SIS Limited Q1 FY27: Revenue up 29.7% to ₹4,604 Cr, Board Approves ₹106 Cr Buyback
SIS Limited reported Q1 FY27 revenue of ₹4,604 crore, up 29.7% YoY. EBITDA was ₹207 crore, up 36.2% YoY. The Board approved a ₹106 crore open market buyback. Management anticipates benefits from new Labour Codes and noted significant minimum wage hikes in several states.
The strong financial performance, coupled with the announcement of a buyback and positive outlook on regulatory changes (Labour Codes) and wage hikes, are likely to have a significant positive impact on investor sentiment and the company's stock.
The company reported strong year-on-year growth in revenue and EBITDA, crossed significant revenue milestones in its India Security segment, and announced a new buyback program. Management expressed optimism about the positive impact of new labor codes and wage hikes.
SIS Limited announced its Q1 FY27 results, reporting a revenue of ₹4,604 crore, a significant 29.7% year-on-year growth and 2.5% quarter-on-quarter growth.
The company's EBITDA stood at ₹207 crore, marking a 36.2% year-on-year jump, with a consolidated EBITDA margin of 4.5%. India Security segment crossed a milestone of ₹2,000 crore quarterly revenue for the first time, growing 37.3% year-on-year. Facility Management reported revenue of ₹642 crore (8% YoY growth), and International Security achieved its highest-ever quarterly revenue run rate of ₹1,982 crore (31% YoY growth).
The Board has approved its fifth buyback program, this time through the open market route, for ₹106 crore at a maximum price of ₹478.50. This buyback is scheduled to commence next week. Cumulatively, with this buyback, the company will have returned over ₹700 crore to shareholders.
Management highlighted the positive impact of the recently notified Labour Codes, expecting them to be a strong tailwind and accretive to EBITDA and PAT levels over the next 3-4 quarters. The company also noted significant minimum wage hikes in several states, which are expected to be passed through to clients, boosting revenue without impacting gross margins.
SIS Limited's ROCE stands at 16.7%, an improvement of 14% from a year ago. The company aims to consistently deliver 15% annualized growth with a 15% plus return profile.
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