Krystal Integrated Services Limited

Krystal Integrated Services reported Q2 FY26 revenue of ₹283.40 crores, reflecting a 6.5% YoY growth, which was moderate due to delays in tender finalization. Q2 EBITDA stood at ₹17.91 crores, up 5.3% YoY, with the margin slightly declining by 7 bps to 6.32%. For the half-year (H1 FY26), total revenue reached ₹606.48 crores, a 15.9% YoY increase. H1 EBITDA grew 18% YoY to ₹39.26 crores, with the EBITDA margin expanding by 11 bps to 6.47%, demonstrating improved operating leverage and efficient cost control.

The corporate business segment delivered an encouraging performance, with revenue growing almost 53% year-on-year in H1 FY26. The company added 92 new corporate customers during this period, building on the 114 clients added in FY25. This expansion has diversified Krystal's penetration across various sectors including pharma, manufacturing, logistics, warehousing, and IT/ITES, leading to a very strong and recurring revenue potential. Management is optimistic about an upswing in the margin profile for the corporate business.

Krystal continued to consolidate its leadership in the public sector with several important contract wins. These include ₹157 crores from the Directorate of Education Delhi for sanitation and security manpower services, and ₹168 crores for sanitization services from the Directorate of Medical Education, Andhra Pradesh. Other notable wins comprise ₹370 crores for social welfare projects in Maharashtra, ₹65 crores for O&M of substations from MSEDCL, ₹31.5 crores for manpower services for Maha Mumbai Metro, and ₹20.3 crores for facility management at Patna Airport's new terminal.

The company's strategy emphasizes disciplined bidding and efficient manpower allocation to maintain healthy margins, even if it means not bidding on all tenders. Krystal is actively exploring opportunities in emerging businesses like water, waste, and O&M, aiming to build O&M as an independent vertical. The MSEDCL contract, for instance, qualifies the company to bid for similar contracts across India, and the new EPC plus O&M contracts in effluent treatment offer different, potentially higher-margin profiles compared to traditional services.

Q2 FY26 performance was impacted by delays in the government bidding process, primarily due to extensive documentation and approval processes for large, multi-locational contracts. This resulted in a deferral of work order acquisitions and service deployments. While working capital, particularly receivable days, remains a point of discussion, management indicated that substantial collections in the last month have improved the situation, and they expect working capital to normalize.

Krystal is venturing into the B2C segment with 'Taskmaster', offering flexible, on-demand services for residential customers (flats, apartments, bungalows). The initiative is in its early stages, with teams being built and branding exercises underway. Initial campaigns during Diwali and Rakhi Purnima received encouraging responses, but the company is still in the process of professionally testing the market before scaling up. This initiative aims to diversify service offerings within infrastructure-linked facility management.