SIS Ltd delivered record-breaking performance in Q2 FY27, with consolidated revenue rising 28.1% YoY to Rs 4,816 crore. Profit After Tax surged 37.1% to Rs 110.7 crore, supported by robust growth in its Security Solutions segment and margin expansion. Despite an uptick in net debt following a successful share buyback, management remains optimistic about future margin gains linked to Labour Code implementation.
SIS Ltd Posts Record Q2 FY27 Performance with 37% PAT Growth
SIS Ltd reported a consolidated revenue of Rs 4,816 crore and a Profit After Tax of Rs 110.7 crore for the September quarter.
Reader Takeaway: Revenue growth remains strong across segments, though investors should monitor rising debt levels and working capital outflow.
What just happened
SIS Ltd achieved its highest-ever quarterly revenue and PAT in Q2 FY27. Consolidated revenue climbed 28.1% year-on-year to Rs 4,816 crore, while PAT rose 37.1% to Rs 110.7 crore. EBITDA improved to Rs 223.3 crore, reflecting a margin expansion to 4.6%.
Why this matters
The company’s performance highlights the success of its operational strategies, specifically within the Security Solutions India division, which grew revenue by 38.9%. Management credits these gains to rate revisions spurred by new Labour Code compliance, suggesting a potential tailwind for upcoming quarters as more states adopt these rules.
The backstory
SIS Ltd recently completed an open-market share buyback, acquiring 25 lakh shares for Rs 106 crore. This move increased promoter shareholding from 71.9% to 73.1%, signaling management's confidence in the company's long-term value. Additionally, the board approved the extension of Upendra Kumar Sinha’s term as a Non-Executive Independent Director until 2030.
Risks to watch
Investors should track the company’s cash flow dynamics, as Net Operating Cash Flow was negative Rs 99.2 crore this quarter. Net debt has increased to Rs 1,025.6 crore, primarily due to working capital requirements in the International segment and the recent buyback. The Net Debt to EBITDA ratio now stands at 1.24x.
What to track next
The primary focus remains on the implementation timeline of Labour Code-linked rate repricing across various states. Sustained margin improvement will depend on how efficiently the company manages working capital and navigates the ongoing regulatory rollout.