Metrics raised 1
- Long-term ROE target accelerated to 20% by FY29 (from FY30)
Event Participants
Executives
3 Kamal Pal Hoda (CEO), Nibodh Shetty (Head, Investor Relations), Prapul Sridhar (CFO)
Analysts
6 Anant Mundra (Mytemple Capital), Divyansh Jain (Trinetra Asset Managers), Kaustav Bubna (Kamana Holdings), Sarvesh Gupta (Maximal Capital), Simran Thakkar (Beas Capital), Zaki Nasser (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue (excl. foundit) | ₹930 crores | +20% YoY, +10% QoQ; includes STEAG from May 21 |
| Consolidated EBITDA (excl. foundit) | ₹35 crores | +48% YoY, flat QoQ; margin 3.8% vs 3.1% YoY |
| Consolidated PAT (excl. foundit) | ₹16 crores | +47% YoY, +14% QoQ |
| EPS | ₹1.1 per share | +34% YoY |
| Facility & Food Services Revenue | ₹520 crores | +9% YoY, flat QoQ; 55% of revenue; seasonality in food |
| Facility & Food Services EBITDA | ₹24 crores | +25% YoY, -3% QoQ; margin 4.6% vs 4.0% YoY |
| Security Services Revenue | ₹187 crores | +25% YoY, +10% QoQ; highest ever |
| Security Services EBITDA | ₹5 crores | +43% YoY, -12% QoQ; margin 2.8% |
| Security Headcount | ~24,900 | Net add ~900 in Q1; new record high |
| Smart Infra, Energy & Engineering Revenue | ₹223 crores | +47% YoY, +42% QoQ; STEAG added ₹76 crores |
| Smart Infra EBITDA | ₹21 crores | +80% YoY, +17% QoQ; margin 9.2% vs 8.2% YoY |
| foundit Revenue | ₹19 crores | Sales ₹25 crores (flat QoQ); EBITDA loss ~₹14 crores |
| foundit Full-Year EBITDA Burn Guidance | ₹30-35 crores | Target breakeven by Q4 FY27; cost base ₹32-33 crores |
| Gross Debt | ₹307 crores | Cash ₹135 crores; net debt ₹172 crores |
| Net Debt/EBITDA Target | <1.0x | By end of FY27; organic net debt zero at closing |
| Working Capital Days | 37 days | Organic stable; consolidated expected ~45 days with acquisitions |
| Effective Tax Rate Guidance | ~22% | Quarterly variance due to deferred tax assets |
| New Contracts Mobilized | 77 contracts | Annual contract value ₹132 crores |
| Client Retention Rate | 95% | New revenue contribution ~10% YoY |
| Organic Revenue Growth Guidance | 15-16% | Excluding acquisitions for FY27 |
Geographic & Segment Commentary
Facility & Food Services: Revenue ₹520 crores (+9% YoY, flat QoQ) with EBITDA margin 4.6% (+60 bps YoY). Growth driven by 40 new clients (ACV ₹89 crores), volume growth, and low-margin client rationalization. QoQ flatness due to education institution vacations and LPG price inflation. Margin expansion from better collections and operating cost management.
Security Services: Highest-ever revenue ₹187 crores (+25% YoY, +10% QoQ) with headcount crossing 24,900 (+900 net adds). EBITDA ₹5 crores (+43% YoY) but margin 2.8% pressured by mobilization costs and higher ECL provisions in Q1 (PO renewal cycles). Added 37 new clients (ACV ₹43 crores). Focus on cross-selling with STEAG/Hofincons and strengthening sourcing channels.
Smart Infra, Energy & Engineering: Revenue ₹223 crores (+47% YoY, +42% QoQ) driven by STEAG consolidation (₹76 crores from May 21). Telecom vertical seasonally weak but showing revival signs from July. EBITDA ₹21 crores (+80% YoY) with margin 9.2% (+100 bps YoY). Zero on-job fatalities; 5,000+ safety training hours in Q1.
foundit (Investment Business): Revenue ₹19 crores on sales of ₹25 crores (50% YoY growth, 80% in B2B core). EBITDA loss ₹14 crores due to accelerated marketing spends and merit increases. Subscription model creates 2-quarter revenue recognition lag. Target: ₹38-40 crores quarterly sales, cost base ₹32-33 crores, breakeven by Q4 FY27. Full-year burn ₹30-35 crores. AI adoption across 8 charters; ML-powered recruiter search launched.
Company-Specific & Strategic Commentary
STEAG Acquisition Integration: Completed May 21, 2026. Won 4 large multi-year contracts worth >₹5,200 crores over 5 years (3 live from July 1, 4th from August 1). STEAG to contribute ~₹1,000 crores revenue in FY27 at 7-8% EBITDA margins. Portfolio: 14-16 GW thermal O&M out of 250 GW Indian peak demand. Cross-selling active: Security, FM, and Hofincons teams deployed on STEAG contracts. Target: largest thermal O&M player in India; renewables O&M (currently 200 MW) as growth vector.
LSG Sky Chefs Acquisition: Closing in 2-3 weeks for ₹166 crores (incl. ₹57 crores cash). Bengaluru airport kitchen (fastest-growing airport, 2nd largest by footfalls). FY26 revenue ₹112 crores, high-teen EBITDA margins, debt-free. Contracts with IndiGo, Etihad, Qatar, Lufthansa; concession till 2039. Funded via ~₹125 crores debt + internal accruals. ROE/PAT accretive. Organic growth 15-20% until kitchen capacity reached; then leverage experience for new airport opportunities.
Cross-Selling & Integrated Delivery: Structural shift toward vendor consolidation by large clients. Bluspring's differentiated model: single outcome-based contracts combining STEAG (technical O&M), Hofincons (engineering), IFMS (facility services), and Security. Demonstrated on 2,000 MW power plant mobilizations in July. Target replication across India and overseas.
Capital Allocation & Deleveraging: Priority: integrate STEAG & LSG, aggressively repay acquisition debt, unlock synergies. No active acquisition pipeline for FY27. Organic businesses target net debt zero at closing (average ₹150-175 crores working capital debt). Acquisition debt ~₹150 crores by year-end. Proceeds from foundit monetization (post-breakeven) to accelerate debt repayment.
Digital & AI Transformation: foundit: 8 AI charters (internal + customer-facing); 8 processes automated in marketing/finance with efficiency gains from Q3. Core businesses: Digitalization investments in sales/ops capabilities pan out in Q1 sales momentum (incomparable to prior years). Safety training digitization (5,000+ hours in Smart Infra).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 Revenue (excl. foundit) | >₹4,700 crores | +42% YoY; driven by organic 15-16% + STEAG ( |
| FY27 EBITDA (excl. foundit) | >₹200 crores | +65% YoY; exit margin >5%; STEAG 7-8% margins, Security target 4-4.5%, FM target 5% |
| FY27 PAT (excl. foundit) | >₹100 crores | +50% YoY; ROE expansion from ~7% (FY26) to ~13% (FY27) |
| FY27 Net Debt/EBITDA | <1.0x | Organic net debt zero at closing; acquisition debt ~₹150 crores; average organic debt ₹150-175 crores |
| FY27 Working Capital Days | ~45 days | Organic at 37 days; STEAG/LSG elongation; target to break down invoice-to-cash cycle for efficiencies |
| FY27 Effective Tax Rate | ~22% | Chapter VI-A deductions + 80JJAA benefits; quarterly variance from deferred tax assets |
| foundit Breakeven | Q4 FY27 | Requires ₹38-40 crores quarterly sales; cost base held at ₹32-33 crores; marketing front-loaded in H1 |
| Long-term ROE Target | 20% by FY29 | Accelerated from FY30; margin target 5.5-6% EBITDA at 20% ROE (domestic/international mix dependent) |
| Security Margin Target | 4-4.5% in 2 years | From current 2.8-3.5%; Q1 impacted by ECL on PO renewals; recovery in Q2-Q3 |
| Organic Revenue Growth | 15-16% FY27 | Confidence from Q1 sales (₹132 cr ACV) + Q4 mobilizations; math supports guidance |
Risks & Constraints
| Risk | Context |
|---|---|
| Working Capital Elongation | Consolidated days expected to rise from 37 to ~45 due to STEAG/LSG contract structures |