SIS Reports Q2 Revenue of ₹4,816 Crore Up From ₹3,758 Crore YoY

Market snapshot: SIS Limited reported a consolidated revenue of ₹4,816 cr for the second quarter, representing a 28.15% year-on-year increase compared to ₹3,758 cr in the prior-year period. Operational momentum remained robust across domestic security, facility management, and international solutions, driving record quarterly profitability.

Data Snapshot

• Consolidated Q2 revenue grew 28.15% YoY to ₹4,816 cr compared to ₹3,758 cr in Q2 of the prior year.
• Consolidated net profit reached a record high of ₹111 cr for the quarter.
• Security Solutions India revenue reached ₹2,144.1 cr with EBITDA margin expanding to 5.3%.
• Security Solutions International posted revenue of ₹2,019.6 cr, marking 25.7% YoY growth.
• Facility Management Solutions segment revenue expanded 7.6% YoY to ₹677.3 cr with segment EBITDA of ₹38.3 cr.

What's Changed

• Consolidated revenue expanded by ₹1,058 cr YoY to ₹4,816 cr, marking a growth rate of 28.15% (derived: ₹4,816 cr vs ₹3,758 cr).
• EBITDA increased 33% YoY alongside margin expansion across key operating divisions.
• Record quarterly PAT of ₹111 cr achieved, benefiting from operating leverage and contract portfolio optimization.

Key Takeaways

• Broad-based revenue expansion across Security Solutions India (₹2,144.1 cr) and International Security (₹2,019.6 cr).
• EBITDA margins improved to 5.3% in India Security and 5.7% in Facility Management, underscoring disciplined cost control.
• Implementation and realization of contract repricing benefits under Labour Codes offer continued medium-term earnings tailwinds.

SAHI Perspective

SIS Limited's financial performance highlights sustained operating leverage across its business lines. A 28.15% top-line gain combined with a 33% EBITDA surge indicates strong pricing power and contract win momentum in key client verticals like BFSI, mining, healthcare, and retail. Operating margins continue to expand as administrative expenses normalize relative to scale.

Market Implications

Strong revenue performance and record net profit reaffirm SIS Limited's market leadership in essential services. Higher billable headcount, ongoing labor cost repricing pass-throughs, and steady debt management provide structural support for profitability growth.

Trading Signals

Market Bias: Bullish

SIS Limited delivered strong top-line momentum with Q2 consolidated revenue reaching ₹4,816 cr, up 28.15% YoY from ₹3,758 cr, backed by 33% EBITDA growth and record PAT of ₹111 cr. Margin improvement across India and international operating units reinforces positive earnings visibility.

Overweight: Security & Facility Management, Essential Services

Trigger Factors:

• Progress on Labour Code contract repricing pass-throughs
• Margin trajectory in international security operations
• New enterprise contract wins in BFSI, IT, and retail verticals

Time Horizon: Medium-term (3-12 months)

Industry Context

The Indian essential services and security solutions market continues to benefit from formalization, rising commercial real estate activity, and increased compliance requirements under nationwide labor legislation. Large organized players like SIS Limited are positioned to capture market share from unorganized providers.

Key Risks to Watch

• Inflationary pressures in wage costs if client pass-through delays occur.
• Currency volatility impacting international revenue conversion.
• Macroeconomic slowdown affecting corporate real estate utilization and facility management budgets.

Recent Developments

SIS Limited completed an open market equity share buyback program, extinguishing 3,28,540 equity shares of face value ₹5 each as reported in exchange filings in October 2026.

Closing Insight

With revenue scaling past ₹4,800 cr per quarter and margin expansion driving record profitability, SIS Limited demonstrates strong operational leverage as contract repricing benefits continue to unfold.

High Performance Trading with SAHI.