BLS International Services Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

BLS International delivered a robust Q3 FY26, nearly matching the previous full year's revenue in just nine months. Growth was driven by a 109% surge in the Digital Business and steady 20% growth in the Visa segment, supported by higher application volumes and improved per-app realization. While blended margins saw some pressure due to the mix shift toward lower-margin acquisitions like Aadifidelis, the core Visa business achieved record efficiency with 40% EBITDA margins.

Highlights

  • Consolidated Revenue grew 44% YoY to ₹737 crores in Q3 FY26.

  • Profit After Tax (PAT) increased 33% YoY to ₹170 crores.

  • Visa application volumes rose 18% YoY to 10.7 lakh applications.

  • Net revenue per application grew 19% YoY to ₹3,383.

  • Digital Business revenue more than doubled, growing 109% YoY to ₹287 crores.

  • Visa & Consular segment EBITDA margin expanded to 40% from 37% YoY.

  • Management set a long-term growth target of 20% to 25% for the next 5 years.

  • Interim dividend of 200% (₹2 per equity share) approved by the Board.

Key financials

  1. Revenue ₹737 Cr +44%YoY
  2. EBITDA ₹198 Cr +25%YoY
  3. PAT ₹170 Cr +33%YoY
  4. Visa Application Volume ₹10.7 lakh +18%YoY
  5. Net Revenue per Application ₹3,383 +19%YoY

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
₹736 Cr Total
  • Visa and Consular Services ₹449 Cr 61.0%
  • Digital Business ₹287 Cr 39.0%

Guidance & targets

Revenue

  • Consolidated Revenue Growth Revenue · next 5 years · High confidence 20% to 25%
    Yes, we have already said that for the next 5 years, our target is to achieve 20% to 25% growth.

    — Shikhar Aggarwal, Joint Managing Director

Other

  • Employee Cost as % of Turnover Other · FY26 · Medium confidence 14.5% to 15.5%
    If you see our last year audited numbers, our employee cost was about 14.75%. Now our 9 months is about 15.5%. So overall, if you see, we are in that range of 15%.

    — Amit Sudhakar, CFO

  • M&A Payback Period Other · Medium Term · Medium confidence 5 to 7 years
    So currently, what we have acquired, they all have a payback between 5 to 7 years.

    — Amit Sudhakar, CFO

Margin

  • Digital Services Margin Margin · FY27 · Medium confidence Improvement
    But right now, as and when we introduce more value-added services and ancillary services, we will see margin improvements.

    — Shikhar Aggarwal, Joint Managing Director

Risks & concerns

  • Margin Dilution from Digital Segment

    medium

    The rapid growth of the Digital Business, particularly the Aadifidelis acquisition (3-4% margin), is diluting the high-margin (40%) Visa segment's impact on the blended bottom line.

    Analyst acknowledged

  • Geopolitical Volatility

    medium

    Management noted that pre-war Russia/Ukraine volumes were significant and their return would be a major growth driver, implying current volumes are still suppressed.

    Management acknowledged

  • High Goodwill and Payback Risk

    low

    Analysts questioned the synergy of non-core acquisitions like a U.K. hotel; management defended it as a 'one-off' to gain experience in management contracts.

    Analyst deflected

Areas of evasion (1)

  • Specific names and values of upcoming country-wise contract renewals.

Q&A highlights

3 direct
EBITDA Margin Contraction Direct
In the digital business, the growth has been more than 100%, where the margins have contracted because of Aadifidelis, which has a lower EBITDA margin business.

Explains the disconnect between high revenue growth and slightly lower blended margin expansion due to the mix shift toward lower-margin acquisitions.

Asked by Shreya Kejriwal, Moneyvesta Wealth Management

M&A Strategy and Payback Direct
If we look at the ROI, at least in double-digits minimum... currently, what we have acquired, they all have a payback between 5 to 7 years.

Provides concrete financial hurdles for the company's aggressive acquisition strategy, addressing concerns about high goodwill on the balance sheet.

Asked by Shikha Mehta, Time and Tide Advisors

Risk of e-Visa Digitization Direct
They are also digitizing part of the process. So that will lead to an increase in volume for us itself, and people will have to still come to the centre to do the biometric.

Management clarifies that digitization often increases volumes and that biometrics remain a physical moat, mitigating fears of total online disruption.

Asked by Varun Subramanian, Ascent Capital

2 min read 5 chapters

Detailed narrative

Digital Business Becomes a Growth Engine

The Digital Business segment saw revenue more than double to ₹287 crores in Q3 FY26, a 109% YoY increase. This surge was primarily driven by the Business Correspondent (BC) and loan distribution businesses, alongside the consolidation of the Aadifidelis acquisition. While this segment currently operates at lower EBITDA margins (roughly 6-7% based on segment data), management expects improvements as they introduce more value-added and ancillary services.

Visa Segment Efficiency Hits Record Highs

The core Visa and Consular services segment recorded a 20% YoY revenue growth to ₹449 crores. More impressively, EBITDA for the segment rose 28% to ₹180 crores, with margins expanding to 40% from 37% in the previous year. This efficiency was attributed to a successful transition from a partner-led to a self-managed model and an 18% increase in application volumes to 10.7 lakh.

Aggressive M&A Strategy with Clear Financial Hurdles

BLS has spent approximately ₹1,300 crores on acquisitions over the last year, including Aadifidelis, iDATA, and Citizenship Invest. Management disclosed that these acquisitions are expected to have a payback period of 5 to 7 years and must meet a minimum double-digit ROI. They emphasized a conservative approach focused on allied services that offer high synergy with their existing government services infrastructure.

Moat Against e-Visa Disruption

Addressing analyst concerns regarding the shift toward e-visas in Europe and other regions, management argued that digitization actually increases application volumes by simplifying the process. They highlighted that biometric requirements, which have become standard over the last 7 years, act as a physical moat that necessitates applicants visiting BLS centers, ensuring the company's continued relevance in a digital-first environment.

Strong Cash Position and Shareholder Rewards

The company ended the quarter with approximately ₹1,400 crores in cash and cash equivalents, up from ₹1,290 crores in the previous quarter. This strong liquidity position supported the Board's decision to declare a 200% interim dividend (₹2 per share). Management indicated that the healthy balance sheet provides ample room for further strategic acquisitions while maintaining a policy of rewarding shareholders.

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