BLS International Services Limited — Q1 FY26 earnings call

Call held 6 Aug 2025

Management summary

BLS International Services Limited reported a strong Q1 FY26, driven by robust performance in both Visa & Consular and Digital Services segments. Consolidated revenue and profitability saw significant year-on-year growth, supported by strategic acquisitions and the successful transition to a self-managed operational model. The company maintains a healthy cash position and aims for sustained growth and margin stability in the coming years.

Highlights

  • Consolidated revenue reached Rs. 710 crores, marking an impressive 44% year-on-year growth.

  • EBITDA grew by 53% to Rs. 204 crores, with EBITDA margin expanding by 171 basis points to 28.7%.

  • PAT stood at Rs. 181 crores, witnessing a growth of 50% over Q1 FY25.

  • Visa and Consular business revenue grew 11% YoY to Rs. 461 crores, with an EBITDA margin of 40.4%.

  • The company processed 11.4 lakh applications, representing a 33.6% year-on-year growth.

  • Digital segment revenue surged 218% YoY to Rs. 250 crores, with EBITDA at Rs. 18 crores.

  • Net cash position stood at Rs. 1,126 crores as on June 30, 2025, up from Rs. 928 crores in March 2025.

Key financials

  1. Consolidated Revenue ₹710 Cr +44%YoY
  2. Consolidated EBITDA ₹204 Cr +53%YoY
  3. Consolidated EBITDA Margin 28.7%
  4. Consolidated PAT ₹181 Cr +50%YoY
  5. Net Cash Position ₹1,126 Cr

What they filed

Q1 FY27: revenue up 25.3%, net profit up 11.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue495 513 693 711 737 +49%736 +43%815 +18%891 +25%
EBITDA164 158 174 204 213 +30%198 +25%204 +17%252 +24%
Net profit146 128 145 181 186 +27%170 +33%187 +29%202 +12%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹711 Cr Total
  • Visa and Consular Services ₹461 Cr 64.8%
  • Digital Service Business ₹250 Cr 35.2%

Capital allocation

high confidence
  • M&A CSPs of SBI and HDFC Bank from Sub-K IMPACT Solutions Acquisition · Signed

    Expand financial inclusion and enhance last-mile banking delivery across India.

    This strategic acquisition will mark a significant step in the company's commitment to expand financial inclusion.

    During the quarter, our step-down subsidiary Zero Mass also signed a definitive agreement to acquire CSPs of SBI and HDFC Bank from Sub-K IMPACT Solutions. This strategic acquisition will mark a significant step in the company's commitment to expand financial inclusion and enhance last-mile banking delivery across India.
  • M&A Aadifidelis Solutions Private Limited Acquisition · Integrated

    Contributed significantly to Digital segment revenue growth.

    Largely due to integration of Aadifidelis Solutions Private Limited from November 2024. Aadifidelis margins are about 4% EBITDA.

    Digital segment recorded an exceptional growth with revenue increased by 218% Y-o-Y to Rs. 250 crores, largely due to integration of Aadifidelis Solutions Private Limited from November 2024. So, approximately around Aadifidelis is about Rs. 150 crores. Whereas in the digital business, the major portion of the turnover has come from the acquisition we did of Aadifidelis, where the margins are about 4% EBITDA.
  • M&A iDATA Acquisition · Integrated

    Contributed to Visa and Consular segment growth and higher margins.

    Full quarter impact of recent acquisitions of iDATA, Citizenship Invest and Aadifidelis Solutions, which were consolidated during FY '25. iDATA is about 72 or so. EBITDA margin in this segment improved significantly 40.4% up from 29.3% in Q1 FY '25. The strong performance was primarily driven by enhanced cost efficiencies, higher proportion of self-managed centers and consolidation of iDATA's high margin operations.

    This growth was driven by continuous strength in our core operations as well as full quarter impact of recent acquisitions of iDATA, Citizenship Invest and Aadifidelis Solutions, which were consolidated during FY '25. iDATA is about 72 or so.
  • M&A Citizenship Invest Acquisition · Integrated

    Contributed to Visa and Consular segment growth and higher margins, leading player in residency and citizenship.

    Full quarter impact of recent acquisitions of iDATA, Citizenship Invest and Aadifidelis Solutions, which were consolidated during FY '25. Citizenship was about Rs. 11 crores in this. EBITDA margin in this segment improved significantly 40.4% up from 29.3% in Q1 FY '25. The strong performance was primarily driven by enhanced cost efficiencies, higher proportion of self-managed centers and consolidation of iDATA's high margin operations.

    This growth was driven by continuous strength in our core operations as well as full quarter impact of recent acquisitions of iDATA, Citizenship Invest and Aadifidelis Solutions, which were consolidated during FY '25. Citizenship was about Rs. 11 crores in this.
  • Liquidity Cash ₹1,126 Cr Net cash position as of June 30, 2025, with cash kept in debt funds or fixed deposits.
    We continued to maintain a net cash position of Rs. 1,126 crores as on 30th June 2025, compared to Rs. 928 crores of net cash as of 31st March 2025. We have a healthy cash balance on our books, which is more than Rs. 1,100 crores as on today, that all has been kept in debt funds or fixed deposits and whatever we earn on that is being part of our other income.

Guidance & targets

Profitability/Revenue Growth

  • Consolidated Profitability and Revenue Growth Profitability/Revenue Growth · next 3-4 years · High confidence 20%-25%
    And what guidance or what we are telling people is that now with the increased base also, next 3-4 years, we would continue to grow 20%-25% in terms of profitability, revenue, etc.

    — Shikhar Aggarwal

Margin

  • Visa Business EBITDA Margin Margin · immediate and long-term · High confidence 40%
    So, our immediate and long-term objective is to maintain that [40% EBITDA margins in Visa business].

    — Shikhar Aggarwal

Operational Model

  • Outsourcing vs. In-house Services Mix Operational Model · by 2029 · High confidence 50-50
    One is that, in your investor presentation, you have mentioned that outsourcing and your in-house services are 50-50 will become in 2029.

    — Dilip (Analyst) / Shikhar Aggarwal (Implicit Confirmation)

Market context

  • Global Market Share Market Share · ongoing · High confidence increase
    Yes, we are making efforts to increase our market share, definitely.

    — Shikhar Aggarwal

What to watch in Q2 FY26

Visa Business EBITDA Margin

next quarter / ongoing
Current 40.4%
Target Maintain 40%

Why it matters

Maintaining high margins in the core segment is crucial for overall profitability and reflects operational efficiency.

So, our immediate and long-term objective is to maintain that [40% EBITDA margins in Visa business].

Risks & concerns

  • Impact of stricter visa processing and e-visas

    medium

    Management believes stricter processing creates embassy bottlenecks, not a volume threat, and e-visas are a separate market not impacting core business.

    Analyst downplayed

  • Lack of institutional investor interest

    medium

    Management acknowledged the concern and stated they have hired an Investor Relations person to address it.

    Analyst acknowledged

Q&A highlights

5 direct
Competitive positioning against VFS and future growth sustainability Direct
I think we have achieved around 16%-17% global market share. I feel that we are the second largest company globally in this business. And as you have seen now, if you compare the numbers 5 years back, our revenue has grown 5x, our EBITDA has grown 15x. ...next 3-4 years, we would continue to grow 20%-25% in terms of profitability, revenue, etc.

Management provided a clear competitive stance, highlighted past growth, and reiterated long-term growth guidance, addressing concerns about market saturation and competition.

Asked by Arpit Shah

Deployment of Rs. 1,100 crores net cash position for acquisitions or new contracts Partial
As you know that last year itself, we did upwards of Rs. 1,200 crore in acquisitions. We deployed our money in that and that is getting positive. Now, if you see this again, there is a cash flowing company. ...Right now, it is consolidating our previous acquisitions. So, as and when something gets materialized, we will definitely let you know.

Analysts are keen on capital allocation for growth. Management confirmed active M&A search but no immediate announcements, indicating a focus on integrating recent deals.

Asked by Ravi Naredi

Margin decline in the Digital Services segment despite Aadifidelis integration Direct
Yes, because in Quarter 4, they get the incentives. If you understand the business of Aadifidelis, they are into loan distribution and for the whole year, their performance on the basis of that, they get incentives. So, the margins were higher during Q4.

Clarified that the lower Q1 margin in the Digital segment was due to the seasonality of incentives in Aadifidelis's loan distribution business, not a structural decline.

Asked by Vansh Solanki

Breakdown of organic vs. inorganic growth and advantages of the self-run model Direct
So, Amit, if you see from Y-o-Y basis, Q1 versus Q1, the growth from new acquisitions have been in revenue about 35%, which has contributed and has also contributed to about 30% in EBITDA margins... the biggest advantage on the same was the margin which was kept by the partner has now been coming in our own books.

Provided specific figures for inorganic contribution to growth and explained how the shift to a self-managed model directly improves margins by internalizing previously shared revenue.

Asked by Amit Chandra

Contract renewal pipeline and major upcoming contracts Direct
Amit, I think we have explained in the past, in the last one year, 90% of our contracts have been renewed. Next 2-3 years, some of those will come up, but we have a clear visibility on the next 4-5 years, 6-7 years of our revenue. Even we explained, we won some contracts with the US government last year that are for 10 years.

Reassured investors about long-term revenue visibility and contract stability, citing high renewal rates and significant long-term contracts.

Asked by Amit Chandra

Impact of xenophobia/e-visas, differentiation from VFS, and lack of institutional investor interest Partial
So, frankly speaking, we have not been focusing on the investment side. About a year back, we have hired an IR person and now he is going for all the investment calls and the others. And hopefully, they will also look at our company now.

Management acknowledged the concern regarding institutional interest and outlined steps taken (hiring IR) to address it, indicating a proactive approach to investor engagement.

Asked by Vivek Gautam

Potential for forward integration into the travel industry and client government restrictions Direct
No. We are actually focused on our government, like our business, which is into government outsourcing services and that's exclusive contracts. So, this is what we are focused on. And this is what we are talking about.

Clarified the company's strategic focus on government outsourcing and exclusive contracts, indicating no immediate plans for diversification into broader travel agency services.

Asked by Sachin

2 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Financial Performance

BLS International commenced FY26 on a robust note, achieving its highest-ever quarterly financials. Consolidated revenue reached Rs. 710 crores, marking an impressive 44% year-on-year growth. EBITDA grew by 53% to Rs. 204 crores, with the EBITDA margin expanding by 171 basis points to 28.7%. The company's PAT stood at Rs. 181 crores, witnessing a 50% growth over Q1 FY25, reflecting improved performance across both core business segments.

Visa and Consular Services Segment Drives Growth and Margins

The Visa and Consular segment continued to be a primary growth driver, with revenue increasing 11% year-on-year to Rs. 461 crores and net revenue growing 60% to Rs. 360 crores. This segment's EBITDA margin significantly improved to 40.4% from 29.3% in Q1 FY25, attributed to enhanced cost efficiencies and a higher proportion of self-managed centers. The company processed 11.4 lakh applications, a 33.6% year-on-year increase, with net revenue per application growing 19% to Rs. 3,167.

Exceptional Growth in Digital Services Segment

The Digital Services segment recorded an exceptional revenue growth of 218% year-on-year, reaching Rs. 250 crores, with an EBITDA of Rs. 18 crores. This surge was largely driven by the consolidation of Aadifidelis Solutions Private Limited, which contributed approximately Rs. 150 crores to the segment's revenue, and growth in the Business Correspondent (BC) business. The company's step-down subsidiary, Zero Mass, also signed a definitive agreement to acquire CSPs of SBI and HDFC Bank, aiming to expand financial inclusion.

Strategic Acquisitions and Operational Model Shift

The company continues to benefit from the successful integration of acquisitions like iDATA, Citizenship Invest, and Aadifidelis, which were consolidated in FY25. These acquisitions contributed approximately 35% to revenue growth and 30% to EBITDA growth year-on-year. The transition from partner-run to self-managed centers has been a key factor in margin expansion, as the share previously retained by partners now accrues to BLS, with most offices operating on a rental basis.

Robust Capital Position and Future Outlook

BLS International maintains a strong net cash position of Rs. 1,126 crores as of June 30, 2025, an increase from Rs. 928 crores at March 31, 2025. This cash is primarily held in debt funds or fixed deposits. Management expressed confidence in sustaining 20-25% profitability and revenue growth over the next 3-4 years and aims to maintain the 40% EBITDA margin in the Visa business. The global visa outsourcing market, projected to grow at a 14% CAGR to USD 8.2 billion by 2028, presents significant opportunities for the company.

Competitive Landscape and Investor Engagement

BLS International positions itself as the second-largest company globally in its space, holding 16-17% market share. It competes effectively in global tenders, leveraging its 15-20 years of experience, technology, and global delivery capabilities. The company acknowledged past limited institutional investor interest and stated that an Investor Relations person was hired a year ago to proactively engage with the investment community, with expectations for increased interest going forward.

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