NIS Management LtdDiversifiedNISMGMT
Q1 FY27 earnings callNIS Management Ltd
NIS Management started FY27 with strong top-line growth and margin expansion, securing large orders while focusing on shifting its service mix towards higher-margin technology and project-based businesses.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Total Income | INR115.44 crores | 15.68% | |
| EBITDA | INR9.22 crores | 36.24% | |
| EBITDA Margin | 7.99% | 121 basis points | |
| Net Profit | INR6.40 crores | 35% | |
| Net Profit Margin | 5.54% | 81 basis points | |
| EPS | INR3.23 | 3.53% |
TL;DR
- Q1 total income grew 15.68% YoY to INR115.44 crores, with EBITDA up 36.24% and margin expanding 121 basis points to 7.99%.
- Net profit grew 35% YoY to INR6.40 crores.
- Secured significant new orders including INR45.71 crores from the Reliance Group.
- Management is focused on shifting business mix towards higher-margin CCTV, electronic security, and skill development projects.
- Guidance maintained to cross INR500 crores consolidated revenue in FY27.
- Targets growing systems revenue to ~INR30 crores this year and free cash flow to INR13-14 crores range.
Said on the call
“Maintaining the right balance between growth, profitability, and operating cash flow will remain central to our approach while evaluating new opportunities.”
From the Q&A
| Topic | What management said |
|---|---|
| Revenue and Margin Guidance | Management is confident of crossing INR500 crores revenue in FY27 due to last year's contract rollovers and new orders, but sees EBITDA margin expansion as hard to predict due to quarterly seasonality. |
| Segment Revenue & Profitability | Q1 segment revenue: Security INR54.98 crores, Housekeeping INR41.88 crores, IFM INR10.28 crores, Payroll INR3.40 crores, CCTV INR2.11 crores. CCTV segment posted a PAT loss of INR1.27 lakhs, expected to stabilize by September. |
| Debt and Cash Flow Outlook | No increase in debt expected. Aim to improve free cash flow from INR8-9 crores average to INR13-14 crores range by growing high-margin project businesses like CCTV and skill development. |
| Growth Strategy and Margin Trajectory | Focus is on selective, profitable growth by adding technology (CCTV, command centers) and mechanization to existing contracts, expecting 1-2% EBITDA margin improvement over the next two years. |
| Net Debt and IPO Fund Utilization | Standalone net debt as of June was ~INR9 crores (INR69 crores debt, INR60 crores cash). ~INR36.85 crores of IPO proceeds remain unutilized as of June 2026. |
| Share Buyback Suggestion | Management declined a suggestion for a share buyback, stating the capital is needed for growth initiatives like skill development centers and working capital to support 15%+ growth targets. |
| Geographic Concentration and Client Base | West Bengal contributes ~72-73% of revenue, but growth there remains strong. Top clients include Reliance (~INR46-47 crores), HDFC Bank (~INR18 crores). Client retention/renewal rate is around 96-97%. |
| CCTV Business Pipeline and Outlook | Expecting CCTV tenders worth INR15-18 crores from Mumbai police/traffic, a subscription model contract with HDFC Bank, and others, targeting INR30 crores revenue this year vs. INR13-14 crores last year. |
Guidance
- Target to cross INR500 crores in consolidated revenue during FY27.
- Aim to grow systems (CCTV/electronic security) revenue to around INR30 crores this year from INR13-14 crores last year.
- Target to improve free cash flow to the INR13-14 crores range from an average of INR8-9 crores.
- Expect 1-2% EBITDA margin improvement over the next two years.
- Target to cross INR650 crores revenue by FY28.
Source
Summary written from the transcript filed by NIS Management Ltd for the call held on 19 Aug 2026; published 21 Aug 2026, 19:12 IST.