EFC (I) Q2 FY27 Results (NSE: EFCIL)
Signal: Steady quarter
The read
The trajectory remains growth-positive—consolidated revenue rose 30.4% YoY and PAT 36.2%—but the quality of growth weakened as gross margin compressed 1,060bps to 52.7%; the key inflection is the widening gap between consolidated and standalone earnings, alongside qualified-review concerns over ₹7,638 lakh of unbilled revenue and aged subsidiary receivables.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹332.02 Cr | +30.4% | +17.4% |
| Net profit | ₹77.26 Cr | +36.2% |
P&L walk
Consolidated revenue increased to ₹33,201.89 lakh, +30.4% YoY and +17.4% QoQ, while gross margin fell 1,060bps YoY to 52.7%; PAT still rose 36.2% to ₹7,726.02 lakh, helped by lower finance costs and a sharp increase in other income.
Segments
No segment table is disclosed, but the ₹33,201.89 lakh consolidated revenue and ₹7,726.02 lakh PAT versus standalone revenue of ₹14,365.08 lakh and approximately ₹1,492.94 lakh PAT show that subsidiaries generated the majority of group earnings.
Key positives
- Consolidated revenue reached ₹33,201.89 lakh, +30.4% YoY and +17.4% QoQ, reaccelerating from ₹28,287.99 lakh in Q1FY27.
- PAT rose 36.2% YoY to ₹7,726.02 lakh, outpacing revenue growth by 5.8 percentage points.
- Finance costs declined 29.3% YoY to ₹457.44 lakh, supporting pre-tax earnings.
- Employee benefits plus other expenses fell 5.3% YoY to ₹4,126.88 lakh despite 30.4% revenue growth.
Key concerns
- Gross margin compressed 1,060bps YoY to 52.7% and 897bps QoQ, with raw-material consumption at 6.5% of revenue versus 0.0% in the year-ago quarter; the filing does not disclose the driver.
- Other income rose 380.1% YoY to ₹1,068.33 lakh, making non-operating income an important contributor to the PAT trajectory.
- Standalone PAT fell approximately 50.8% YoY to ₹1,492.94 lakh while consolidated PAT rose 36.2%, leaving group earnings heavily dependent on subsidiaries.
- Standalone trade receivables rose to ₹28,439.88 lakh from ₹17,976.14 lakh in six months, while cash and cash equivalents fell to ₹11.91 lakh.
Research and educational content only. Not investment advice.