Key Financial Performance (Q1 FY27)

Consolidated Performance (excluding foundit):

  • Revenue: INR 930 crore, up 20% YoY and 10% sequentially
  • EBITDA: INR 35 crore, up 48% YoY (flat sequentially)
  • EBITDA Margin: 3.8% vs 3.1% in Q1 FY26
  • PAT: INR 16 crore, up 34% YoY and 14% sequentially
  • EPS: INR 1.1 per share
  • Workforce: 97,000 employees (increase of 3,300 QoQ)
  • Working Capital Days: 37 days (expected to increase to ~45 days due to acquisitions)

Segment-wise Performance:

Facility and Food Services (55% of revenue):

  • Revenue: INR 520 crore, up 9% YoY (flat QoQ)
  • EBITDA: INR 24 crore, up 25% YoY
  • EBITDA Margin: 4.6% vs 4.0% in Q1 FY26
  • Added 40 new clients with annual contract value of INR 89 crore

Security Services:

  • Revenue: INR 185 crore (highest ever), up 24% YoY
  • Headcount: 24,900 security guards (added 900 in quarter)
  • EBITDA: INR 5 crore, up 37% YoY
  • EBITDA Margin: 2.8%
  • Added 37 new clients with annual contract value of INR 43 crore

Smart Infra, Energy, and Engineering (formerly Telecom & Industrial):

  • Revenue: INR 229 crore, up 47% YoY
  • STEAG contribution: INR 76 crore to quarterly revenue
  • EBITDA: INR 21 crore, up 80% YoY
  • EBITDA Margin: 9.3% vs 8.2% in Q1 FY26

foundit Performance (Investment Business):

  • Sales: INR 25 crore (similar to Q4 FY26's INR 26 crore)
  • Revenue: INR 19 crore (50% YoY growth)
  • EBITDA Loss: INR 14 crore
  • Expected full-year EBITDA burn: INR 30-35 crore
  • Target: Break-even by end of FY27

Acquisition Updates

STEAG Energy Services India Private Limited:

  • Acquisition completed on May 21, 2026
  • Consolidated results included from acquisition date
  • Won 4 large multi-year deals worth INR 5,100 crore over 5 years
  • 3 deals went live July 1, 2026; 4th commencing first week of August 2026
  • Expected FY27 revenue contribution: ~INR 1,000 crore
  • Expected EBITDA margin: 7-8%
  • Business mix: 90% thermal O&M, small renewable portfolio

LSG Sky Chefs India Private Limited:

  • Acquisition expected to close in next couple of weeks
  • Acquisition price: INR 166 crore (including cash, subject to adjustments)
  • Acquiring Bengaluru operations only
  • FY26 revenue: INR 112 crore
  • EBITDA margins: high teens
  • Debt-free with free cash balance of INR 57 crore plus deposit to BIAL
  • Concession agreement with airport operator till 2039
  • Clients include IndiGo, Etihad, Qatar Airways, Lufthansa
  • Funding: Primarily through debt and internal accruals

FY27 Guidance

  • Revenue: Over INR 4,700 crore (42% YoY growth)
  • EBITDA: Over INR 200 crore (65% YoY growth)
  • PAT: Over INR 100 crore (50% YoY growth)
  • Exit EBITDA Margin: Over 5%
  • ROE Expansion: From ~7% in FY26 to ~13% in FY27

Debt Position

  • Gross Debt: INR 307 crore
  • Cash Balance: INR 135 crore
  • Net Debt: INR 172 crore
  • Expected acquisition debt by year-end: ~INR 150 crore
  • Organic average debt: INR 150-175 crore
  • Target Net Debt to EBITDA: Below 1

Operational Highlights

  • Mobilized 77 new contracts with annual contract value of INR 132 crore
  • Client retention rate: 95%
  • Zero on-job fatalities in quarter
  • 5,000+ health and safety training hours in Q1
  • Sector mix shift: Industrial vertical expected to increase from 23% to over 40% of revenues

Management Commentary

  • Q1 traditionally impacted by seasonal factors (education institutions shut, slower telecom deployment)
  • Effective management of inflationary pressures in food business
  • Early signs of telecom capex revival from Q2 onwards
  • Focus on integrating acquired entities, repaying acquisition debt, and unlocking synergies
  • Target to become largest integrated infrastructure services company in India

Q&A Session Highlights

  • Company addressing vendor consolidation trend in market
  • Cross-selling initiatives across all service lines
  • Security business margin target: 4-4.5% in coming years
  • FM business margin improvement target: from 4% to industry average of 5%
  • Working capital days expected to settle around 45 days including acquisitions
  • No active acquisition pipeline for current financial year
  • foundit requires INR 38-40 crore quarterly sales for break-even