Service Care Limited FY2026: Margin improvement meets a platform-led strategy

Service Care Limited has spent more than two decades in the business of keeping other businesses running. Founded in 1999 and listed on the NSE SME platform in 2023, the company operates across workforce administration, facility management, and managed workspace solutions. In FY2026, it paired steady top line growth with a clear step up in profitability.

Revenue from operations rose to ₹19,339.34 lakhs in FY2026 from ₹18,901.02 lakhs in FY2025, a year-on-year increase of about 2.3%. The more important change sat below the line. EBITDA increased to ₹723.80 lakhs from ₹285.63 lakhs, taking the EBITDA margin to 3.74% versus 1.51% a year earlier. Profit after tax grew to ₹501.92 lakhs from ₹201.47 lakhs, and earnings per share rose to ₹3.77 from ₹1.63.

The narrative the investor deck points to is simple: Service Care is trying to move from being a services provider to becoming an integrated solutions platform, with three pillars that connect people, workspace, and technology. FY2026 performance matters because it shows the base business can generate higher profitability even before the larger strategic shift is fully reflected in the revenue mix.

A business built on workforce scale and workspace execution

Service Care operates an integrated model, but the current revenue mix is still dominated by workforce services. In FY2026, workforce contributed 79% of revenue while workspace accounted for 21%. The company serves more than 250 customers with a stated customer retention of 91%, and operates through offices across major hubs including Bangalore, Pune, Chennai, Mumbai, Hyderabad, Gurugram, Karnal, and Ahmedabad.

Operationally, the company reports 5,600+ active associates, split between 4,200+ in workforce and 1,300+ in workspace. It also manages more than 2 lakh square feet of workspace capacity. These are meaningful numbers because this business is execution-heavy. The promise to clients is consistent service delivery across locations, along with compliance and governance.

Revenue per associate provides another lens on how the model is behaving. The company reports overall revenue per associate of ₹28,723, with workforce at ₹29,627 and workspace at ₹25,828. The difference fits the broader mix: workforce appears to be the larger engine today, while workspace adds a second stream that can be expanded through cross-sell.

Financial snapshot

This is not a high-margin business, and the deck does not attribute the improvement to any single driver. But the magnitude of EBITDA and PAT expansion against modest revenue growth suggests better cost control, execution discipline, and possibly a richer service mix within contracts. Finance costs remain low at ₹18.33 lakhs, which helps preserve operating improvements at the bottom line.

What the strategy is trying to change

The most important part of the presentation is the shift in how Service Care wants to be valued over time. The company frames its next phase as a move from service provider to an integrated solutions platform, structured around three strategic growth pillars.

HCaaS, or Human Capital as a Service, covers the workforce lifecycle from acquire to optimize. It includes staffing, onboarding, payroll, statutory compliance, and workforce analytics.

MWaaS, or Managed Workspace as a Service, spans the workspace lifecycle from design and build through operate and administer. It includes integrated facility management such as housekeeping, engineering maintenance, security, hospitality, and energy management.

DPaaS, or Digital Platform as a Service, is positioned as the technology layer that digitizes, automates, integrates, and optimizes workflows across HR, payroll, compliance, and facility operations. Within DPaaS, the investor deck introduces HCX, the Human Capital Exchange, described as the company’s proprietary digital ecosystem connecting employers, candidates, gig workers, and enterprise projects.

This three-part architecture matters because it is built to support cross-selling. Many participants in the industry specialize in one domain, staffing or facility management or technology. Service Care’s pitch is that enterprises prefer fewer vendors, and that an integrated partner can improve retention and lifetime value.

The cross-sell logic in the deck follows a customer journey: entry through recruitment or staffing, expansion into payroll and compliance, then into integrated facility and managed workspace services, and finally into technology platform services like analytics and automation. The stated outcomes are higher revenue per client, stronger retention, lower acquisition costs, and more recurring contracts.

Revenue mix today, and what the company wants by FY2028

The current revenue mix shows where the company is, and the target mix shows where it wants to go.

In FY2026, the company reports DPaaS at 5%, MWaaS at 25%, and HCaaS at 70%. By FY2028, the target is DPaaS at 25%, MWaaS at 30%, and HCaaS at 45%.

This is a meaningful attempted shift. If executed, it would reduce dependence on the workforce-heavy base and raise the share of technology-led recurring revenue. The deck also frames DPaaS as enabling AI-driven operations, process automation, a jobs portal, digital compliance, and a gig platform. But it does not provide adoption numbers, customer counts, or monetization metrics yet.

For investors, the key point is that the strategy assumes two things. First, existing enterprise relationships can be expanded across multiple service lines. Second, the digital layer can become a scalable revenue stream rather than just an internal efficiency tool.

Scale, compliance, and execution as the operating moat

Service Care’s operating story leans heavily on execution capability and governance. The company highlights 15+ ISO and compliance certifications and lists a broad set of management systems across quality, environment, occupational health and safety, food safety, information security, business continuity, and facility management.

In outsourcing businesses, compliance is not a side issue. It is often the reason clients consolidate vendors and the reason long-term contracts stay in place. The company positions itself as reducing administrative complexity for clients while improving regulatory adherence.

The deck also highlights ESG and people development inputs such as 52,000+ training hours delivered, 500+ women workforce participation, and 20% green-certified sites. These indicators are not tied to financial outcomes in the presentation, but they signal a focus on workforce development and workplace sustainability, which can matter in enterprise procurement.

From a market context perspective, the company points to a growing facility management market globally and in India. The cited source is Mordor Intelligence, with global market size shown as USD 3.72 trillion in 2026 growing to USD 3.01 trillion in 2031 alongside a 4.33% CAGR figure, and the Indian market shown with USD 24.86 billion in 2026 and a CAGR of 8.30% with 2031 shown at USD 16.68 billion. The deck presents these figures visually, and investors should treat them as third-party estimates rather than company guidance.

The company’s more grounded growth drivers are familiar: higher workforce outsourcing, rising demand for integrated workplace services across manufacturing, healthcare, education, and infrastructure, and digital investments in automation and analytics. It also points to infrastructure and industrial expansion as long-term demand engines.

Balance sheet notes that shape risk and flexibility

As of 31 March 2026, total assets stood at ₹7,331.91 lakhs, up from ₹6,826.09 lakhs in FY2025. Equity share capital remained ₹1,332.85 lakhs, while other equity increased to ₹3,877.63 lakhs from ₹3,363.36 lakhs.

Two balance sheet movements stand out in the disclosed numbers. Property, plant and equipment rose to ₹1,075.55 lakhs from ₹409.38 lakhs, and trade receivables increased to ₹2,684.55 lakhs from ₹2,353.48 lakhs. Both are common in services businesses scaling operations, but they are also worth watching. Higher receivables can signal growth, but they also increase working capital intensity and put pressure on cash conversion if collections slow.

The company reports cash and cash equivalents of ₹455.23 lakhs in FY2026 compared with ₹353.23 lakhs in FY2025. Borrowings remain low in absolute terms, with long-term borrowings at ₹36.19 lakhs and short-term borrowings at ₹11.10 lakhs.

What to watch next

FY2026 shows Service Care improving profitability with stable revenue, and that matters because it provides a stronger base for the next phase. But the bigger question is whether the company can deliver the transition it is describing.

Three practical markers will likely determine how investors assess progress.

First is cross-sell execution. The company’s differentiation relies on becoming one partner with three capabilities. That only works if clients adopt more than one service line in meaningful scale.

Second is DPaaS monetization and HCX adoption. The deck outlines why HCX matters, including employer self-service, automated payroll and compliance, real-time analytics, and a gig marketplace. The next step is evidence of usage and revenue, since the target FY2028 mix implies DPaaS becomes a quarter of revenue.

Third is working capital discipline. Trade receivables are already a large line item. As service scope expands and contracts scale, collections and payment terms will play a larger role in how much of reported profit turns into cash.

Service Care’s FY2026 message is one of strategic clarity built on a wider operating foundation. The company is trying to combine workforce scale, workspace administration, and a digital platform into a single integrated offering. The financial results suggest execution is tightening, with a sharp rise in EBITDA and PAT. The next test is whether the platform narrative turns into measurable recurring revenue and deeper client penetration, while maintaining compliance and cash discipline.