BLUSPRING

Bluspring reported a Q2 FY26 revenue of ₹837 crores (excluding investments), marking a 14% year-on-year and 8% quarter-on-quarter increase. H1 FY26 revenue stood at ₹1,614 crores, up 14% YoY. The overall business environment remained positive, supported by strong economic activity, including 35% YoY growth in Indian office real estate net absorption and a 31% YoY increase in government capex to ₹5.8 lakh crore in H1 FY26. Q2 EBITDA was ₹29 crores, up 1% YoY and 22% QoQ, with H1 EBITDA at ₹53 crores, down 5% YoY due to strategic investments in leadership and sales.

The Facility and Food Services segment, contributing 60% of revenue, grew 14% YoY and 8% QoQ to ₹514 crores in Q2, driven by new sales and education institutions reopening. The Telecom and Industrials segment grew 11% YoY to ₹155 crores in Q2, with industrial sub-vertical showing strong growth and adding 6 major contracts worth ₹40 crores ACV. The Security business delivered an excellent quarter with Q2 revenue of ₹168 crores, up 19% YoY and 13% QoQ, achieving the highest ever quarterly headcount addition of 1,300 and 17 new logos.

The AI-powered job search platform, foundit, recorded Q2 revenue of ₹21 crores, up 5% QoQ. The company focused on cost optimization, reducing its quarterly cost base from ₹43.5 crores in Q4 FY25 to a sustainable ₹33 crores in Q2 FY26. Product enhancements included improvements to the search engine, a revamped recruiter interface, and a 25% reduction in overall site latency, which have been well-received by customers. Management expects foundit to be very near break-even in the coming quarters.

The company's Days Sales Outstanding (DSO) increased to 105 days, up from typical levels of 85-90 days. This increase is primarily attributed to delays arising from the novation of contracts during the de-merger process, which temporarily impacted billing and collection cycles. Net debt (excluding foundit) stood at ₹136 crores. Management is confident in reducing DSO to sub-100 days and net debt to sub-100 crores by the year-end, with banking limits already in place to support growth. The blended cost of debt has reduced from 8% to 7.35%.

Bluspring is making inroads into new segments like sports & leisure, serving as the exclusive hospitality partner for the World Para Athletics Championship. Within education, the company entered off-campus student living space. A new central kitchen in Bengaluru is expected to start operations this quarter, expanding footprint in corporate offices and GCCs. The industrial sub-vertical is transitioning from a manpower provider to a strategic operations partner, securing contracts for end-to-end O&M services. The telecom business is diversifying into solar EPC and satellite communications.

Q2 EBITDA margin improved by 41 basis points to 3.5%, up from 3.1% in Q1. Management aims to expand EBITDA margins further to 4% by the end of FY26. The long-term ROE target is double-digit in the next couple of years, reaching 20% by 2030. The company's overall growth guidance remains 3x GDP growth rate over the next 3-4 years, achieved through a combination of organic growth and strategic value-based acquisitions, prioritizing the food and industrial maintenance businesses for M&A.