01 — At a Glance
The Security Company That Just Broke Its Own Revenue Record
- 52-Week High / Low₹402 / ₹272
- Q3 FY26 Revenue₹4,185 Cr
- Operating EBITDA (Q3)₹196.3 Cr
- Reported PAT (Q3)-₹138.4 Cr
- Q3 EPS-₹9.81
- Book Value₹178
- Price to Book1.54x
- Dividend Yield2.52%
- Debt / Equity0.67x
- 3-Yr Profit CAGR-68%
The Headline Squish: Q3 FY26 is SIS’s biggest revenue ever at ₹4,185 crore (+24.5% YoY). Operating EBITDA hit record ₹196.3 crore. But reported net profit? -₹138.4 crore. Because management decided to take a one-time ₹290 crore charge for labour code gratuity liabilities. On an accounting choice basis, this was “conservative.” On a stock price basis, it was a tactical nuclear missile directed at the earnings line. The stock is down 30% in 12 months. Sometimes the market knows things before the Q3 results land.
02 — Introduction
Your Neighbourhood Security Guard Just Went Global
SIS Ltd was founded in 1974 in Patna by Ravindra Kishore Sinha as a manned guarding business. That’s right — guards. The boring kind that stand outside buildings looking bored. Fast forward 50 years, and SIS has become India’s largest security services company, spreading across 36 states and three continents (Australia, New Zealand, Singapore). It now provides manned security, facility management, cash logistics, and digital alarm monitoring to everyone from banks to Amazonians to your local IT park.
The company is 83% security services, 17% facility management. Simple, unglamorous, and nearly impossible to disrupt. But here’s where it gets interesting: India’s organised security market is fragmented. SIS controls only 5–6% of a ₹1 lakh crore market. That means 94%+ is still in the hands of unorganised, low-compliance players. New labour laws are about to make unorganised competition illegal. The tailwind is real. The execution is visible. Then they take ₹290 crore and the mood sours.
This is a story about a company riding a structural wave, getting its biggest acquisition done in 2025 (A P Securitas for ₹1,119 crore standalone revenue), and then deciding to clean up its balance sheet in the most aggressive way possible. Simultaneously, it’s a story about founder Rita Kishore Sinha replacing her husband Ravindra as Chairperson in November 2025. Quietly aggressive. Very Indian.
Concall Gold (Feb 2026): “Monthly revenue run-rate crossing ₹1,400 crore.” Management is now talking in monthly numbers because quarterly is becoming too noisy with one-time charges and acquisitions.
03 — Business Model: WTF Do They Even Do?
Guarding. Cash Vans. Cleaning. Alarms. Everything You Never Thought About.
SIS operates three core business lines. First: manned security. Somebody stands outside your office, bank, factory, or apartment complex looking alert (even if they’re internally screaming). SIS has trained this manpower through 22 in-house training academies and deploys ~300,000 uniformed personnel across India. That’s 300,000 pairs of eyes. You’ve probably walked past five SIS guards today and never noticed.
Second: facility management. Cleaning, housekeeping, pest control, HVAC maintenance. SIS owns brands like ServiceMaster Clean, Dusters, RARE Hospitality, and Terminix. Essentially, they make dirty places less dirty for ₹636 crore quarterly revenue.
Third: cash logistics. SIS operates 3,000+ cash vans and 60+ vaults across India through a JV with Prosegur (Spanish security company). ATM refills, cash processing, bullion transport. Think of SIS as the vault that walks.
Fourth (the dark horse): electronic security. Under the V-Protect brand, they run AI-enabled intrusion detection. Over 30,000 connections. Growing fast. Margins: 15% EBITDA. The future probably lives here, but the earnings today live in bodies on the street.
India Security45%Revenue Share
Intl Security40%Revenue Share
Facility Mgmt15%Revenue Share
Market PositionNo. 1India Security
Founder Play: Ravindra Kishore Sinha (72% promoter) just stepped aside for his wife Rita Kishore Sinha in November 2025. No drama on the concall. Just a quiet handover. This suggests a multi-year succession plan is executing on schedule. Worth watching how management cadre responds.
💬 Have you noticed SIS guards outside your office? Do you think of them as part of the building or ignore them like everyone else?
04 — Financials Overview
Q3 FY26: Operating Fireworks. Net Profit: Hiroshima.
Result type: Quarterly Results (Q3 FY26) | Q3 EPS (Reported): -₹9.81 | Q3 Operating EPS: ₹7.2 | Annualised Operating EPS (Q3×4): ₹28.8
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 4,185 | 3,362 | 3,759 | +24.5% | +11.4% |
| Operating EBITDA | 196.3 | 157 | 168 | +25.0% | +16.8% |
| Operating EBITDA Margin % | 4.7% | 4.7% | 4.5% | Flat | +20 bps |
| Reported PAT | -138.4 | 102 | 81 | -235.5% | -270.9% |
| EPS (₹) — Reported | -9.81 | 7.08 | 5.73 | -238.6% | -271.2% |
The ₹290 Cr Elephant: The labour code provisioning was a one-time charge taken in Q3. Without it, operating PAT would have been ~₹152 crore and EPS would have been ~₹10.8 per share. The difference between a “bad quarter” and a “normal quarter” is literally one accounting decision. Management chose transparency via conservatism. The stock chose its own volatility as a prize.
05 — Valuation Discussion
Fair Value Range: Operating Reality vs Reported P&L
Method 1: Operating EPS-Based P/E
Q3 Operating EPS: ₹7.2. Annualised (Q3×4): ₹28.8. Sector median P/E: 11.6x. SIS trades at 11.4x CMP. Premium justified: strong ROCE recovery (15.2%), consolidation tailwind, labour law tailwind. Fair P/E band: 10x–13x on operating earnings.
Range: ₹288 – ₹374
Method 2: EV/EBITDA Based
TTM EBITDA (from dump): ₹674 crore. Current Enterprise Value: ₹4,624 crore. EV/EBITDA: 6.9x. Peer range (India security/FM comps): 6x–8x. SIS at 6.9x is fairly valued. Growth + margin upside could justify 7.5x–8.5x over 2 years.
EV range (6.5x–8x TTM EBITDA): ₹4,381 Cr – ₹5,392 Cr → Per share:
Range: ₹280 – ₹345
Method 3: DCF Based on Operating Cash Flow
FY25 operating CF: ₹742 crore. Management guided: consolidated revenue growth 12%, India Security growth 11–12%, FM growth 12.5–15%. Terminal growth: 5%. WACC: 10.5%.
→ 5-yr OCF PV (10.5% WACC, 12% growth): ~₹4,800 Cr
→ Terminal Value (5% growth / 5.5% cap rate): ~₹10,900 Cr
→ Total EV: ~₹15,700 Cr (net debt ~₹663 cr post APS)
Range: ₹298 – ₹385
⚠️ EduInvesting Fair Value Range: ₹280 – ₹385. CMP ₹278 sits at the lower end. Operating earnings justify 11.4x–13x multiples. Reported earnings are skewed by the ₹290 cr labour code charge; normalising for this, FY25 PAT was ₹190 crore, leading to normalised P/E of 14.6x at CMP. This fair value range is for educational purposes only and is not investment advice.
06 — What’s Cooking: News, Triggers & Drama
Acquisitions, Dividends, Succession, and Labour Law Chaos
