Krystal Integrated Services Q2 revenue rises 46%, PAT 42%

Krystal Integrated Services Limited (KISL) reported revenue from operations of Rs 414.467 crore in Q2 FY27, up 46.25% year on year, and profit after tax of Rs 18.673 crore, up 41.66%, for the quarter ended September 30, 2026. It attributed growth to new client wins, customer additions and larger orders.

How did KISL perform in Q2 FY27?

KISL increased revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), and profit after tax (PAT) in Q2 FY27 from Q2 FY26, while both reported margins declined. Revenue from operations rose by Rs 131.067 crore to Rs 414.467 crore, EBITDA excluding other income increased by Rs 6.953 crore to Rs 24.864 crore, and PAT grew by Rs 5.492 crore to Rs 18.673 crore.

Revenue growth of 46.25% exceeded EBITDA growth of 38.82% and PAT growth of 41.66% in the September 2026 quarter. EBITDA margin declined by 32 basis points to 6.00% from 6.32% in Q2 FY26, while PAT margin fell by 14 basis points to 4.51% from 4.65%. Basic earnings per share rose 42.14% to Rs 13.39 from Rs 9.42.

What drove KISL's quarterly revenue increase?

KISL said Q2 FY27 revenue growth was primarily driven by new client wins and additions during the year, as well as an increase in the scale and value of orders secured. The company added 31 new customers in H1 FY27 and had 547 customers across 4,766 locations as of September 2026.

KISL added branches in Patna and Chandigarh, taking its network to 33 branches and five warehouses. The company reported 49,971 on-site employees as of September 2026, serving its integrated facility management, staffing, security, catering and waste-management activities.

Management said its corporate business was gaining momentum through deeper client relationships, increased wallet share and geographic expansion. Chief Executive Officer and Whole Time Director Sanjay Dighe said KISL remained selective in bidding, prioritising project quality and profitability over scale under its Krystal 2.0 strategy.

How did KISL's first-half results compare with last year?

KISL reported H1 FY27 revenue from operations of Rs 775.178 crore, up 27.82% from Rs 606.481 crore in H1 FY26, while PAT rose 22.09% to Rs 36.035 crore. Q2 revenue of Rs 414.467 crore was also higher than Rs 360.710 crore reported in Q1 FY27.

EBITDA excluding other income increased 21.39% to Rs 47.662 crore in H1 FY27 from Rs 39.264 crore a year earlier. EBITDA margin declined by 32 basis points to 6.15% from 6.47%, while PAT margin decreased by 22 basis points to 4.65% from 4.87%. The first-half comparison therefore showed revenue rising faster than EBITDA and PAT.

Basic earnings per share for H1 FY27 rose 21.99% to Rs 25.85 from Rs 21.19 in H1 FY26. Q2 contributed Rs 18.673 crore of the Rs 36.035 crore first-half PAT, compared with Rs 17.362 crore in Q1 FY27.

Which new contracts and business areas did KISL add?

KISL disclosed H1 FY27 wins in sewage treatment, transportation, metro cleaning, facility management, staffing and sanitation. The largest disclosed opportunity was two sewage-treatment engineering, procurement and construction orders under Swachh Maharashtra Mission 2.0 in Pune and Nagpur, where KISL's 40% consortium share was valued at about Rs 296.02 crore.

In transportation-related facility management, KISL won a three-year contract worth about Rs 134 crore from Maharashtra State Road Transport Corporation for the Mumbai and Chhatrapati Sambhaji Nagar regions. It also secured a three-year Mumbai Metro housekeeping and cleaning contract valued at about Rs 33.05 crore across Metro Lines 4, 4A and upcoming lines.

Other awards included a two-year facility-management contract worth about Rs 27.64 crore for 563 hostels across 13 districts in Andhra Pradesh. KISL also secured a five-year manpower-services contract worth about Rs 17.25 crore from Maharashtra Rajya Sahakari Sangh and a one-year industrial-staffing contract worth about Rs 8.75 crore from Kosol Energie to deploy 250 technical professionals in Gujarat.

KISL further reported a 12-month sanitation and waste-management contract worth about Rs 6.60 crore at Khatu Shyamji Temple in Rajasthan. A one-year Mumbai Monorail housekeeping and cleaning contract, valued at about Rs 6.58 crore, added another public-transport assignment to the disclosed awards.

What is KISL planning after acquiring Citelum India?

KISL acquired a 100% stake in Citelum India, marking its entry into city lighting and urban infrastructure. Management said the acquired business has an annual revenue ambition of Rs 300 crore to Rs 350 crore over the next three to four years, supported by planned investment of about Rs 100 crore.

The Citelum India revenue ambition is a management target rather than reported FY27 revenue. KISL said forward-looking statements are subject to risks and uncertainties, including regulatory changes and local political or economic developments, that could cause actual outcomes to differ materially.

Management identified disciplined growth, execution excellence, margin improvement and a more resilient business as its priorities after the September 2026 results. The current reference point is Q2 FY27 EBITDA margin of 6.00% and PAT margin of 4.51%, compared with 6.32% and 4.65%, respectively, in Q2 FY26.

Conclusion

KISL combined 46.25% Q2 FY27 revenue growth to Rs 414.467 crore with 41.66% PAT growth to Rs 18.673 crore, supported by new customers and larger orders. However, the 32-basis-point EBITDA-margin decline and 14-basis-point PAT-margin decline meant operating profit and net profit grew more slowly than revenue.

The next disclosed matter to watch is delivery of the Citelum India plan, which management targets at Rs 300 crore to Rs 350 crore in annual revenue over three to four years with about Rs 100 crore of planned investment. Execution of the Rs 296.02 crore sewage-treatment consortium share and the Rs 134 crore transportation contract is also relevant alongside management's stated margin-improvement priority.