KAPSTON - Kapston Services
📢 Recent Corporate Announcements
Kapston Services Limited has completed the allotment of 1,01,44,061 bonus equity shares to eligible shareholders as of the record date, March 06, 2026. The bonus issue was carried out in a 1:2 ratio, providing one new share for every two existing shares held. This corporate action has increased the company's total paid-up equity share capital from Rs. 10.14 crore to Rs. 15.21 crore. The newly allotted shares rank pari-passu with existing shares and will increase the overall liquidity of the stock.
- Allotment of 1,01,44,061 bonus equity shares with a face value of Rs. 5 each
- Bonus ratio of 1:2 implemented for shareholders as of the March 06, 2026 record date
- Total number of equity shares increased from 2,02,88,122 to 3,04,32,183
- Paid-up equity share capital expanded from Rs. 10,14,40,610 to Rs. 15,21,60,915
- New shares carry the same rights and rank pari-passu with existing equity shares
Kapston Services Limited has officially fixed Friday, March 06, 2026, as the record date for its upcoming bonus share issuance. The company will issue bonus shares in a 1:2 ratio, meaning shareholders will receive one new fully paid-up equity share for every two shares held. Each share has a face value of Rs. 5. This corporate action is intended to reward existing shareholders and improve the liquidity of the stock in the market.
- Record date for bonus share eligibility is fixed as March 06, 2026
- Bonus ratio confirmed at 1:2 (one new share for every two existing shares)
- Face value of the equity shares remains constant at Rs. 5 per share
- The issuance is being conducted under Regulation 42 of SEBI Listing Regulations
Kapston Services Limited has received shareholder approval for two major resolutions via postal ballot: an increase in authorized share capital and the issuance of bonus shares. Both resolutions were passed with 100% of the 1,66,18,621 polled votes in favor, representing 81.91% of the total outstanding shares. The promoter group participated fully with 1,47,83,390 shares, while public participation was approximately 33.34% of their holding. This approval allows the company to proceed with its planned capitalization of reserves through the bonus issue.
- 100% of the 1.66 crore votes polled were in favor of the bonus share issuance.
- The resolution to increase authorized share capital was passed with a requisite majority.
- Overall shareholder participation in the postal ballot was 81.91% of the total 2.02 crore shares.
- Promoter group participation was 100% (1.47 crore shares), while public non-institutional participation was 33.34%.
Kapston Services reported a strong performance for the quarter ended December 31, 2025, with consolidated revenue growing 16.5% YoY to ₹212.65 crore. Net profit saw a significant jump of 64% YoY, reaching ₹7.43 crore compared to ₹4.53 crore in the same period last year. The company's 9-month PAT of ₹20.61 crore has already surpassed the total PAT for the entire previous fiscal year (FY25). Additionally, the board has re-appointed Srikanth Kodali as Managing Director and reaffirmed a previously recommended 1:2 bonus issue.
- Consolidated Revenue from Operations grew 16.5% YoY to ₹212.65 crore in Q3 FY26.
- Net Profit after Tax (PAT) increased by 64% YoY to ₹7.43 crore from ₹4.53 crore.
- 9M FY26 PAT stands at ₹20.61 crore, exceeding the full FY25 PAT of ₹17.84 crore.
- Basic EPS for the quarter improved to ₹3.66 from ₹2.23 in the corresponding previous year quarter.
- Board approved the re-appointment of Mr. Srikanth Kodali as Managing Director with revised remuneration.
Kapston Services reported a strong financial performance for the quarter ended December 31, 2025, with consolidated revenue rising 16.1% YoY to ₹212.06 crore. Net profit for the quarter surged by 64% YoY to ₹7.43 crore, up from ₹4.53 crore in the previous year. The nine-month performance was even stronger, with net profit growing 75% to ₹20.61 crore. The board also approved the re-appointment of Srikanth Kodali as Managing Director and noted a previously recommended 1:2 bonus issue.
- Consolidated Revenue from Operations increased 16.1% YoY to ₹212.06 crore.
- Net Profit after tax surged 64% YoY to ₹7.43 crore for Q3 FY26.
- 9M FY26 Net Profit reached ₹20.61 crore, representing a 75% growth over 9M FY25.
- Basic EPS for the quarter improved to ₹3.66 from ₹2.23 in the year-ago period.
- Board re-appointed Srikanth Kodali as Managing Director with revised remuneration.
Kapston Services reported a strong set of numbers for Q3 FY26, with Profit After Tax (PAT) surging 64.02% YoY to ₹7.43 crore. Revenue grew by 16.46% to ₹212.85 crore, while EBITDA margins showed significant improvement with a 36.77% YoY growth. For the nine-month period (9M FY26), the company's performance was even more robust, with PAT increasing by 74.96% to ₹20.61 crore. Additionally, the company is diversifying into the B2C segment through its new subsidiary, Kapston Home Services, targeting the home services marketplace.
- Q3 FY26 Revenue increased by 16.46% YoY to ₹212.85 crore compared to ₹182.77 crore in Q3 FY25
- Q3 FY26 PAT grew by 64.02% YoY to ₹7.43 crore, reflecting strong operational leverage
- 9M FY26 PAT stood at ₹20.61 crore, a significant 74.96% jump compared to ₹11.78 crore in the previous year
- EBITDA for Q3 FY26 rose 36.77% YoY to ₹11.42 crore with improved margins
- Strategic entry into B2C home services via new subsidiary 'Kapston Home Services Private Limited'
Kapston Services Limited has approved the reappointment of Mr. Srikanth Kodali as the Managing Director for a three-year term effective February 06, 2026. Mr. Kodali is a promoter director with over a decade of experience in facilities management and security services. The reappointment includes a revised remuneration package which is subject to shareholder approval. This decision ensures leadership continuity for the company, coinciding with the release of their Q3 FY26 financial results.
- Mr. Srikanth Kodali reappointed as Managing Director for a 3-year term starting February 06, 2026
- Board approved revised remuneration for the MD, pending shareholder approval
- Mr. Kodali has over 10 years of experience in Manpower, Security, and Facilities Management
- The board also approved unaudited financial results for the quarter ended December 31, 2025
Kapston Services Limited has approved its unaudited financial results for the quarter ended December 31, 2025. In a key leadership decision, the board has re-appointed promoter Mr. Srikanth Kodali as Managing Director for a three-year term effective February 06, 2026. This re-appointment includes a revised remuneration structure which is currently pending shareholder approval. The move ensures management continuity for the company, which specializes in facilities management and security services.
- Board approved standalone and consolidated unaudited financial results for the quarter ended December 31, 2025.
- Mr. Srikanth Kodali re-appointed as Managing Director for a 3-year tenure starting February 06, 2026.
- Revised remuneration for the Managing Director is subject to approval by the company's shareholders.
- Mr. Kodali is a promoter director with over 10 years of experience in Facilities Management and Security Services.
- The board meeting concluded within 30 minutes, starting at 5:00 PM and ending at 5:30 PM.
Kapston Services Limited has initiated a postal ballot to seek shareholder approval for a 1:2 bonus share issue. The company proposes to capitalize up to ₹507.21 Lakhs from its reserves to issue 1,01,44,061 new equity shares. To facilitate this, the authorized share capital is being increased from ₹11.50 Crores to ₹20.00 Crores. Shareholders can cast their votes via e-voting between January 30 and February 28, 2026.
- Proposed bonus issue in the ratio of 1:2 (one new share for every two existing shares held)
- Increase in authorized share capital from ₹11.50 Crores to ₹20.00 Crores
- Capitalization of reserves and share premium totaling approximately ₹507.21 Lakhs
- Issuance of 1,01,44,061 new equity shares with a face value of ₹5 each
- E-voting period concludes on February 28, 2026, with the record date to be determined later
Kapston Services Limited has informed the exchanges that Ms. Triveni Banda has resigned from her position as Company Secretary and Compliance Officer effective January 27, 2026. The resignation is attributed to personal reasons, and she will also cease to be a Key Managerial Personnel (KMP) of the company. The company made this disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015. Investors should watch for the announcement of a successor to ensure smooth regulatory compliance and corporate governance.
- Ms. Triveni Banda resigned as Company Secretary and Compliance Officer effective January 27, 2026.
- The resignation is cited due to personal reasons according to the official filing.
- She will cease to be a Key Managerial Personnel (KMP) under Section 203 of the Companies Act, 2013.
- The company must appoint a new Compliance Officer within the statutory timeline of six months.
Kapston Services Limited has approved a 1:2 bonus issue, granting one new equity share for every two existing shares held. In a major strategic shift, the company is diversifying from B2B into the B2C market by forming a 100% subsidiary, Kapston Home Services Private Limited. This new entity will provide professional cleaning, beauty, and repair services, leveraging the company's existing workforce management expertise. The bonus issue and expansion plans are subject to shareholder and regulatory approvals.
- Approved a 1:2 bonus issue (1 new share for every 2 existing shares of ₹5 face value)
- Formation of 100% wholly-owned subsidiary 'Kapston Home Services Private Limited'
- Strategic entry into the B2C marketplace for cleaning, beauty, and EPC (Electrical, Plumbing, Carpentry) services
- Leveraging established B2B workforce management and compliance strengths for household services
- Bonus issue is subject to shareholder approval via Postal Ballot with record date to be announced
Kapston Services has approved a bonus issue of equity shares in the ratio of 1:2, providing one new share for every two existing shares held. To support this, the company is increasing its authorized share capital from ₹11.50 crore to ₹20.00 crore. Furthermore, the board has approved the incorporation of a new wholly-owned subsidiary, Kapston Home Services Private Limited, to enter the online home services marketplace. The bonus issue will utilize ₹5.07 crore from the company's substantial free reserves of ₹78.73 crore.
- Approved a 1:2 bonus issue, involving the issuance of 1,01,44,061 new equity shares of ₹5 each.
- Authorized share capital increased from ₹11.50 crore to ₹20.00 crore to facilitate the bonus issuance.
- Bonus issue to be funded by capitalizing ₹5.07 crore out of ₹78.73 crore available in free reserves as of March 31, 2025.
- Incorporation of a new wholly-owned subsidiary to venture into the online home services marketplace industry.
- The bonus issue is expected to be implemented within two months, pending shareholder approval via postal ballot.
Kapston Services has approved a bonus issue in the ratio of 1:2, meaning shareholders will receive one new share for every two held. The company will capitalize approximately ₹5.07 crore from its total free reserves of ₹78.73 crore to facilitate this issue. Additionally, the board has approved the incorporation of a new wholly-owned subsidiary, Kapston Home Services Private Limited, to enter the online home services marketplace. To accommodate the new shares, the authorized share capital is being increased from ₹11.5 crore to ₹20 crore.
- Approved 1:2 bonus issue of equity shares with a face value of ₹5 each
- Total post-bonus paid-up capital to increase from ₹10.14 crore to ₹15.21 crore
- Authorized share capital hiked from ₹11.5 crore to ₹20 crore to support expansion
- Incorporation of 'Kapston Home Services Private Limited' to target the online service marketplace
- Bonus issue to be implemented within two months, subject to shareholder approval via postal ballot
Kapston Services has approved a 1:2 bonus issue, meaning shareholders will receive one new equity share for every two shares held. The company will capitalize approximately ‡5.07 crore from its substantial free reserves of ‡78.73 crore to facilitate this issuance. Additionally, the board has authorized the incorporation of a new wholly-owned subsidiary, Kapston Home Services Private Limited, to enter the online home services marketplace. To accommodate the bonus shares, the company is also increasing its authorized share capital from ‡11.5 crore to ‡20 crore.
- Approved a 1:2 bonus issue, resulting in the issuance of 1,01,44,061 new equity shares.
- Capitalizing ‡5.07 crore from audited free reserves/share premium totaling ‡78.73 crore.
- Authorized share capital increased from ‡11.5 crore to ‡20 crore to support the issuance.
- Incorporation of a new wholly-owned subsidiary for the online home services marketplace vertical.
- Bonus issue to be completed within two months, subject to shareholder approval via postal ballot.
Kapston Services Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended December 31, 2025. The certificate, issued by Bigshare Services Private Limited, confirms that share certificates received for dematerialization were processed and cancelled as per regulatory requirements. This is a standard procedural filing to ensure the integrity of the company's shareholding records with the depositories. Such filings are mandatory for all listed entities and indicate regular administrative compliance.
- Submission of SEBI compliance certificate for the quarter ended December 31, 2025
- Confirmation provided by Registrar and Share Transfer Agent, Bigshare Services Private Limited
- Verification that share certificates for dematerialization were mutilated and cancelled
- Ensures the name of depositories has been substituted in the register of members within the stipulated time
Financial Performance
Revenue Growth by Segment
Consolidated revenue for H1 FY26 reached INR 402.57 Cr, up 25.1% from INR 321.78 Cr in H1 FY25. The contract staffing segment grew 68.6% in fiscal 2024 to INR 199 Cr and is expected to grow at 25% over the medium term. IFM and security services are estimated to grow at 15-20% annually.
Geographic Revenue Split
Not disclosed in available documents, though the company has established infrastructure and teams across India to bag contracts from large-scale reputed customers.
Profitability Margins
Operating margin was 4.4% in fiscal 2024, recovering from 3.4% in fiscal 2023. Standalone Net Profit margin for H1 FY26 was 3.27% (INR 13.13 Cr on INR 401.31 Cr revenue). Margins are expected to remain modest at 4.5-5.0% due to the low-margin nature of the staffing business.
EBITDA Margin
Operating margin (EBITDA proxy) was 4.4% in fiscal 2024. The margin moderated from 4.7% in fiscal 2022 to 3.4% in fiscal 2023 due to higher fixed and employee costs, but is expected to stabilize at 4.5-5.0% as scale improves.
Capital Expenditure
Debt-funded capital expenditure is planned for a new office, which is expected to increase the company's gearing to 1.90-1.95 times as on March 31, 2025.
Credit Rating & Borrowing
CRISIL BBB/Negative (Long Term) and CRISIL A3+ (Short Term). The 'Negative' outlook reflects subdued debt protection metrics, with interest coverage monitorable above 2 times.
Operational Drivers
Raw Materials
Manpower/Employee costs represent the primary operational cost, estimated at approximately 85-90% of total expenses in the staffing and security services industry.
Import Sources
Not applicable as the company provides services using domestic labor sourced within India.
Key Suppliers
Not applicable as the company is a service provider; primary 'suppliers' are the workforce and recruitment agencies.
Capacity Expansion
Not applicable in units; however, the company has expanded its infrastructure nationwide over the last 2-3 years to support a revenue target of >INR 300 Cr from the staffing segment alone in FY25.
Raw Material Costs
Employee costs are the primary driver; higher employee costs led to margin moderation to 3.4% in fiscal 2023. Procurement strategy focuses on nationwide recruitment teams.
Manufacturing Efficiency
Not applicable; efficiency is measured by the ability to scale revenue while maintaining interest coverage above 2 times and managing fixed overheads.
Strategic Growth
Expected Growth Rate
25%
Growth Strategy
The company aims to achieve growth by scaling its contract staffing vertical to >INR 300 Cr in FY25, leveraging nationwide infrastructure set up over the last 3 years, and expanding its Integrated Facility Management (IFM) vertical by 15-20%.
Products & Services
Security services, Housekeeping, M&E (electro-mechanical) services, Landscaping (horticulture), and Contract Staffing solutions.
Brand Portfolio
Kapston.
New Products/Services
Contract staffing solutions, launched in FY20, now contribute significantly to revenue, growing from INR 7 Cr in FY21 to INR 199 Cr in FY24.
Market Expansion
Nationwide expansion with infrastructure and teams already established to target large-scale reputed customers across India.
External Factors
Industry Trends
The IFM and security industry is growing at 15-20% while contract staffing is growing at 25% due to increased corporate outsourcing of non-core functions.
Competitive Landscape
Highly competitive industry with many players, leading to modest operating margins and a focus on volume-driven growth.
Competitive Moat
Moat is based on an established track record since 2009, a proven brand in IFM, and the scale of operations (INR 520 Cr revenue) which allows for better coverage of fixed overheads.
Macro Economic Sensitivity
Highly sensitive to the performance of the Indian economy and general outsourcing trends in the IT and corporate sectors.
Consumer Behavior
Increasing preference among Indian corporates for integrated facility management and outsourced staffing to reduce internal administrative burdens.
Regulatory & Governance
Industry Regulations
Operations are governed by labor laws, minimum wage regulations, and ISO 9001 / OHSAS 18001 certifications for IFM services.
Taxation Policy Impact
The company follows Indian Accounting Standards (Ind AS) and Section 133 of the Companies Act, 2013. Standalone H1 FY26 tax expense was not explicitly detailed but PBT was INR 11.83 Cr.
Risk Analysis
Key Uncertainties
Working capital intensity and the ability to maintain interest coverage above 2 times are the primary business risks, with a potential 10-15% impact on liquidity if receivables are delayed.
Geographic Concentration Risk
Not disclosed, but the company operates nationwide across India.
Third Party Dependencies
Dependency on the ability to recruit and retain a large workforce to fulfill service contracts.
Technology Obsolescence Risk
Technological implementation and advancements are listed as business risks that could impact service delivery efficiency.
Credit & Counterparty Risk
Receivables management is critical; any delay in collections from large clients directly impacts the company's ability to service its moderately leveraged capital structure.