E Factor Experiences Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

E Factor Experiences' record shows a profitable, growing business whose cash generation has consistently lagged its reported earnings, alongside related-party loans that were previously denied in its own filings. The company's operating cash flow has been negative on a cumulative basis over its listed history, even as profits and dividends have continued. Governance and compliance issues are present but appear administrative in nature.

Key findings

  1. Related-party loans were outstanding for three years, after the company's own statements denied they existed Major - E Factor had ₹6.50 crore of demand loans outstanding to its subsidiary and associate as of 31 March 2026, and ₹7.08 crore a year earlier. The associate, Untamed Hospitality, borrows interest-free, while the subsidiary pays 11%. The consolidated auditor's report for FY2022-23 showed ₹6.96 crore outstanding as at 31 March 2024.
  2. Operating cash flow has failed to convert profit into cash across the company's listed history Major - Cumulative operating cash flow was ₹-10 crore against cumulative PAT of ₹68 crore over eight years through FY2026. FY2025 was the weakest year, with operating cash flow of ₹-17.50 crore against PAT of ₹20.18 crore. Despite this, the Board proposed a dividend of ₹1.20 per share in August 2025, paid out in FY2025-26.
  3. Revenue quality is under pressure from weak cash conversion and management's own shifting framing of the top line Major - Receivables days reached 239 in FY25, up from 123 in FY24. Management guided to ₹225-240 crore for FY26 but reported ₹191.44 crore, then added ₹35 crore of postponed business back to suggest an "adjusted" ₹225 crore base. The CFO announced a shift to "milestone-linked billing" to improve collections, implying current terms are less favorable.
  4. The group's only subsidiary carries negative net worth on the parent's books while generating rising profits Major - The subsidiary, E Factor Adventure Tourism, reported negative reserves of -₹512.31 lacs in FY26, after -₹644.86 lacs in FY25. Its turnover rose from ₹782.91 lacs in FY23 to ₹1,161.54 lacs in FY26, with PAT rising to ₹132.55 lacs. The parent carries its investment at cost, but the book value of the subsidiary's shares is zero as of 31 March 2026.
  5. Promoter family consolidates executive control through board appointments while promoter shareholding declines Minor - Promoter shareholding fell 4.03 percentage points to 69.57% as of 31 March 2026. Samit Garg and Jai Thakore were re-appointed for five-year terms effective 20 March 2026, and two new Whole-Time Directors were approved by postal ballot on 24 December 2025. The board comprised 7 members as of 31 March 2026.
  6. A multi-year APTA payment dispute has been substantially recovered, with no contingent liabilities now reported Minor - E Factor received ₹5.59 crore from APTA during FY2025-26, and stated no further material proceedings remained. The dispute had involved work orders aggregating ₹13.32 crore. The company now reports no contingent liabilities as of the FY2025-26 balance sheet.
  7. E Factor paid an NSE penalty for operating without a Company Secretary for nearly six months Minor - The company had no Company Secretary from 1 July 2025 to 23 December 2025, following a resignation. NSE issued a penalty notice, which the company paid. The Secretarial Audit Report dated 17 August 2026 recorded the lapse.

What to watch

Bottom line: This is a disclosed record with a clear pattern: reported profits have not translated into cash, and the company's own filings have contradicted themselves on related-party lending. The risk is concentrated in revenue quality and the related-party loan book. Watch whether the postponed revenue materializes and whether the outstanding loans get repaid.