NIS Management Q4 FY26: Income up 14%, EBITDA jumps

Key takeaway from the Q4 and FY26 update

NIS Management Ltd (BOM:544495) announced its Q4 FY26 and full-year FY26 results, reporting higher operating profit and margin expansion despite a one-time regulatory charge. The company said consolidated total income rose 13.96% year-on-year in Q4 FY26, while EBITDA grew faster, helping margins improve. However, reported net profitability for the quarter was dragged by an exceptional provision linked to the Government of India’s new labour codes. Management highlighted that the underlying business remained profitable after adjusting for this non-recurring impact.

Q4 FY26: income growth and sharper EBITDA

For the quarter ended March 31, 2026, the company reported consolidated total income of ₹118.03 crore, up 13.96% year-on-year. (The provided disclosures also carry a Q4 total income figure of ₹180.03 crore for the same period.) EBITDA for Q4 FY26 stood at ₹11.11 crore, a 29.75% year-on-year increase. The EBITDA margin improved to 9.41%, expanding by 115 basis points from the year-ago quarter. The company noted that margins moderated due to wage inflation and a transition in business mix, even as EBITDA growth outpaced income growth.

FY26: steady income and operating margin expansion

For FY26, consolidated total income was reported at ₹436.70 crore, with year-on-year growth cited as ₹7.74 crore. Full-year EBITDA came in at ₹33.53 crore, up 12.19% year-on-year. FY26 EBITDA margin improved to 7.68%, an expansion of 30 basis points. The company characterised the year as stable on revenue and operating performance, with demand across its core services supporting continuity.

Exceptional provision of ₹27.82 crore and profit impact

NIS Management said reported net profitability was impacted by a one-time exceptional provision of ₹27.82 crore due to the implementation impact of new labour codes. Separately, the company also reported a consolidated net loss of ₹14.04 crore in Q4 FY26, primarily attributed to this exceptional item. Adjusting for the one-off provision, adjusted PAT for FY26 stood at ₹19.12 crore, and adjusted PAT for Q4 FY26 was ₹6.86 crore. The company also disclosed that adjusted Q4 FY26 net profit grew 13.56% year-on-year.

Segment mix: security remains the largest vertical

Management disclosed segment-level revenue splits for FY26, showing security services as the largest contributor. Security services contributed ₹199.49 crore, accounting for 46.03% of total revenue. Housekeeping and payroll contributed ₹171.01 crore, or 39.46% of revenue. Integrated facility management and electronic security contributed ₹56.91 crore, representing 13.313% of total revenue. The company has also highlighted a diversified client portfolio across sectors, which it said reduces dependence on any single client segment.

Orders and government projects announced during Q4

The company reported significant government and institutional orders during the quarter. These included a ₹10.36 crore contract for housekeeping services at the Bihar Secretariat in Patna. It also received a ₹2.18 crore order from the Mumbai Police for a CCTV project. In addition, it executed a ₹0.56 crore (₹56 lakh) CCTV project for West Bengal Electronics Industry Development Corporation Limited. The order disclosures underline the company’s engagement with government clients across states.

Rating update from ICRA

The company said ICRA reaffirmed its short-term rating at ICRA A2. It also stated that ICRA upgraded the outlook on the long-term rating from “stable” to “positive”. The update was presented as an indicator of improved financial stability.

Earnings call schedule and participants

NIS Management scheduled an earnings call to discuss results for the quarter and year ended March 31, 2026. The company said the call would be held on June 5, 2026 at 12:00 PM. The call was to be led by Chairman and Managing Director Mr. Debajit Choudhury and CFO Mr. Kanad Mukherjee. The company also shared the universal dial-in numbers as +91 22 6280 1239 and +91 22 7115 8140.

Financial snapshot table

Market impact: what investors will likely track

The most immediate factor in the results is the gap between operating performance and reported profitability. EBITDA growth and margin expansion suggest better execution and cost absorption in Q4 FY26, but the exceptional provision created a sharp distortion in net profit and led to a reported quarterly loss of ₹14.04 crore. For investors, the adjusted PAT figures of ₹6.86 crore for Q4 FY26 and ₹19.12 crore for FY26 provide a clearer view of underlying earnings, as described by the company. Order wins in housekeeping and electronic security, particularly with government institutions, also signal continued demand across core service categories.

Analysis: why the one-time charge matters for FY26 comparability

The company positioned FY26 as a period of regulatory transition, with the labour-code provision treated as non-recurring. That framing matters for year-on-year comparisons because operating metrics like EBITDA and margin improved, while reported profit turned negative in the quarter. Investors will also watch whether wage inflation and changes in business mix continue to influence margins, as the company has already flagged these factors. The ICRA outlook upgrade to positive, alongside the reaffirmed short-term rating, is another datapoint that markets typically use to gauge balance-sheet and liquidity comfort.

Conclusion

NIS Management’s FY26 results showed stable income growth and improved operating profitability, alongside a one-time ₹27.82 crore labour-code provision that weighed on reported net profit. The company has scheduled its earnings call for June 5, 2026, where management is expected to discuss the exceptional item, segment trends, and execution priorities across security, housekeeping, and electronic security projects.