our investors, analysts and stakeholders for their continued support and confidence in EFC. We can now open the floor for questions. Thank you.
Moderator:
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press ‘’ and ‘1’ on their touchtone telephone. If you wish to remove yourself from the question queue you may press ‘’ and ‘2’. Participants are requested to use handsets while asking a question. Ladies and Gentlemen, we will wait for a moment while the question queue assembles.
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EFC
EFC (I) Limited
May 29, 2026
The first question comes from the line of Bharat with Compact Capital. Please go ahead.
Bharat:
Thank you, EFC team, and congratulations for the wonderful result for FY '26. Sir, I wanted to understand as we understand there are three verticals at EFC, Leasing, Design & Build and Furniture. So, if any of the verticals underperformed, how this will impact the overall consolidated margin, especially when you know you have explicitly mentioned in DLOF, like underperforming of any vertical can impact the overall profitability. So, I would love to understand what is the management view.
Nikhil Bhuta:
Thank you, Thank you so much, Bharat. And specifically to your question, yes, the beauty of this model is that as we understand that they are all contributing to the overall profitability, overall revenue stream that the Company has really accruing, but what is important is that the dependency as you understand from your own question, dependency is very limited because number one, the likelihood of underperforming my annuity business, which is my Leasing business is very low because my annuity business is very certain.
I have a very clear long-term contract and as you see even in my presentations, we have said that my managed office client tenures at 51 months, which means that that kind of stickiness is there and that kind of certainty is there in the revenue. So, Leasing vertical is providing me that strong backbone. So, hence, underperformance at Leasing vertical is almost ruled out.
When it comes to the Design & Build vertical, the Design & Build vertical, again, now we have come into a situations where today we are as a Company when we are bidding for projects, we are only those among top three, top five kind of contractors who are eligible to bid for contracts more than 50 to 100 crore to 200 crore kind of size. And hence, again, we are among those limited competition and our ability to win these contracts becomes much, much better. And hence, again, there is a larger certainty there in that business and hence, uncertainties is almost ruled out.
And when it comes to Furniture, which is primarily kind of supporting both this vertical, number one, which is one of its key. And secondly, the way the Furniture business in our country growing, considering the new regulations that the government has put it in form of BIS registration, and also how the government is looking at reducing the import dependency because obviously, it is impacting the foreign exchange for us.
So, all these measures are really, really working well for even Furniture vertical. And hence, first of all, what I want to address is that the uncertainties around any of these three verticals is reduced drastically, number one.
Number two, yes, if there is let's say depends, there is a little bit downgrade in any of the business, then whether they will have an impact on the overall margin profile in absolute term, yes. But if you look at in relative terms, as I have explained, more than around 45% of my revenue, my top line comes from the Leasing business, which gives me kind of a situation that 50% is assured any which ways. It is a question of about those 10% to 20%.
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EFC
EFC (I) Limited
May 29, 2026
If we look at hypothetically and get into a situation that if there is a little bad year from an overall economical situation point of view, then too, the performance is unlikely to get really affected overall. So, we believe that any underperformance from one particular vertical, which is likely only to be with the Design & Build and Furniture, because that is more project based and contract based, but which is because of the reason which I explained earlier is fairly mitigated, we believe that that situation is unlike to, first of all, the such situations are unlikely to come. And otherwise also, we are strongly balanced in achieving the overall margin through these three verticals as we speak.
Bharat:
Thank you Sir, I have one another question. Can I please ask?
Nikhil Bhuta:
Yes, Please carry on.
Bharat:
So, I believe Furniture business has grown pretty well, 200%, but the growth is on the low base. So, I would like to understand what is the sustainable margin, especially when Furniture business is used for the internal consumption, captive business also and third parties. So, I would love to understand what is the split between the captive consumption and the third-party business and how margin split works at overall level as well.
Nikhil Bhuta:
So, I mean, independent of whether it is an internal purpose or for external, obviously, the margin profile remains the same, because every transaction has to be carried out at arm's length. Number one.
Number two, in terms of scalability, yes, this vertical obviously has grown at a low base naturally, because it is just a two year old business. So, yes, it is likely to keep growing at such a large pace and we are expecting this business to deliver substantially to our overall revenue streams.
In terms of margin profile, we have always clarified that we are very categorically clear that this business should generate to us anything around 25% EBITDA. And that is what we are expecting from this business because this is a value-accretive, highly intensive, capital-intensive business and hence we are very hopeful that we should be able to continue achieving those margin, even if at a scale that we are expecting to operate in the coming years.
Bharat:
Okay, understood. Thank you.
Nikhil Bhuta:
Thank you.
Moderator:
The next question comes from the line of Mohan Kumar with Athena Investments. Please go ahead.
Mohan Kumar:
Thank you. Congratulations, EFC team. I have a question around the AI, which we see everywhere around. As we all know, AI can reduce headcount intensity in the sectors which you are serving, primarily IT, ITES, BFSI and all support functions, which is primarily your clients.
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EAEC
East Estate as a Service Company
EFC (I) Limited
May 29, 2026
Why should AI be net positive for seed demand rather than a structural threat to occupancy? And what evidence do you have from your client renewals or new mandates or from any other information source?
Nikhil Bhuta:
Yes, thank you so much. And AI is certainly a new buzzword. I mean, I don't know, we can see it around. But yes, we can definitely feel it around the way it is really disrupting the market and yet it is here for good. It is here for business process improvements. And we are very happy that such improvements, such radical changes really helps businesses in general.
But we haven't really rather seen any negative impact of that. I mean, the way if you really look at it, and I am sure you would appreciate the kind of AI is rather generating a new breed of employment, new category of employments. And we are very categorically clear that with the AI led businesses, your businesses would get a little more structured. And hence, when you are looking at more structured businesses, the platforms like ours, which are those structured solutions will become more relevant and more important for those businesses.
And so what we are trying to say is that, yes, there is going to be an impact on the overall, the way the employment market functions, overall industries, whether it is IT, IT led industries. But this is all going to really add to the overall growth, because it is an evolution. And Umesh sir, who is our MD, has also been very vocal about this. And I would also request him to contribute here a bit.
Umesh Sahay:
Mohanji, the point is, your question is, how AI impact in our business, correct? So, our view on this is that, sir, if you look at AI, it will actually generate employment, not reduce it. Today, many people believe that employment will decrease, but I would like to make you realize one thing or take you back a bit. When computers were being introduced, people said that jobs would decrease. That was one point. If I talk about civil engineering or the construction industry, earlier drawings were made by hand. Then CAD came, CAD files came, and designs started being created digitally. Similarly, when automation came into manufacturing and other sectors, companies said that jobs would disappear because of automation. But if you look at it, when IT came, it actually improved employment opportunities. Definitely, people will have to upskill themselves. But at the same time, consider this: we are talking about AI. What is AI? AI is an automated tool that enhances the performance of your business. It is not as if tomorrow, suppose, Mohan ji, you have a fund, and I come to your doorstep and say, "Sir, I am AI, and I will automatically get implemented in your system." It does not work like that. If I want to implement AI for you, I need to understand your requirements, your parameters, and the functioning of the AI. For that, people are needed, sir. At the same time, if I enable a module for you tomorrow, I will have to keep improving it over time. It is not that once I deploy AI, it will keep running on the same set of learnings for its entire lifespan. Even if you look at companies today, they are constantly releasing new versions—Version 2, Version 3, Version 4. That means there are ongoing improvements happening in the backend. AI will give growth in the same way that manufacturing automation did, but people, especially the new generation, will definitely need to upskill themselves. However, sir, I do not think the demand for office spaces will decrease. Even
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EFC
EFC (I) Limited
May 29, 2026
today, if you look closely, there are people working behind the companies that build AI, and hiring is happening continuously. People are bringing their skills into the AI field. So, I believe AI will create a lot of jobs. If I want to introduce AI into automation, there will be a specific set of skills required. Just as when industrial automation arrived, people developed different skills for manufacturing, different skills for food processing, and so on. The same thing will happen here. If I am implementing AI in the financial sector, I need knowledge of that sector and domain expertise. If it is manufacturing, I need expertise in manufacturing. If it is civil engineering or construction, I need expertise in those fields. So, accordingly, people will have to upgrade and enhance their skills. I feel that today we think AI will have a major negative impact, but in reality, it will not. It will help industries evolve and take them into a new phase of growth.
Mohan Kumar:
Thank you, Umesh ji. I have one more question around this. You mentioned GCC expansion as your structural tailwind. How much revenue did you get from GCC and MLC in the last financial year FY 2026? And what is your pipeline saying? How much sign-up do you have in terms of GCC and MLC setups? If you give me a split city-wise or street count-wise or average tenure-wise it will be very good.
Nikhil Bhuta:
So, GCC contributes because these are all those large enterprises who are committed to us for long tenures So, that business has always been a strong pillar for our Leasing vertical growth and it is about $70\%$ of our revenue comes from this large enterprise customers that we are talking about or referring to.
And in terms of across the city spread if you look at it we are looking at growing around 18 to 20,000 seats year-on-year and that is what we have been achieving for the last two financial years as well. If you look at the same scale, we are expecting that between geography rather than getting city-wise I am just giving you zone-wise, let's say, West and NCR is going to become very prominent for us along with the Southern Belt, which is your Hyderabad, Bengaluru and Chennai.
So, we believe that all the three zones are going to contribute substantially primarily in the ratio of, let's say, equally around $30\%$ each and there is about expected growth now from even the Eastern Belt with the change in the political dynamics there etcetera. We are expecting the growth also coming in soon there. Obviously, it will take some time structurally, but yes, we are expecting hence substantial growth in the Eastern side also relatively. So, yes, I hope that answers your question in terms of the divisions across this geography for us.
Mohan Kumar:
Thank you so much Sir. Thank you so much.
Nikhil Bhuta:
Welcome Ji.
Moderator:
The next question comes from the line of Hassan with Kothari Family Office. Please go ahead
EFC
Real Estate as a Service Company
EFC (I) Limited
May 29, 2026
Hassan:
Hi, Good Morning, good morning sir. Firstly, congratulations on the results and congratulations on the right issue successfully getting completed. So, my question, sir, basically is that I have been tracking the stock and year-on-year the growth has been significant. We have shown substantial profitability. Then why did we raise the capital for working capital? So, what was the reason for the working capital? And having said that how will this working capital turn into real cash flow generation and not just revenue or receivable or lease obligation in the balance sheet?
Nikhil Bhuta:
Thank you so much, Hassan, for tracking us, following us. As we have always explained that all three of our businesses, while they are not heavy capital intensive in a sense that they are not fixed capital intensive, but they are certainly working capital intensive, not the Leasing, but certainly the Design & Build and the Furniture business, and hence the requirement for working capital but with the growth that we are achieving, you can see last year in the Design & Build vertical we have grown at about 66% YoY and in the Furniture we have grown at about 200% YoY.
Now, even if I have to maintain half of this growth, the kind of working capital that we require is humongous and yes, the business is throwing good cash for us because the kind of profitability that we have achieved, but certainly these profits are not kind of available to you as in it is a cyclical fund that is available to you and to keep growing, you need to have those backup funds with you in the current economic situations, in the current market situations. And it is required that if we have those war chest available, then we would be able to achieve the targets that we have really set high for ourselves.
So, the working capital is certainly to really fuel the growth that we have targeted for ourselves and we are going to be very as even our CFO very categorically explained in his speech, that we are going to be very judicious in use of this capital we are going to very specific and disciplined in use of this capital and primarily this capital as, Mr. Hassan, I have explained, is primarily for growth purposes only since all these verticals are fairly working capital intensive.
Hassan:
Thank you. Can I ask one more question, please?
Nikhil Bhuta:
Yes, please go ahead.
Hassan:
Sir, again related to the fund raise only. So, we did a right issue. So, I really want to understand since EFC, to my understanding, is currently undervalued, I would say not correctly valued, there can be good potential. Then why did we choose a right issue instead of doing a QIB or a debt?
Nikhil Bhuta:
First of all, it was important for us that we have got a very committed and loyal set of existing shareholders and it becomes our kind of a moral responsibility that, first, we obviously go and approach them and seek their participation in the business as long as they are also kind of
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EFC
1911 EFC (I) Limited
May 29, 2026
committed with us, we need to kind of reciprocate accordingly. So, first, we thought that this is a good option accordingly.
The second naturally also, if you look at our overall plan that yes, we do have a plan to do lot of CAPEX going forward down the line and we will certainly use the QIB route which is necessary for us to bring in lot of institutional business, but right now since the capital requirement was very limited, we thought that going to our existing set of loyal customers, shareholders would really take care of the requirement and that was specifically the reason why we have just gone to the existing, adopted the right issue route over the other available options under the market.
Hassan:
Okay, But why not debt then?
Nikhil Bhuta:
No, debt is also there. I mean, if you see on the balance sheet, debt is also there. I mean, this capital obviously will be used as a margin for raising more capital. Capital will be used as a base for now today, let's say, if my working capital cycles are large, if my working capital commitments are large, then there will be certain capital which you will require as in seed from the Company and that seed will come through this. So, that is what we are planning. It is not that the debt is not considered. Obviously, an optimal debt-equity ratio is necessary for us to maintain the profitable margins and it will continue to be part of the overall, the capital deployment strategy for the Company.
Hassan:
Sure sir, noted. Thanks, thanks for your clarification, sir.
Nikhil Bhuta:
Thank you.
Moderator:
The next question comes from the line of Fenil Brahmbhatt with Choice Institutional Equities. Please go ahead.
Fenil Brahmbhatt:
Hello, and Good morning everyone. I hope I am audible and congratulations for your good set of numbers. I have a couple of questions if you allow me. So, first, let's start with this guidance on the consolidated revenue growth for FY '27-'28 with the segment wise expectation for Leasing, design and Furniture. So, like, for design order inflow and for Furniture any specific guidance the Company has or management has and from where we are getting this growth what we are expecting and the segment wise EBITDA margin as well if possible.
Nikhil Bhuta:
Yes, Fenil, in terms of you know, looking at all the three verticals as we maintain that on the Leasing vertical, we are expecting that we will continue to grow at least by adding about 18 to 20,000 seats year-on-year and this year also we are expecting to add about 18 to 20,000 seats which is already most of it is visible to us as we have already stepped into this new financial year.
In terms of Design & Build vertical is concerned, we are expecting to keep growing very well and we are expecting that about around 40% growth rate is fairly achievable considering the kind of orders, businesses which are already in hand or already under pipeline from various
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EFC
Real Estate as a Service Company
EFC (I) Limited
May 29, 2026
institutional businesses, various sectors across, whether it is office infrastructure to any heavy infrastructure in terms of building factory premises to healthcare centers to any other such infrastructure.
And on the Furniture vertical, yes, as I explained earlier that the vertical is right now kind of positions very aptly when the government policies, overall economic situation where import substitutions is in need of the hour, where government is also promoting ‘Make in India’ endeavors. So, we believe that the furnitures industry will really kind of succeed and boom in the coming years and we will be part of that wave kind of considering the model that we have created. So, we are very hopeful there also, that we would be able to grow over 50% growth rate under the Furniture vertical as well.
So, we are very clear that coming year is also going to be a significant year because it is going to kind of stabilize and reaffirm our business model in terms of the kind of stability, growth and continuity that it offers overall.
Fenil Brahmbhatt:
Okay, okay and you mentioned seat addition guidance of 18,000 to 20,000, I think it is revised from earlier guidance of 20,000 to 25,000 for FY '26, right? And we achieved around 18,000 for FY '26. I just want to understand like your view on the shortfall and plus also if we have the handy number or if we have number of average rent per square feet for this Leasing business by FY '26?
Nikhil Bhuta:
So, Fenil, there is no shortfall. What we mentioned is 18,000 to 20,000 is the build seat that we are talking about and 25,000 seats are the overall capacity that we are talking about. So, we continue to achieve that irrespective and we have achieved that also. 18,000 to 20,000 is those build seats which are revenue generating seats. 25,000 seats are those seats which have really added up to our overall capacity.
So, that ratio will continue to be achieved and the same in same ratio we are talking for the current financial year also, that 18,000 to 20,000 seats would be the build operating seats and 25,000 seats would be roughly around the target in terms of adding to the capacities. So, there is no change in the kind of estimation. So, there is no change in the kind of what we expect to achieve or have achieved in the last financial year. Number one.
So, that is a clarification that there are different kinds of ways people are explaining what is matured centers and what is an occupancy level. For us, everything is a matured center because at the end of the day when a center has come, it starts kind of coming with an operating expense and I need to ensure that I kind of recoup that at the quickest. So, what we achieve is my 18,000 to 20,000 seats are those seats which are generating revenue, 25,000 seats have added capacities and which will start generating revenue immediately. So, that is on the seat position side.
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EFC (I) Limited
May 29, 2026
And in terms of margins, as you ask, margins are continuing to remain in the similar line. We are very clear that at the central level we will be able to achieve 30% plus EBITDA and that we continue to achieve even for this financial year and going forward as well.
Fenil Brahmbhatt:
Sir, on this average rent per square feet if we have?
Nikhil Bhuta:
Yes, average rent per square feet fortunately and with the market situations is continuously increasing. So, if you see last quarter, it was in the range of around 7,000 to 7,250. This financial year, on an average, we have already achieved 7,250 to 7,500, and we are hopeful that this is likely to go upwards only and we are very the kind of infrastructure facility, the locations and the requirements of customers are considering those customizations, the prices are going to remain on an upward scale only and overall average revenue per seat is likely to increase only going forward.
Fenil Brahmbhatt:
Thanks for the clarification and one more question on this CAPEX. So, can you throw some lights on the CAPEX expectation for FY '27-'28, any major business development or any business acquisitions or new plans for Furniture business we are expecting in FY '27 and also do we have any plan to acquire a new land parcel? If any, then just mention on that.
Nikhil Bhuta:
No, right now what we are trying to do is we are trying to kind of capitalize and improve the existing capacities with the kind of capital flow available and with the kind of infrastructure that is available. So, in terms of new CAPEX per se, immediately as we speak, we don't have any plans to kind of increase heavily on any CAPEX side. Obviously, improvements are needed, but not in a scale where kind of that we do any substantial CAPEX, but yes, the growth is likely to be achieved with the existing capacities with more efficiencies to be built in there.
In terms of CAPEX as we know that for the Leasing, we are fairly asset light. There is hardly about overall seats not more than 10% of the seats are added through our own capital which is if you look at it from a capital deployment point of view, it is just about, let's say, 2,000 seats at about 50,000 rupee a seat kind of a CAPEX. It is not that substantial that we are looking at from an annual outlay point of view.
And from Design & Build, anyway, it is a contractual business. So, there is no CAPEX requirement. And on the Furniture manufacturing, we do have a fairly established manufacturing facility with lot of infrastructure available there. Yes, there will be like I said, there will be improvements in those infrastructure, there will be improvements in some capacity in terms of some new machineries being added with the changes in the technology or the requirement in the specific type of products, but we are not looking at any land acquisition per se and increasing the CAPEX from that point of view at this point of time as we speak. Thank you.
Fenil Brahmbhatt:
Okay, okay and our average interest rate by end of FY '26 and any major debt expiry in FY '27-'28 we are expecting and how we can tackle or take care of those expiry by refinance or something else?
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EFC
EFC (I) Limited
May 29, 2026
Nikhil Bhuta:
So, all of our debt are primarily asset backed debts right now which is an LRD or a kind of property backed transactions which are not even, it is all around 7.5 to 7.75 kind of range interest rate that we are talking about and there is no any immediate repayment situations coming in for this financial year because these are long term debts and they are available on the balance sheet for a longer paid tenure. So, there is no pressure on the balance sheet in terms of immediate repayment on the loan liability is concerned.
Moderator:
Thank you. Ladies and gentlemen, we would take that as the last question for today. I would now like to hand the conference over to the management for their closing remarks.
Nikhil Bhuta:
So, thank you so much for joining this call and we are really grateful to all our investors, all research organizations and participants who have really been covering us and adding value to the overall Company’s growth potentials. And we thank you so much and we will be back with the bang for the coming financial year. Thank you so much and have a good day.
Moderator:
Thank you, sir. Ladies and gentlemen, on behalf of EFC India Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.
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