At a Glance
Krystal Integrated Services Ltd (KISL) – the company that cleans your hospitals, guards your schools, and probably takes out the trash of government offices – reported Q1 FY26 PAT of ₹15 Cr on ₹285 Cr revenue, showing a modest -1.9% profit dip despite 25.6% revenue growth. Operating margins stay stuck at 7% because FMS is not exactly a high-margin spa. The market values it at ₹916 Cr (P/E 15x) while promoters hold a commanding 70% stake, sipping chai on their cash cushions.
Introduction
Krystal is not a tech unicorn, it’s a mop-wielding cash generator in disguise. Their job? Run facilities so efficiently that clients barely notice. Q1 FY26 showed growth – sales up, EBITDA up, new contracts worth ₹65 Cr signed – yet profit slipped due to rising costs. Investors are scratching their heads: is this the next Quess Corp or just another cleaning crew in suits? With debtor days ballooning to 110 (clients love delaying payments), working capital is gasping for air. Still, the company’s tech-driven FMS play keeps them relevant in a highly fragmented industry.
Business Model (WTF Do They Even Do?)
Krystal provides integrated facility management – think cleaning, security, catering, staffing, waste management, and tech solutions – mostly to hospitals, schools, and government contracts. They survive on long-term service agreements and high client stickiness. Their revenue is recurring but margins are paper-thin. If you want a stock that grows steadily without drama, this is it. But don’t expect fat dividends – this is a reinvestment-heavy business.
Financials Overview
- Q1 FY26 Revenue: ₹285 Cr (↑25.6% YoY)
- EBITDA: ₹19 Cr (↑31.4% YoY)
- PAT: ₹15 Cr (↓1.9% YoY)
- EPS: ₹10.74 (TTM EPS ~₹42.9)
At CMP ₹658, fresh P/E = 15.3x – reasonable, considering peers trade above 20x. Margins stable at 7%, but debtor days stretching to 110 is a red flag.
Valuation
- P/E:
- Industry avg: ~20x
- FV = 42.9 × 20 = ₹860
- EV/EBITDA:
- FY25 EBITDA ~₹76 Cr, EV/EBITDA 8x → EV ₹608 Cr → FV ≈ ₹700
- DCF (conservative):
- FCF low due to WC needs; FV ≈ ₹600
🎯 Fair Value Range: ₹600 – ₹860
What’s Cooking – News, Triggers, Drama
- Secured ₹65 Cr new contracts – more mop, more money.
- Incorporated 4 new subsidiaries – expanding services?
- Management reshuffle: HR head in, business head out.
- Dividend announced (token amount, but hey, it’s there).
Balance Sheet
(₹ Cr) | FY25 |
---|---|
Assets | 737 |
Liabilities | 306 |
Net Worth | 431 |
Borrowings | 90 |
Remark: Debt manageable, net worth healthy. But receivables are eating oxygen.
Cash Flow – Sab Number Game Hai
(₹ Cr) | FY23 | FY24 | FY25 |
---|---|---|---|
Ops | 80 | -2 | -33 |
Investing | -44 | -111 | -34 |
Financing | -28 | 191 | -8 |
Remark: Operating cash flow turned negative – not a good sign when profits look fine. Collections need a gym trainer.
Ratios – Sexy or Stressy?
Metric | FY25 |
---|---|
ROE | 15% |
ROCE | 17% |
P/E | 15.3x |
PAT Margin | 5%+ |
D/E | 0.2 |
Remark: Ratios are okay-ish, but cash conversion sucks.
P&L Breakdown – Show Me the Money
(₹ Cr) | FY23 | FY24 | FY25 |
---|---|---|---|
Revenue | 682 | 981 | 1,120 |
EBITDA | 50 | 67 | 73 |
PAT | 38 | 48 | 60 |
Remark: Solid revenue growth, steady margins, PAT inching up. But WC is dragging.
Peer Comparison
Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
---|---|---|---|
CMS Info Sys | 2,453 | 375 | 20.1 |
Quess Corp | 16,506 | 253 | 17.4 |
NESCO | 784 | 402 | 24.2 |
Krystal | 1,161 | 60 | 15.3 |
Remark: Cheapest among facility managers, but with weaker cash flow discipline.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 69.96% (tight control, no dilution games)
- FIIs: 1.9%
- DIIs: 4.2%
- Public: 24%
Promoters rule the roost. FIIs dumped shares recently, possibly spooked by WC issues.
EduInvesting Verdict™
Krystal is the silent janitor of the stock market – it grows revenue steadily, margins stay low, and cash flow sometimes disappears under the rug. The business is sticky (government contracts don’t end easily), promoters are committed, and valuation is fair.
- Strengths: High growth, long-term contracts, low debt.
- Weakness: Weak cash flows, high debtor days.
- Opportunities: Expanding government contracts, tech-driven efficiency.
- Threats: Payment delays, labor cost spikes, contract losses.
Verdict: For investors who like slow compounding with mild risks, Krystal is a decent pick. For thrill-seekers – better mop elsewhere.
Written by EduInvesting Team | 31 July 2025
Tags: Krystal Integrated, Facility Management Stocks, Q1 FY26 Results, Outsourcing Industry