From a single-line security services firm founded in 2000 to a diversified, listed integrated services company with a strong government and corporate footprint, Krystal Integrated Services has undergone a steady but strategically layered transformation. In this interview with BW Businessworld, Sanjay Dighe, Director and CEO, traces the pivotal inflection points in Krystal’s journey, explains the drivers behind its recent financial performance, outlines how the company manages risk in large government contracts, and details its push into engineering-led, sustainability-focused verticals.
There is temptation to be aggressive, but our internal directive is clear—maintain equilibrium between revenue growth
Krystal began in 2000 as a security services company. What were the pivotal moments that shaped its transition into a full-spectrum integrated services provider?
We started as a pure-play security services provider, largely catering to real estate projects in Mumbai when construction activity was accelerating. As these projects transitioned from construction to operational buildings, owners faced a new challenge—maintaining large, modern commercial infrastructures that were very different from traditional South Mumbai offices.
At that point, our core strength was manpower deployment. Hiring and mobilising people was relatively easy in the early 2000s, and we leveraged that capability to introduce housekeeping as our second service line. That was the first major pivot.
The most defining moment, however, came in 2007–08 when we were awarded a large airport terminal housekeeping contract. This exposure transformed us completely. We were introduced to global service-level agreements, standard operating procedures, advanced hygiene standards, international cleaning materials and mechanised cleaning equipment. That led directly to our third vertical—mechanised housekeeping—and significantly raised our operational maturity.
Another key inflection point was our entry into government contracts around 2003–04, beginning with municipal school maintenance. Over time, we built robust pre-qualifications, which today underpin the fact that nearly 70 per cent of our business comes from the government sector.
The fourth pivotal moment was our entry into healthcare facility management through a World Bank-funded hospital upgradation programme in Tamil Nadu. This was a comprehensive contract covering MEP services, patient care, security, horticulture and billing. It gave us deep capabilities in hospital and large-scale integrated facility management. Collectively, these four phases shaped Krystal into what it is today.
Krystal reported strong Q1 FY26 numbers, with revenue growth of 25.6 per cent and EBITDA up 31.4 per cent. What drove this performance, and how do you plan to sustain margins?
Post-pandemic, the sector typically grows at 8–10 per cent. We are slightly ahead of that curve, largely due to our strong government interface and disciplined execution. Growth in Q1 came from new contracts in Andhra Pradesh and Telangana, renewals such as the Delhi Municipal School contract, and a sharp acceleration in corporate business, where we doubled work orders in just six months.
Equally important is the quality of customers we are onboarding. We have strengthened due diligence and are focusing on sustainable, creditworthy clients rather than chasing topline growth.
Going forward, our priority is balance. As a listed company, there is temptation to be aggressive, but our internal directive is clear—maintain equilibrium between revenue growth, EBITDA margins and profitability. Government business is cyclical and subject to tender timelines and documentation delays, so predictability is limited. However, by continuously bidding, performing consistently and staying margin-conscious, we are confident of remaining in the same growth zone while building a resilient business for the next 10–15 years.
How do you evaluate and manage risk while bidding for large government and institutional contracts, such as the recent Rs 370-crore order in Maharashtra?
Government business is inherently cyclical, and we have experienced both sharp scale-ups and deliberate scale-downs. For instance, in Tamil Nadu’s medical education department, our monthly billing rose from Rs 9.6 crore to Rs 26 crore as hospitals were added. When the contract was re-tendered, competitive intensity increased, and we consciously chose to retain only one zone at a sustainable margin, reducing billing to about Rs 11–12 crore.
The lesson is clear: we do not chase volume at the cost of margins. Risk mitigation for us involves geographic diversification, service diversification and ministry-level diversification. We operate through 26 offices nationwide and actively bid across states such as Andhra Pradesh, Telangana, Delhi, Odisha, Uttar Pradesh and Bihar.
We also spread risk across sectors—education, healthcare, airports, railways, metros and aviation—while aligning with government budgetary priorities such as health, education and civil infrastructure. The objective is to avoid dependence on any single state, ministry or service line.
Krystal has diversified into waste management, water treatment and technical facility management. What prompted this shift, and how will these verticals influence the business mix?
For 25 years, we have operated in integrated facility management, which is fundamentally a combination of manpower, machines and materials. While we remain one of the country’s large employment generators, we wanted to reduce over-dependence on manpower-led models and move towards engineering- and technology-driven businesses.
These new verticals—waste management, water resources, power, ports and harbours—are project-based, technology-enabled and offer stronger margin profiles. They typically involve EPC elements followed by long-term operations and maintenance contracts of five to fifteen years, providing revenue visibility and sustainability.
There is also a people development angle. As an organisation matures, it must offer its workforce more complex, future-ready career paths rooted in engineering, technology, AI and environmental sciences.
From a broader perspective, sustainability, carbon footprint reduction and green infrastructure are no longer optional. These initiatives align with national priorities and global environmental goals while also creating long-term value for investors. Ultimately, these verticals strengthen Krystal’s balance sheet, enhance resilience and position us as a responsible, future-focused infrastructure services company. |
