This article first appeared on GuruFocus .
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Q4 Total Income:INR180.03 crore, 13.96% year-on-year growth.
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Q4 EBITDA:INR11.11 crore, 29.75% year-on-year growth.
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Q4 EBITDA Margin:9.41%, an expansion of 115 basis points.
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FY26 Total Income:INR436.70 crore, year-on-year growth of INR7.74 crore.
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FY26 EBITDA:INR33.53 crore, 12.19% year-on-year growth.
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FY26 EBITDA Margin:7.68%, an expansion of 30 basis points.
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Exceptional Provision:INR27.82 crore due to new labor law impact.
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Adjusted FY26 Net Profit:INR19.12 crore.
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Adjusted Q4 FY26 Net Profit:INR6.86 crore.
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Security Services Revenue:INR199.49 crore, 46.03% of total revenue.
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Housekeeping and Payroll Revenue:INR171.01 crore, 39.46% of total revenue.
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Integrated Facility Management and Electronic Security Revenue:INR56.91 crore, 13.313% of total revenue.
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Other Services Revenue:INR5.99 crore.
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ICRA Ratings:Short-term rating reaffirmed at ICRA A2; long-term rating outlook upgraded to positive.
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Warning! GuruFocus has detected 3 Warning Sign with BOM:544495.
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Release Date: June 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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NIS Management Ltd ( BOM:544495 ) reported a year-on-year growth of 13.96% in consolidated total income for Q4 FY26, reaching INR180.03 crore.
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The company's EBITDA for Q4 FY26 increased by 29.75% year-on-year, with an EBITDA margin expansion of 115 basis points to 9.41%.
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NIS Management Ltd ( BOM:544495 ) has a diversified client portfolio across various sectors, providing stability and reducing dependence on any single client segment.
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The company secured significant contracts in Q4 FY26, including projects with the Mumbai Police and the Central Building Division in Bihar, reflecting strong engagement with government and institutional clients.
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ICRA reaffirmed the company's short-term rating at ICRA A2 and upgraded the outlook on its long-term rating from stable to positive, indicating improved financial stability.
Negative Points
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The company's revenue growth for FY26 was muted despite a smaller base, with challenges in converting new contracts into revenue quickly.
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NIS Management Ltd ( BOM:544495 ) faced high trade receivables of INR145 crore, impacting the balance sheet and indicating collection issues with certain contracts.
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The implementation of the Government of India's new labor code resulted in a one-time exceptional provision of INR27.82 crore, affecting reported net profitability.
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The CCTV segment experienced stagnation due to STQC implications and stockout situations, limiting growth in this area.
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The company faces challenges in balancing growth with operating cash flow, which could impact future expansion and financial health.
Q & A Highlights
Q: FY26 revenue growth looks quite muted despite a smaller base. What held back growth this year? A: Kanad Mukherjee, CFO: The growth was impacted by the timing of major contracts, such as the Haldia Docs and Reliance stores in Gujarat, which were secured late in the year. Additionally, the CCTV services faced stockout issues due to STQC implications, and some projects were delayed due to government elections. Subsidiary revenues were also flat or declined, contributing to the muted growth.
Q: Trade receivables are high at INR145 crore. Can you explain why receivables are elevated and provide an aging schedule? A: Kanad Mukherjee, CFO: The increase in receivables is due to collection issues with contracts like Haldia Docs and new Reliance contracts. Most of these issues have been resolved in April. The aging schedule shows that more than 180 days receivables are around INR5 crore, with the rest within 180 days.
Q: After the West Bengal election results, do you see changes in pay renewals, payments, or new tendering for government contracts? A: Debajit Choudhury, Managing Director: The election has not impacted project acquisition. We continue to secure contracts from government agencies, and funds previously held up are being released. We expect strong business growth due to anticipated investments in West Bengal.
Q: Can you provide revenue guidance for FY27? A: Kanad Mukherjee, CFO: We project a growth of 12% to 15% at a consolidated level, aiming to achieve INR500 crore in revenue within the financial year.
Q: What is the impact of the new labor code on costs and EBITDA margins? A: Kanad Mukherjee, CFO: Costs related to contract labor are passed through to clients, so we do not expect a significant impact on EBITDA margins. However, the West Bengal government has not yet released draft rules, so the full impact is still uncertain.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
