Krystal Integrated Services reported a mixed Q2 FY26, with moderate revenue growth of 6.5% YoY to ₹283.40 crores, primarily due to delays in government tender finalization and documentation. However, H1 FY26 showed stronger performance with revenue up 15.9% YoY to ₹606.48 crores and EBITDA up 18% YoY to ₹39.26 crores, leading to an 11 bps margin expansion. The corporate segment demonstrated robust growth of 53% YoY in H1 FY26, and the company maintains a strong order book exceeding ₹2,600 crores, indicating future revenue visibility despite short-term execution challenges.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Revenue (Q2 FY26) | ₹283.4 Cr | +6.5% YoY |
| EBITDA (Q2 FY26) | ₹17.91 Cr | +5.3% YoY |
| EBITDA Margin (Q2 FY26) | 6.32% | -0.1% YoY |
| PAT Margin (Q2 FY26) | 4.65% | -1.0% YoY |
| EPS (Q2 FY26) | ₹9.42 | — |
| Revenue (H1 FY26) | ₹606.48 Cr | +15.9% YoY |
Segment Breakdown
Total Value
₹ 2,600 crores
as of 2025-09-30
Execution
for the period of 3 years
Composition
"The company has a robust order book exceeding INR 2,600 crores, with a good balance between government and corporate clients, providing long-term revenue visibility."
| Category | Target | Priority |
|---|---|---|
| Growth | Overall Growth→in a good zone that we have been growing in the last 5 years | Low |
| Margin | Margin Profile→on the upmost side | Medium |
| # | Metric | |
|---|---|---|
| 01 | Resolution of Tender Delays & Order Execution | |
| 02 | Working Capital Improvement | |
| 03 | B2C Taskmaster Performance and Scaling | |
| 04 | Margin Profile Improvement |
| Severity | Risk |
|---|---|
medium | Delays in Tender Finalization and Documentation The bidding process in the last quarter was slow due to huge documentation, resulting in delays in acquiring work orders and deploying services, impacting Q2 revenue growth. Management |
low | PAT Margin Contraction Q2 PAT margin declined by 102 bps YoY due to a conservative approach to taxation, slight increase in finance cost, and depreciation. Management |
medium | High Receivable Days / Working Capital Analyst raised concern about high receivable days, which management acknowledged as cyclical but expects to improve due to recent collections. Analyst |
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.