EFC (I) Ltd Q2 Profit Rises to Rs 78 Crore Amid Audit Concerns

Revenue reached Rs 332.02 crore, with net profit climbing to Rs 77.98 crore for the quarter ended September 30, 2026.

Reader Takeaway: Strong revenue and profit growth face headwinds from auditor-flagged uncertainties regarding asset realization and receivable recovery.

What just happened

EFC (I) Limited released its unaudited financial results for the second quarter of FY27, showcasing significant growth compared to the same period last year. Revenue from operations rose to Rs 332.02 crore from Rs 254.59 crore, while profit after tax jumped to Rs 77.98 crore from Rs 55.50 crore. However, statutory auditor Mehra Goel & Co. LLP issued a qualified conclusion regarding the financial statements.

Why this matters

The auditor qualification signals potential risks to the company's reported financial health. The primary concerns involve Rs 76.38 crore in unbilled revenue where customer confirmations are pending, and Rs 18.95 crore in subsidiary trade receivables where the assessment for expected credit loss remains incomplete.

The backstory

The reported results reflect a restated comparative period for Q2 FY26 to account for the merger with Whitehills Interior Limited. Additionally, the company exited its subsidiary, Sanvritti Alpha Private Limited, through a 100% stake sale completed on September 4, 2026.

Risks to watch

Investors should closely track management's ability to secure customer confirmations for the unbilled revenue and finalize the recoverability assessment for Ek Design Industries Limited. Failure to realize these assets could impact future profitability or balance sheet strength.

What to track next

Watch for management commentary in the coming weeks regarding the resolution of these audit qualifications and whether future regulatory filings provide clarity on the pending credit loss assessments.