Supreme Facility Management Limited is a leading Indian integrated business services provider specializing in **Integrated Facilities Management (IFM)** and **Support Services**. Operating on an **annuity-based revenue model** with long-term contracts, the company maintains a predominantly **asset-light** structure (excluding its transportation fleet) to ensure scalability and operational flexibility. Following its successful listing on the **NSE Emerge** in **December 2024**, the company is executing a strategic pivot from a service provider to a comprehensive **integrated solution provider**. --- ### **Core Business Segments & Revenue Mix** The company’s operations are diversified across three primary reportable segments, with a heavy emphasis on the industrial and manufacturing sectors. | Segment | Revenue Contribution (H1 FY26) | Key Offerings | | :--- | :--- | :--- | | **Integrated Facility Management (IFM)** | **73.46%** | Soft services, Hard services, and Staffing solutions. | | **Employee Transportation (ET)** | **23.92%** | Corporate shuttle and private car services. | | **Production Support Services (PSS)** | **2.62%** | Outsourced production tasks and material handling. | --- ### **Comprehensive Service Portfolio** #### **1. Integrated Facility Management (IFM)** * **Soft Services:** Includes industrial and commercial housekeeping, **WHO/ICMR-approved** disinfecting, pest control, horticulture, and specialized facade cleaning. * **Hard Services:** Technical maintenance of critical infrastructure, including **HVAC systems**, power equipment (Generators/UPS), water/waste management (STP), and fire safety systems. * **Technical Cleaning:** Specialized cleaning services for high-precision environments, such as **automotive paint shops**. #### **2. Support & Specialized Services** * **Employee Transportation (ET):** Operates a fleet of **446 owned buses** (13–55 seats) and **98 leased vehicles**. The company provides corporate shuttles and executive car services. * **Supply Chain Management (SCM):** Offers **Third-party logistics (3PL)**, warehousing, in-plant logistics, and value-added services (packaging, kitting, and assembly) for e-commerce and industrial clients. * **Corporate Food Solutions (CFSS):** Manages in-house cafeterias, dining facilities, and provides on-site/off-site event catering. * **Production Support (PSS):** Executes outsourced production tasks based on client specifications, providing the workforce for manufacturing and quality assurance while the client retains control over raw materials. #### **3. Strategic Diversification (Manufacturing)** In **February 2025**, the company amended its **Memorandum of Association (MOA)** to include the manufacturing and assembly of specialized equipment, uniforms, and automotive components like seating systems, signaling a move into contract manufacturing. --- ### **Operational Infrastructure & Technology Integration** * **Nationwide Footprint:** Operates from **165 locations** across India. While historically strong in **West and Central India**, the company is aggressively expanding into Northern and Southern clusters (Chennai, Bangalore, Hyderabad). * **Digital Transformation:** Utilizes **SAP** for financial tracking and **Warehouse Management Systems (WMS)** for logistics. Operations are transitioning to paperless models using **mobile/tablet-based applications** for digital checklists and predictive maintenance. * **Sustainability & Standards:** Holds **ISO 14001:2015** and **ISO 45001:2018** certifications. The company prioritizes eco-friendly chemicals and energy-efficient HVAC and water management solutions. --- ### **Financial Performance & Capital Structure** The company has demonstrated consistent growth, with profit increases frequently outpacing revenue growth due to **disciplined cost optimization** and **operating leverage**. #### **Key Financial Metrics (Consolidated)** | Metric | FY25 (Full Year) | H1 FY26 (Half Year) | | :--- | :--- | :--- | | **Total Income** | **₹403.49 Cr** | **₹197.00 Cr** | | **EBITDA** | **₹35.82 Cr** | **₹19.92 Cr** | | **EBITDA Margin** | **8.88%** | **8.62%** | | **Net Profit (PAT)** | **₹7.95 Cr** | **₹4.43 Cr** | | **Revenue CAGR (FY22–24)** | **22.81%** | - | | **EBITDA CAGR (FY22–24)** | **28.84%** | - | #### **IPO and Debt Profile** * **IPO Details:** Raised **₹50 Crore** in December 2024 (subscribed **~27x**) to fund working capital and inorganic growth. * **Borrowings:** Consolidated long-term borrowings stood at **₹65.71 Cr** (as of March 31, 2025), primarily consisting of vehicle loans (**7.5%–11.25%**) and GECL loans (**7.5%–9.5%**). * **Dividend Policy:** The Board opted to **retain all profits** for FY25 to reinvest in expansion. --- ### **Strategic Growth Pillars & Market Opportunity** The company aims to double its topline within the next **3 to 4 years** through a dual-track **Organic and Inorganic** growth model. * **Inorganic Expansion:** Signed an MOU to acquire a **76% stake** in Cleanway Management Systems and Ashok Business Service, expected to add **₹45–₹50 Cr** in revenue and strengthen the Southern India presence. * **Urban Mobility Partnership:** A 5-year partnership with **Komorebi Tech (Cityflo)** to deploy 50 buses in the Mumbai Metropolitan Region, with a projected potential of **₹42 Crore**. * **Wallet Share Expansion:** Leveraging a **₹1,200 crore business pipeline** to cross-sell services (Catering, Transport, IFM) to a client base with an **85%–90% retention rate**. * **Sectoral Tailwinds:** Positioning to capture the Indian IFM market, which is projected to grow at a **36.12% CAGR** to reach **₹190K crore by 2029**. --- ### **Risk Management & Regulatory Landscape** The company operates under an **enterprise-wide risk management framework** overseen by a Board-level audit committee. * **Legal & Tax Contingencies:** * **Income Tax:** Contesting a demand of **₹2.86 Crore** under Section 156 (received March 2024); currently under appeal. * **ESI Dispute:** Contesting an ad-hoc demand of **₹95.75 Lakh** related to a defunct client sub-code from the pandemic era. * **Compliance:** The formalization of the Indian labor sector requires strict adherence to **Minimum Wage** laws and **Statutory Compliance (PF/ESI)**. * **Governance:** Following the resignation of a Non-Executive Director in **March 2025**, the company continues to monitor Board stability and leadership transitions.