BLS Internat.

BLS International reported a strong Q2 FY26, with consolidated revenue growing 49% year-on-year to ₹737 crores. EBITDA increased by 30% to ₹213 crores, and EBITDA margins stabilized at around 28.9%. Profit after tax (PAT) for the quarter rose 27% to ₹186 crores, translating to an EPS of ₹4.25. The company attributes this growth to increased application volumes and the consolidation of recent acquisitions like Citizenship Invest and Aadifidelis.

The Visa and Consular Services segment recorded a 10% revenue growth, reaching ₹457 crores in Q2 FY26. EBITDA for this segment grew 26% to ₹192 crores, with margins improving significantly to 42% from 36.4% last year, an increase of 549 basis points. Visa application volumes increased 12% to 11.3 lakh applications, and net revenue per application improved by 12% to ₹3,223. This improvement in profitability is driven by higher volumes, cost optimization, and a strategic shift to a self-run model.

The Digital Business segment saw remarkable growth, with revenue soaring 259% year-on-year to ₹278 crores in Q2 FY26, primarily due to the consolidation of Aadifidelis Solutions. EBITDA for the segment grew 72% to ₹21 crores, achieving a margin of 7.4%. A significant milestone was the win of a ₹2,000 crore contract from the Unique Identification Authority of India (UIDAI) to establish district-level Aadhaar Seva Kendras, to be executed over a period of 6 years, with an anticipated annual revenue of approximately ₹350 crores when fully ramped up. The BC business processed 3.5 crore transactions with a transactional value of ₹27,300 crores and generated ₹8,600 crores in loan leads.

The company maintains a strong liquidity position with net cash of ₹1,306 crores as of September 30, 2025, an increase from ₹928 crores on March 31, 2025. Approximately ₹350 crores of this cash is held in Indian books, with the remaining ₹1,000 crores in international books. Management noted that while a dividend policy is in place (30% of surplus cash), buybacks are less favorable due to SEBI guidelines on free reserves. Acquisitions are funded from international cash reserves, with around ₹900 crores invested in new acquisitions outside India last year.

Management addressed a temporary ban from the Ministry of External Affairs (MEA) on applying for new tenders. This ban was attributed to SLA-driven customer complaints regarding waiting times. The company confirmed it is working to resolve the matter and stated that there is no impact on its financials or revenue, as existing contracts are ongoing and a new contract for China visa application centers was secured despite the ban. The focus remains on fulfilling contractual obligations and maintaining operational efficiency.

BLS International aims to stabilize its overall EBITDA margins at 29-30%. The company's long-term objective is to be an asset-light player, with small strategic investments like the hotel acquisition serving to understand new business avenues. For the revenue mix between Visa and Digital businesses, the target is to achieve a 70-30 split over time, depending on new contracts and acquisitions. The company is actively looking for synergistic acquisition targets with a focus on EBITDA multiples and ROI.