SFML - Supreme Facility

📊 NSE: SFML 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 13:53

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 14% HoH to INR 231.04 Cr in H1 FY26 compared to INR 202.72 Cr in H2 FY25. Standalone revenue for FY25 was INR 329.91 Cr, a 12.1% increase from INR 294.31 Cr in FY24. Growth is driven by the Integrated Facilities Management (IFM) segment and scaling of high-margin verticals like Production Support and Employee Transport Services (ETS).

Geographic Revenue Split

The company maintains a dominant presence in Western India markets while aggressively expanding into high-growth clusters in Northern and Southern India to diversify its revenue base and tap emerging demand.

Profitability Margins

Net Profit Margin (PAT) stands at 1.92% (INR 4.43 Cr) for H1 FY26, compared to 1.55% (INR 3.15 Cr) in H2 FY25. The company is currently underperforming competitors who average 3-4% margins, primarily because IFM-heavy mixes yield lower margins of 2-2.5%.

EBITDA Margin

Consolidated EBITDA margin was 8.62% (INR 19.92 Cr) in H1 FY26, a slight decline from 8.72% (INR 17.67 Cr) in H2 FY25. Standalone EBITDA margins remained healthy at 9% (INR 19 Cr) for the same period, supported by disciplined cost management and operating leverage.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods, but the company is utilizing IPO proceeds to fund selective inorganic opportunities and process automation to enhance service delivery efficiency.

Credit Rating & Borrowing

Finance costs for H1 FY26 were INR 5.80 Cr, a decrease from INR 6.04 Cr in H2 FY25. Total debt levels are expected to remain stable even as the company scales toward its INR 800-1,000 Cr revenue target.

⚙️ Operational Drivers

Raw Materials

Consumables and raw materials for food services and production support represent 9.4% of total revenue (INR 21.71 Cr in H1 FY26).

Import Sources

Sourced domestically within India, specifically across Western, Northern, and Southern clusters to support regional service delivery.

Capacity Expansion

The company currently employs 8,540 individuals (standalone). Expansion is focused on geographic reach rather than fixed plant capacity, targeting a doubling of the topline to INR 800-1,000 Cr within 3-4 years.

Raw Material Costs

Raw material expenses were INR 21.71 Cr in H1 FY26, remaining relatively stable as a percentage of revenue compared to INR 21.53 Cr in H2 FY25.

Manufacturing Efficiency

Operational efficiency is being driven by a 100-basis-point EBITDA improvement target through cost efficiency and an optimized service mix.

Logistics & Distribution

Distribution and other expenses accounted for 19.3% of revenue (INR 44.53 Cr) in H1 FY26.

📈 Strategic Growth

Expected Growth Rate

23-25%

Growth Strategy

SFML plans to achieve this CAGR by doubling its topline in 3-4 years through a blend of organic expansion in North/South India and strategic acquisitions (MoU already signed for a Southern firm). The strategy focuses on scaling high-margin verticals like Production Support and ETS, and converting 'Soft Service' clients to 'Hard Services' to boost margins.

Products & Services

Integrated Facilities Management (IFM), Production Support Services, Food Services, Employee Transport Services (ETS), and Value-Added Supply Chain Management.

Brand Portfolio

Supreme Facility Management Limited (SFML).

New Products/Services

Expansion into 'Hard Services' and value-added manufacturing support is expected to contribute to a 100-bps improvement in EBITDA margins.

Market Expansion

Targeting emerging demand clusters in Northern and Southern India to supplement the core Western market.

Strategic Alliances

Signed a Memorandum of Understanding (MoU) for an acquisition in the Southern region to accelerate geographic penetration.

🌍 External Factors

Industry Trends

The facility management industry is seeing a shift toward integrated models and technology-led delivery. Pure IFM margins remain low (2-3%), prompting players to shift toward margin-accretive segments like production support.

Competitive Landscape

Competitors currently operate at higher PAT margins (3-4%) compared to SFML's 1.9-2%, though SFML is closing the gap through scale and service-mix optimization.

Competitive Moat

Moat is built on an 85% customer retention rate, a large business pipeline of INR 1,200 Cr, and an integrated service model that creates high switching costs for large corporate clients.