Kapston Services Limited, originally incorporated as "Kapston Facilities Management Private Limited" on January 31, 2009, is a leading integrated facilities management company based in Hyderabad, India. The company rebranded to "Kapston Services Limited" effective February 4, 2022. Since its incorporation in 2009, Kapston Services Ltd has established itself as a key player in providing integrated facility management and staffing services across India.
KSL holds ISO 9001 and OHSAS 18001:2007 certifications, signifying its commitment to quality and safety. The company offers comprehensive facility management services including security, housekeeping, electro-mechanical (M&E), landscaping (horticulture), and allied services. Kapston also provides essential manpower solutions, IT staffing, private security, and integrated facility management services nationwide. Its service spectrum extends to mechanical and electrical services (M&E), pest control, facade cleaning, office support, and kennel services.
Kapston Services operates as a versatile service provider, delivering a wide array of facility management solutions to a diverse client base. Its service portfolio includes security, housekeeping, engineering, office support, facade cleaning, pest control, pantry services, landscaping and gardening, canine brigade, and e-security. The company also provides pantry services, offering food and beverage solutions to corporate offices.
The company caters to a broad range of industries, including IT and ITES, manufacturing, pharma, e-commerce, logistics, infrastructure, automobile, retail, telecom, hospitality, healthcare, banking and finance, and Public Sector Undertakings (PSUs). Kapston has demonstrated significant growth, establishing itself as one of the leading providers of Security Services in Telangana and Andhra Pradesh.
To bolster its service capabilities, the company has formed strategic partnerships. Notably, it has collaborated with the National Skill Development Corporation (NSDC) for its Skill Development Programme and actively drives NAPS and NATS schemes. These initiatives aim to cultivate a more productive workforce through targeted training and skill development, enhancing employability. With a commendable 38% Gender Diversity, Kapston fosters an inclusive ecosystem that helps job seekers find opportunities and provides social security benefits to a broader employable population.
Kapston Services achieved strong financial results for the fiscal year 2025, showcasing robust growth across key metrics. Revenue increased by 32.56% to ₹689.43 crore for the year ending March 2025, compared to ₹520.08 crore in the previous fiscal year. Net profit saw a substantial rise of 41.93%, reaching ₹17.84 crore for the year ended March 2025, up from ₹12.57 crore in the fiscal year ended March 2024.
The company's quarterly performance for Q4FY25 was particularly noteworthy. Total revenue for Q4FY25 stood at ₹185.11 crore, marking a 30.72% increase from ₹141.61 crore in Q4FY24. Net profit surged by an impressive 119.20% to ₹6.04 crore from ₹2.76 crore in Q4FY24. EBITDA for the quarter grew by 29.94% to ₹9.59 crore, compared to ₹7.38 crore in the same quarter last year.
- FY25 Performance:
- Revenue: ₹689.43 crores (32.56% growth YoY)
- Net Profit: ₹17.84 crores (41.93% growth YoY)
- EBITDA: ₹31.75 crores (31.52% growth YoY)
- Q4FY25 Performance:
- Revenue: ₹185.11 crores (30.72% growth YoY)
- Net Profit: ₹6.04 crores (119.20% growth YoY)
- EBITDA: ₹9.59 crores (29.94% growth YoY)
Kapston Services holds a market capitalization of ₹507 Crore as of January 20, 2025, reflecting a 30.4% increase over the past year. Classified as a Small Cap company by Value Research, Kapston Services Ltd has exhibited strong performance over the long term. The stock has delivered a return of 56.07% in the last 3 years and a significant 178.66% rise over the same period on the NSE. In the last 12 months, the share price on NSE moved up by 22.94%. The stock's 52-week trading range spans from ₹185.00 to ₹319.00, indicating its volatility. Promoter Holding stands at 72.9%, which signifies strong confidence in the company's future prospects.
The company's valuation metrics present an interesting profile. As of January 20, 2025, the P/B ratio for Kapston Services Ltd is 6.43 times, trading at a 20% premium to its peers' median range of 5.37 times. The P/E ratio is 39.89 times, showing a marginal 2% discount to its peers' median range of 40.62 times.
Operational efficiency is further reflected in various financial metrics: Stock P/E 28.2, Book Value ₹43.8, Dividend Yield 0.00%, ROCE 12.6%, and ROE 22.2%. Although the company consistently reports profits, it currently does not pay dividends, suggesting a strategic focus on reinvesting earnings for sustained growth.
Kapston Services continues to prioritize expanding its client base and enhancing operational efficiency. Srikanth Kodali, Managing Director of Kapston Services, stated, "We are delighted to report a good set of numbers. We added more than 10 new marquee clients in Q4 and we continue to focus on business expansion in coming quarters. Our endeavor to improve margins and to bring cost efficiencies has resulted in improvement of EBITDA and PAT significantly."
The company has demonstrated consistent market share growth. Over the last 5 years, its revenue has grown at a yearly rate of 26.43%, significantly outperforming the industry average of 11.26%. Market share has increased from 1.14% to 1.96% over the same 5-year period.
Kapston Services is strategically positioned to capitalize on the escalating demand for integrated facility management services across various industries in India. With its solid operational foundation, consistent financial performance, and a strategic emphasis on client acquisition and operational efficiency, the company is steadily strengthening its market position within the competitive facility management sector.
