SIS Limited Q4 FY26 was a clean record quarter — revenue ₹4,489 crore (+31%), EBITDA ₹207 crore (record), PAT ₹105.5 crore. India Security margins at 5.5% are near pre-COVID levels — the margin recovery journey is essentially complete. All three segments (India Security, International, FM) hit records simultaneously. FY27 focuses on Labour Code implementation — a compliance milestone that will reset service pricing and protect margins going forward.
Headline Numbers
| Metric | Q4 FY26 | YoY |
|---|---|---|
| Revenue | ₹4,489 crore | +31% |
| EBITDA | ₹207 crore | Record |
| PAT (Operating) | ₹105.5 crore | — |
| India Security Margin | 5.5% | Near pre-COVID |
| DSO | 63 days | — |
| Long-term CAGR | 15%+ | — |
What Drove the Results
- India Security margin 5.5% — recovery complete: Margins had compressed post-COVID due to wage inflation outpacing client repricing. The recovery to 5.5% (near pre-COVID) signals that client contracts have been repriced and operating efficiency has improved. This is sustainable, not a one-quarter blip.
- All 3 segments at records — broad-based recovery: India Security + International + FM all delivering records simultaneously confirms the recovery is not segment-specific. The integrated security+FM model creates customer stickiness — clients rarely switch their integrated security+FM provider.
- Labour Code as a pricing catalyst: Labour Code implementation requires formal benefits for contract workers — which SIS will pass on as higher service charges. This acts as an industry-wide repricing event, protecting SIS's margins as compliance costs rise.
- 15%+ CAGR sustainable through market formalization: India's transition from informal (unregistered security agencies) to formal (compliant, scaled operators like SIS) is ongoing. Each time a corporate switches from an unorganized agency to SIS, SIS gains volume without competing on price.
StockMirror AI Signal Summary
| Signal | Reading |
|---|---|
| Overall Sentiment | Good |
| Management Confidence | Medium |
| Revenue Growth Status | Expansion (+31% Q4, 15%+ CAGR guidance) |
| Margin Direction | Expansion (5.5% India Security — near pre-COVID, recovery trajectory) |
| Earnings Quality | Clean |
| Market Share | Gain — formalization of security market driving SIS gains |
📊 Full SIS Limited Q4 FY26 earnings analysis →
Key Takeaways
- Q4 record: revenue ₹4,489 crore (+31%), EBITDA ₹207 crore, PAT ₹105.5 crore
- India Security margin 5.5% — near pre-COVID; margin recovery journey complete
- All 3 segments (Security, International, FM) at records — broad-based strength
- Labour Code implementation FY27 = industry repricing event protecting margins
- 15%+ long-term CAGR driven by organized market formalization
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StockMirror's AI analysis is based on publicly available earnings transcripts and BSE/NSE filings. Please consult a SEBI-registered financial advisor before making investment decisions.