SIS logs 24% PAT growth in FY26, revenue up 21% to ₹15,982 cr; delays SIS-Prosegur IPO amid market volatility

SIS Ltd, one of India’s leading security solutions providers, closed FY26 on a strong note, led by a sharp turnaround in the March quarter and broad-based growth across segments.

For the full year, the company reported a consolidated net profit of ₹137.8 crore, compared with ₹11.8 crore in FY25. The multi-fold growth in profitability was largely driven by a strong Q4 performance, where SIS posted a net profit of ₹102.5 crore versus a net loss of ₹223.3 crore in the year-ago period.

Operating PAT for FY26 rose 24% YoY to ₹392 crore, while the March quarter figure increased 27.9% to ₹105.5 crore from ₹82.5 crore a year ago, the company said in a release.

The New Delhi-based firm reported revenue of ₹15,982 crore for FY26, up 21% year-on-year from ₹13,189 crore. In Q4, revenue rose 31% YoY to ₹4,489 crore, reflecting strong momentum across both domestic and international businesses.

On the operating front, EBITDA grew 19% YoY to ₹717 crore in FY26, while Q4 EBITDA crossed the ₹200 crore mark for the first time, coming in at ₹207 crore, up 25.6% YoY.

“We exit FY26 with our highest-ever revenue and EBITDA, alongside the largest capital return to shareholders of ₹250 crore. The industry is also at the cusp of a structural reset with the Labour Codes, positioning SIS to move from a rebound year to a potential inflection phase,” said Rituraj Sinha, Group Managing Director, SIS.

Returned ₹250 crore to shareholders via dividends and buybacks

SIS returned around ₹250 crore to shareholders through dividends and buybacks in FY26. Since its IPO, total capital returned stands at approximately ₹600 crore. Return ratios remained healthy, with return on capital employed (ROCE) at 16.5%, while adjusted return on equity (ROE) stood at 15.8%, reflecting disciplined capital allocation.

The company also strengthened its balance sheet during the year. Gross debt declined by ₹138 crore to ₹1,789 crore, while net debt fell by ₹133 crore to ₹707 crore. Net debt-to-EBITDA improved to 0.99x from 1.25x in December 2025.

Working capital efficiency improved, with group DSO reducing to 63 days, the lowest since June 2023, indicating tighter collections and improved financial discipline.

Security and international businesses drive growth

As per the company, growth was led by both domestic and international security segments. The Security Solutions India business reported its highest-ever quarterly revenue of ₹1,925 crore in Q4, up 34.2% YoY, while full-year revenue for the segment grew 22.4% to ₹6,826.8 crore.

“Our new order wins during the quarter were around ₹32 crore of monthly revenue, with strong traction across e-commerce, construction, manufacturing, and power sectors,” the company said.

The international security business also delivered strong growth, with Q4 revenue rising 36.9% YoY to ₹1,950 crore (17.1% in constant currency), supported by new contracts in e-commerce and government segments. EBITDA for the segment increased 28.7% YoY to ₹74 crore, while its Singapore operations turned operationally profitable during the quarter. For FY26, the segment reported revenue of ₹6,739.6 crore, up 24.1%.

The facilities management business continued to see steady traction, with Q4 revenue rising 8.1% YoY to ₹635 crore. EBITDA reached a record ₹35 crore, with margins improving to 5.5% on the back of operating leverage. For FY26, segment revenue stood at ₹2,493.9 crore, up 11% YoY.

Labour Codes to act as a structural tailwind

SIS highlighted in its earnings report that the upcoming implementation of labour codes is expected to be a key demand catalyst. The company had earlier recognised a one-time liability of ₹290 crore, with ₹38.8 crore reversed in Q4 following reassessment.

Around 30,000 contracts are expected to be renegotiated in FY27, which could have a positive impact on profitability. With a workforce of around 3.5 lakh employees, SIS is among India’s largest private-sector employers.

“Beyond pricing pass-through, the Labour Codes are structurally positive. Higher compliance thresholds expand the formal market, benefiting organised players like us,” Sinha said. He added that rising labour costs for clients are likely to accelerate demand for technology-led solutions, an area where SIS is scaling up its offerings.

SIS-Prosegur IPO deferred

The company has deferred the IPO of its joint venture, SIS-Prosegur, citing market volatility. However, preparations are ongoing, with Securities and Exchange Board of India extending the validity of IPO documents until September 30, 2026.

 “Roadshow preparations are advancing. The extension gives us flexibility to launch the transaction at a more favourable time, considering current geopolitical conditions,” Sinha said.

Cash logistics and cash management firm SIS-Prosegur, a joint venture with Spain-based security services major Prosegur Group, filed its draft IPO papers with SEBI in March 2025 and received regulatory approval in July 2025. The public issue comprised a fresh issue of ₹100 crore along with an offer for sale (OFS) of 37.15 lakh equity shares by existing promoters.