SIS Q1 FY27 Results (NSE: SIS)
Signal: Steady quarter
The read
The trajectory remains growth-positive: consolidated revenue accelerated to ₹4603.58 Cr, +29.7% YoY, and EBITDA grew 36.2% YoY, but PAT grew only 9.4% to ₹101.66 Cr as depreciation rose 50.2% and finance costs rose 42.2%; the next thesis test is whether Labour Code price revisions improve India margins and DSO, which was 74 days versus 67 days at March 2026.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,603.58 Cr | +29.7% | +2.5% |
| EBIT | ₹156.88 Cr | N/A | |
| Net profit | ₹101.66 Cr | +9.4% | |
| EPS | ₹7.19 | +12.3% | |
| EBIT margin | 4.8% |
P&L walk
Consolidated revenue was ₹4603.58 Cr, +29.7% YoY and +2.5% QoQ, while EBITDA margin was 4.8%, up from an implied 4.3% YoY; depreciation and finance costs rose materially due to acquisition and lease-related charges, leaving PAT at ₹101.66 Cr, +9.4% YoY and -0.8% QoQ.
Segments
Security Solutions–India was the primary growth engine at ₹2004.1 Cr revenue, +37.3% YoY, and ₹102.5 Cr EBITDA, while International Security added ₹69.6 Cr EBITDA, +52.4% YoY, and Facility Management grew revenue only 8.0% but expanded EBITDA 23.7%.
Key positives
- Consolidated revenue reached ₹4603.58 Cr, +29.7% YoY, with India Security revenue up 37.3% to ₹2004.1 Cr.
- International Security EBITDA rose 52.4% YoY to ₹69.6 Cr and margin expanded 50bps to 3.5%.
- Facility Management EBITDA rose 23.7% YoY to ₹35.2 Cr and margin expanded 70bps to 5.5%, supported by contract-portfolio refinement and SG&A rationalisation.
- The company reported ₹51 Cr of monthly-revenue India security wins during the quarter, primarily in education, healthcare, e-commerce and BFSI.
- ROCE increased to 16.7% from 11.8% in Q1FY25 and ROE reached 15.8% from 9.4% in Q1FY25.
Key concerns
- Operating cash flow was ₹87.7 Cr, only 42.3% of EBITDA, after ₹105.9 Cr of working-capital absorption.
- Net debt rose to ₹807.1 Cr from ₹706.9 Cr at March 2026 and net debt / EBITDA increased to 1.05x from 0.99x.
- India Security EBITDA margin fell 30bps YoY to 5.1% despite 37.3% revenue growth, indicating that wage and Labour Code-related pricing recovery is not yet fully reflected.
- PAT growth of 9.4% materially trailed revenue growth of 29.7% because depreciation increased 50.2% and finance costs increased 42.2%.
Research and educational content only. Not investment advice.