SISNSEQ4 FY26May 11, 2026

SIS LIMITED

7,547words

88turns

12analyst exchanges

4executives

Download PDF ↗SIS stock page →

Management on call

Vineet Toshniwal

PRESIDENT – M&A AND

Rituraj Sinha

GROUP MANAGING DIRECTOR – SIS LIMITED

Brajesh Kumar

CHIEF FINANCIAL OFFICER – SIS INDIA

Vikram Kannoth

CHIEF FINANCIAL OFFICER

Key numbers — 40 extracted

INR4,489 crore

as PAT. So that shows that we are firing on all three fronts. We reported a quarterly revenue of INR4,489 crores. That's a huge jump of 31% year-on-year growth and 7.3% quarter-on-quarter growth. By far our be

31%

ng on all three fronts. We reported a quarterly revenue of INR4,489 crores. That's a huge jump of 31% year-on-year growth and 7.3% quarter-on-quarter growth. By far our best quarter. EBITDA for the

7.3%

eported a quarterly revenue of INR4,489 crores. That's a huge jump of 31% year-on-year growth and 7.3% quarter-on-quarter growth. By far our best quarter. EBITDA for the quarter has crossed the psyc

INR200 crore

-on-quarter growth. By far our best quarter. EBITDA for the quarter has crossed the psychological INR200 crores mark for the first time and it's at a record INR207 crores, which is 25.6% up year-on-year basis

INR207 crore

quarter has crossed the psychological INR200 crores mark for the first time and it's at a record INR207 crores, which is 25.6% up year-on-year basis. This shows the strong resilience and scalability of our o

25.6%

psychological INR200 crores mark for the first time and it's at a record INR207 crores, which is 25.6% up year-on-year basis. This shows the strong resilience and scalability of our operating model.

INR290 crore

and scalability of our operating model. Last quarter, we reported a onetime exceptional charge of INR290 crores, which is basically the charge we have taken while implementing the new Labour Code guidelines o

INR38.8 crore

assessment of our liability with our auditors. And as a result, after the assessment, we reversed INR38.8 crores of this liability during Q4, which is flowing through other comprehensive income. So it's a re

INR1,574 crore

venue basis, we are happy to report that on a consolidated basis, monthly revenue run rate is now INR1,574 crores, which shows promising momentum across all categories. On a consolidated basis, as I said, INR4,

INR1,925 crore

, INR4,489 crores, 31% year- on-year jump. India Security has reported its highest ever revenue of INR1,925 crores in this quarter, which is a 34.2% growth year-on-year basis. Of course, this has come with con

34.2%

dia Security has reported its highest ever revenue of INR1,925 crores in this quarter, which is a 34.2% growth year-on-year basis. Of course, this has come with consolidation of our acquisition of APS.

INR635 crore

this has come with consolidation of our acquisition of APS. For FM, we have reported a quarter of INR635 crores, which is an 8.1% growth on a year-on-year basis. International Security reported its highest ev

Advertisement

Guidance — 20 items

Brajesh Kumar

“So as far as future additional expense is concerned, it is now factored in the rate breakup of all the existing customers, so that will be totally passed through.”

Brajesh Kumar

“Most of them have said that whenever actually this amount will be paid to concerned employees who will retire at that time -- at that time they will reimburse.”

Brajesh Kumar

“Whenever that will be paid to us , that will pass through the PL.”

Brajesh Kumar

“So whenever the cash flow impact will accrue, at that time, it will be passed through.”

Riya

“So what will be the quantum of these orders?”

Umang Shah

“Second was any forays planned in any other international markets in FY27?”

Umang Shah

“The next year onwards, it will normalize to 7%.”

Umang Shah

“If that is the context, then how do we plan to have double-digit revenue growth going forward?”

Rituraj Kishore Sinha

“Going forward, we have several opportunities at hand.”

Rituraj Kishore Sinha

“And if you look backwards also, since listing, since FY '18, SIS has maintained a 15% growth CAGR.”

Risks & concerns — 1 flagged

This is with the impact of APS consolidation for the full quarter.

— Rituraj Kishore Sinha

Advertisement

Q&A — 12 exchanges

Thank you very much for this excellent result. Sir, my question is regarding this exceptional item, this INR290 crores which you have provided in December quarter and then some amount you have reversed in the current quarter. So sir, that amount should not have been let off from here instead of passing it through that comprehensive income, something like that.

Brajesh Kumar

Yes, Mr. Modi, this is Brajesh responding to your question. So as by accounting norms, whenever there is any difference in the liability already reassessed. We have to pass it through OCI. We cannot simply reduce the liability or we cannot put it through PL. So as per accounting norms, we have an obligation to pass it through the OCI, and we have just followed the accounting standard. Okay. I got it, sir. Sir, other thing, this amount is sir, passed through. We are going to get this money from our client. This we have provided at the movement in lumpsum but ultimately, we're going to get this

Firstly, congratulations for brilliant results this quarter. My first question is regarding our FM business. I see there are additional contracts which we have won and the monthly run rate has increased to INR31 crores, which was INR21 crores previous year-on-year quarter comparison. So is this sustainable with the current margin which we have?

Rituraj Kishore Sinha

Hi, this is Rituraj. The FM results are very much sustainable. And if you have been tracking the FM segment, you will see that they have gone from 4.5% or lower margin profile to almost 5.5% margin profile, plus the business has reported reasonable growth. I think it would be safe to say that both are sustainable. Hi Rituraj, Riya this side. So, in our international business, we've seen a lot of orders in the quarter also coming from government and e-comms. What are likely tenure of these orders and how should we look at it? Because even if we look at the employee count, they have not increase

Good set of numbers. Also I wanted to congratulate on capital allocation with both buyback and the dividend this year with taking the total payout to 70%. I had three queries. One was what was the reason for declining employees in the Facility Management segment, Employees have come down from 85,000 to 82,000 employees now. Second was any forays planned in any other international markets in FY27? That was the second question. And third question was you had called out that there were multiple one-times in international business this year. The next year onwards, it will normalize to 7%. If that

Rituraj Kishore Sinha

Okay. So let me try and address one by one. So the first thing, I think, let's -- you didn't ask this question, but so that I can underline this information. SIS has returned a total of INR250 crores to shareholders this financial year. And I think since IPO, over 8 years, if my memory serves me right, we would have returned close to -- Shweta, can you help me with the number? Including this INR250 crores, how much have we returned in total? Okay. Let Shweta gather that number. Till that I'll answer your questions. Employee headcount in FM has not really reduced. They closed certain contracts,

I just wanted to ask what kind of opportunities are you seeing with the implementation of the new Labour Codes? And are you seeing any signs of improvement in your business dynamics already with the conversations that you have with your clients?

Rituraj Kishore Sinha

Well, Labour Codes, as I have cited several occasions before is a reset for India, not just for this industry per se or for SIS. Let me walk you through it. There are roughly 55 crores to 60 crores working population in India, what you call the labour force of the country. Out of this, roughly 25 crores are working in farms where Labour Codes don't apply. Remaining 30 crores plus people are directly impacted by Labour Codes, which includes you and it includes me because this is no longer about blue collar or gray collar, this is basically every kind of worker from peon to CEO, a contracted wor

Yes. Sir, I just wanted to understand what is your ROE aspiration for the next 2, 3 years?

Rituraj Kishore Sinha

I don't think we have an ROE aspiration as such I'll tell you SIS must be seen as a compounding story, at least that's the way I see it. And for us, the two metrics that are super important are to be able to get growth above 15% and maintain returns over 15% on a multi-year basis. As long as we can compound on that 15 is to 15 formula, I think we are very happy. And if you look backwards also, since listing, since FY '18, SIS has maintained a 15% growth CAGR. That chart is available in our earnings note as we put it out each time. So we pretty much want to continue doing what we are doing with

Congratulations on a good set of numbers. Sir, I just wanted to understand, so you mentioned that we aspire to grow at around 15% on a multi-year basis. And we've had a very good growth in all three different segments. So I just wanted to understand what is the growth trajectory we see segment-wise. So each segment, if you could give that growth like for FY27 and going forward?

Rituraj Kishore Sinha

We don't do guidance by segment even on a consol basis, I have basically articulated what SIS has been doing in the past. If you take SIS numbers since listing, we listed as a INR6,000 crores company 8 years back, with INR100 crores of profit after tax ballpark. Today, we are a INR16,000 crores company with roughly INR390 crores of profit after tax for FY26 on a normalized basis. If you back-calculate the numbers, even for the return profile, you will basically see that we have been hovering around 15% growth and 15% return profile. That's what I said that we intend to continue to do that on a

Congratulations on a strong quarter. I have three questions. One is just a clarification. I believe, Rituraj, on some -- on an interview outside with press, I'm not sure if it is correct, but you guys mentioned that you're targeting around INR20,000 crores in '27. Is that just misquoting you guys? Or is it something that you internally think is possible overall revenue? That's just first as a clarification?

Rituraj Kishore Sinha

Well, it is a misquote, but it is also possible. Understood, understood. Interesting. And just to clarify again on the SIS India Securities business, ex of AP Securitas, that margin is 5.5%. Is that right? Correct. Understood. I'll maybe connect offline. I'm getting a different number, but I'll just connect offline and make sure. Two smaller questions. One on the depreciation side this quarter, quarter-on- quarter, our depreciation has increased by around INR15-odd crores. Which, I guess, the note says is relating to largely a new office lease in the international business. That annualizes to

Congrats on the quarter. I just had one question. What would be our year-on-year growth for Security India if we excluded APS?

Brajesh Kumar

11%.

I'm trying to understand that is there any advantage that we have in terms of sourcing of labour like since the -- I mean, we are based out of Bihar and Bihar has the lowest cost labour. So is there any advantage wherein we can source people from really interiors at low cost and then train them in-house and then maybe place them in Tier 1, Tier 2 cities? Is that the model?

Rituraj Kishore Sinha

No, that's absolutely not the model. So in India, what you get paid is dependent on where you work. And I think it's important to understand that carefully. More than your skill, where you work determines how much you get paid. So if somebody hailing from Bihar works in Bihar for the job of a security guard, let's say, he gets INR10,000. That's the prevailing minimum wage. When the same individual goes to Mumbai, for example, for the same security duty because of Maharashtra jurisdiction, he might be able to get INR20,000 wage for exactly same duty, same hours, same everything. So we don't hav

We spoke of our margin reverting to pre-COVID numbers and also spoke of aspirations of growing more than 15%. What big changes happened after COVID is that minimum wages in many states have not been revised. So the numbers that we aspire for, will the increase in minimum wages be an important factor here? Or irrespective of this increase, we will still grow or aspire to grow at these levels?

Rituraj Kishore Sinha

Well, wage growth is a positive for us. It's not a negative. That's the first thing that you need to understand. Revenue in our industry is a function of price, which is driven by wages multiplied by volume. So if the wage goes up, the price per head per month goes up, the price of overall service goes up. Even at the same volume, you get higher revenues. Got it, sir. And this has not been happening, right? Post COVID, the government artificially compressed the wage increase. So on an annualized basis, the wage increase in the country for the last 5 years has been 3% to 5% only, per annum. But

Sir, does this flex space operator giving end-to-end service to the landlords as well as the customers affect our Facility Management division because a lot of these guys are coming up with providing everything from design fitouts your facility management and security services as well?

Rituraj Kishore Sinha

Corporate offices or office spaces put together would not even constitute 10% of our customer base in Facility Management. That is the beauty about this sector. This is completely diversified. Because you are from Counter Cyclical, let me tell you that if there is one sector which is nonseasonal, it is essential services like security and FM. It's definitely not cyclical. And it's almost recession-resistant. If you go back and see the numbers of SIS during COVID, in the first year of COVID when the economy shrunk by 7%, SIS grew by 7%. That is because even if one sector like people used to ask

Thank you very much to all of you for joining this call and taking so much time and patience to ask your questions. As I close this call for FY26 and for Q4 of FY26, I would like to say that there has been a recurring critique of SIS. People have often said too many segments, too many moving parts, something or the other is always limping. That's also been true for several quarters in the past. FY26 presents a counterpoint. It demonstrates what happens when a multi-engine platform, which is the market leader in security, market leader in FM, delivers. So FY26 is a good story. And like I said,

Management

Speaking time

Rituraj Kishore Sinha

Moderator

Brajesh Kumar

Riya

Madhur Rathi

Chirag Fialoke

Vikram Kannoth

N Modi

Umang Shah

Nishita

Advertisement

Opening remarks

Vineet Toshniwal

Thank you very much. Good afternoon to everyone, and I welcome all of you to the Q4 FY26 earnings call. I hope you all got a chance to have a look at the results, which were anyways declared before the long weekend started. So as you've seen by far, Q4 and FY26. I'm very happy to report that it's been a milestone quarter and one of the best growth years for SIS possibly in the last 5, 6 years post-COVID It's marked by strong execution across all businesses. And there is a sustained momentum as you can see in growth and profitability with the highest ever revenue and highest ever EBITDA margins as well as PAT. So that shows that we are firing on all three fronts. We reported a quarterly revenue of INR4,489 crores. That's a huge jump of 31% year-on-year growth and 7.3% quarter-on-quarter growth. By far our best quarter. EBITDA for the quarter has crossed the psychological INR200 crores mark for the first time and it's at a record INR207 crores, which is 25.6% up year-on-year basis. This

Advertisement

← All transcripts SIS stock page →

SIS LIMITED

Market Movers