Key Financial Highlights Q1 FY27

Comparative Performance (YoY):

  • Total Income: ₹115.44 Cr (Q1 FY27) vs ₹99.79 Cr (Q1 FY26), up 15.68%
  • Operating Income: ₹114.49 Cr vs ₹99.38 Cr
  • Other Income: ₹0.95 Cr vs ₹0.41 Cr
  • EBITDA: ₹9.22 Cr vs ₹6.77 Cr, up 36.24%
  • PBT: ₹6.60 Cr vs ₹4.37 Cr, up 51.17%
  • Net Profit: ₹6.40 Cr vs ₹4.72 Cr, up 35.59%
  • Finance Costs: ₹2.03 Cr vs ₹1.81 Cr
  • Depreciation: ₹0.59 Cr (flat)
  • Tax: ₹0.20 Cr vs -₹0.35 Cr

Expenditure Breakdown:

  • Raw Material Expenses: ₹97.78 Cr vs ₹86.20 Cr
  • Employee Benefit Expenses: ₹5.57 Cr vs ₹4.41 Cr
  • Other expenses: ₹2.88 Cr vs ₹2.42 Cr
  • Total Expenditure: ₹106.22 Cr vs ₹93.03 Cr

Q1 FY27 Order Wins (Total: ₹48.03 Cr)

Reliance Group Contracts (₹45.71 Cr):

  • Contract 1: With Reliance Projects & Property Management Services Limited - 5 work orders for housekeeping, pantry boy, MEP electrical and ancillary services. Value: ₹30.77 Cr (inclusive of all taxes). Contract tenure till March 31, 2027.
  • Contract 2: With 7 Reliance Group entities for housekeeping services, MEPC electrical services and other ancillary services. Value: ₹14.94 Cr (inclusive of all taxes). Contract tenure till March 31, 2027.

Nesco Limited Orders (₹1.94 Cr):

  • Order 1: Deployment of Facility Supervisors & Attendants at Nesco Complex. Value: ₹1.48 Cr.
  • Order 2: Facility attendants at Nesco Complex. Value: ₹46.88 Lakhs.
  • Contract tenure for both orders: Till March 31, 2027.

West Bengal PWD Order (₹36.71 Lakhs):

  • Client: Public Works Department (PWD), Government of West Bengal
  • Scope: Housekeeping personnel at the New Secretariat Building, Kolkata
  • Value: ₹36.71 Lakhs
  • Contract Tenure: 365 days from date of commencement

Management Commentary

Managing Director Debajit Choudhury stated that performance was driven by healthy revenue growth and stronger profitability improvement. Margin expansion reflected better operating efficiencies, disciplined execution, and focus on improving service mix quality. The company remains focused on scaling integrated facility management operations, expanding higher-value margin-accretive services, strengthening client relationships, and increasing technology use across service delivery.

Business Overview & Operating Model

Company Profile:

  • Established integrated security and facility management services provider founded in 1985
  • Workforce: ~19,100+ personnel deployed across 1,500+ client sites
  • Diversified client base across government, airports, retail, BFSI, healthcare, industrial & hospitality sectors
  • Listed on BSE SME in September 2025 (Scrip Code: 544495)
  • ISO 9001:2015 Certified

Service Revenue Mix (FY25-FY26):

  • Security Services: ₹199.49 Cr (46.03% of total)
  • Integrated Facility Management: ₹171.01 Cr (39.46% of total)
  • Electronic Security & CCTV Rentals: ₹56.91 Cr (13.13% of total)
  • Other services (Course Fees & Service receipts): ₹5.99 Cr (1.38% of total)

Key Business Attributes:

  • Annuity-led model with 3-5 year contracts providing predictable recurring cash flows
  • Monthly recurring billing across 1,500+ operational sites
  • CCTV rental business delivers ~20-25% EBITDA margins
  • Technology-enabled operations with ERP, mobile attendance, QR-based monitoring
  • Average client relationship tenure of 4.5-5 years
  • Asset-light structure with industry-leading 129:1 core-to-associate ratio

Market Context & Growth Drivers

Indian Security Services Market: Estimated at ₹1,574 billion in 2024, among fastest-growing global markets. Growth driven by rising urbanization, insufficient police-to-population ratio, expansion of airports/logistics/retail/industrial units, and e-commerce growth.

Facility Management Services Market: Valued at USD 139.5 billion in 2022, projected to reach USD 258.2 billion by 2030 (CAGR ~8%). Integrated Facility Management is largest and fastest-adopted segment. Commercial buildings dominate demand; healthcare facilities are fastest-growing vertical.

Formalization Opportunity: New Labour Codes increasing compliance intensity, potentially accelerating industry formalization and shift toward organized players. Large clients preferring audit-ready, technology-enabled compliant service partners.

Historical Financial Performance

Consolidated P&L (₹ Cr):

| Particulars | FY24 | FY25 | FY26 |

| Revenues | 377.99 | 402.17 | 433.40 |

| Total Income | 380.06 | 405.33 | 436.70 |

| EBITDA | 33.62 | 29.89 | 33.53 |

| PAT | 18.38 | 18.67 | -1.85 |

| Adjusted PAT* | - | 18.69 | 19.12 |

*PAT adjusted for one-time exceptional item

Exceptional Item: Accounting transition impact from revised wage definitions resulted in one-time, non-cash exceptional provision of ₹27.82 Cr during FY26 under AS 15.

Balance Sheet Highlights (FY26):

  • Total Equity: ₹196.00 Cr
  • Total Assets: ₹329.25 Cr
  • Fixed assets: ₹21.55 Cr
  • Trade Receivables: ₹145.83 Cr
  • Cash & Bank Balance: ₹67.13 Cr
  • Long Term Borrowings: ₹1.12 Cr
  • Short Term Borrowings: ₹81.95 Cr

Key Ratios:

  • Interest Coverage: 3.30 Times
  • Payable Turnover: 26.42 Times
  • Return on Capital Employed: 11.10%
  • Debt to Equity: 0.42 Times
  • Book Value: ₹99.13

Risk Factors & Challenges

Identified in SWOT analysis:

  • Low-margin nature of traditional security and housekeeping businesses
  • Working capital-intensive operations with longer receivable cycles
  • On-ground technology adoption challenges among field staff
  • Exposure to wage inflation impacting cost structures
  • Intense competition from unorganized players leading to price pressure
  • Regulatory changes in labor laws affecting cost structures
  • Tender-based government contracts with renewal and payment uncertainties