SIS Limited Q4 FY26 Earnings: Record Revenue of ₹4,489 Crores, EBITDA Crosses ₹200 Crores Mark for First Time

SIS Limited delivered what management described as a milestone quarter and one of the best growth years in the last five to six years post-COVID, with Q4 FY26 marked by strong execution across all business segments. The company reported record consolidated quarterly revenue, record EBITDA, and record profit after tax, demonstrating sustained momentum across India Security, Facility Management, and International Security operations.

Record Financial Performance in Q4 FY26

The company posted consolidated quarterly revenue of ₹4,489 crores in Q4 FY26, representing a 31% year-on-year jump and 7.3% quarter-on-quarter growth. EBITDA crossed the psychological ₹200 crores mark for the first time, reaching ₹207 crores—a 25.6% increase on a year-on-year basis. The consolidated monthly revenue run rate now stands at ₹1,574 crores.

The following table summarises key consolidated financial metrics for Q4 FY26:

Metric: Q4 FY26 YoY Change Quarterly Revenue: ₹4,489 crores +31% EBITDA: ₹207 crores +25.6% EBITDA Margin: 4.6% — Operating PAT: ₹105.5 crores — Operating PAT Margin: 2.4% — ROCE: 16.5% Up from 14.3% DSO: 63 days Down 4 days QoQ Monthly Revenue Run Rate: ₹1,574 crores —

Return on capital employed improved to 16.5%, up from 14.3% a year ago, surpassing the company's stated threshold of 15%+. Days Sales Outstanding (DSO) improved to 63 days, down by 4 days from the previous quarter, representing one of the best DSO readings since 2023.

Segment-Wise Performance

All three business segments posted strong year-on-year growth in Q4 FY26. India Security reported its highest-ever quarterly revenue, while International Security also achieved a record quarterly revenue figure.

Segment: Q4 FY26 Revenue YoY Growth EBITDA Margin India Security: ₹1,925 crores +34.2% 5.1% (₹98.4 crores) Facility Management: ₹635 crores +8.1% 5.5% International Security: ₹1,950 crores +36.9% 3.8%

India Security's revenue growth of 34.2% year-on-year was partly driven by the consolidation of the AP Securitas (APS) acquisition. Excluding APS, India Security's year-on-year growth stood at 11%. Management noted that SIS Security, excluding APS, delivered a 5.5% EBITDA margin in Q4, while APS delivered a 4.2% EBITDA margin, resulting in a blended margin of approximately 5.2% for the combined India Security business.

International Security's revenue was supported by seasonal events business in Australia, including the Australian Open and the Australian Grand Prix, which together contributed approximately AUD20 million—roughly ₹120 crores—in revenue during Q4. Management clarified that these are long-term, multi-year contracts tied to recurring annual events, and the revenue pattern is expected to repeat each Q4.

Exceptional Item and Accounting Adjustment

In the previous quarter (Q3 FY26), the company recorded a one-time exceptional charge of ₹290 crores related to the implementation of new Labour Code guidelines on gratuity and leave liabilities. During Q4 FY26, following a reassessment of the liability with auditors, the company reversed ₹38.8 crores of this liability, which was routed through Other Comprehensive Income (OCI) in accordance with applicable accounting standards.

Management confirmed that the reversal was an accounting adjustment with no material operational change, and that the outstanding liability has been reduced by ₹38.8 crores. Future incremental expenses arising from the new Labour Code are now factored into the rate structure for existing customers, while discussions with customers regarding past-period liabilities are ongoing.

APS Integration and Margin Convergence

Management described the acquisition of AP Securitas as a strategic transaction—the number one security company in India acquiring the number six or number seven player. The integration plan over the next approximately 18 months includes consolidation of branches, sharing of back-office services, procurement integration, and cross-selling of technology solutions. The 50 basis points margin gap between SIS Security (5.5%) and APS (4.2%) was identified as the primary synergy opportunity.

Capital Return and Shareholder Payouts

SIS returned a total of ₹250 crores to shareholders in FY26 through a combination of buyback and dividend, bringing the total payout ratio to 70%. Since its IPO, the company has returned approximately ₹600 crores in total to shareholders, comprising:

₹81 crores through dividend

₹270 crores through buybacks from FY22 to FY24

₹250 crores in FY26

Labour Codes and Industry Outlook

Management highlighted the implementation of new Labour Codes as a potential structural inflection point for the industry. Key implications cited include improvements in working capital dynamics through revised invoicing and payment cycles, reduction of compliance arbitrage that has historically kept the sector fragmented, and increased customer openness to technology-led solutions. Management also noted recent minimum wage revisions in several states—Haryana by 50%, Uttar Pradesh by approximately 28%, and Punjab and Uttarakhand above 15%—as a positive revenue driver, given that wage increases flow through directly to customer pricing under the company's contract structures.

On a full-year FY26 basis, the company reported revenues of approximately ₹16,000 crores and a normalized profit after tax of approximately ₹390 crores. Management reiterated its long-term aspiration of sustaining above 15% revenue growth and maintaining above 15% return on equity, consistent with the company's performance since listing in FY18.

SIS Limited delivered a strong financial turnaround in Q4 FY26, with audited consolidated results showing a net profit of Rs. 102.50 crore against a net loss of Rs. 223.35 crore in Q4 FY25. The Board of Directors approved the audited financial results at its meeting held on April 30, 2026, and the company subsequently published newspaper advertisements of the results in the Financial Express (All India Edition, English) and Hindustan (Patna Edition, Hindi) on May 3, 2026, in compliance with Regulation 47 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The publication, originally scheduled for May 2, 2026, was delayed by one day as May 1, 2026, was a Labour Day holiday.

Consolidated Financial Performance

The company's audited consolidated results for Q4 FY26 and the full year FY26 reflect a significant recovery in profitability and sustained revenue momentum. The following table presents key consolidated financial metrics:

Particulars: Q4 FY26 (Audited) FY26 (Audited) Q4 FY25 (Audited) Revenue from Operations: Rs. 4,489.30 cr Rs. 15,981.53 cr Rs. 3,427.87 cr Net Profit/(Loss) before tax (excl. exceptional items): Rs. 108.59 cr Rs. 406.94 cr Rs. -194.20 cr Net Profit/(Loss) before tax (incl. exceptional items): Rs. 108.59 cr Rs. 116.92 cr Rs. -194.20 cr Net Profit/(Loss) after tax and exceptional items: Rs. 102.50 cr Rs. 137.81 cr Rs. -223.35 cr Total Comprehensive Income/(Loss): Rs. 182.35 cr Rs. 383.19 cr Rs. -221.88 cr Equity Share Capital: Rs. 70.64 cr Rs. 70.64 cr Rs. 72.18 cr Other Equity: Rs. 2,474.63 cr Rs. 2,474.63 cr Rs. 2,335.71 cr Basic EPS (INR 5/- each): Rs. 7.26 Rs. 9.72 Rs. -15.49 Diluted EPS (INR 5/- each): Rs. 7.21 Rs. 9.65 Rs. -15.49

The Q4 EPS figures are not annualised, while the full-year FY26 EPS figures are annualised. Revenue from operations for the full year FY26 stood at Rs. 15,981.53 crore, reflecting broad-based growth across all business segments. The turnaround in net profit — from a loss of Rs. 223.35 crore in Q4 FY25 to a profit of Rs. 102.50 crore in Q4 FY26 — underscores the company's improved operational efficiency and cost management.

Exceptional Item: Labour Codes Impact

A notable development reflected in the FY26 consolidated results is the recognition of an exceptional item arising from the Government of India's notification of four new Labour Codes on November 21, 2025. These codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — consolidate 29 existing labour laws into a unified framework governing employee benefits. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact. The Group assessed and disclosed the incremental impact consistent with guidance from the Institute of Chartered Accountants of India, resulting in an increase in employee benefits of INR 290.02 crore. Given the materiality and regulatory-driven, non-recurring nature of this development, the Group has presented this incremental impact as an "Exceptional item" in the consolidated statement of profit and loss for the year ended March 31, 2026. The Group continues to monitor the finalisation of Central and State Rules and will give appropriate accounting effect to further developments in the period in which they are notified.

Standalone Financial Results

On a standalone basis, SIS Limited also reported healthy performance for Q4 FY26 and the full year FY26. The table below captures key standalone financial metrics:

Particulars: Q4 FY26 (Audited) FY26 (Audited) Q4 FY25 (Audited) Revenue from Operations: Rs. 1,406.50 cr Rs. 5,456.42 cr Rs. 1,268.66 cr Net Profit/(Loss) before tax: Rs. 44.13 cr Rs. 45.77 cr Rs. 38.17 cr Net Profit/(Loss) after tax: Rs. 64.94 cr Rs. 100.95 cr Rs. 14.71 cr Total Comprehensive Income/(Loss): Rs. 103.76 cr Rs. 178.41 cr Rs. 1.90 cr Securities Premium: Rs. 22.39 cr Rs. 22.39 cr Rs. 151.97 cr Net Worth (Total Equity): Rs. 1,079.83 cr Rs. 1,079.83 cr Rs. 1,147.25 cr Paid-up Debt / Outstanding Debt: Rs. 487.70 cr Rs. 487.70 cr Rs. 858.40 cr Capital Redemption Reserve: Rs. 4.31 cr Rs. 4.31 cr Rs. 2.45 cr Debenture Redemption Reserve: Nil Nil Nil Debt Equity Ratio (times): 0.45 0.45 0.75 Debt Service Coverage Ratio (times)*: 4.38 3.58 1.10 Interest Service Coverage Ratio (times)*: 4.62 3.69 2.82

* Ratios for the quarter ended have been annualised.

The standalone debt equity ratio improved significantly to 0.45 times from 0.75 times in Q4 FY25, reflecting meaningful deleveraging. The debt service coverage ratio also strengthened to 4.38 times for Q4 FY26 from 1.10 times in Q4 FY25, indicating a substantially improved debt servicing capacity. Outstanding debt declined to Rs. 487.70 crore from Rs. 858.40 crore in Q4 FY25.

Segment-wise Business Performance

Security Solutions India

The Security Solutions India segment continued its impressive growth trajectory, recording revenue of Rs. 1,925.00 crore in Q4 FY26 compared to Rs. 1,435.00 crore in Q4 FY25, representing a 34.20% year-on-year increase. The segment secured major wins from E-commerce, Construction & Manufacturing, and Power & Energy sectors. EBITDA reached Rs. 98.00 crore with margin improvement to 5.10% in Q4 FY26 from 4.80% in Q3 FY26.

Security Solutions International

The international operations delivered strong performance with revenue of Rs. 1,950.00 crore in Q4 FY26, marking a 36.90% year-on-year growth (17.10% in constant currency terms). Growth was primarily driven by new contracts in E-commerce and Government sectors. Segment EBITDA grew 28.70% year-on-year to Rs. 74.00 crore, maintaining an EBITDA margin of 3.80%. Henderson (Singapore) reported operational profits for both Q4 FY26 and the full year FY26.

Facility Management Solutions

The Facility Management segment achieved revenue of Rs. 635.00 crore for Q4 FY26, representing 8.10% year-on-year growth. Major contract wins came from Healthcare, Manufacturing & Construction, and Automobile sectors. The segment reported its highest-ever quarterly EBITDA of Rs. 35.00 crore, growing 26.50% year-on-year, with EBITDA margin expanding to 5.50% from 4.70% in Q4 FY25.

Board Meeting Outcomes, Leadership and Capital Management

The Board meeting held on April 30, 2026, approved several key decisions in addition to the financial results:

Decision: Details Financial Results: Audited standalone and consolidated results for Q4 and FY26 Leadership Change: Mrs. Rita Kishore Sinha appointed as Executive Director and Executive Chairperson Term Duration: 5 years effective May 1, 2026, subject to shareholder approval Audit Opinion: Unmodified opinion issued by auditors Regulatory Compliance: Full compliance with Regulations 30, 33, 47, 51 and 52 of SEBI Listing Regulations

Mrs. Rita Kishore Sinha, who was serving as Non-executive Chairperson, brings over 38 years of legal experience. She holds a Master's degree in Arts (Hindi) from Ranchi University and a Bachelor's degree in Law from Chota Nagpur Law College, and is enrolled with the High Court of Patna and the Supreme Court Bar Association, New Delhi. She is the mother of Mr. Rituraj Kishore Sinha, Managing Director, and Ms. Rivoli Sinha, Non-Executive Director. On capital management, the company returned approximately Rs. 250.00 crore to shareholders through dividends and buybacks during FY26. Key financial health metrics included a Net Debt to EBITDA ratio of 0.99x as of March 2026 (versus 1.25x in December 2025), OCF to EBITDA of 203.30% for the quarter, and Group DSO of 63 days — the lowest since June 2023.