Economic Overview
Global Economic Overview1
The global economic landscape is expected to remain steady, with growth projected at 3.3% for both 2025 and 2026. While the United States continues to show resilience backed by strong domestic demand and investment momentum, other major economies are facing varied challenges, ranging from sluggish manufacturing activity in the euro area to a deceleration in industrial output in key Asian economies.
Inflation continues to moderate globally, aided by easing energy prices and softening labor market pressures.
Headline inflation is projected to decline to 4.2% in 2025 and further to 3.5% in 2026. However, services inflation remains elevated in many economies, and inflation persistence in select emerging markets has led to a cautious stance by several central banks on monetary easing.
The divergence in monetary policy and fiscal trajectories across economies continues to shape the macroeconomic outlook. While policy rates in advanced economies are expected to decline gradually, reflecting easing inflation, fiscal consolidation efforts are likely to gather pace, particularly in developed markets. This tightening of fiscal conditions, coupled with trade policy uncertainties and geopolitical tensions, continues to weigh on investor sentiment and global trade dynamics.
Financial conditions remain broadly accommodative, especially in advanced economies, though emerging markets are experiencing tighter conditions due to a stronger US dollar and region-specific uncertainties. Equities in developed markets have been buoyed by expectations of policy support, whereas valuations in emerging markets have been relatively muted.
Commodity price movements are expected to remain mixed. Energy prices are projected to fall slightly in 2025, led by soft oil demand and robust supply, while non-fuel commodity prices, particularly food and beverages, are likely to rise due to adverse weather events impacting production.
This environment presents a mixed macroeconomic backdrop for businesses. While stable growth and moderating inflation offer some tailwinds, the divergence across geographies, potential delays in monetary easing, and continued uncertainty in global trade and policy landscapes warrant a cautious approach. For companies operating across regions, including those with a strong presence in emerging markets, the need to navigate differentiated recovery paths, manage cost pressures, and adapt to evolving policy environments will remain critical in the near- to medium-term.
Key Economic Growth Forecasts
Region |
2024 | 2025 | 2026 |
Global Economy | 3.2 | 3.3 | 3.3 |
Advanced Economies | 1.7 | 1.9 | 1.8 |
Emerging Markets & Developing Economies |
4.2 | 4.3 | 4.3 |
Source: IMF World Economic Outlook, January 2025
India Economic Outlook2
In FY25, Indias real GDP is estimated to grow by 6.4%, broadly aligned with its long-term average. The growth is supported by strong private consumption, a pickup in rural demand, and steady expansion in services and industrial activity.
Private final consumption expenditure is expected to grow at 7.3%, led by improved consumer sentiment and increased spending in both urban and rural areas.
The services sector, which accounts for over half of Indias GDP, recorded an estimated growth of 7.2%. Growth in financial services, real estate, and public administration contributed to this performance. Services exports also showed strong momentum, growing by 12.8% between April and November of FY25.
On the industrial front, growth is estimated at 6.2%, driven by higher activity in construction, electricity, water supply, and other utility services. These segments have been supported by rising capital expenditure and government investments in infrastructure.
Macroeconomic indicators remained broadly stable.
Headline retail inflation moderated compared to the previous year, aided by supply-side measures and a tighter monetary stance. The current account deficit remained contained, and the fiscal deficit was kept within target ranges, helped by buoyant tax collections.
The banking sector showed further improvement in asset quality, and credit growth remained healthy across segments. Capital adequacy remained strong, and liquidity conditions were broadly comfortable, enabling continued support to productive sectors of the economy.
Reforms around digitization, ease of doing business, and sectoral formalization are expected to support medium-term growth. Continued policy focus on infrastructure, logistics, and skill development is likely to drive investment and productivity gains.
Looking ahead, Indias GDP is expected to grow between 6.3% and 6.8% in FY26, supported by a stable macroeconomic environment. However, the outlook will depend on geopolitical tensions, trade uncertainties, and commodity price volatility. Domestically, growth will hinge on the pace of private sector investment, improvements in consumer confidence, and a recovery in rural demand, supported by stable inflation and overall economic conditions.
Australian Economic Outlook3
According to the Reserve Bank of Australia (RBA), the countrys economic growth is expected to strengthen through 2025, with GDP forecast to rise to around 2.5% over the year. The recovery is anticipated to be led by a pick-up in private demand, particularly household consumption, supported by improving real disposable incomes and an expected decline in interest rates over the forecast period. Public investment and government transfers are also set to play a key role in driving demand, with sustained momentum projected through mid-2026. While consumption growth may be dampened by slower housing price appreciation and persistent cost-of-living pressures, a modest depreciation in the exchange rate is likely to support net exports. Capacity constraints are expected to ease only gradually, as employment and participation remain high and business investment stays resilient.
Industry Overview
Security Services4
Indias security services market is set to reach US$ 16.97 Billion by 2030, growing at a CAGR of 11.3% between 2025 and 2030. Growth is driven by rising demand across residential, commercial, industrial, and institutional sectors, supported by urbanization, infrastructure development, and growing awareness around safety and risk mitigation.
The industry is shifting from traditional manned guarding to integrated solutions that combine manpower with technology. Advancements in AI, IoT, and biometrics are driving adoption of electronic surveillance, smart access control, and real-time monitoring systems, enhancing both security outcomes and operational efficiency.
Sectors like banking, IT, logistics, retail, and real estate are leading demand, with smart city projects and public infrastructure initiatives creating opportunities for scalable, customised services. Increasing integration of data analytics, cloud computing, and SaaS is enabling proactive, tailored security models.
Urbanization is boosting demand for residential security, while protection of critical infrastructure has become a strategic priority. Economic growth and rising disposable incomes are expanding the customer base, and the Make in India initiative is strengthening domestic manufacturing and availability of advanced solutions.
The market is evolving towards a more client-centric and technology-driven model. Businesses seek end-to-end, customised services with a single point of accountability, prioritising cost efficiency, operational control, and long-term sustainability. In response, providers are innovating with strategic risk management and digital-first offerings to meet increasingly complex security needs.
Facility Management5
The Indian facility management market is projected to reach US$ 159.61 Billion by 2025, with an anticipated CAGR of 7.37% through to 2030. This growth is driven by increasing urbanization, infrastructure development, and the rising demand for integrated services that enhance operational efficiency and sustainability.
There is a clear shift towards Integrated Facility Management (IFM), where clients seek comprehensive solutions encompassing multiple services under a single contract. This approach streamlines operations, reduces costs, and improves service quality, making it particularly attractive to organizations aiming for operational excellence.
Post-pandemic, there has been a re-evaluation of workspace requirements, with many organizations adopting hybrid work models. This shift has led to changes in office space utilization, prompting facility managers to adapt by optimizing space and implementing flexible solutions that support both in-office and remote work arrangements.
There is also a growing emphasis on sustainability within the facility management sector. Clients are increasingly prioritizing energy-efficient systems, waste reduction, and environmentally friendly practices to meet regulatory standards and corporate social responsibility goals.
As the market evolves, companies that can offer innovative, adaptable, and sustainable facility management solutions are well-positioned to capitalize on emerging opportunities and meet the dynamic needs of clients across various sectors.
Business Overview
SIS Group is a market leader in security, facility management, and cash logistics services, with operations across India, Australia, New Zealand, and Singapore.
Through its subsidiaries, associates, and joint ventures, the Group offers a comprehensive portfolio of essential services across three core verticals: Security Services, Facility Management, and Cash Logistics.
In the Security Services segment, SIS provides manned guarding, physical security, emergency response, loss prevention, asset protection, mobile patrols, and specialized training. The Facility Management division delivers end-to-end solutions such as cleaning, housekeeping, and pest control, tailored to diverse client requirements across industries. The Cash Logistics segment includes services like cash-intransit, doorstep banking, ATM replenishment, cash handling and processing, and secure transport of high-value items, including bullion. Additionally, SIS offers electronic security and alarm monitoring services, including system installation, surveillance, and rapid response.
These integrated offerings position SIS Group as a trusted partner, ensuring safety, eff ciency, and reliability for clients in both domestic and international markets.
A summary of our financial performance during the year is indicated in the table below:
FY25 | FY24 | % change | |
Revenue |
13,189.0 | 12,261.4 | 7.6% |
EBITDA |
603.7 | 584.5 | 3.3% |
% | 4.6% | 4.8% | |
Depreciation | 163.9 | 163.6 | 0.2% |
Finance Costs | 160.6 | 148.2 | 8.4% |
Other Income & share of profit/(loss) in associates | 93.8 | 67.6 | 38.9% |
Earnings Before Taxes |
373.1 | 340.3 | 9.6% |
Less: Acquisition related costs/ (income) | |||
- Depreciation & Amortization | -0.1 | 2.8 | -104.1% |
- Goodwill Impairment | 305.8 | 65.6 | 366.2% |
Earnings Before Taxes (Reported) |
67.3 | 271.9 | -75.2% |
% | 0.6% | 2.2% | |
Tax Expenses | 55.5 | 81.9 | -32.2% |
Profit After Taxes (Reported) |
11.8 | 190.0 | -93.8% |
% | 0.1% | 1.5% | |
Operating PAT |
317.6 | 255.6 | 24.2% |
% | LIGN=RIGHT>2.4% | 2.1% |
Segmental Review
Security Solutions India
The Indian Security Services segment continued its strong growth trajectory during the year, recording a revenue increase of 8.1% to reach C 5,576.4 Crore, surpassing the
C 5,500 Crore milestone. This performance reflects the ongoing strength of our core operations and a disciplined focus on profitability. Margin improvement remained a key strategic priority, with targeted initiatives contributing to healthier operating metrics and sustainable revenue growth. The revision of minimum wages in select states also positively impacted the top line, supporting overall business expansion. Our ongoing investment in technology-led solutions further differentiated our offerings in the marketplace. Through our
ManTech model and Alarm Monitoring & Response services, we have enhanced service delivery, operational efficiency, and client satisfaction.
During the year, our Alarm Monitoring & Response business achieved significant growth, adding over 2,500 new installations and expanding its footprint to over 24,500 active customer connections. This underscores our commitment to integrated security solutions that combine manpower with intelligent technology.
Security Solutions - International
The International Security Services segment delivered a resilient performance, reporting revenue of C 5,429.9
Crore for the year, reflecting a year-on-year growth of 7.1%. This growth was supported by key contract wins and sustained client trust across geographies.
Despite this growth, labor shortages across several international markets remained a persistent challenge and are expected to continue in the near term. The Group is actively working to mitigate these constraints through improved workforce planning and operational efficiencies.
Our Singapore business made notable progress, reaching break-even at the operating profit level. This turnaround was the result of disciplined execution of our strategic roadmap, operational restructuring, and new customer acquisitions.
Facility Management Solutions
The Facility Management Solutions segment recorded strong revenue growth in FY25, with revenue reaching C 2,247 Crore, reflecting a 7.4% year-on-year growth. EBITDA margins were increased during the year, primarily due to strategic contract rationalization initiatives aimed at improving long-term profitability. There has been a growing interest in more automated, advanced, and creative solutions within facility management, leading to increased emphasis on technology-driven service provision. This shift has driven a greater demand for integrated facility management solutions, positioning the segment to meet the evolving needs of clients across sectors.
For a detailed discussion of the segments and industries we operate in, please refer to the other sections in this report, from page no.44 to77 .
Please refer to Note 42 on page 285 for details of significant changes in key financial ratios.
Risk Management
SIS has instituted a formal and structured risk management framework aimed at proactively identifying, assessing, and mitigating risks that may impact the organizations operations and strategic objectives. This framework enables the
Company to effectively anticipate and respond to emerging risks, ensuring that exposures remain within the defined risk appetite. As part of this framework, SIS has developed a comprehensive Risk Library encompassing a wide spectrum of potential risks across key categoriesOperational, Strategic, Human Resources, Legal & Compliance, Information Technology & Security, and Financial. From this broader landscape, the key and top-priority risks are identified through a rigorous evaluation process and presented to the Risk Management Committee along with detailed mitigation strategies.
Each risk is meticulously documented, with a corresponding mitigation plan and clearly assigned ownership to ensure accountability. This structured approach supports informed decision-making and reinforces SISs commitment to maintaining robust governance and sustainable business continuity.
Operating Risks
Operational risk refers to the potential impact of failures in day-to-day business activities, systems, or processes. Given the recurring and stable nature of income in the security and facility management industries, maintaining consistent service delivery is critical to preserving this stability. With an extensive operating footprint comprising 293 branches across India, it is imperative that uniform quality standards are upheld across all locations.
Over the past four decades, SIS has developed and institutionalised a comprehensive risk mitigation framework designed to minimise operational lapses. This includes robust practices in hiring, training, performance evaluation, and quality control ensuring a consistent and dependable service experience across geographies.
To further strengthen our operational resilience, we continue to invest in technology to streamline the management and monitoring of our widespread network. Standardization across processes remains a key focus area, enabling improved oversight, enhanced efficiency, and reduced risk exposure throughout our operations.
Financial Risks
The Groups objective is to provide a degree of predictability and consistency in the Groups financial performance while maintaining a balance between offering consistency in the business plan and reasonable market participation because market risk, credit risk, and liquidity risk are all present in the Groups operations.
Please see note 40 in the standalone financial statements and note 41 in the consolidated financial statements for more information on the Groups financial risk management.
Information Technology & Security Risks
Over the years, SIS Group has expanded through a combination of organic and inorganic growth, resulting in the operation of multiple ERP platforms, applications, and business systems across its diverse business units. These systems, many of which have been internally developed and customized to meet specific business needs, have supported the Groups operational scalability. However, the complexity of maintaining and improving a multi-platform environment presents inherent challenges, including potential operational inefficiencies and financial risk.
To address this, the Group has initiated the phased rollout of unified, enterprise-wide systems. This transition to common platforms is aimed at enhancing operational consistency, ensuring robust support, and enabling real-time visibility into key performance indicators. The standardization of systems will also facilitate faster, data-driven decision-making across business units.
Recognizing the critical role of technology in our operations, we remain vigilant about potential risks arising from system disruptions. As part of our risk preparedness, we have implemented a comprehensive Disaster Recovery Plan to ensure business continuity in the event of any system failure. In response to the growing threat landscape, the Group has formalized a Cybersecurity Risk Management Policy to safeguard the confidentiality, integrity, and availability of our business applications, data, and IT infrastructure. A detailed cybersecurity audit has been initiated to assess and strengthen our defenses against cyber threats and attacks, underscoring our commitment to operational resilience and digital security.
Legal & Compliance Risks
All our business operations are subject to a wide array of regulatory requirements across jurisdictions. These regulations are often complex and subject to varying interpretations and inconsistent enforcement. In some instances, prevailing industry practices may not be fully aligned with regulatory expectations or their evolving interpretations. Such inconsistencies in the interpretation and implementation of regulations present a potential risk of financial exposure and reputational impact. Recognizing this, the Group places a strong emphasis on maintaining the highest standards of compliance. We continue to monitor the regulatory landscape closely and adopt a proactive approach to ensure that our practices remain aligned with both the letter and the spirit of the law. This commitment safeguards the Group against compliance-related risks and reinforces our reputation as a responsible and ethical enterprise.
Workplace Risks
The Group remains committed to upholding the highest standards of health and safety across all areas of operation. We have implemented a comprehensive Health and Safety Policy aimed at safeguarding our employees as well as personnel operating at customer sites. Our human resource practices are fully aligned with applicable health and safety regulations, reflecting our dedication to regulatory compliance and employee well-being. We recognize that workplace accidents and occupational hazards can be significantly mitigated through proactive hazard identification, analysis, and control. Accordingly, we provide structured training programs for both our frontline personnel and management teams, equipping them with the knowledge and tools to operate safely and responsibly. To ensure a safe working environment across all client locations, we have developed and implemented detailed safety procedures, which are regularly reviewed and updated. Our workforce undergoes continuous training on these protocols, reinforcing a strong culture of safety throughout the organization.
Human Resources
SIS continues to be one of Indias largest private-sector employers, consistently hiring and empowering a vast workforce across the security, facility management, and cash logistics segments. As of March 31, 2025, the Group employed 3,00,475 personnel, supporting lakhs of families through steady employment, statutory benefits, and comprehensive welfare initiatives. In recognition of our impactful employment generation, SIS has been honored as one of Indias Best Employers Among Nation Builders by the Great Place to Work Institute.
Our commitment to employee well-being is reflected in the comprehensive benefits provided, including statutory pay, social security, health and medical insurance, and forward-looking Employee Stock Ownership Plans (ESOPs).
These initiatives reinforce financial stability and security while fostering long-term employee engagement and satisfaction.
As a people-intensive organization, effective workforce management is central to our success and sustainability. At the heart of our people strategy is our Recruit & Train frameworkthe countrys largest integrated manpower supply chain. With cutting-edge training infrastructure and industry-relevant curricula, SIS is uniquely positioned to recruit, train, and deploy thousands of professionals annually, including security guards, janitors, cash van drivers, FM technicians, and patient care personnel.
We currently operate 32 advanced training centers across 14 states, with the capacity to train over 35,000 personnel each year. Our dedicated team of 200 Training Officers and
1,200 Training Champs, equipped with our proprietary MTrainer platform, enable last-mile training delivery.
This digital platform has significantly improved training outreach across our workforce.
The loyalty and trust our employees place in the organization is evident in our long-tenured workforce, with many team members having served for over 25 and even 30 years. These individuals embody our culture, values, and purpose, forming the backbone of SIS. By providing career progression pathways and continuously upgrading workforce skills, SIS is not only meeting todays demands but is also well-prepared to seize the opportunities of tomorrow.
Internal Quality Control and Adequacy
The SIS Board has instituted robust internal control systems, policies, and procedures to ensure the efficient, ethical, and compliant conduct of business operations. These controls are designed to safeguard the Companys assets, prevent and detect fraud, ensure the accuracy and completeness of accounting records, and facilitate the timely preparation of reliable financial statements in accordance with applicable standards. financial
With the continuous growth and increasing complexity of our operations, there is an ongoing emphasis on strengthening and modernising internal systems and processes. The Group actively reviews and updates its internal control framework to ensure relevance and responsiveness to the evolving business landscape. This approach enables us to maintain operational discipline, regulatory compliance, and business continuity.
Information systems across the SIS Group are regularly assessed and enhanced to provide accurate, real-time data and insights to stakeholders. Recognizing the strategic role of IT in todays dynamic environment, the Group partners with expert teams to continuously evolve and upgrade its technology platforms. These investments ensure that our internal controls remain robust, scalable, and aligned with business objectives.
The Groups internal audit function plays a pivotal role in ensuring adherence to established procedures and quality standards. Internal audits are conducted periodically across all levels of the organization to evaluate the effectiveness of controls, highlight areas for improvement, and reinforce financial discipline. Emphasis on compliance, customer satisfaction, and process quality remains central to retaining and attracting clients in a competitive market.
As part of our long-term digital transformation strategy, the
Group successfully rolled out a new accounting and reporting system across entities in FY23. Concurrently, a re-engineered version of the Groups core business system was implemented at SIS Limited and is being progressively rolled out across other entities. These initiatives are aimed at enhancing operational efficiency, ensuring consistency in financial reporting, and supporting informed, data-driven decision-making.
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