Service Care Limited (SERVICE)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Service Care's revenue was ₹101 Cr (+6.3% year on year, +9.8% on the previous half-year), and net profit ₹3.0 Cr; the operating margin was 3.0%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹101 | +6.3% | +9.8% |
| Operating profit | ₹3.0 | +200.0% | +50.0% |
| Net profit | ₹3.0 | — | +50.0% |
| EPS (₹) | 1.91 | from loss | +3.2% |
| Operating margin | 3.0% | — | — |
📢 Recent Corporate Announcements
Service Care Limited has submitted its latest Investor Presentation to the exchange under Regulation 30 of SEBI LODR Regulations on September 16, 2026. The submission is an informational disclosure covering corporate operations and strategy, with the presentation also made available on the company's website. The filing itself does not include standalone financial metrics, new contract wins, or corporate actions.
- Investor Presentation filed under Regulation 30 on September 16, 2026
- Document uploaded to the company's website (www.servicecare.in)
- Filing contains no new material financial disclosures or corporate actions
Service Care Limited has issued the notice for its 15th Annual General Meeting (AGM) scheduled on September 25, 2026, via Video Conferencing. Key agenda items include adopting the audited financial statements for FY26, re-appointing M/s S Bhat & Associates as statutory auditors for a second 5-year term, and ratifying MD Shany Jalal's FY26 remuneration of Rs 28.61 lakhs along with approving future remuneration up to Rs 50 lakhs per annum. The cut-off date for e-voting is September 18, 2026, with the e-voting window active from September 22 to September 24, 2026.
- 15th Annual General Meeting scheduled for Friday, September 25, 2026, at 12:00 PM IST via VC/OAVM
- E-voting cut-off date fixed for September 18, 2026, with voting active between September 22 and September 24, 2026
- Proposed re-appointment of M/s. S Bhat & Associates as statutory auditors for a second 5-year term until the 20th AGM
- Ratification of MD Shany Jalal's remuneration of Rs 28.61 lakhs for FY26 and approval of future remuneration up to Rs 50,00,000 per annum
Service Care Limited announced the outcome of its Board meeting held on August 31, 2026. The Board approved convening the 15th Annual General Meeting (AGM) on September 25, 2026, via video conferencing. Key agenda items for shareholder approval include the adoption of FY26 financial accounts, the Board's Report, and the reappointment of retiring director Mr. Amit Kumar Rakhecha.
- 15th Annual General Meeting convened for September 25, 2026, via Video Conferencing
- Approval of Board's Report and adoption of books of accounts for FY 2025-26
- Proposed reappointment of retiring director Mr. Amit Kumar Rakhecha (DIN: 10052772)
- Board meeting commenced at 04:00 PM and concluded at 04:43 PM on August 31, 2026
Financial Performance
Revenue Growth by Segment
Total revenue from operations decreased by 1.97% from INR 192.81 Cr in FY24 to INR 189.01 Cr in FY25. Segment-wise for FY24: Workforce Administration Services contributed INR 168.72 Cr (87.68% of revenue), while Workspace Administration Services contributed INR 23.71 Cr (12.32% of revenue), growing 31.4% from the previous year.
Geographic Revenue Split
The Workforce division operates across 21 states including Karnataka, Tamil Nadu, and Maharashtra. The Workspace division is concentrated in 4 states: Karnataka, Tamil Nadu, Telangana, and Haryana. Specific percentage split per state is not disclosed.
Profitability Margins
Net profit margin (PAT Margin) declined from 2.23% in FY24 to 1.07% in FY25. Profit for the year dropped 53.77% from INR 4.36 Cr in FY24 to INR 2.01 Cr in FY25, primarily due to rising expenditure and a slight dip in total income.
EBITDA Margin
EBITDA margin was 2.41% in FY24 (INR 4.72 Cr). In FY25, Profit Before Tax stood at INR 2.01 Cr, a 54.1% decrease from FY24's PBT of INR 4.38 Cr, indicating significant pressure on core operating profitability.
Capital Expenditure
Historical capex is not explicitly detailed in INR Cr; however, the company noted that 'capital infusion is required' to support a targeted 30% growth for existing customers and expansion into new service verticals.
Credit Rating & Borrowing
Long-term borrowings are reported at INR 0.00 Cr as of FY24. Finance costs were minimal at INR 0.04 Cr in FY24, reflecting a low-debt capital structure. Credit ratings are not disclosed in the provided documents.
Operational Drivers
Raw Materials
The business is service-oriented; 'Employee Costs' represent the primary input, accounting for 96.59% of total revenue (INR 186.24 Cr in FY24). Consumables for facility management (cleaning chemicals, tools) represent a minor portion of costs.
Import Sources
Not applicable as the company provides manpower and facility services sourced locally within India across 21 states.
Key Suppliers
Not disclosed, as the primary 'supply' is human capital. The company utilizes third-party vendors for internal audit and statutory compliance across operations and HR.
Capacity Expansion
Current capacity is defined by a workforce of 6,200+ employees (5,034 blue-collar and 1,196 white-collar). Expansion plans include scaling operations in Tier 1 and Tier 2 cities and increasing IT staffing headcounts.
Raw Material Costs
Employee costs rose from INR 152.10 Cr in FY23 to INR 186.24 Cr in FY24, a 22.4% increase, driven by a 26.9% increase in blue-collar headcount to 5,034 workers.
Manufacturing Efficiency
Service efficiency is measured by a 92% customer retention rate and a 34-day working capital cycle, ensuring steady cash flow despite being in a price-sensitive industry.
Logistics & Distribution
Not applicable as a percentage of revenue; the company operates through regional offices in Bengaluru, Chennai, Hyderabad, and Haryana to manage local service delivery.
Strategic Growth
Expected Growth Rate
25-30%
Growth Strategy
Growth will be driven by a 30% target for existing customers, expansion into the BFSI banking recruitment vertical, and increasing IT contract staffing. The company is also exploring M&A for allied services like security and B2C property management.
Products & Services
Housekeeping, sanitation, security services, pest control, managed workspaces, candidate assessments, specialized training, and placement strategies for financial institutions.
Brand Portfolio
Service Care Limited (listed on NSE SME).
New Products/Services
Banking recruitment vertical and IT staffing services were recently introduced. Future launches include catering, canteen management, and B2C property management services.
Market Expansion
Scaling presence in Tier 1 and Tier 2 cities and expanding the Workspace division (currently in 4 states) to match the 21-state footprint of the Workforce division.
Market Share & Ranking
Not disclosed; however, the company notes the industry is dominated by international FM companies that outsource to the unorganized sector.
Strategic Alliances
The company seeks alliances with Global Integrated Facility Management (IFMS) companies to acquire new business and focus on government and large corporate contracts.
External Factors
Industry Trends
The Indian FM market was valued at USD 27.72 Billion in 2024. Trends include a shift toward 'Integrated Facility Management' (IFM), which is projected to reach 13.8% market share by 2027, and a move from 'cost-focus' to 'professionalism.'
Competitive Landscape
Competition includes international FM giants and a large unorganized sector of small players that drive down prices and impact market quality.
Competitive Moat
The moat is built on a 92% customer retention rate and 13+ years of operational history. Sustainability is supported by a 'robust internal control framework' and full statutory compliance, which fosters trust with large corporate clients.
Macro Economic Sensitivity
Highly sensitive to wage inflation and labor law changes. A rise in minimum wage or statutory compliance costs directly increases the cost base (96.59% of revenue).
Consumer Behavior
Clients are increasingly demanding 'bundled services' (soft and hard FM) and ESG-compliant service providers, favoring organized players like Service Care.
Geopolitical Risks
Minimal direct impact as operations are domestic, though macroeconomic uncertainties like inflation affect client spending on premium facility services.
Regulatory & Governance
Industry Regulations
Strict adherence to the Companies (Indian Accounting Standards) Rules 2015, SEBI (LODR) Regulations 2015, and various labor laws regarding temporary workers and social security.
Environmental Compliance
The company is integrating 'green cleaning solutions' and energy-efficient operations to align with client ESG expectations; specific costs are not disclosed.
Taxation Policy Impact
Current income tax for FY25 was INR 9.17 Lakhs, with a deferred tax credit of INR 9.63 Lakhs, resulting in a near-zero effective tax expense for the period.
Legal Contingencies
No specific pending court cases or values are disclosed; however, 'Compliance Risk' related to labor laws and safety standards is identified as a key risk factor.
Risk Analysis
Key Uncertainties
High attrition rates and labor turnover are the most significant operational uncertainties, potentially impacting service continuity and quality for the 250+ customer base.
Geographic Concentration Risk
Workspace division is highly concentrated in 4 states (Karnataka, Tamil Nadu, Telangana, Haryana), making it vulnerable to regional economic shifts.
Third Party Dependencies
High dependency on the availability of skilled and semi-skilled labor; any disruption in the labor market directly halts service delivery.
Technology Obsolescence Risk
Risk of falling behind tech-savvy operators; the company is mitigating this by upgrading operational systems for real-time monitoring and workforce tracking.
Credit & Counterparty Risk
Receivables risk is noted, particularly with government-linked projects where delayed payments can impact the company's liquidity and cash flow management.
