Krystal Integrated Services Q3 PAT jumps 5% YoY to Rs 16 cr

Krystal Integrated Services' consolidated net profit jumped 4.95% to Rs 15.89 crore in Q3 FY26 as against Rs 15.14 crore posted in Q3 FY25.

Revenue from operations rallied 10.66% to Rs 305.85 crore in Q3 FY26 as against Rs 276.37 crore posted in the corresponding quarter last year.

Profit before tax stood at Rs 18.21 crore in Q3 FY26, 6.67% higher than Rs 17.07 crore recorded in the same period last year.

EBITDA rose 15.8% to Rs 20.5 crore in Q3 FY26 from Rs 17.69 crore in Q3 FY25, driven by disciplined bidding, improved contract selectivity, and higher contribution from the corporate business.

EBITDA margin expanded to 6.7% in Q3 FY26, up from 6.4% a year ago, supported by better operating leverage, margin protection measures, and an improving business mix despite cost pressures.

Total expenses jumped 11.08% to Rs 292.30 crore in Q3 FY26, compared to Rs 263.13 crore reported in Q3 FY25. The cost of materials consumed stood at Rs 47.06 crore (up 77.17% YoY), and employee benefit expenses were at Rs 227.37 crore (down 0.27% YoY) during the period under review.

For Q3 FY26, the revenue from the Manpower & Related Services was Rs 264.69 crore (up 4.06% YoY), Information Technology Enabled Services revenue was Rs 1.56 crore (down 83.27% YoY) and Catering Services revenue was Rs 13.58 crore (up 92.62 % YoY).

Sanjay Dighe, CEO & Whole-Time Director, Krystal Integrated Services, said: The company has adopted a disciplined strategy focused on profitable growth and working capital efficiency, rather than pure volume-led expansion. As a result, our participation in government tenders has become strategically selective, avoiding low-margin or capital-intensive bids despite available volumes. This has led to a material improvement in win efficiency, highlighting strong execution capabilities while preserving profitability and balance sheet discipline.

At the same time, Krystal has accelerated its shift toward higher-margin corporate business and specialised infrastructure-linked service verticals, supported by investments in skilled and semi-skilled manpower, internal capability building, and increased mechanisationincluding technology-enabled and robotics-supported service deliveryto reduce dependence on unskilled labour and enhance operating leverage.

The corporate segment continues to gain traction, backed by improved client quality and deeper sectoral penetration. We added 38 new corporate clients in Q3 FY26, compared with 30 in Q3 FY25, and 127 clients year-to-date, up from 49 in 9MFY25. The total corporate client base increased 38% YoY to 391 as of December 31, 2025, reflecting our focus on higher-value, higher-margin engagements.

In parallel, the company is expanding into higher-margin adjacencies such as wastewater and solid waste management. While this strategic recalibration may moderate near-term revenue growth, our focus remains on building a resilient, margin-led operating model with better capital efficiency and returns. The impact of this transition is expected to become more visible in the companys financials and disclosures in the coming quarters, with a clearer picture of the evolved business mix and profitability trajectory by year-end.

The companys board has approved an increase in the authorised share capital from Rs 15 crore to Rs 19 crore. The authorised share capital will now comprise 1.90 crore equity shares of Rs 10 each, up from 1.50 crore equity shares, all ranking pari passu with the existing equity shares.

The board also approved a consequential amendment to the capital clause of the Memorandum of Association, subject to receipt of requisite shareholder and statutory approvals, as applicable.

Further, the board has approved raising up to Rs 300 crore through the issuance of equity shares via Qualified Institutions Placement (QIP), in accordance with SEBI ICDR Regulations and other applicable laws. The fund-raising may be undertaken in one or more tranches at prices permitted under prevailing regulations, subject to shareholder and statutory approvals.

The board has also constituted a QIP committee, authorising it to undertake all necessary actions in connection with the proposed issue, subject to requisite approvals.

KISL is a well-diversified service provider in integrated facility management services, staffing solutions, security services, catering and waste management across India. The Company specializes in sectors such as healthcare, education, City infrastructure, Waste Management and Manufacturing segmentincluding state government entities, Corporate clients, municipal bodies and other government officesairports, railways, metro infrastructure and retail.

Shares of Krystal Integrated Services rose 0.27% to Rs 604.50 on the BSE.

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