SISNSEQ2 FY26November 11, 2025

SIS LIMITED

4,954words
57turns
6analyst exchanges
4executives
Management on call
Rituraj Sinha
GROUP MANAGING DIRECTOR – SIS LIMITED
Brajesh Kumar
CHIEF FINANCIAL OFFICER – SIS LIMITED
Vikram Kannoth
CHIEF FINANCIAL OFFICER
Vineet Toshniwal
PRESIDENT – M&A AND
Key numbers — 40 extracted
INR 1,300 crore
ntastic growth in our revenues this quarter. We are at a consolidated monthly revenue run rate of INR 1,300 crore, which is the highest ever. In fact, all three segments in the business are reflecting very promi
INR 3,759 crore
usiness are reflecting very promising momentum here. So, on a consolidated basis, this quarter is INR 3,759 crore, which is highest ever, and it's an increase of 15% on a year-on-year basis. India Security has
15%
nsolidated basis, this quarter is INR 3,759 crore, which is highest ever, and it's an increase of 15% on a year-on-year basis. India Security has reported again its highest ever revenue at INR 1,544
INR 1,544 crore
ase of 15% on a year-on-year basis. India Security has reported again its highest ever revenue at INR 1,544 crore, which is a 11.5% year-on-year growth. FM has reported its highest ever quarterly revenue of INR
11.5%
basis. India Security has reported again its highest ever revenue at INR 1,544 crore, which is a 11.5% year-on-year growth. FM has reported its highest ever quarterly revenue of INR 629 crore, which
INR 629 crore
rore, which is a 11.5% year-on-year growth. FM has reported its highest ever quarterly revenue of INR 629 crore, which is a 13.7% growth on a year-on-year basis. International security reported its highest eve
13.7%
r-on-year growth. FM has reported its highest ever quarterly revenue of INR 629 crore, which is a 13.7% growth on a year-on-year basis. International security reported its highest ever quarterly revenu
INR 1,607 crore
th on a year-on-year basis. International security reported its highest ever quarterly revenue at INR 1,607 crore, which is a growth of 19.3% on a year-on-year basis. And as you all know that we had done a trans
19.3%
nal security reported its highest ever quarterly revenue at INR 1,607 crore, which is a growth of 19.3% on a year-on-year basis. And as you all know that we had done a transaction with AP Securitas whi
17%
we will report quarter 3, you will see the consolidated numbers and we are expecting APS to add ~17% to our India Security monthly run rate when we consolidate. So that's about the revenue. Now le
16.2%
n customer contracts as well as rationalization of SG&A. So, on a console level, EBITDA grew by 16.2% y-o-y, which basically comes to INR 168 crore, and the margin stands at 4.5% on a consol basis, w
INR 168 crore
onalization of SG&A. So, on a console level, EBITDA grew by 16.2% y-o-y, which basically comes to INR 168 crore, and the margin stands at 4.5% on a consol basis, which is an improvement over the last year. I
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Guidance — 20 items
Vineet Toshniwal
opening
“I welcome you to this earning call for Q2 FY26.”
Vineet Toshniwal
opening
“This has happened because of a DSO increase due to a one-time situation in SIS International, which I hope will be corrected from the next quarter onwards.”
Deepak Poddar
qa
“I mean what do we mean here and what we intend to do?”
Rituraj Sinha
qa
“We are guiding towards or moving towards a INR 400 crore ballpark profit after tax, which again will be the highest jump both in PAT and EPS.”
Rituraj Sinha
qa
“By the end of the year, last quarter, I believe that roughly 75% of our EBITDA will be coming out of India and 65% of our revenues will be coming out of India.”
Rituraj Sinha
qa
“India will move closer to INR 850 crore, INR 900 crore in the next quarter.”
Rituraj Sinha
qa
“Now I think the key thing that you would like to note is that with this acquisition, our monthly revenue in security or our annual revenue in security business in India will be double, 2x the size of our nearest competitor.”
Rituraj Sinha
qa
“But over a 2-year period, there is a significant margin traction as well that will be yielded through this massive consolidation.”
Umang Shah
qa
“Just wanted to understand whether this is a characteristic of the industry and how do we plan to reduce it?”
Vatsal Parag Shah
qa
“Basically, incentivising the target to continue the growth momentum and deliver better earnings, focused on both the improvement of margin and topline.”
Risks & concerns — 1 flagged
And about the question that how difficult or easy it is to recruit them, yes, there are some challenges.
— Brajesh Kumar
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Q&A — 6 exchanges
Q
Sir, just wanted to understand on this acquisition, the transaction, the AP Securitas. So, it will add ballpark INR 1,000 crore annual revenue. Would that be a right understanding?
Vineet Toshniwal
Slightly more than that. Currently, the asset is running at INR 110 crore monthly. But as I said, we are not giving any financials now. We'll wait for the consolidation to happen in this quarter. Okay. But rough margin range, I mean, would you be able to indicate what sort of margins that would be earning? Look, I think what we have is from the previous DD, which was done, which is slightly dated information. So, I would request that let's wait for this quarter. When we consolidate, there might be a bit of changes. So, it won't be appropriate for us to give the margins at this stage. Okay, und
Q
Sir, congrats on the AP Securitas acquisition. Looking at the broad numbers, this looks like a very good acquisition, considering INR 1,000 crore plus sales and INR 22 crore profits. So, what led to the circumstance of us acquiring this business? And this business has more than 100 branches. So how would you consolidate the branches and the employees that you currently have? And in terms of the revenues of AP Securitas, a lot of it is coming from banks. So, what is it so special about AP Securitas that banks prefer to work with them?
Rituraj Sinha
I think SIS is, as we've called out before, for us, M&A is not a tool to bring in growth. M&A is basically for strategic reasons. I see AP Securitas as a transaction that will consolidate our market share and give us edge into some key segments like banking, like logistics and warehousing, which will further consolidate our market position in these key high-growth segments. Now I think the key thing that you would like to note is that with this acquisition, our monthly revenue in security or our annual revenue in security business in India will be double, 2x the size of our nearest competitor.
Q
I had a question regarding your domestic India business. A couple of things on that. First, how big is the headcount? Secondly, how easy is it to get people within the labor market? And third, what has been the wage inflation in specific to the Indian employees?
Vineet Toshniwal
How big? Sorry, you first asked headcount for India? Yes. How many people do you have in India? We reported in the earnings note, you can see 200,000-plus people in India in Security India, right, 170 branches and then there are 85,000 in FM, 90 branches, which would mostly be overlapping same cities. So that's the size in terms of people and branches. What else you wanted to know? Yes. And how easy has it been to recruit fresh people? What's the attrition rate and what's as a result, your ability to recruit more? And not your specifically, I mean on an industry-wise basis. The attrition rate
Q
So firstly, on the AP Securitas acquisition, so in the acquisition call, you had mentioned that roughly the EBITDA multiple comes out to be 8.3. So, is that correct?
Rituraj Sinha
Yes. The diligence was done, yes. I mean, that’s correct. Yes, the diligence was done for FY '24. And as I said, we are yet waiting to consolidate the numbers. So, we can't comment on the current margin profile right now. So that is the trailing number. Okay. And what is the full consideration amount? So, can you just say that? Vineet Toshniwal: I mean consideration we've reported, as you can see, INR 71.2 crore precisely after the adjustment of net debt and everything, for 51%. And as has always been the case with all our M&A deals, we have a clear-cut policy that we don't do outright acquisi
Q
(Inaudible 0:39:18) revenue growth of volume and price when there is (Inaudible 0:39:25] that is never sustainable and is not (Inaudible 0:39:30] but when you have two-third of your growth coming from volumes, that is a very good sign both in terms of demand execution and that's the reason why I was calling this hopefully a rebound year, FY26.
Vatsal Parag Shah
Okay. Got it, two-third. That’s it. Thank you.
Q
Thank you everyone for taking the time to join this briefing. We appreciate your time. As you can see, the second quarter of FY26, rather the first half of FY26 has been a solid performance period for SIS Group. Our International revenues are booming. India Security revenues and margins and collections are in line. FM is clearly showing revenue growth and margin improvement back to 5.5%. So overall, it's all engines firing and we believe FY26 is going to be a good year. I just wanted to supplement that please note that our cash logistics business IPO is also on track. We haven't discussed this
Management
Speaking time
Rituraj Sinha
12
Vineet Toshniwal
9
Moderator
8
Vatsal Parag Shah
8
Deepak Poddar
6
Gautam Trivedi
6
Umang Shah
4
Brajesh Kumar
4
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Opening remarks
Vineet Toshniwal
Thank you, very much and good afternoon, to everyone. I hope all of you had a great Diwali break. I welcome you to this earning call for Q2 FY26. I hope all of you had a good look at the financials that were uploaded last evening. Now to give you headlines, first, I am very happy to report that we have recorded a fantastic growth in our revenues this quarter. We are at a consolidated monthly revenue run rate of INR 1,300 crore, which is the highest ever. In fact, all three segments in the business are reflecting very promising momentum here. So, on a consolidated basis, this quarter is INR 3,759 crore, which is highest ever, and it's an increase of 15% on a year-on-year basis. India Security has reported again its highest ever revenue at INR 1,544 crore, which is a 11.5% year-on-year growth. FM has reported its highest ever quarterly revenue of INR 629 crore, which is a 13.7% growth on a year-on-year basis. International security reported its highest ever quarterly revenue at INR 1,607
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