Krystal Integrated Services Limited , a leading facility management and integrated services provider, has reported a 6.5% year-on-year revenue growth to INR 283.40 crores in Q2. The company's performance, while positive, was moderated by delays in government tender finalization due to extended documentation processes.

Financial Highlights

Key Developments

• Secured major contracts worth over INR 800 crores, including:
  • INR 157 crores from Delhi Education Directorate for sanitation and security manpower services
  • INR 168 crores from Andhra Pradesh Medical Education for sanitation services
• Maintained a robust order book of INR 2,600+ crores
• Added 92 new corporate customers in H1

Segment Performance

The corporate segment showed strong growth, with revenue increasing by 53% year-on-year in H1. This growth reflects the company's efforts to strengthen its position in the private sector.

Challenges and Outlook

CEO Sanjay Dighe addressed the impact of documentation delays on revenue recognition, stating, "The only challenge that we may face, which we faced in this quarter is a certain delay in documentation. That is the only challenge that we see." He expressed optimism about the company's future performance, citing a healthy pipeline of projects and the potential for margin improvement through diversification into areas such as solid waste and wastewater management.

Strategic Initiatives

Krystal Integrated Services is expanding its service offerings, including:

1. Entry into the B2C segment with 'Taskmaster' for residential cleaning services
2. Exploring opportunities in water and wastewater management
3. Evaluating potential expansion into ports and solar EPC projects

The company maintains a 70:30 ratio between government and corporate sector revenues, with plans to strengthen its corporate sector presence further.

As Krystal Integrated Services navigates through documentation challenges and explores new business avenues, it remains focused on maintaining growth and improving margins in the coming quarters. The company's diversification strategy and strong order book position it well for future growth in the facility management sector.

Krystal Integrated Services Limited (KISL), a leading provider of integrated facility management solutions in India, has announced its financial results for the second quarter and first half of fiscal year 2026, along with a key executive appointment to drive future growth.

Q2 and H1 FY26 Financial Highlights

KISL reported a steady performance in Q2 FY26, with revenue growing 6.5% year-over-year to ₹283.40 crore. For the first half of FY26, the company achieved a more robust 15.9% revenue growth, reaching ₹606.48 crore.

Key financial metrics for Q2 and H1 FY26 are summarized in the table below:

While Q2 growth was moderate, the company maintained its EBITDA margin at 6.32%. The slight decline in profitability was attributed to a conservative approach to taxation and increases in finance costs and depreciation.

Corporate Business Growth and Customer Acquisition

A standout feature of KISL's performance was the strong growth in its corporate business segment, which saw revenues increase by 53% in H1 FY26. The company added 92 new corporate clients during this period, following 114 additions in FY25. These new engagements are described as recurring, margin-accretive, and strategically aligned.

Operational Expansion

KISL has expanded its national presence, increasing its branch network from 26 to 33 locations over the past year. This expansion supports the company's ability to serve a wider range of clients across India.

Strategic Focus on High-Value Projects

CEO and Whole-time Director Sanjay Dighe noted that the company has maintained a disciplined approach to project selection, particularly in the government sector. He stated, "We continued to exercise strong commercial discipline and consciously avoided bidding for projects that did not meet our margin or scale benchmarks. This is a deliberate strategic choice to protect profitability and ensure quality of earnings, rather than pursuing volume for its own sake."

New Executive Appointment

In a move to strengthen its leadership team and drive future growth, KISL has appointed Dr. (hc) Dhananjay Mayur Dave as President – Business Development, effective November 14, 2025. Dr. Dave brings over 35 years of global leadership experience across sectors including infrastructure, petrochemicals, clean energy, and facilities management.

Looking Ahead

Despite some short-term challenges, including delays in government tender finalizations, KISL's management remains optimistic about the company's prospects. The company expects deferred government tenders to move into execution in H2 FY26, which, coupled with the ongoing scaling of its corporate business, positions KISL for stronger performance in the coming quarters.

KISL is also advancing its capabilities in emerging businesses such as water treatment, waste management, and operations & maintenance services, which are expected to become meaningful contributors to revenue and profitability over the medium term.

As Krystal Integrated Services continues to navigate the evolving landscape of integrated facility management in India, its focus on strategic growth, operational efficiency, and expanding its service portfolio positions the company to capitalize on the sector's long-term potential.