SIS Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript SIS Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
SIS Limited reported Q1 FY27 consolidated revenue of INR 4,604 crore, up 29.7% year-on-year, and EBITDA of INR 207 crore, up 36.2% year-on-year, with India Security crossing INR 2,000 crore in quarterly revenue for the first time. Management discussed the notification of Labour Codes rules on May 8-9 and described the pass-through of minimum wage hikes as a tailwind for margins over coming quarters. The Board approved a fifth buyback of INR 106 crore via the open market route, at a maximum price of INR 478.50 per share.
Numbers mentioned
Revenue: INR 4,604 crore (Q1 FY27)
p. 4
“We recorded a revenue of INR 4,604 crore, which is a robust 29.7% year-on-year growth and 2.5% Q-o-Q growth.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
EBITDA: INR 207 crore (Q1 FY27)
p. 4
“EBITDA continues to remain above the INR 200 crore milestone.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
India Security revenue: INR 2,004 crore (Q1 FY27)
p. 4
“India Security has now crossed a quarterly revenue milestone for the first time at INR 2,000 crore with Q1 FY '27 revenue at INR 2,004 crore, a 37.3% growth on a year-on-year basis.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
Facility Management revenue: INR 642 crore (Q1 FY27)
p. 4
“In FM, we have reported a revenue of INR 642 crore, which is a growth of 8% year-on-year.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
International Security revenue: INR 1,982 crore (Q1 FY27)
p. 4
“It has reported the highest ever quarterly revenue run rate of INR 1,982 crore, nearly touching INR 2,000 crore, which is a growth of a whopping 31% year-on-year and 7% on a constant currency basis.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
Consolidated EBITDA margin: 4.5% (Q1 FY27)
p. 4
“So, on a consol EBITDA level, we grew 36.2% year-on-year to INR 207 crore and a margin of 4.5%.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
India Security EBITDA margin: 5.1% (Q1 FY27)
p. 4
“India Security reported a stable margin of 5.1% at INR 103 crore EBITDA.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
Facility Management EBITDA margin: 5.5% (Q1 FY27)
p. 4
“Facility Management reported an EBITDA margin of 5.5%, which is now normalized to a new zone.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
International Security EBITDA margin: 3.5% (Q1 FY27)
p. 4
“And International Security, the EBITDA margin for Q1 was 3.5%.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
International Security EBITDA: INR 69.6 crore (Q1 FY27)
p. 4
“EBITDA improved to INR 69.6 crore, which is a 52% jump year-on-year.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
PAT: INR 101.7 crore (Q1 FY27)
p. 4
“Coming to PAT, it was INR 101.7 crore for the quarter, which is a margin of 2.2%.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
ROCE: 16.7% (Q1 FY27)
p. 4
“So now the ROCE stands at 16.7%, which is actually an improvement of 14% from a year ago.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
DSO: 66 days (Q1 FY27)
p. 4
“On capital efficiency, the DSO stands at 66 days.”
Vineet Toshniwal, page 4 of the filed PDF · View the filing
A P Securitas revenue: INR 332 crore (Q1 FY27)
p. 5
“For this quarter the revenue of A P Securitas was INR 332 crore, and EBITDA was INR 12.2 crore.”
Brajesh Kumar, page 5 of the filed PDF · View the filing
Buyback size: INR 106 crore
p. 3
“We are going ahead with an open market program, and the buyback is approved for INR 106 crore and maximum price that has been sanctioned is INR 478.50, implying a decent premium on the current trading price”
Vineet Toshniwal, page 3 of the filed PDF · View the filing
Return on equity: 15.8% (Q1 FY27)
p. 11
“Today, 2 years later, our ROCE is at 16.7% and our return on equity is at 15.8%.”
Rituraj Sinha, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Wage hike pass-through impact — Q2 and Q3
stated firmly by Rituraj Sinha
p. 6
“As you see Q2 and Q3, the impact should become more evident.”
Rituraj Sinha, page 6 of the filed PDF · View the filing
India business EBITDA margin — 5.5%, 6% ballpark range
stated as an aspiration by Rituraj Sinha
p. 8
“And I have in the past also said that our objective is to move from this range to 5.5%, 6% ballpark range in India.”
Rituraj Sinha, page 8 of the filed PDF · View the filing
FM EBITDA margin — near 6%
stated as an aspiration by Vineet Toshniwal
p. 8
“As I've always said, aspirationaly, we should be operating near 6%, but it will happen when it will happen, but we are at 5.5% consistently.”
Vineet Toshniwal, page 8 of the filed PDF · View the filing
Blended margin post-acquisition — original margins · next 4 to 8 quarters
stated conditionally by Vineet Toshniwal
p. 8
“So, you will see on a blended basis, coming to the original margins that we used to operate over a period of the next 4 to 8 quarters.”
Vineet Toshniwal, page 8 of the filed PDF · View the filing
Minimum wage hikes across States — next 6 to 9 months
stated conditionally by Rituraj Sinha
p. 5
“Over the course of the next 6 to 9 months, as the labor codes model rules get notified at different States, they will also come through with some meaningful level of minimum wage hikes.”
Rituraj Sinha, page 5 of the filed PDF · View the filing
PAT and return profile target — INR 500 crore plus in PAT with 15% growth and 15% or greater return profile
stated as an aspiration by Rituraj Sinha
p. 11
“We want to drive SIS into that box of 100 companies in this country which deliver INR 500 crore plus in PAT and our material businesses with consistent year-after-year 15% growth in profits and 15% or greater return profile.”
Rituraj Sinha, page 11 of the filed PDF · View the filing
FY27 performance — 15 and 15 · FY27
stated as an aspiration by Rituraj Sinha
p. 11
“FY '26 was a year of rebound. We delivered 15 and 15, and FY '27, I hope will be an inflection year or the second year where we'll be in that zone, hopefully.”
Rituraj Sinha, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Revenue was INR 332 crore and EBITDA was INR 12.2 crore.
Answered by Brajesh Kumar
Asked by Abhinav Mandowara: What are the revenue and EBITDA figures for A P Securitas this quarter?
p. 5
“For this quarter the revenue of A P Securitas was INR 332 crore, and EBITDA was INR 12.2 crore.”
Brajesh Kumar, page 5 of the filed PDF · View the filing
Management said there was nothing exceptional, describing seasonal shortages before monsoon that resolve once farm labor returns to blue-collar jobs.
Answered by Rituraj Sinha
Asked by Abhinav Mandowara: Did the company face labor shortages, and what is the outlook?
p. 5
“Nothing exceptional. I think every year, April through to June before the monsoon sets in, is a period where you witness shortages.”
Rituraj Sinha, page 5 of the filed PDF · View the filing
Management explained that contracts pass through minimum wage hikes directly to clients, calling it a revenue boost and EBITDA-accretive, with States like Haryana, UP, Karnataka, Telangana and Uttarakhand already raising wages 20-47%.
Answered by Rituraj Sinha
Asked by Abhinav Mandowara: How is the minimum wage hike being handled and is there a lag?
p. 5
“Our contracts are set up such that every and all minimum wage hikes are passed through directly to client. So a minimum wage hike like this means a revenue boost.”
Rituraj Sinha, page 5 of the filed PDF · View the filing
Management said they cannot share financials as the DRHP is active, and are waiting for a better market window given peer de-rating.
Answered by Rituraj Sinha
Asked by Abhinav Mandowara: What is the status of the Cash business IPO?
p. 6
“I can only say that as of right now, we are waiting for a good time window.”
Rituraj Sinha, page 6 of the filed PDF · View the filing
Management clarified the pass-through is not tied to contract renewal dates but is a routine annual process with a timing lag between wage increase and invoicing recovery.
Answered by Rituraj Sinha
Asked by Umang Shah: What is the margin impact for SIS this year from the Australian minimum wage hike given past contract signings?
p. 6
“So, there is a timing mismatch between the date on which the higher wages become effective and when we are able to fully claim and pass through.”
Rituraj Sinha, page 6 of the filed PDF · View the filing
Management confirmed it is a treasury operation and the only such stock purchase to date.
Answered by Rituraj Sinha
Asked by Parag Jhawar: What is the rationale behind the purchase of Updater Services shares?
p. 7
“No, that is the single stock we have bought till now. That would be a more correct statement.”
Rituraj Sinha, page 7 of the filed PDF · View the filing
Management said blended India margins are in the 5.3-5.4% range and sustainable, with an objective to move to 5.5-6%, while wage hike magnitude is uncertain given it is decided by more than 30 State Governments.
Answered by Rituraj Sinha
Asked by Riya Mehta: Are current India business margins sustainable, and what price hikes are expected from labor codes?
p. 7
“So India business margins, if you just look at the Indian side of the business, the margins are more like 5.1% for Security and 5.5% for FM.”
Rituraj Sinha, page 7 of the filed PDF · View the filing
Management explained the new definition of 'employer' under labor codes shifts compliance liability to the customer, which they said will fundamentally change the organized versus unorganized market share.
Answered by Rituraj Sinha
Asked by Umang Shah: With labor codes creating a level playing field, how much of a cost discount did smaller non-compliant players previously have?
p. 9
“The definition of the term employer in the 4 labor codes clearly states, and if I can quote for you, that an employer is a person on whose payroll an individual works, but is also the person on whose premises or whose establishment the individual works.”
Rituraj Sinha, page 9 of the filed PDF · View the filing
Management confirmed the scheme is active, with most of the benefit accruing directly to employees rather than the employer.
Answered by Rituraj Sinha
Asked by Anant Mundra: What is the latest update on the ELI scheme?
p. 10
“Well, a large chunk of the benefits actually go to the employee himself, right.”
Rituraj Sinha, page 10 of the filed PDF · View the filing
Risks flagged
Timing mismatch between wage cost increases and ability to fully pass through and collect from customers
p. 6
“So, there is a timing mismatch between the date on which the higher wages become effective and when we are able to fully claim and pass through.”
Rituraj Sinha, page 6 of the filed PDF · View the filing
Uncertainty in predicting the magnitude of minimum wage hikes across more than 30 State Governments
p. 8
“There we are talking about more than 30 State Governments, when they decide what level of wage hikes, they will pass through is very hard for anybody to predict with any degree of accuracy.”
Rituraj Sinha, page 8 of the filed PDF · View the filing
Lower margins from the A P Securitas acquisition due to smaller scale prior to integration synergies
p. 8
“If what you're seeing change is post-acquisition, and the acquired asset had lower margin given the lower scale, they are 20% of our size.”
Vineet Toshniwal, page 8 of the filed PDF · View the filing
IPO market conditions and peer de-rating delaying the Cash business listing
p. 6
“in the IPO rush that we are witnessing right now, also given the fact that the peer comparables have witnessed significant de-rating, we are waiting on a more opportune time to take this Company to market.”
Rituraj Sinha, page 6 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.