EFC (I) Ltd

Dematerialisation status

• Securities received for dematerialisation were confirmed (accepted/rejected) to the depositories.
• Securities dematerialised have been listed on the stock exchanges where earlier securities are listed.
• Certificates for dematerialisation were mutilated and cancelled after verification; depository name substituted as registered owner.
• Depository name substituted as registered owner within prescribed timelines.

EFC (I) Limited: Trading window closed from October 1, 2026 till 48 hours from declaration of financial results for the quarter and half year ended September 30, 2026.

Overview

• Demerger of asset-light managed office solutions from the Demerged Company to the Resulting Company.

Rationale

• Strategic restructuring to consolidate asset-light office solutions under the Resulting Company.

Key Terms

• Nature: Demerger of asset-light business.
• Effective date: NCLT order dated 21 September 2026.
• Related party/ownership: Demerged unit is 100% subsidiary of the Resulting Company.
• Approvals: NCLT order; meetings dispensed.
• Issuance: No new shares; no consideration.
• Share capital unchanged.

Financial Impact

• Business transferred within group; no external liabilities disclosed.
• No changes to issued capital or shareholding pattern.
• No new debt or liabilities specified.

Stakeholder Impact

• Shareholders: Rights unchanged; meetings dispensed.
• Creditors: Rights unf affected; no compromise involved.
• Operations: Asset-light business moved to the Resulting Company within group.

Status & Next Steps

• Status: NCLT order dated 21 September 2026; meetings dispensed.
• Next steps: Representations to Tribunal within 30 days.
• If no representations, the scheme proceeds.

Overview

• Intra-group demerger of asset-light business to the Resulting company.
• Remaining asset-intensive business stays with the Demerged entity.
• Appointed Date for scheme: 01-01-2026.

Rationale

• Segregates asset-light and asset-intensive businesses for focused growth.
• Enables independent capital structures post-demerger.
• Aims to improve governance, efficiency and asset concentration.

Key Terms

• Nature: demerger of Demerged Undertaking into Resulting Company.
• Appointed Date: 01-01-2026.
• Related party: Yes (wholly owned); arm's-length status not stated.
• Meetings dispensed by NCLT; subject to regulatory approvals.
• No share exchange; Demerged equity remains with Demerged/Resulting.
• Rights issue by Resulting; post-issue issued capital: 29,58,92,324.
• Demerged capital unchanged through 31.03.2026 until approval.

Financial Impact

• Rights issue of 1,06,62,786 shares on 25 May 2026.
• Post-rights issued capital: 29,58,92,324.
• Demerger transfers assets and liabilities of the Demerged Undertaking.
• No exchange of Demerged equity for Resulting equity.

Stakeholders

• First Applicant shareholders: seven holders; 100% consent via affidavits.
• Six nominees hold shares for Second Applicant.
• Unsecured creditors' liabilities to be discharged by Resulting.
• CCD holder consented and waived notice.
• Employees of the Demerged Undertaking transfer to Resulting.

Status & Next Steps

• NCLT order dated 21-Sep-2026 sanctioning scheme.
• Certified copy awaited; compliance steps to be taken.
• Scheme remains subject to regulatory approvals.
• Notices to regulators and stock exchanges to be filed.

Resolutions and outcomes

• Special resolution: issue up to 19,99,996 equity shares as swap for Ultrafresh stake.
• Acquisition involves 100% stake in Ultrafresh Modular Solutions Limited.
• No cash consideration; fully diluted basis.
• Outcome: approved with requisite majority; passed on 17 Sep 2026.
• Cut-off date: 14 Aug 2026; voting period Aug 19–Sep 17, 2026.
• Impact: increase in share capital; completion facilitates 100% acquisition.

Meeting Details

• Tue, Sep 22, 2026 at 10:00 AM; one-to-one/group meeting at Anand Rathi Annual Flagship Conference, Mumbai.

Participants

• Key company participants: officials of EFC (I) Limited.

Purpose

• Purpose: interaction with Analysts/Investors.

Financial highlights

• Revenue from operations rose 58% to 10,366.8 million (FY26).
• EBITDA at 4,683.2 million, up 43%.
• PAT at 2,347.1 million, up 67%.
• EBIT at 3,651.8 million, up 49%.
• PAT margin at 22.6%; ROCE at 33%.
• Leasing, D&B, Furniture contributed 52%, 42%, 6% respectively.

Operational footprint and performance

• Geographic footprint expanded to 25 cities and 117 centres.
• Total seats across operating centres: 69,863; seats under development: 8,919.
• Enterprise revenue contributed 61% of leasing revenue; top 10 clients 24% of rental revenue.
• Average enterprise client tenure: 51 months.
• Occupancy consistently above 90%; 750+ enterprise clients.
• Revenue mix by vertical: Leasing 52%, Design & Build 42%, Furniture 6%.

Capital structure and strategic actions

• Direct listing on NSE effective August 20, 2025.
• Rights issue: 1,06,62,786 equity shares at ₹150; ₹148 premium.
• Authorised capital increased to ₹40.10 cr; paid-up capital ₹27.45 cr after merger.
• Scheme of Amalgamation: Whitehills Interior Limited merged; 3,77,30,000 equity shares issued.
• Promoters reclassified from Promoter to Public on Jan 28, 2026.
• Dividend: Board did not declare dividend for FY2025-26.

Strategic growth plans and outlook

• FY2026-27 plan: add 18,000–20,000 revenue-generating seats; total capacity ~25,000 seats.
• D&B target: ~40% growth; Furniture >50% growth with manufacturing scale.
• Focus on EBITDA >30%; improve working capital and cash generation.
• Balanced growth with selective capital deployment and disciplined execution.

Governance and ESG

• CSR Committee formed May 28, 2026; 3 members.
• Company certified with ISO 9001, 14001, 45001; TÜV NORD certifications for EK Design.
• 100% KMP training on ethics and governance; whistle-blower mechanism in place.
• Management emphasizes robust risk management and integrated platform governance.

ESG and CSR highlights

• CSR spend around ₹20 million; ~370 children benefited; ~18,168 lives impacted.
• CSR areas: education, animal welfare, skill development; SDG alignment ongoing.
• Targets include 10% reductions in energy and water use; 20% waste reduction.

Outlook and risks

• Macro uncertainty globally; domestic demand remains robust aided by GCC expansion.
• Leasing growth, enterprise traction, and platform integration drive visibility.
• Risks include input cost pressure, execution delays, and real estate cycle dynamics.

Key ESG & Governance Highlights

• Consolidated BRSR for FY2025-26 filed; ESG governance, policy updates, and performance.
• ESG Steering Committee established; meets annually; oversees ESG KPIs and risk framework.
• Board-approved ESG Policy, Supplier Code of Conduct, Anti-Corruption/Anti-Bribery Policy, and Human Rights Policy updated.
• Priorities: energy, water, waste, emissions, green building, OHS, human rights, inclusive growth.
• 162 sites across 19 states; consolidated operations.
• Total energy 83,345,158 MJ; renewable 24,512 MJ; non-renewable 83,320,646 MJ.
• GHG emissions: Scope 1 6,541 tCO2e; Scope 2 14,862 tCO2e; total 21,403 tCO2e; intensity 0.000002064.
• Water withdrawals 484,358 KL; groundwater 66,024 KL; third-party water 359,020 KL; others 59,314 KL.
• Waste generated 2,017.74 tonnes; recycled 673.08; recovered 450.15; landfilled 876.76; 55% recovered.
• CSR spend INR 19.99m; beneficiaries 18,168; CSR activities include education and community programs.

AGM and annual report

• 42nd AGM scheduled for Sep 30, 2026 at 12:00 IST via VC/OAVM.
• Annual Report 2025-26 accessible via link and on BSE/NSE.

Email communications

• Letter dispatched to members without registered emails providing annual report access link.

KYC and dematerialisation

• Reminder to update KYC details and dematerialize physical securities per SEBI circular.
• Cut-off date for email update: Sept 4, 2026.
• Forms ISR-1/2/3, SH-13/14 available on the website for KYC updates.
• Queries to be raised electronically via helpdesk.
• Green Initiative: update email to continue receiving information.