SIS Ltd (SIS)
🎯 Key Takeaways
- SIS Ltd is in a growth phase supported by operational expansion and capital efficiency gains, as evidenced by strong YoY revenue and EBITDA growth in Q1 FY27. Management is leveraging favorable Labor Code implementations to improve margins and sustain ROCE improvement, while actively returning capital through buybacks.
- Revenue grew 2.5% QoQ to ₹4,604 in Q1FY27.
- ⚠️ Margin improvement depends on sustained Labor Code tailwinds, which may be temporary or uneven across states.
📖 The Story
SIS Ltd is in a growth phase supported by operational expansion and capital efficiency gains, as evidenced by strong YoY revenue and EBITDA growth in Q1 FY27. Management is leveraging favorable Labor Code implementations to improve margins and sustain ROCE improvement, while actively returning capital through buybacks. The company has transitioned from a period of loss-making performance in late FY25 to consistent profitability, signaling a stabilization and scaling of its core security services business.
📰 What's Happening
In Q1 FY27, SIS reported a 29.7% YoY revenue increase to INR 4,604 crore and a 36.2% YoY EBITDA growth to INR 207 crore, with India Security achieving its first quarterly revenue above INR 2,000 crore. The company commenced its fifth buyback of INR 106 crore at INR 478.50 per share, part of a larger INR 700+ crore cumulative shareholder return program. International Security also grew revenue by 31% YoY to INR 1,982 crore. Management expects margins to improve toward 5.5-6% in India and ROCE to remain at 16.7%, driven by Labor Code tailwinds and operational efficiencies.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 3,759 | 4,185 | 4,489 | 4,604 |
| Operating Profit | 121 | 133 | 137 | 145 |
| OPM % | 3.2% | 3.2% | 3.0% | 3.1% |
| Net Profit | 81 | -138 | 103 | 102 |
| EPS | ₹5.73 | ₹-9.81 | ₹7.26 | ₹7.19 |
SIS has reversed earlier losses, posting a net profit of INR 102 crore in Q1 FY27 compared to a net loss of INR 138 crore in Q4 FY25, indicating a clear turnaround. Revenue growth has accelerated sequentially and YoY, supported by strong execution and regulatory tailwinds, while operating margins have stabilized around 3%. The improvement in ROCE to 16.7% reflects better capital utilization, aligning with management’s strategic focus on margin expansion and asset efficiency.
🔮 Management Outlook & What's Next
Management expects margin improvement toward 5.5-6% in India and sustained ROCE of 16.7%, driven by the implementation of Labor Codes and continued operational excellence. They anticipate these favorable conditions to support performance in Q2 and Q3 FY27. The ongoing buyback program reflects confidence in cash generation and a commitment to returning excess capital, though no further organic growth guidance was provided beyond the tailwinds already cited.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 72 | 72 | 70 | 71 |
| Reserves | 2,541 | 2,336 | 2,444 | 2,475 |
| Borrowings | 1,684 | 1,645 | 1,687 | 1,435 |
| Total Liabilities | 6,332 | 6,112 | 6,698 | 7,632 |
| Fixed Assets | 377 | 375 | 495 | 2,046 |
| Investments | 140 | 148 | 174 | 186 |
| Total Assets | 6,332 | 6,112 | 6,698 | 7,632 |
The balance sheet shows a stable capital structure with total assets growing to INR 7,632 crore as of March 2026, up from INR 6,112 crore a year ago, while equity remains steady around INR 71 crore and reserves increasing to INR 2,475 crore. Borrowings have decreased to INR 1,435 crore from INR 1,687 crore, indicating deleveraging. This suggests management is prioritizing financial flexibility and capital efficiency, possibly to support both growth investments and shareholder returns.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +770 |
| Investing | -23 |
| Financing | -620 |
| Net Cash Flow | +127 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 72.1% | 72.0% | 71.9% | 71.9% |
| FII | 13.2% | 11.8% | 12.6% | 13.3% |
| DII | 5.9% | 7.2% | 6.6% | 6.3% |
| Public | 5.2% | 5.3% | 5.3% | 5.2% |
| # Shareholders | 40,435 | 53,064 | 69,358 | 64,694 |
Promoter holding remains stable near 71.8%, but FII ownership has increased to 13.27% in Q1 FY27 from 12.56% in Q4 FY26, and DII has slightly declined to 6.25%. The growing institutional interest, particularly from FIIs, may reflect confidence in the company’s turnaround and capital return policy. The rising number of shareholders (64,694 in Q1 FY27) also indicates retail investor engagement, though the declining DII share warrants monitoring.
⚖️ Peer Comparison — Miscellaneous
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| GMRAIRPORT | 1.04 L Cr | 213.3 | 12.1% | -23.5% | -13.08 |
| NBCC | 22,424 | 30.3 | 41.3% | 30.9% | 0.00 |
| CMPDI | 15,365 | 27.8 | 32.4% | 24.2% | 0.00 |
| HORIZONIND | 13,632 | — | — | — | 1.22 |
| IGIL | 13,578 | 22.3 | 56.1% | 41.0% | 0.00 |
| RITES | 10,049 | 24.1 | 23.5% | 17.5% | 0.00 |
| RAIN | 7,257 | 13.5 | 12.0% | 8.9% | 1.21 |
| INOXGREEN | 7,157 | 57.3 | 9.4% | 6.7% | 0.10 |
| SIS | 5,935 | 40.5 | 8.0% | 5.8% | 0.56 |
| THOMASCOOK | 5,111 | 22.5 | 15.8% | 9.2% | 0.10 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Margin improvement depends on sustained Labor Code tailwinds, which may be temporary or uneven across states. 2. The company’s growth is increasingly reliant on international markets, which may face geopolitical or competitive pressures. 3. Buybacks are reducing cash reserves, potentially limiting reinvestment capacity if growth opportunities arise. 4. The continuation of Mr. Prasad’s directorship is under shareholder vote, and any governance concerns could impact investor sentiment.
📋 Recent Filings
-
🟡 buyback redemption 11 September 2026SIS Ltd reported buying back 13,15,027 equity shares on September 11, 2026 at an average price of **₹422.66** per share, adding to its cumulative buyb...
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🟡 buyback redemption 10 September 2026SIS Ltd reported buying back 12,25,027 equity shares on September 10, 2026 through Elara Securities, spending approximately ₹1,02,000 per share for 8,...
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🟡 buyback redemption 9 September 2026SIS Ltd announced on September 9, 2026, that it repurchased 17,000 equity shares at an average price of **₹430.33** per share through Elara Securities...
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🟡 buyback redemption 8 September 2026SIS Ltd reported buying back 10,26,027 equity shares on September 8, 2026 at an average price of ₹431.72 per share, spending [amount not verified] in ...
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🔴 Corporate Action 5 September 2026SIS Limited allotted 15,201 equity shares of INR 5 each on September 5, 2026 under its Employee Stock Option Plan, increasing paid-up capital to INR 7...
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🟡 buyback redemption 4 September 2026SIS Ltd reported buying back 33,027 shares on September 4, 2026 at an average price of ₹431.06 per share through Elara Securities, adding to its cumul...
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🟡 buyback redemption 28 August 2026SIS Ltd reported buying back 6,000 shares on August 28, 2026 at an average price of ₹430.08 per share through Elara Securities, adding to its cumulati...
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🔴 Announcement 27 August 2026SIS Limited announced it will attend the Elara Capital Investor Conference in Mumbai on September 3, 2026, as part of its ongoing investor engagement,...
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Announcement 26 August 2026SIS Limited announced its participation in the PL Capital Mid & Small Cap Conference 2026 on September 28, 2026, in Mumbai, where it will present to i...
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Announcement 20 August 2026SIS Limited announced it acquired an additional 10,27,192 equity shares of Updater Services Limited (UDS), increasing its stake to 8.19% of UDS's paid...
🧠 Analyst's Read
SIS is transitioning from a turnaround to a growth trajectory, supported by operational momentum and capital efficiency. Investors should monitor margin expansion in Q2 and Q3, the sustainability of Labor Code benefits, and institutional investor behavior ahead of the director continuity vote and next earnings call.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-12.
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This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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