SIS Q2 profit jumps 37 pc to Rs 110 cr revenue rises 28 pc

New Delhi, Nov 4 (PTI) SIS Ltd, a leading security and facility management services provider, on Wednesday reported a 37.14 per cent increase in consolidated net profit to Rs 110.72 crore for the September quarter of FY27, helped by strong performance in the India business.

    The company posted a net profit of Rs 80.73 crore a year ago, according to a regulatory filing by SIS.

    Its revenue from operations rose 28.13 per cent to Rs 4,816.01 crore in the September quarter of FY27, led by its ed by India Security Solutions business. It was Rs 3,758.52 crore in the corresponding quarter of the last fiscal.

    Its Group Managing Director Rituraj Sinha said, "In Q1, we called FY27 an inflection year. Q2 establishes the trend – record revenue of Rs 4,816 crore with y-o-y revenue growth of 28 per cent, EBITDA growth of 33 per cent and our highest-ever quarterly PAT of Rs 111 crore".

    However, he noted that a significant portion of the cost impact arising from the Labour Code changes is yet to be reflected.

    SIS's total expenses surged 28.42 per cent to Rs 4719.24 crore in the September Quarter.

    Its revenue from 'Security Services - India' climbed 38.9 per cent to Rs 2,144.12 crore. The segment has a "new revenue milestone".

    The growth was led by major wins during the quarter, which came from the e-commerce, metals & mining, and IT/ITeS sectors, it said.

    Similarly, its revenue from Security Solutions International increased 25.65 per cent to Rs 2,019.58 crore, continuing the growth momentum on the back of new wins.     The segment had new order wins during the quarter primarily from the energy and hospitality sectors.

    Revenue from the 'Facilities Management' segment advanced 7.63 per cent to Rs 677.27 crore in the second quarter of FY27.

    "Our new order wins during the quarter were more than Rs 13 crore of monthly revenue. Major wins during the quarter came from the Healthcare, Material, Steel and Consumer sectors," it said.

    SIS's total consolidated income, which includes other income, surged 28.17 per cent to Rs 4,832.15 crore in the second quarter of FY27.

    In the first half of FY27, total consolidated income of SIS Ltd grew 28.77 per cent to Rs 9,448.01 crore.

    "Labour Codes support margin gains in India. India EBITDA grew to Rs 151.5 crore, a 13.8 per cent growth in the last six months from Q4 FY26 since the introduction of the new Labour Codes. India EBITDA margin has increased from 5.2 per cent in Q4 FY26 to 5.4 per cent in Q2 FY27,” SIS said in its earnings statement.

    The improvement was "driven by both Security Solutions India and Facility Management Solutions segments. Higher wage and statutory costs are being fully passed through, resulting in both revenue and margin improvement".

    SIS Ltd's net debt-to-EBITDA ratio increased to 1.2 times in the September quarter of FY27 from 1 in the preceding quarter, primarily due to a rise in days sales outstanding (DSO) in its Security Solutions International business and the payout towards share buyback.

    However, the company's gross debt increased marginally to Rs 2,047 crore as of Q2 FY27 from Rs 1,993 crore at the end of Q1 FY27.

    SIS Ltd, which was among the first companies to announce an open-market share buyback, completed the exercise in 45 trading sessions, repurchasing around 25 lakh shares worth Rs 106 crore. Following the buyback, the promoters' shareholding in the company increased to 73.1 per cent from 71.9 per cent.

    With this latest buyback, the company has returned over Rs 700 crore to shareholders through various means since its stock market listing, said SIS.

    Share of SIS Ltd on Wednesday settled at Rs 386.55 on BSE, up 2.97 per cent from the previous close.

(This story has not been edited by THE WEEK and is auto-generated from PTI)