BLS International Services Q1 FY27 earnings call

BLS International Services Limited reported a robust start to FY27, achieving its highest ever quarterly financial metrics. Consolidated revenue surged by 25% year-on-year to ₹891 crores, while EBITDA grew 24% to ₹252 crores. Profit After Tax (PAT) also saw a significant increase of 12% year-on-year, reaching ₹202 crores. This strong performance was attributed to a diversified business model, global footprint, and disciplined execution, with growth observed across both its Visa & Consular Services and Digital Business segments.

The Visa & Consular Services segment demonstrated strong traction, with revenue growing 22% to ₹560 crores and EBITDA also up 22% to ₹226 crores, maintaining a healthy margin of 40.3%. While application volumes remained broadly stable at 11.3 lakh, net revenue per application increased by 11% to ₹3,521 due to higher pricing and better revenue mix. The Digital Service business was the fastest-growing segment, with revenue increasing 32% to ₹330 crores and EBITDA soaring 46% to ₹27 crores, improving its margin to 8.2%. This growth was driven by healthy traction in BC and loan distribution businesses, alongside expansion of assisted digital service offerings.

BLS International continued to strengthen its global platform through strategic initiatives, including the commencement of Belarus Visa applications in Mumbai. The company also launched the #VisaReadywithBLSInternational awareness campaign and introduced an AI-powered bot for global missions, providing 24/7 virtual assistance. These efforts underscore the company's focus on technology-led service delivery and customer convenience, leveraging AI, advanced analytics, and cloud platforms to enhance security and scalability across its operations.

The company maintains a strong balance sheet with ₹1,617 crores in net cash as of June 30, 2026, providing significant financial flexibility. Management emphasized that capital allocation priorities are organic expansion, followed by M&A activities that yield high ROI (over 17-20%), and then shareholder returns through dividends. This quarter saw the completion of the Atyati Technologies acquisition for ₹138 crores, which generated ₹275 crores in revenue and ₹20-21 crores in EBITDA last year, aiming to consolidate the BC business and expand technology solutions for banks and NBFCs.

BLS International provided an update on the Aadhaar project, indicating a total investment of ₹125 crores, with ₹75 crores already invested. The remaining investment is expected to be completed in the next quarter, with full revenue generation anticipated by Q4 FY27. This six-year contract is projected to generate ₹2,500 crores in total revenue. However, management noted that the Aadhaar business is a relatively lower-margin venture, with an expected EBITDA margin of 10-15%, which is lower than the core visa segment's profitability.

The company reiterated its organic revenue growth target of 15% to 20% for the next five years. For the full financial year, the consolidated EBITDA margin is expected to be maintained at 28.3%, with the Visa business maintaining around 40% and the Digital Service business targeting 8.0%. The effective tax rate for the financial year is estimated to be around 12%. Management also guided for 10-15% revenue growth in the Visa & Consular business, with net revenue per application growth of 12-15% driven by travel industry growth and pricing improvements.