Economy Review Global Economy
The global economys stability and adaptability came to the fore in CY 2024. Despite economic turbulence, the global economy recorded a growth of 3.3%. This recovery was driven by resilient household demand, improving labour markets and a smoother flow of goods and services across borders. The US economy witnessed steady growth owing to strong consumer spending and robust performance of the corporates. Conversely, the Europe faced stagnation as demand fell and large economies such as Germany experienced subdued growth. The economy of China navigated challenges in its property sector and recorded a weaker- than-expected growth.
Global headline inflation eased after a period of instability. The headline inflation declined to 5.7% as compared to 6.6% in CY 2024, which was supported by falling energy prices and improved supply chain dynamics. Decline in inflation strengthened household purchasing power and allowed the central banks to adopt an accommodative stance towards monetary policies.
Improvement in labour market and stronger consumer confidence stabilised the economy across regions. Further, reduction in interest rates in the emerging markets fueled investment activity and helped establish financial stability. These macroeconomic indicators helped to set a strong environment towards the end of the CY 2024.
Outlook
The outlook for the global economy remains cautiously optimistic. The global GDP growth projection stands at 2.8% for CY 2025. Emerging markets are foreseen to expand by 3.7%, where infrastructure investment, robust domestic activity and enhanced policies are expected to act as tailwinds. Advanced economies are expected to record a growth of 1.4% in CY 2025 and witness a slight improvement to 1.5% in CY 2026.
The headline inflation is forecasted to ease to 4.3%, supported by sustained easing of energy and food prices. With inflation levels nearing the target range, Central Banks are expected to adopt a balanced stance towards monetary policies. This should build-up investment sentiment and enhance growth. Recent implementation of tariffs by the US administration has added a layer of uncertainty to global trade dynamics. However, the current situation is expected to prompt businesses and policymakers to explore and develop more strategic and resilient supply chains. This shift is expected to spur new opportunities across regions and sectors.
The global economy enters a new phase, which demands clarity and coordination among nations. Intensifying downside risks, such as tariff uncertainty and heightened geo-economic fragmentation continue to pose threats. However, growth is foreseen to be supported by factors, such as structural reforms, digital transitions and greater spending. With better coordination and stable macroeconomic conditions, the global economy is positioned to advance towards a phase of balanced growth.
Global GDP Growth Projection (%)
World Output
Advanced Economies
Emerging Market and Developing Economies
Indian Economy
Despite heightened geo-economic challenges, the economy of India sustained its trajectory of growth and recorded a growth of 6.5% in FY 2024-25. This performance can be attributed to strong consumption, supportive fiscal policies and a sustained push on infrastructure spending. Robust performance across sectors, such as services, manufacturing and agriculture, further bolstered the growth.
The country witnessed an increase in the capital expenditure in FY 2024-25, with the Union Budget allocating H 11.11 lakh crore, which amounts to 3.4% of GDP. The increased government spending bolstered growth in the infrastructure and construction sectors, which further created jobs and helped businesses grow.
The Private Final Consumption Expenditure (PFCE) grew by 7.3%, driven by both rural and urban demand. Further, inflation eased from 5.4% in FY 2023-24 to 3.6% in FY 2025, bolstering consumer confidence and leading to increased retail and discretionary purchases.
The growth in GST collections and UPI transactions continued to demonstrate Indias formalisation and digital growth.
Trend in Capital Expenditure
(H in lakh crore)
Outlook
The outlook for Indias economy remains optimistic. The nations GDP is foreseen to grow at an estimated rate of 6.5%. This growth is envisioned to be driven by the heightened capital expenditure by the government, improved manufacturing capacity and a strong investment activity. The governments initiatives aimed at bolstering logistics and clean energy are expected to further enhance the countrys productivity and competitiveness.
Inflation is expected to remain within the target range of the Reserve Bank of India. Decline in inflation is likely to enhance consumer spending. Further, the reduction in the repo rate by the RBI is expected to enhance liquidity in the market and augment credit flow. Revision of income tax slabs is likely to augment discretionary spending of salaried individuals. According to the World Bank South Asia Development, with healthy capital formation, broader credit availability, Indias investment-to-GDP ratio could potentially rise to 34.5%.
Recent reciprocal tariffs imposed by the US government reflect the shifting global trade alignments. The Indian government is maintaining a watchful stance on the evolving tariff scenario and is calibrating an appropriate response. Indias diversified export markets, competitive pricing and value-added production are expected to help it navigate the evolving trade dynamics. It also presents an opportunity for Indian firms to establish themselves in the evolving global supply chain.
Further, the government has recently concluded a historic Free- Trade Agreement (FTA) with the UK. This is foreseen to augment the strategic and economic ties between the two nations. Strong foreign reserves, targeted government spending and accommodative policies are expected to create an atmosphere conducive to long-term growth.
GDP growth trend in India
GDP growth (%)
Industry Overview
Indias Office Space Leasing Market
Indias office leasing market continued to demonstrate strong momentum, driven by a steady economic recovery and sustained demand from global capability centres, technology firms and flexible space operators. The year saw robust demand driven by global capability centers (GCCs), IT/ITeS firms, and an increasing number of flexible workspace operators. Major cities such as Bengaluru, Hyderabad, Delhi-NCR, Mumbai, Pune, and Chennai accounted for the lions share of leasing activity, supported by strong infrastructure, talent availability, and business- friendly environments.
Leasing volumes remained healthy despite macroeconomic uncertainties, reflecting sustained occupier confidence. The demand was further supported by continued adoption of hybrid work models, with many corporates committing to long-term space planning and consolidation strategies. Grade A office spaces, offering sustainable design, digital infrastructure and wellness- focused amenities, saw higher absorption rates.
(004* M O s*fv*c* Compony
The Indias office leasing sector is expected to grow further, supported by infrastructure development and proactive state policies However, global economic headwinds, persistent inflationary pressures and fluctuating interest rates could pose near-term challenges. Nonetheless, opportunities arising from the expansion of digital infrastructure, rising demand for sustainable buildings and a maturing flex space ecosystem offer a promising path for stakeholders aiming to capitalise on Indias long-term commercial real estate potential.
City- Wise Dhare of Supply and Absorption in H1 2025
FIGURE 1.4: CITY-WISE SHARE OF SUPPLY AND ABSORPTION IN H1 2025
ABSORPTION
Source: CBRE
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Flexible Workspace Market
Flexible workspaces are fully furnished and serviced real estate offerings. The operators of these workspaces primarily cater to the consumer base seeking adaptability. Over the past decade, the flexible workspace solution market in India has witnessed rapid growth and evolution. From being limited to traditional business centres and incubators, the industry has expanded its horizon to multiple startups and corporate enterprises.
The pandemic had a major impact on the workspace industry. While many organisations initially adopted a remote-first policy, physical offices gradually started reopening after 2021. This reopening was done cautiously, with greater emphasis on Environment, Health & Safety (EHS), Environmental, Social & Governance (ESG) practices, and overall safety measures. Workspace operators also introduced new offerings such as pay-per-use models, day passes, and reverse offices to support the return-to-office (RTO) trend and hybrid work setups for occupiers.
The adoption of core+flex strategies by multiple startup and corporate enterprises expedited the demand for flexible workspaces. The focus of corporates and start-ups on capital utilisation and their heightened adoption of the hybrid/distributed work space policies are serving as the key growth drivers for this market. Flexible workspaces have expanded their presence in tier 2 and tier 3 cities.
This expansion has attracted many organisations to expand their offices these cities due to the lower capital expenditure requirement.
Key Growth Drivers
Premiumisation for developers and occupiers
Maintaining a balance between making workplaces efficient today and planning for future growth is key to long-term success. Flexible and agile office spaces help organisations adapt to the changing nature of hybrid work and the evolving needs of employees. There has been a growing demand for incorporating energy-efficient designs, reconfigurable layouts and best-in-class amenities. To fulfil this, the developers are aligning the office spaces with these evolving needs.
Leasing surge set to persist for Indian Corporate Sector
Domestic firms have witnessed a revival in office leasing during 2023-2024, posting a ~86% hike compared to the pre-pandemic period (2018-2019).Business expansion, heightened digitisation and restored business confidence are the primary contributors of this growth. Flexible space operators are expected to sustain this positive trajectory in leasing as end-users and occupiers prioritise agility and flexibility within their technology-integrated services, sales and customer support teams.
Enhanced Multi-Sectoral Demand
Corporate expansion has been diverse across sectors. This divergent growth has propelled the multi-sectoral office space leasing activity. The technology sector is expected to remain strong, with hiring likely to focus on specialised areas like artificial intelligence, machine learning, data analytics, and cloud computing. Further, sectors such as Banking, Financial Services and Insurance (BFSI), which are heightening their focus on digitalisation and developing new service offerings, are expected to contribute to the rising leasing office demand.
Growth in Global Capacity Centres
Global firms are leveraging Indias talent pool and are consistently positioning their GCCs as strategic hubs, second headquarters, driving innovation, digital transformation and the development of high-value capabilities. The entry of newer firms is also expected to fuel the growth of GCCs in the country. The GCCs have the capability to comprise ~35-40% of total office space absorption across top cities.
Company Overview
EFC (I) Limited is one of the leading real estate services enterprises delivering comprehensive workspace solutions through a fully integrated model comprising managed offices, design and build services and furniture manufacturing. With a strategic presence across multiple Indian cities, the Company has built a strong reputation for delivering customized, functional and tech-enabled workspace solutions that align with evolving client needs. The Company focuses on operational excellence, customer-centricity and consistent innovation has enabled it to scale rapidly while maintaining high occupancy rates and strong order pipelines across its verticals. Its commitment to sustainable growth is further
Clients
Business Performance Real Estate Leasing
The Company leasing business focuses on providing fully functional, managed office spaces to a broad spectrum of clients, including enterprises, start-ups and SMEs, across prime locations in multiple cities. The company delivers customized and scalable workspace solutions with comprehensive management and premium amenities, maintaining high occupancy levels and operational efficiency.
The Company achieved notable milestones that strengthened its position in the commercial real estate and co-working segments. The strategic acquisition of a 51% stake in BigBox Ventures Private Limited, a fast-growing managed workspace provider, expanded its co-working portfolio and service offerings to enterprises and startups. Additionally, the purchase of prime commercial properties significantly enhances its operational capacity. The Company also launched the EMBERSTONE Small and Medium Real Estate Investment Trust (SM REIT), aimed at driving asset monetisation and generating sustainable, recurring income. These initiatives reflect a clear commitment to delivering scalable, flexible workspace solutions while creating long-term stakeholder value in an evolving work environment.
Average rent per seat
Design and Build Vertical
The Design and Build business vertical serves as a crucial component of the Company. Through this segment, the Company offers services to transform commercial and corporate spaces into impactful and functional environments. It provides end to end solutions to the consumers, which encompasses the entire process spanning conceptualisation, detailed design development to execution and final handover of the project. The Companys Design and Build team works in close relation with the clients to understand their unique requirements and functional needs. This ensures perfect alignment of the completed project with the clients requirements.
The segment contributed significantly to overall revenue, supported by a strong order book of over H200 crores and marquee project wins, including a H183 crore contract from a leading Indian
multinational. The division has successfully delivered over 3.5 million square feet of commercial interiors to date. The Company ability to handle large-scale, complex assignments with agility and precision showcased its growing leadership in the commercial interiors segment.
3.5 million+ sq.ft
Total Area Covered
Furniture Vertical
The furniture vertical of the Company is witnessing rapid growth. The Company has made strategic advancements to complement its existing business segments through the furniture vertical. With the commencement of commercial operations at its state-of- the-art manufacturing facility in Pune, the Company expanded its offerings beyond managed office solutions and interior contracting. The facility focuses on producing high-quality, customised, and ready-made furniture tailored for diverse sectors, including commercial offices, hospitality and residential spaces. The in-house manufacturing capability enhances quality control and delivery timelines supports the Companys larger ecosystem by supplying furniture for its turnkey and workspace projects.
J275-300 Crore
Total Manufacturing Capacity
32k+
Number of Units Delivered
Financial Performance
Consolidated Financial Results
Particulars |
FY 2024-25 | FY 2023-24 |
| Revenue from operations | 65,67,426.00 | 41,945.98 |
| Other Income | 1,752.21 | 931.75 |
Total Income |
65,69,178.21 | 42,877.74 |
| EBITDA | 34,520.09 | 19,191.94 |
| Profit before tax | 19,984.22 | 8,097.31 |
| Profit after tax | 14,077.33 | 6,330.40 |
| Cash flow from operations | 13,367.77 | 1,575.27 |
During FY 2024-25, the total revenue generated by the Company stood at 67,426 Lakhs, marking a YoY growth of 57.27%. The Company achieved an EBITDA of 34,520 Lakhs. The Companys cash profit equalled 13,367.77 Lakhs.
Key Financial Ratios
Ratios |
Ratios for FY2024-25 | Ratios for Ratios for Remark for change of 25% or more as compared to previous FY2023-24 FY2022-23 financial year |
| Trade receivables turnover ratio | 5.90 | 6.04 7.08 NA |
| Trade payables turnover ratio | 6.95 | 3.71 2.89 The improvement in the trade payables turnover ratio is driven by higher cost of services sold during the year, coupled with relatively stable or modest growth in average trade payables. |
| Inventory Turnover Ratio | NA | NA NA NA |
| Interest coverage Ratio | 5.37 | 3.29 1.49 The improvement in the interest coverage ratio is primarily attributable to a significant rise in operating earnings (EBIT) on account of increase in revenue, while the increase in finance costs remained relatively modest. |
| Current Ratio | 1.46 | 2.90 0.90 The reduction in the current ratio over the year is primarily due to a substantial increase in current liabilities on account of change in grouping of lease obligations, while current assets grew only marginally. |
| Return on Equity | 0.28 | 0.25 0.05 NA |
| Return on Capital Employed (ROCE) | 0.30 | 0.21 0.16 The improvement in ROCE during the year is primarily attributable to a substantial rise in earnings, accompanied by a comparatively moderate growth in capital employed. |
| Debt to Equity Ratio | 0.43 | 0.27 0.81 The rise in the debt-to-equity ratio over the year is primarily driven by a increase in borrowings on account of increase in secured loans, while the growth in equity remained relatively modest. |
| Net Profit Ratio | 0.21 | 0.15 0.04 The improvement in net profit ratio is primarily attributable to a significant increase in revenue, together with a comparatively moderate rise in expenses. |
| EBITDA Margin | 0.50 | 0.44 0.54 NA |
The Return on Net Worth for FY 2024-25 stood at 0.26, reflecting an increase from 0.15 in FY 2023-24. The increase is mainly because of growth in revenue with efficient cost control and effective capital utilization.
Opportunities and Threats Opportunities
sustainable and technologically advanced workspace solutions and furniture can provide the Company with a competitive advantage.
Threats
Outlook
The Company remains focused on sustaining its growth momentum by deepening its presence across key business verticals, managed office spaces, turnkey interior solutions and furniture manufacturing. With a strong pipeline of ongoing and upcoming projects, the Company is well-positioned to tap into rising demand for flexible, tech-enabled workspaces and integrated real estate solutions. Strategic initiatives such as the planned listing of the Small and Medium Real Estate Investment Trust (SM REIT), expansion through asset acquisitions and scaling of in-house furniture production are expected to drive long-term value. Backed by operational discipline, client-centric offerings and an ecosystem-driven business model.
Disclosure of Accounting Treatment in preparation of Financial Statements
The financial statements have been prepared in accordance with Indian Accounting Standards ("IndAS") as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under section 133 of the Act and other relevant provisions of the Act.
Human Resource
Human Capital: Driving Business Excellence
EFC (I) Limited continued to strengthen its human capital as a strategic pillar driving growth, innovation and operational excellence. Our people agenda during the year was anchored on building a future-ready workforce, advancing organizational agility and enhancing the overall employee value proposition.
As of March 31, 2025, the Companys total workforce stood at 27 employees, representing its most valuable asset and the foundation of sustainable business excellence.
Talent Acquisition & Workforce Diversity
Our talent acquisition strategy is rooted in meritocracy, agility and inclusivity. By adopting a bias-free hiring framework, we ensure that opportunities remain accessible to all, regardless of age, gender, background or orientation. This approach fosters dignity, fairness and equal opportunity while enabling us to attract competent talent aligned with our values.
Our hiring during the year focused on building future-ready skills, ensuring that we continue to serve evolving client expectations with agility and precision.
Talent Acquisition efforts were made on strengthening workforce planning, deploying data-driven hiring strategies and leveraging digital platforms to attract competent talent across functions. Emphasis was placed on employer branding and creating a seamless candidate experience.
Capability Development
Learning & Development remained a core enabler of capability building. We view continuous learning as a strategic enabler for both individual and organizational growth. In FY 2024-2025, our L&D initiatives were designed around enhancing technical capabilities, leadership acumen and behavioural competencies.
Key initiatives included:
• A structured functional onboarding program to accelerate new-hire integration.
413
Total Number of Employees on Group Level
business communication, customer centricity, and leadership readiness.
paced development.
Employee Engagement
At EFC (I) Limited, we believe engaged employees form the backbone of a high-performance culture. Throughout FY 24- 25, we curated comprehensive employee experience initiatives to strengthen belonging, collaboration, and recognition. To reinforce a connected and engaged workforce, we continued to drive various initiatives such as:
Strengthening People, Policies and Performance
The rollout of a structured Performance Management System (PMS) on a digital platform, complemented by goal sheets, fostered a culture of accountability, transparency and outcome- driven performance.
Progressive HR policies were reinforced to support inclusivity, wellbeing, and governance. Key initiatives included strengthening our Diversity, Equity & Inclusion (DEI) framework, intensifying awareness on the Prevention of Sexual Harassment (POSH) and embedding structured grievance redressal mechanisms.
Employees continued to benefit from comprehensive Rewards offerings, encompassing compensation, insurance, statutory retirement benefits, and development opportunities, thereby strengthening retention and employee engagement.
Culture Development
Culture remains our strategic differentiator. We nurtured a values-driven culture anchored on customer centricity, humility, trustworthiness, efficiency, and accountability. Continuous listening through pulse surveys- "Your voice matters ", open forums and one-on-one connects allowed employees to voice perspectives and shape workplace practices.
Through these initiatives, the Company remained steadfast in cultivating a high-performance, purpose-driven and inclusive culture, empowering its workforce to consistently deliver exceptional value and experiences to customers while driving long-term business outcomes.
Risk Management
The Companys business spans diverse verticals. This exposes the Company to various risks. Financial risks, such as fluctuations in real estate market values, volatility in interest rates, can impact the borrowing costs and credit ratings of borrowers. In addition, operational risks associated with the delays in projects, cost overruns and failure to ensure quality can hamper the proper functioning of the Company. The Company is also exposed to regulatory and compliance risks within the real estate and manufacturing sector.
The Company has adopted a robust risk management framework which helps it implement day-to-day operational strategies, ensuring effective identification, evaluation and mitigation of potential risks. The framework is subjected to periodic reviews by the Risk Management Committee that ensures and monitors the effectiveness of implemented risk management policies and procedures.
The detailed risks and their corresponding mitigation strategies are provided in the BRSR Report, which forms part of the Integrated Annual Report.
Internal Control System and their Adequacy
The internal financial controls for all the significant and material processes have been identified based on the risk evaluation in the business process and same have been implemented in the business processes. These processes and controls have now been documented. The Audit Committee of the Board reviews the internal audit reports, adequacy of internal controls and risk management framework periodically. These systems provide reasonable assurance that our internal financial controls are designed effectively and are operating as intended.
Cautionary Statement
This statement made in this section describes the Companys objectives, projections, expectations and estimations which may be forward-looking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual results could differ materially from those expressed in the statement or implied due to the influence of external factors that are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forwardlooking statements on the basis of any subsequent developments.
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