BLS International Services Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

BLS International delivered a strong Q2 FY26 performance, driven by robust growth in both its Visa and Consular Services and Digital Business segments. The company reported significant revenue and profit growth, supported by increased application volumes and strategic acquisitions. A major Aadhaar contract win further strengthens its position in the digital ecosystem, while margins remain stable.

Highlights

  • Consolidated revenue increased 49% YoY to ₹737 crores in Q2 FY26.

  • EBITDA grew 30% YoY to ₹213 crores, with margins stabilizing at 28.9%.

  • Profit after tax (PAT) rose 27% YoY to ₹186 crores.

  • Visa volumes increased 12% YoY to 11.3 lakh applications.

  • Digital services revenue surged 259% YoY to ₹278 crores, primarily due to Aadifidelis consolidation.

  • Secured a ₹2,000 crore contract from UIDAI for Aadhaar Seva Kendras, to be executed over 6 years.

  • Net cash position stood at ₹1,306 crores as of September 30, 2025.

Key financials

  1. Revenue ₹737 Cr +49%YoY
  2. EBITDA ₹213 Cr +30%YoY
  3. EBITDA Margin 28.9%
  4. PBT ₹203 Cr +24%YoY
  5. PAT ₹186 Cr +27%YoY
  6. EPS ₹4.25

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
₹735 Cr Total
  • Visa and Consular Services ₹457 Cr 62.2%
  • Digital Business ₹278 Cr 37.8%

Capital allocation

  • M&A Aadifidelis Solutions Acquisition · Integrated

    Consolidation drove significant growth in digital services revenue.

    Contributed to 20-25% of revenue and 5-6% of PBT, but with lower margins (2.5-3%).

    This is primarily due to the consolidation of Aadifidelis Solutions, which was acquired in November 2024.
  • M&A Citizenship Invest Acquisition · Integrated

    Added further momentum to overall growth.

    Contributed approximately INR 14.5 crores to revenue in Q2 FY26.

    Our revenue reached INR737 crores, representing a strong 49% year-on-year growth from INR495 crores in Q2 FY'25. This growth was driven by a steady increase in application volumes and the consolidation of Citizenship Invest and Aadifidelis, which added further momentum.
  • Liquidity Cash ₹1,306 Cr Net cash of INR 1,306 crores as on September 30, 2025, compared to INR 928 crores as on March 31, 2025. Indian books hold around INR 350 crores, with international books holding around INR 1,000 crores.
    The company continues to maintain a strong cash flow and a healthy balance sheet with net cash of INR1,306 crores as on September 30, 2025, compared to INR928 crores as on 31, March 2025.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · going forward · High confidence around 29%
    On a sequential basis, we have maintained our EBITDA margins at around 29% in the second quarter, and we feel the margins have now stabilized at these levels.

    — Shikhar Aggarwal

  • Digital Business EBITDA Margin Profitability · going forward · Medium confidence 7%
    You believe the margin would remain at 7% going forward as well?

    — Shrenik Mehta

  • Blended EBITDA Margins Profitability · long-term goal · High confidence 29-30%
    Together, blended margins should be in the range of 29-30%, which is our goal.

    — Shikhar Aggarwal

Revenue

  • Aadhaar Seva Kendra Annual Revenue Revenue · annually, when fully ramped up · High confidence ₹350 crores
    About INR350-odd crores, if I divide. Correct. When the project is fully ramped up, we expect that revenue to come in.

    — Shikhar Aggarwal

Revenue Mix

  • Visa vs Digital Business Revenue Mix Revenue Mix · over the period · Medium confidence 70-30
    I think it should get to that 70-30 range somewhere over the period. Again, it is subject to how the new business comes in, as well as the acquisition.

    — Amit Sudhakar

What to watch in Q3 FY26

Resolution of MEA Ban

next quarter
Current Temporary ban due to SLA complaints, working to resolve
Target Ban lifted, ability to bid for new tenders

Why it matters

Impacts future growth opportunities and reputation with government clients.

No, there were some SLA-driven complaints regarding waiting time, etc., that is normal when you're processing millions of applications. We had already announced that. We are working towards resolving the matter and are hopeful that it will be resolved soon.

Risks & concerns

  • Temporary Ban from Ministry of External Affairs (MEA)

    medium

    A temporary ban on applying for new tenders due to SLA-driven customer complaints (e.g., waiting time). Management states it's working to resolve it and expects no financial impact.

    Analyst acknowledged

  • Digital Business Margin Dilution from Acquisitions

    medium

    The acquisition of Aadifidelis, a high-revenue but low-margin company (3% EBITDA margin), has diluted the overall EBITDA margin of the digital services segment. Management aims to stabilize these margins.

    Analyst acknowledged

Q&A highlights

4 direct
Digital Service EBITDA Decline and Future Margins Direct
No. See, if you look at the digital service business, our EBITDA margin has dropped primarily because of the acquisition of new company, Aadifidelis, which we acquired in November 2024. The margin is 3% on the revenue and the increased revenue.

Clarifies the impact of the Aadifidelis acquisition on digital business profitability and management's strategy to stabilize margins.

Asked by Shrenik Mehta

Strategic Rationale for Hotel Acquisition Direct
See, our first of all, long-term objective is to be asset-light player. As you know, we want to be brand name owner, as we are in the industry wherein we are in touch with a lot of travel agents across the world, where the people who are applying for tourist visa, etc., they continue to demand for different kind of services, which is airline, hotels, etc., booking from us, so we thought that this would we did a very small investment, if you see from our cash reserves that we have, to understand this, which itself gives us a 10% to 12% return on our investment.

Explains the rationale behind a seemingly non-core acquisition as a small, asset-light investment to understand the travel ecosystem and leverage existing customer base.

Asked by Shrenik Mehta

Status and Cause of MEA Ban Direct
No, there were some SLA-driven complaints regarding waiting time, etc., that is normal when you're processing millions of applications. We had already announced that. We are working towards resolving the matter and are hopeful that it will be resolved soon. There is no impact on our financials or revenue.

Addresses concerns about a temporary ban from the Ministry of External Affairs, clarifying its nature (SLA-driven complaints) and assuring no financial impact.

Asked by Krishnam Saraf

Organic Growth in Visa Segment Partial
Yes. the growth depends on the volume of business. Over the last two quarters, the volumes have increased by 10%, and our revenue has also matched that growth. Whereas, if you look at the margins, they have improved over the last year; if you compare them now with last year, the margins have increased by more than 500 basis points. Improvement has been done on account of rationalization and the cost.

Analyst questions slower organic growth in the core visa business compared to industry, prompting management to emphasize volume-driven growth and margin improvement.

Asked by Vansh Solanki

Cash on Books and Capital Allocation Strategy Partial
I understand, but as per the SEBI guidelines for a buyback, the company free reserves are taken into account for deciding the quantum of buy back. In our case, the free reserve for buyback, the amount is very small. Dividend becomes, I would say, a better option for rewarding the shareholders. Yes, these can be discussed by the Board, and I will certainly put those options forward.

Analyst probes management on utilizing the significant cash reserves (INR 1,306 crores), particularly regarding repatriation, dividend policy, and potential buybacks, highlighting investor concerns about valuation.

Asked by Arpit Shah

Future Revenue Mix of Visa vs. Digital Business Direct
70-30 is what we are looking for. Again, this all will depend on how the new contract comes in and how the acquisition happens over the period of time.

Provides insight into the company's long-term strategic vision for the revenue contribution from its two main business segments.

Asked by Athar Syed

3 min read 6 chapters

Detailed narrative

Q2 FY26 Consolidated Performance Overview

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.

Visa and Consular Services Segment Highlights

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.

Digital Services Segment and Aadhaar Contract Win

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.

Capital Allocation and Liquidity Position

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.

MEA Ban and Operational Efficiency

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.

Strategic Outlook and Future Revenue Mix

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.

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