Financial Performance Highlights

Q4 FY26 Consolidated Results:

  • Total Income: ₹180.03 crores, representing 13.96% year-on-year growth
  • EBITDA: ₹11.11 crores, up 29.75% year-on-year
  • EBITDA Margin: 9.41%, expanding 115 basis points over Q4 previous year
  • Adjusted PAT (excluding exceptional item): ₹6.86 crores

FY26 Consolidated Results:

  • Total Income: ₹436.70 crores, reflecting 7.74% year-on-year growth
  • EBITDA: ₹33.53 crores, up 12.19% year-on-year
  • EBITDA Margin: 7.68%, representing 30 basis points expansion
  • Reported PAT: Impacted by one-time exceptional provision
  • Adjusted PAT (excluding exceptional item): ₹19.12 crores

Exceptional Item - Labor Code Implementation Impact

The company recognized a one-time exceptional provision of ₹27.82 crores during FY26 related to the implementation of the Government of India's new Labor Codes. This non-cash, accounting-led provision arose from actuarial valuation of additional employee benefit liabilities under AS 15 due to standardized definition of wages under the new labor law framework that consolidates 29 existing central labor laws into four unified codes.

Segment-wise Revenue Breakdown (FY26)

  • Security Services: ₹199.49 crores (46.03% of total revenue)
  • Housekeeping and Payroll: ₹171.01 crores (39.46% of total revenue)
  • Integrated Facility Management, Electronic Security and CCTV Rentals: ₹56.91 crores (13.31% of total revenue)
  • Other Services (course fees and allied receipts): ₹5.99 crores

Operational Updates and Contract Wins (Q4 FY26)

West Bengal Project:

  • Executed work for West Bengal Electronics Industry Development Corporation under New Town Smart City project
  • Scope: Restoration of CCTV cameras, OFC cable laying and related infrastructure
  • Contract Value: ₹56 lakhs inclusive of taxes

Maharashtra Project:

  • Secured project from Mumbai Police, Home Department, Government of Maharashtra
  • Scope: Project planning, network connectivity, operations maintenance and warranty support for CCTV cameras under IT projects category
  • Contract Value: ₹1 crore inclusive of taxes

Bihar Project:

  • Awarded five-year housekeeping contract by Central Building Division, Building Construction Department of Patna
  • Location: Main Secretariat and Old Secretarial campus
  • Contract Value: ₹10.36 crores inclusive of taxes

Credit Rating Update

ICRA reaffirmed the short-term rating at ICRA A2 and upgraded the outlook on long-term rating of ICRA BBB+ from stable to positive.

Subsidiary Performance Details

NIS Facility Management Services Private Limited:

  • Revenue declined from ₹20 crores to ₹16 crores in FY26
  • CCTV business remained flat at ₹12 crores due to STQC implications requiring Make in India protocol
  • Security for housing society business saw degrowth due to margin pressure and contract exits

Keertika Academy:

  • Revenue fell from ₹4 crores to ₹2 crores due to completion of DDU-GKY projects
  • Currently only operating Keerthika school government training project
  • Applying for new DDU-GKY projects in Odisha, Maharashtra, and West Bengal

Education Associates LLP:

  • Revenue remained flat at approximately ₹4 crores
  • Provides training to students under four industrial training institutes (ITIs)

Receivables Analysis

  • Trade receivables stood at ₹145 crores as of March 31, 2026
  • Primary increase in NIS Management Limited from ₹119 crores to ₹124 crores in H2 FY26
  • Collection issues with four contracts: Haldia Dock (₹2.5 crores for 5 months), Reliance Gujarat (₹2 crores for Feb-Mar), Patna Secretariat and Irrigation Department (₹0.5 crores)
  • More than 180 days aging: approximately ₹5 crores
  • April 2026 receivables improved to ₹120 crores after collections

Management Guidance and Outlook

FY27 Revenue Guidance: 12-15% growth, targeting ₹500 crores consolidated revenue

Growth Drivers:

  • Expected investments in West Bengal with new government formation
  • Continued engagement across government and institutional clients
  • STQC certification availability improving CCTV business prospects
  • Skill development projects (DDU-GKY, PMKVY) expected to resume
  • Formalization benefits from Labor Code implementation favoring organized players

Margin Outlook:

  • Dependent on business mix between lower-margin security/housekeeping (4.5-4.8% EBITDA) and higher-margin CCTV/IFM services
  • Labor cost increases typically passed through to clients
  • Monitoring Labor Code implementation impact, particularly West Bengal draft rules awaited

IPO Proceeds Utilization

  • ₹36.91 crores remains unutilized from IPO proceeds
  • Consolidated cash and cash equivalents: ₹67.13 crores
  • Other non-current assets: ₹16.22 crores
  • Expected deployment within two years as new contracts materialize

Major Client Concentration

Top clients include:

  • Reliance (14-year relationship, 250+ stores in West Bengal, 150 new stores in Gujarat)
  • DTET (Directorate of Technical Education and Training) - ₹2 crores monthly billing
  • HDFC Bank (expanding to Arunachal Pradesh)
  • Calcutta Airport (previously ₹15 crores annually, bidding for renewal)
  • Government contracts across multiple states

Q&A Session Highlights

Management addressed questions on:

  • Muted FY26 growth due to subsidiary performance and timing of contract wins
  • Receivables management and aging profile
  • West Bengal government change impact assessment (minimal impact observed)
  • Labor Code cost impact and pass-through mechanisms
  • Growth constraints balancing revenue growth with margin and cash flow preservation
  • CCTV business recovery timeline (expected within 6 months)