SIS Q2 FY27 Results (NSE: SIS)
Signal: Steady quarter
The read
The trajectory is improving operationally: revenue growth accelerated to 28.1% and EBITDA grew 32.7% with margin expanding 10bps to 4.6%, led by India wage-linked repricing and FM cost discipline. The key risk is conversion, with operating cash flow at -₹99.2 crore, working-capital outflow at ₹273.5 crore and net debt/EBITDA rising to 1.24x.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,816 Cr | 28.1% | 4.6% |
| Net profit | ₹110.7 Cr | 37.1% | |
| EPS | ₹7.9 | 15.1% | |
| EBIT margin | 4.6% |
P&L walk
Revenue grew 28.1% YoY and 4.6% QoQ, EBITDA grew faster at 32.7% with margin up 10bps to 4.6%, but higher depreciation and finance costs limited PBT growth to 17.8%; PAT nevertheless rose 37.1% on lower tax expense.
Segments
Security Solutions–India is the main growth engine, with revenue up 38.9% YoY to ₹2,144.1 crore and EBITDA up 37.2%; FM is the margin improver at 5.7% versus 5.2%, while International grew 25.7% but remained the main working-capital drag.
Key positives
- Revenue reached ₹4,816.0 crore, up 28.1% YoY and 4.6% QoQ, with Security Solutions–India growing 38.9% YoY to ₹2,144.1 crore.
- EBITDA grew 32.7% YoY to ₹223.3 crore versus revenue growth of 28.1%, while EBITDA margin expanded 10bps YoY to 4.6%.
- Facility Management EBITDA margin expanded 50bps YoY to 5.7% on cost discipline and Labour Code-linked rate revisions.
- India Security EBITDA margin improved to 5.3% from 5.1% QoQ as higher wage and statutory costs were passed through to customers.
- India Security added approximately ₹32 crore of monthly revenue from new order wins, while FM added more than ₹13 crore of monthly revenue.
Key concerns
- Operating cash flow was negative at ₹99.2 crore and OCF/EBITDA fell to -44.4% from 42.3% in Q1FY27, primarily due to a ₹273.5 crore working-capital outflow.
- Net debt increased to ₹1,025.6 crore from ₹807.1 crore in Q1FY27, taking net debt/EBITDA to 1.24x from 1.05x.
- International Security DSO rose to 57 days from 48 days in June 2026, and the segment generated a ₹179.0 crore negative operating cash flow.
- Finance costs increased 59.6% YoY to ₹58.7 crore and depreciation rose to ₹67.9 crore from ₹47.6 crore, partly reflecting acquisition and lease-related costs.
Research and educational content only. Not investment advice.