1. Opening Hook
When your guards are guarding India’s malls, banks, and warehouses — you expect them to secure your profits too. SIS did just that this quarter, with management flexing about “highest-ever” revenues like a Bollywood hero in uniform. Even Diwali lights seemed dimmer than their 15% YoY topline glow. But before you salute, remember — this is the security business: high headcount, low margin, and a never-ending battle with attrition. Still, Group MD Rituraj Sinha called FY26 a “rebound year,” sounding more like a general before battle. Stick around — there’s acquisition drama, margin missions, and wage inflation wisdom worth guarding.
2. At a Glance
- Revenue up 15% YoY:All segments fired together — like synchronized security drills.
- EBITDA ₹168 crore (+16% YoY):Margins at 4.5%, because guarding money is harder than guarding gates.
- PAT ₹93 crore:Flat on QoQ, but solid enough to keep the CFO smiling.
- Net Debt ₹663 crore:Down 23% — fewer loans, more muscle.
- ROCE 14.3%:From 11.7% last year — capital efficiency finally got promoted.
- DSO 69 days:Only one day worse; collection team deserves medals.
3. Management’s Key Commentary
“We’ve recorded the highest-ever consolidated revenue at ₹3,759 crore.”(Translation: The guards are guarding, the cleaners are cleaning, and the accountants are counting.😎)
“Facility Management EBITDA up 90 bps YoY to 5.2%.”(The janitors just outperformed half the mid-cap universe.)
“AP Securitas deal will boost our India security run-rate by ~17%.”(Because when in doubt — acquire your competition, not just their clients.)
“EBITDA margin improvement is gradual but real.”(The corporate equivalent of “it’s not abs yet, but I’ve been jogging.”)
“International margins will move back to 4-4.5%.”(Translation: Australia’s still on coffee break, but coming back soon.)
“FY26 is a rebound year — highest revenue change in five years.”(When management uses ‘rebound,’ it usually means ‘we survived last year.’)
“We are on track for the cash logistics IPO soon.”(Finally, a spin-off that might actually make shareholders rich.💰)
4. Numbers Decoded
| Metric (₹ crore) | Q2FY26 | Q2FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Consolidated Revenue | 3,759 | 3,268 | +15% | Highest ever, fueled by all segments. |
| India Security | 1,544 | 1,385 | +11.5% | The home guard grows steadily. |
| Facility Management | 629 | 553 | +13.7% | Clean margins, literally. |
| International Security | 1,607 | 1,348 | +19.3% | Aussie momentum still strong. |
| EBITDA | 168 | 145 | +16.2% | Margins at 4.5%, a touch better. |
| PAT | 93 | 80 | +16% | Operating PAT flat QoQ. |
| ROCE | 14.3% | 11.7% | Up 260 bps | Balance sheet clean-up paying off. |
| Net Debt | 663 | 857 | -23% | Borrowings locked down. |
EBITDA margins inching toward pre-COVID 6% target; management claims three-fourths of the climb already done.
5. Analyst Questions
Q:“What’s the deal with AP Securitas margins?”A:“Let’s wait for consolidation.” (Code for — we don’t want to scare you yet.)
Q:“When will Security & FM hit 6% EBITDA?”A:“Soon. Maybe in a few quarters.” (Also said in FY24 and FY25.)
Q:“Attrition’s 40%! Problem?”A:“Industry standard.” (In other words, everyone’s quitting, not just ours.)
Q:“How do you even hire that many people?”A:“We’ve got 21 training academies, digital kiosks, and a referral app.” (SIS HR runs like Swiggy for guards.)
Q:“International growth sustainable?”A:“No, this year’s an exception.” (
