💰 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.