Add EFC (I) Ltd for the Target Rs. 275 by Choice Institutional Equities
Key Conference Call Highlights
Leasing Segment :
* EFCIL manages 3.69 msf across 90 centres in 25 cities ? Total client base was 750+ with total billed seats of 63,199
* Enterprise clients contribute 61% to revenue and average enterprise client tenure is 51 months
* EFCIL has decreased dependence from top 10 clients, from 49% in FY21 to 24% in FY26
* Leasing business payback period remains healthy at 18–20 months ? 1/10th of revenue comes from GCC (Global Capability Centres)
* Demand outlook remains strong, driven by GCC expansion, technology companies, BFSI firms and enterprises shifting towards flexible managed office models. GCCs and large enterprises account for about 80% of EFCIL’s revenue
* The management views the rise of AI as a beneficial evolution which will help structure business processes and potentially increase demand for professional workspace solutions
* The management retains its guidance of adding 18,000–20,000 operating seats annually
D&B Segment:
* D&B order book remains strong, supported by higher turnkey mandates and cross-selling opportunities
* D&B business has 80+ designers and engineers, presence across 15+ locations and execution footprint of ~5.5 msf
* The management is confident of 40–50% revenue growth, going forward for the next 2–3 years
Furniture Manufacturing Segment:
* This vertical viewed as a strategic backward integration and marginenhancing business
* The manufacturing facility spans 1.2 lakh sq ft area with capacity of generate INR 2,000–2,750 Mn revenue. It has over 1,500 SKUs and delivered 60,000+ units across sectors including real estate, hospitality, IT/ITES, education and co-living
* Furniture vertical is operating at 35–40% capacity utilisation, with plans to increase to 75–80% by Q2FY27
* EBITDA margins are projected at 25% for the next 2 years
* The management is guiding for 50% revenue growth going forward for the next 2 years
Financials: Rights issue (May 2026) was utilised to raise capital primarily for working capital needs to proper growth in the design and furniture segment
Overall Guidance:
* Working capital management is one of the key priorities for FY27
* FY27 focus areas include disciplined expansion, improving asset efficiency, scaling up D&B, strengthening furniture manufacturing and deepening enterprise relationships
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SEBI Registration no.: INZ 000160131
