SIS Limited announced its unaudited financial results for the quarter ended December 31, 2025, delivering record-breaking performance across key metrics. The company reported its highest-ever quarterly revenue of ₹4,185.2 crores, marking a significant 24.5% year-on-year growth and 11.4% quarter-on-quarter increase.

Financial Performance Highlights

The company achieved several milestone metrics during Q3 FY26, with operating EBITDA reaching ₹196.3 crores, representing a 25.2% year-on-year growth. This marked the highest-ever operating EBITDA in the company's history.

Despite strong operational performance, the company reported a loss of ₹138.4 crores in Q3 FY26 compared to a profit of ₹102.1 crores in Q3 FY25, primarily due to one-time exceptional charges of ₹290 crores related to labour law changes.

Segment-wise Performance

All three business segments demonstrated robust growth momentum during the quarter.

Security Solutions - India recorded the highest-ever quarterly revenue of ₹1,898.0 crores, growing 33.7% year-on-year and 23.0% quarter-on-quarter. The segment secured new order wins of approximately ₹32 crores of monthly revenue, with major contributions from E-commerce, Education, Media and Entertainment sectors.

Security Solutions - International achieved revenue of ₹1,670.4 crores, representing 20.8% year-on-year growth (13.8% on constant currency basis). New wins during the quarter primarily came from Steel and Aviation sectors.

Facility Management Solutions reported revenue of ₹635.7 crores with 10.3% year-on-year growth. The segment secured new order wins of over ₹27 crores of monthly revenue from Automotive, BFSI, Real Estate, and Oil and Gas sectors.

Board Decisions and Corporate Actions

The Board of Directors approved several significant decisions during their meeting held on January 29, 2026:

Key Appointments

The company made strategic board appointments to strengthen its governance structure:

Dr. Onkar Sharma was appointed as Additional Director (Non-Executive and Independent) for a two-year term effective January 29, 2026. Dr. Sharma brings extensive expertise in labour policy and industrial relations, having served as Former Chief Labour Commissioner (Central), Government of India.

Mr. Deepak Kumar was re-appointed as Independent Director for a second term of two years effective June 27, 2026. Mr. Kumar is a retired IAS officer with over 42 years of administrative experience, having served as Chief Secretary of Bihar.

Financial Health and Cash Flow

The company maintained strong cash conversion with OCF/EBITDA ratio of 140.5% for the quarter, driven by a 2-day reduction in Days Sales Outstanding (DSO). Net Debt to EBITDA ratio stood at 1.25 as of December 2025, compared to 1.03 in Q2 FY26.

Return on Capital Employed (ROCE) reached 15.2%, while Return on Equity (RoE) was 14.0% after adjusting for impairment charges and gratuity expenses.

Earnings Call Transcript and Management Commentary

The company released the earnings call transcript held on January 30, 2026, providing detailed insights into the quarter's performance. Group Managing Director Rituraj Sinha emphasized the milestone achievement, stating: "Q3 FY26 has been a milestone quarter with quarterly revenue crossing INR 4,000 cr. for the first time and the highest ever Operating EBITDA of INR 196 cr. With robust 9 months performance, SIS is well positioned for a REBOUND in FY26."

During the earnings call, management addressed the one-time exceptional charge of ₹290 crores related to labour law changes, explaining their conservative approach to provisioning. The company expects to recover these costs from clients as the new labour codes are implemented, with potential positive impact on future financial results.

Labour Code Impact and Recovery Strategy

Management provided clarity on the ₹290 crore exceptional charge, explaining it relates to prior-period gratuity and leave liabilities under new labour code definitions. The company adopted a conservative approach by taking the full provision upfront, with plans to recover incremental costs from customers as labour codes are implemented. As Rituraj Sinha noted: "Whatever we claim, if we claim 99%, it will come back into our P&L over the course of the year."

Shareholder Returns and Future Outlook

The company announced a shift in its shareholder return strategy, introducing dividend payments alongside its traditional buyback approach. The ₹7 interim dividend represents a new approach to reward shareholders, with management indicating plans for continued cash returns through both dividends and potential buybacks based on market feedback.

SIS Limited has announced the allotment of 50,733 equity shares under its Employee Stock Option Plan (ESOP), following approval from the company's Nomination and Remuneration Committee. The decision was made during a committee meeting held on January 29, 2026, demonstrating the company's ongoing commitment to employee incentivization through equity participation.

Share Allotment Details

The allotted shares carry specific financial parameters that impact the company's capital structure. Each equity share has been valued at INR 5, maintaining consistency with the company's existing share denomination structure.

Updated Capital Structure

Following the share allotment, SIS Limited's capital structure has been revised to reflect the increased equity base. The paid-up share capital has grown substantially, indicating the company's expansion of its equity foundation through employee participation.

Regulatory Compliance

The allotment has been conducted in accordance with regulatory requirements under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically under Regulation 30. The company has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this corporate action.

The committee meeting was conducted efficiently, commencing at 09:30 a.m. and concluding at 10:05 a.m. on January 29, 2026. Company Secretary and Compliance Officer Pushpalatha Katkuri signed the official communication, ensuring proper documentation and regulatory compliance for this equity allotment under the Employee Stock Option Plan.