SIS Ltd achieved its highest-ever quarterly revenue in FY27, driven by scale, labour reforms, and automation, alongside strategic shareholder returns and ambitious expansion plans.
SIS Ltd started FY27 with record quarterly revenue and stronger profitability, as the Indian security and facilities management company said its business was benefiting from scale, tighter compliance rules and steady demand across its core markets. In the quarter ended June, revenue rose 29.7% from a year earlier to INR 4,604 crore, while EBITDA increased 36.2% to INR 207 crore, leaving the margin unchanged at 4.5%, according to the company’s earnings call summary. The performance was broad-based, with India security crossing INR 2,000 crore in quarterly revenue for the first time and overseas operations posting their highest-ever quarterly run rate.
Management said the new labour framework in India could prove a major catalyst over the next few quarters. The company argued that the revised definition of employer will make customer companies responsible for compliance obligations such as provident fund contributions, employee state insurance and minimum wages even when workers are outsourced. That, SIS said, should favour organised operators and weaken the pricing advantage enjoyed by smaller, less compliant rivals. The company also pointed to sharp minimum wage increases in several states as an immediate benefit, because its contracts are structured to pass those costs through to clients.
The quarter also highlighted a more mature capital allocation policy. SIS approved its fifth buyback, worth INR 106 crore, and said cumulative cash returns to shareholders now exceed INR 700 crore through buybacks and dividends. The company said this time it would use the open market route, with promoters not participating. Management also reported improved returns, saying return on capital employed rose to 16.7% and return on equity to 15.8%, compared with 11.8% and 9.4% two years ago.
The latest results fit with the company’s wider ambition to scale up sharply. The Economic Times reported that SIS is targeting INR 20,000 crore in revenue by FY27 and plans to expand its workforce to 5 lakh by 2030. Business Line and Rediff have also reported that the group sees simplified labour regulation, wider service coverage and more automation, including AI tools, as support for growth. Even so, the latest quarter was not without friction: EBITDA was flat sequentially, cash conversion was weighed by a seasonal rise in days sales outstanding and management said the planned IPO of its cash business, IQ, has been delayed by market conditions.
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