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KRYSTAL is a leading integrated facilities management services company in India, specializing in diverse sectors such as healthcare, education, public administration, airports, railways and metro infrastructure, and retail. With 77.6% of its revenue sourced from government contracts, KRYSTAL stands as a strong player in the industry. The company’s revenue composition is 54.7% from Integrated Facilities Management Services (IFMS), 31.7% from Staffing Services, 10.7% from Security Services, and 2.9% from Catering Services. Management anticipates that the IFMS, Staffing, and Security services segment to grow 1.2–5 times faster than the industry average from FY23 to FY26E, with significant growth potential in the catering segment. Notably, KRYSTAL has achieved an impressive ~19% revenue CAGR over the past decade, driven by strong industry tailwinds, new contracts, and high-quality service offerings. Projections for FY24–26E indicate a sales/EBITDA/PAT CAGR of 27%/36%/40%, with an expected EBITDA margin expansion by 97bps to 7.7%, reflecting positive operating leverage and a favorable service mix. Given these factors, we initiate coverage with a ‘BUY’ rating and a target price (TP) of INR1,369, valuing the stock at 20x FY26E earnings.

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