1. At a Glance – Blink and You’ll Miss the Drama
SIS Ltd is a ₹4,700-crore market cap behemoth that literally runs on people, payrolls, patrols and patience. Q3 FY26 revenue came in at ₹4,185 crore (+24.5% YoY), which on the surface looks like a flex. But then came the ₹290 crore one-time labour-code charge, which basically body-slammed the P&L and turned EPS into a negative meme. Stock price? ₹332. Five-year return? Negative. Dividend? Suddenly yes — ₹7 interim announced after years of ghosting shareholders. ROCE sits at 5.47%, which is… let’s call it “emotionally available but financially confused”. SIS is massive, sticky, boring, unavoidable — and yet the market treats it like an underperforming government contractor. Curious? You should be.
2. Introduction – India’s Largest People Business Nobody Brags About
SIS is not sexy.
It doesn’t sell apps.
It doesn’t shout AI every two sentences.
It sends guards, cleaners, cash vans, and supervisors — every single day — across India, Australia, New Zealand, and Singapore.
This is a company where execution beats narrative, and where mistakes are punished brutally because margins are thinner than airport tissue paper. Over the last decade, SIS scaled revenue from ~₹3,000 crore to nearly ₹15,000 crore TTM, but profits? That’s been a roller-coaster with missing seatbelts.
The market hates uncertainty. SIS manufactures it — not intentionally, but structurally.
So the real question is:
Is SIS a steady compounding services giant trapped in a low-margin hell, or a cash-flow machine waiting for one
clean year to re-rate?
3. Business Model – WTF Do They Even Do All Day?
Imagine managing over 3 lakh people, across shifts, cities, countries, laws, unions, PF rules, minimum wages, and clients who delay payments like it’s a sport.
That’s SIS.
Core Verticals:
- Security Solutions – Manned guarding, electronic security, patrols
- Facility Management – Housekeeping, HVAC, pest control
- Cash Logistics – Via Prosegur JV (cash vans, vaults, ATMs)
- Electronic Security / VProtect – Alarm + monitoring (still small)
This is a volume game, not a margin game. SIS wins contracts by scale, compliance, and reputation — not by charging premium prices. The moat is operational pain. Smaller players simply can’t survive audits, labour laws, or working capital cycles.
4. Financials Overview – The Numbers Don’t Lie, They Just Sigh
Q3 FY26 (Consolidated, ₹ crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 4,185 | 3,362 | 3,759 | +24.5% | +11.3% |
| EBITDA | 196 | 157 | 168 | +24.8% | +16.7% |
| PAT | -138 | 102 | 81 | NA | NA |
| EPS (₹) | -9.81 | 7.08 | 5.73 | NA | NA |
Yes, PAT went negative only because of the ₹290 crore labour-code charge. Strip that out and operationally SIS was profitable.
So
