SE-041 · Project Sentinel · Confidential Information Memorandum
Project Sentinel
PSARA-Licensed Security & Manpower Services
₹201.67 Cr
FY27 Projected Turnover
Year ending March 2027
₹155.81 Cr
FY26 Revenue
Audited
₹10.81 Cr
Normalised EBITDA
Main company + group entities
₹164.16 Cr
Confirmed Order Book
2,531 personnel
5,306
Own-Payroll Workforce
As at March 2026
Prepared by: CA Dhiraj Ostwal — Transaction Advisory
September 2026 | Pre-NDA Circulation
September 2026 | Pre-NDA Circulation
Section 01
Executive Summary
At a Glance
Company Profile
Sector
PSARA-Licensed Security & Manpower Services
Established
~1997 · ~29 years of operations
PSARA Licences
21 states
GST Registrations
16 states
Operating Model
Asset-light, service-led
Income Tax Benefit
Tax exemption on 90% of profit
Transaction
Stake on Offer
Up to 100% (minimum 80%)
Promoter Support
Transition support of 1 year or longer
Section 02
Investment Highlights
A
Proven Stability & Reliability
- Three decades of stable and reliable operations
- Strong domain expertise, resilience and proven track record
B
Long-Standing Relationships
- Enduring relationships with 70%+ of clients
- Built on trust, consistent service quality and reliability
- Long-term employee relationships — a committed, experienced workforce
C
Zero-Debt Company
- Zero debt — financially strong and disciplined
- Stability, flexibility and capacity for sustainable growth
D
Government-Licensed Training Establishment
- Own Government-licensed training establishment
- Consistent training standards; skilled manpower developed internally
- Service quality assured across operations
E
Strong Governance & Compliance
- Clean and transparent books of accounts
- High standards of statutory and regulatory compliance
- Compliance-audit performance appreciated by the GST Department
- Operations only in licensed states — clean regulatory record
Section 03
Business Overview
Core Services
Security Guard Services Primary revenue driver
- Unarmed security guards (SG)
- Armed guards / SSG
- Screened, trained and PSARA-certified personnel
Manpower Outsourcing
- Facility and support personnel for institutional clients
- Business-support services
- Growing stream beyond pure guarding
Allied Services
Facility & Fleet ManagementPayroll & Staffing SolutionsExecutive ProtectionSecurity Consulting
Vision & Mission
Vision
To be the preferred choice for Integrated Security Solutions and Facility Management Services.
Mission
To establish new, innovative and reliable standards in Security, Allied Services and Facility Management through excellence in people, processes, technology and service delivery.
Long-Term Objective
- The brand is envisioned as a Self-Propelled Vehicle (SPV) — a highly dependable and reliable support system for clients
- A benchmark of trust, discipline, reliability and excellence
- Standards inspired by the ethos and professionalism of the Indian Armed Forces, blended with modern corporate best practices
- Aspiration: the “Rolex of the Security Industry” — premium quality, reliability, discipline and trust
Strategic Pillars — Firm, Sustainable & Profitable Growth
People
Committed, skilled, disciplined and professionally trained workforce.
Processes
Robust, standardised and scalable processes for consistent delivery.
Technology
Innovation to enhance efficiency, security, monitoring and customer experience.
Reputation
Brand strengthened through integrity, reliability, quality and customer trust.
Group Companies — Integrated Manpower Pipeline
- Group sister concerns support the main operating company
- Background verification of every recruit
- Education & training to PSARA and client standards
- Verification and training arms created through group expansion (~2008)
- Less dependence on third parties for onboarding; consistent quality and compliance across states
1
Recruitment
Selection & screening
2
Background Verification
Group entity
3
Education & Training
Group entity
4
PSARA Certification
Mandatory compliance
5
Deployment
Main operating company
Section 04
Business Model & Workforce
Revenue Model
- Cost-plus billing: applicable state minimum wage + statutory contributions (EPF, ESI, bonus) + agreed service charge
- Wage-indexed: revenue escalates with every state minimum-wage revision
- Recurring: monthly billing under contract-based engagements
| Billing by Service Line | Billing Basis |
|---|---|
| Unarmed security guard deployment (SG) | Min. wage + EPF / ESI / bonus + service charge |
| Armed guard / SSG deployment | Min. wage (higher scale) + statutory + service charge |
| Manpower outsourcing / business support | Cost-plus; agreed fee per person |
Contract Lifecycle
1
Contract Award
Tender / direct award; 1–3 year term
2
Guard Deployment
Verified & trained personnel placed at site
3
Monthly Supervision
Attendance, performance, compliance
4
Monthly Billing
Wage + statutory + service charge
5
Contract Renewal
Tender or relationship-based
Workforce Growth
| Deployed Personnel | Mar-22 | Mar-23 | Mar-24 | Mar-25 | Mar-26 |
|---|---|---|---|---|---|
| Unarmed Guards (SG) | 1,981 | 2,347 | 2,786 | 3,012 | 4,582 |
| Armed Guards / SSG | 874 | 635 | 644 | 729 | 724 |
| Total Deployed | 2,855 | 2,982 | 3,430 | 3,741 | 5,306 |
| YoY Growth | — | +4.4% | +15.0% | +9.1% | +41.8% |
Workforce & Welfare
- Entire workforce on own payroll — no sub-contractors
- EPF, ESI and statutory bonus obligations met for all personnel
- Guard welfare programme: pension support for families of deceased guards, marriage assistance and placement support
Section 05
Market & Opportunity
Market Context
- PSARA framework mandates licensing, guard training and minimum-wage compliance
- Urbanisation and rising institutional security standards
- Formalisation of the sector — sustained demand for licensed, compliant operators
Target Client Segments
Government & Public Sector
- Central ministries, state/UT departments, municipal bodies
- Hospitals, education establishments and PSUs
- Competitive tenders; hundreds of personnel per site group
Financial Services
- Branch, ATM, data-centre and corporate-office security
- Established relationship with a multinational bank
Education & Institutions
- Universities, colleges and school complexes
- Access control across multiple campuses and states
Prospective Client Pipeline — Unnamed
- 283 prospective clients with ~2.28 lakh potential personnel
- Potential manpower is more than 40× the current deployed workforce
- Pan-India, multi-state opportunities; client identities disclosed post-NDA
| Client Segment (Unnamed) | Prospects | Potential Manpower | |
|---|---|---|---|
| Government Departments & Ministries | 80 | 28,421 |
|
| Defence & Security Establishments | 68 | 1,52,837 |
|
| Healthcare Institutions | 63 | 38,704 |
|
| PSUs, Financial & Corporate / Infrastructure | 38 | 4,807 |
|
| Education & Research Institutions | 34 | 3,576 |
|
| Total Prospective Pipeline | 283 | 2,28,345 |
Section 06
Management & Organisation
Leadership
- Led by the founding promoters for ~29 years
- Professional management structure in place for over 15 years
- Names confidential; available post-NDA
| Role | Background | Current Function |
|---|---|---|
| Managing Director (Promoter) | Former defence services officer; 29+ years in the security sector | Strategic oversight; licence compliance; institutional relationships |
| Co-Director (Promoter) | Commerce graduate; 29+ years associated with the business | Finance oversight; client relationships; training coordination |
| Finance Controller | ICWAI, MBA Finance | Day-to-day finance and compliance |
Auto-Pilot Operating Model
Investor Message
The organisation operates through a robust management framework with decentralised execution and centralised monitoring, enabling scalable and efficient operations with limited promoter dependency.
Organisational Structure
Tier 1Promoter Leadership
Chairman
Managing Director
GM – Corporate Affairs
Sr. Manager – Corporate Affairs
Tier 2Senior Management
Reports to Chairman
GM – Operations (NCR)
Regional Director (Pan-India)
Sales & Branding
Reports to Managing Director
Financial Controller
CRM
HRD
Tier 3Functional Verticals
Senior → Junior reporting
Senior → Junior reporting
NCR Operations
- Branch Manager
- Branch Coordinator
- Training Manager
- Field Inspector
Pan-India Operations
- Branch Manager
- Branch Coordinator
- Training Manager
- Field Inspector
Sales & Branding
- Manager – Sales
- Manager – Tender
- Tender Executive
- Executive – Digital Marketing
CRM & Control Room
- DGM – Corporate Affairs
- Manager CRM
- Executives CRM
- Control Room Executives
- QRT Inspectors
Human Resources
- DGM – Corporate Affairs
- Manager HR
- Front Office Assistant
Admin & Compliance
- GM – Corporate Affairs
- Manager – HR Compliance & IR
- Recruitment Executive
- Grievance Executive
Inventory & Stores
- Manager – Inventory & Admin
- Executive – Stores
IT & Projects
- AGM – IT & Projects
Finance & Accounts
- Manager F&A
- Dy. Manager F&A
- Asst. Manager F&A
Salary & Billing
- AGM – Billing & Commercial
- Sr. Manager – Commercial
Legal
- Legal Manager
- Legal Consultant
Tier 4Regional & State Control
Regional DirectorNorth & West
HaryanaRajasthanMadhya PradeshUP & BiharJammu & KashmirHimachal PradeshGujaratUttarakhandPunjabChandigarh
GM – Operations (NCR)NCR cluster
NCR region offices
Regional Manager – EastEast & West Coast
Orissa & JharkhandMaharashtra
AGM – SouthSouth
TelanganaAndhra PradeshTamil NaduKarnatakaKeralaPondicherry
Management Framework
Multi-Layer Structure
Promoters, senior management, functional heads, managers and field inspectors.
Defined Reporting Hierarchy
Every role reports in a clear line up to the Chairman or Managing Director.
Regional & Operational Controls
Regional heads and state-level managers control field execution.
Standard Operating Procedures
Process-driven delivery through standardised SOPs.
Technology-Enabled Workforce Management
Control room, CRM and an IT & Projects function support monitoring of personnel.
Compliance-Driven Systems
Dedicated HR Compliance & IR, Legal and Finance functions.
Experienced Leadership & Supervisory Team
A significant portion of the senior management and supervisory team comprises experienced retired personnel from Government, Defence, Police, Security and Administrative backgrounds, bringing domain expertise, discipline and operational excellence.
Service Quality & Operating Controls
- 3-tier supervision with quality checks by a specialised team and periodic assessment reports for clients
- Round-the-clock support through a Crisis Management Team (CMT)
- Turnaround: 24 hours for minor and 48 hours for major operations
- ISO 9001:2015 procedures (group entity; valid to August 2028); transparent client communication
Litigation & Contingent Liabilities
Exposure
Nominal
Contingent liabilities and litigation exposure are nominal and significantly lower compared to industry norms and overall business scale.
Even in an extreme scenario of adverse outcomes, the financial impact remains immaterial relative to revenue, EBITDA and enterprise value.
Section 07
Order Summary — Pipeline Period: Calender Year 2027
Order Book Overview
- 8 confirmed contracts across 7 client categories
- Central government, state/UT government and public-sector clients
- Institutional clients — typically long switching cycles
- Client identities withheld; available post-NDA
| Client Category (Unnamed) | Contract Value (₹ Cr) | Personnel | |
|---|---|---|---|
| Central PSU — Urban Mass Transit | 58.84 | 298 |
|
| State / UT Government — Municipal Body | 34.54 | 288 |
|
| State / UT Government — Education Directorate | 18.07 | 717 |
|
| State / UT Government — Public Hospital | 18.02 | 544 |
|
| Central Government — Ministry | 14.43 | 199 |
|
| State / UT Government — Transport Department | 10.95 | 153 |
|
| Central Government — Agricultural Research & Education Body | 9.30 | 332 |
|
| Total Confirmed Order Book | 164.16 | 2,531 |
Section 08
Financial Snapshot
Basis of Figures
- FY 2025-26 figures are audited
- FY 2026-27 monthly billing is Provisional (unaudited management data)
- FY 2026-27 to FY 2029-30 figures are management projections (Est.)
- All figures in ₹ Crore, rounded to two decimals; totals are computed on exact values
Revenue — H1 FY 2026-27 Provisional
| Monthly Revenue (₹ Crore) | Taxable Sales | Exempted Sales | Total | |
|---|---|---|---|---|
| April 2026 | 1.03 | — | 1.03 |
|
| May 2026 | 11.86 | 1.10 | 12.96 |
|
| June 2026 | 11.86 | 4.15 | 16.01 |
|
| Q1 Total (Apr–Jun) | 29.99 | |||
| July 2026 | 15.28 | 4.11 | 19.39 |
|
| August 2026 | 13.36 | 4.27 | 17.64 |
|
| September 2026 | 13.26 | 4.27 | 17.54 |
|
| Q2 Total (Jul–Sep) | 54.57 | |||
| H1 Total (6 Months) | 66.66 | 17.91 | 84.56 |
- Sep-26 monthly billing of ₹17.54 Cr annualises to a run-rate of ~₹210 Cr
GST Efficiency & Exempt Revenue Mix
- Balanced revenue mix of GST-exempt and taxable service segments
- Results in operational tax efficiencies
Taxable Services
₹66.66 Cr
GST-Exempt Services
₹17.91 Cr
Revenue composition, April–September 2026.
Tax Position
Tax-Free ProfitTax-efficient business model
Supported by eligible deductions under Chapter VI-A, primarily Section 80JJAA.
- Section 80JJAA deduction: ₹5.49 Cr (FY24); ₹5.90 Cr (FY25)
- The Company receives substantial tax benefits
- Effective tax incidence remains significantly lower
- Tax refunds have been received historically
- Benefit has continued year after year
- Management expects continuation, subject to applicable laws
Management Projections
₹425 Cr
FY30 Revenue (Proj.)
vs ₹155.81 Cr in FY26
28.5%
Revenue CAGR
FY26 – FY30
27.0%
PAT CAGR
₹7.14 Cr → ₹18.60 Cr
| Main Company (₹ Crore) | FY26 Aud. | FY27 (Est.) | FY28 (Est.) | FY29 (Est.) | FY30 (Est.) |
|---|---|---|---|---|---|
| Revenue from Operations | 155.81 | 201.67 | 260.00 | 351.00 | 425.00 |
| YoY Growth | — | 29.4% | 28.9% | 35.0% | 21.1% |
| Net Profit / PAT | 7.14 | 6.71 | 10.86 | 16.39 | 18.60 |
| PAT Margin | 4.6% | 3.3% | 4.2% | 4.7% | 4.4% |
Section 09
Business Valuation
Indicative Enterprise Value
₹84.09 Crore
Average of EBITDA-based and Normalised PAT-based valuation
+ Working Capital
(Calculation to be done when the term sheet is signed)
+ Fixed Assets
(Valuation to be done separately)
+ Investments
(Valuation to be done separately)
Valuation Methodology (₹ Crore)
EBITDA Valuation
Normalised EBITDA₹10.8073 Cr
Multiple6.50x
Business Value₹70.2475 Cr
PAT Valuation
Normalised PAT₹8.5162 Cr
Multiple11.50x
Business Value₹97.9363 Cr
Average of EBITDA & PAT Valuation
EBITDA-based Business Value
₹70.2475 Cr
(+) PAT-based Business Value
₹97.9363 Cr
Total₹168.1838 Cr
Average (÷ 2) = Indicative Enterprise Value₹84.09 Cr
How EBITDA & PAT Are Arrived At (₹ Crore)
| Entity | Normalised EBITDA | Normalised PAT |
|---|---|---|
| Main Operating Company | 9.50 | 7.50 |
| Group 1 Entity | 0.47 | 0.36 |
| Group 2 Entity | 0.40 | 0.30 |
| Group 3 Entity | 0.43 | 0.36 |
| Consolidated | 10.81 | 8.52 |
EBITDA Bridge — Main Operating Company
Profit Before Tax
₹6.13 Cr
(+) Finance Costs, Bank Charges & Interest
₹0.37 Cr
(+) Depreciation
₹0.89 Cr
Reported EBITDA₹7.39 Cr
(+) Advertisement & Business Promotion Expenses
₹2.15 Cr
(+) Training Centre Development — one‑time
₹0.07 Cr
Adjusted EBITDA₹9.61 Cr
(+) Promoter Remuneration (normalised)
₹1.32 Cr
(−) Indirect Income
₹(1.43) Cr
Normalised EBITDA₹9.50 Cr
PAT Bridge — Main Operating Company
Profit Before Tax
₹6.13 Cr
(+) Advertisement & Business Promotion Expenses
₹2.15 Cr
(+) Training Centre Development — one‑time
₹0.07 Cr
Adjusted Profit₹8.35 Cr
(+) Promoter Remuneration (normalised)
₹1.32 Cr
(−) Indirect Income
₹(1.43) Cr
Adjusted PBT₹8.24 Cr
(−) Taxes (on adjusted PBT)
₹(0.74) Cr
Normalised PAT₹7.50 Cr
All figures in ₹ Crore, rounded to two decimals; totals are computed on exact values.
Section 10
Investment Proposition
What Is On Offer
- PSARA licences and GST registrations
- Client contracts and employees
- Operational infrastructure
- Accumulated Section 80JJAA benefits
- Group entities (verification, training, manpower functions) — may be included, subject to deal structuring
Value Creation Opportunities
- Convert the pipeline of prospective clients
- Expand into Bihar, Assam and additional states using existing licensing expertise
- Introduce technology-enabled supervision for better service delivery and efficiency
- Leverage the in-house verification and training ecosystem to scale deployment faster
Management Growth Ambition — By FY 2029-30
10,000+
Employees / Deployed Personnel
vs 5,306 in March 2026
~₹500 Cr
Annual Turnover Target
Management target
Higher
Profitability & Shareholder Value
Significant enhancement targeted
- Establish the brand as one of the most trusted, respected and professionally managed names in Indian security and facility management
- Management target; base-case projections are presented separately in Section 08
About the Adviser
CA Dhiraj Ostwal & Associates — “The Business Strategist”. Led by CA Dhiraj Ostwal, Chartered Accountant & Cost Management Accountant, the firm advises entrepreneurs, promoters and corporates on M&A, business structuring, audit & assurance, taxation and corporate compliance, with its head office in Pune.
28
Years of Practice
35+
Professionals
11
Offices Pan-India
1,500+
Clients · 7+ Countries
Contact the Adviser
Detailed information and management access will be provided following execution of a Non-Disclosure Agreement.
Adviser
CA Dhiraj Ostwal
Project Code
SE-041 · Project Sentinel
Email
Contact No.
Website
IMPORTANT DISCLAIMER
This Confidential Information Memorandum (“CIM”) has been prepared by CA Dhiraj Ostwal — Transaction Advisory (“Adviser”) on behalf of the promoters of Project Sentinel (SE-041). It is provided solely to enable potential acquirers to assess whether they wish to proceed with further discussions. It does not constitute an offer, invitation or solicitation to purchase any securities or business interest. The information herein has been derived from documents and representations provided by the management of the business and has not been independently verified by the Adviser. No representation or warranty, express or implied, is made as to its accuracy, completeness or fairness. Prospective acquirers must conduct their own independent due diligence and must not rely on this CIM as the basis for any investment decision. Financial projections are management estimates only and are subject to change. Past financial performance is not a guide to future performance. This CIM is strictly confidential and must not be disclosed to any third party without the prior written consent of the Adviser. Photographs are illustrative of the industry and services described. Any transaction with the Buyer shall be subject to applicable advisory fees of the Advisor.
This Confidential Information Memorandum (“CIM”) has been prepared by CA Dhiraj Ostwal — Transaction Advisory (“Adviser”) on behalf of the promoters of Project Sentinel (SE-041). It is provided solely to enable potential acquirers to assess whether they wish to proceed with further discussions. It does not constitute an offer, invitation or solicitation to purchase any securities or business interest. The information herein has been derived from documents and representations provided by the management of the business and has not been independently verified by the Adviser. No representation or warranty, express or implied, is made as to its accuracy, completeness or fairness. Prospective acquirers must conduct their own independent due diligence and must not rely on this CIM as the basis for any investment decision. Financial projections are management estimates only and are subject to change. Past financial performance is not a guide to future performance. This CIM is strictly confidential and must not be disclosed to any third party without the prior written consent of the Adviser. Photographs are illustrative of the industry and services described. Any transaction with the Buyer shall be subject to applicable advisory fees of the Advisor.