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    BLUSPRING

    BLUSPRING
    Services·7 Nov 2025
    Management Summary

    Bluspring reported a strong Q2 FY26 with robust revenue growth across core businesses, driven by new client additions and operational efficiencies. While EBITDA saw sequential improvement, year-on-year growth was flat due to strategic investments. The company is actively managing increased DSO and remains focused on cost optimization and sales acceleration, particularly for its foundit platform.

    Highlights

    5
    • Q2 Revenue (ex-foundit) of ₹837 crores, up 14% YoY, driven by new sales in facility management, security, and industrial verticals.

    • Q2 EBITDA of ₹29 crores, increased 22% QoQ, with EBITDA margin improving 41 basis points to 3.5%.

    • Security business delivered strong Q2 revenue growth of 19% YoY and 13% QoQ, with the highest ever quarterly headcount addition of 1,300.

    • foundit achieved a 25% reduction in overall site latency and reduced its quarterly cost base from ₹43.5 crores to ₹33 crores.

    • Secured 36 new contracts worth ₹110 crores in H1 FY26 across facilities, maintenance, food, and industrial verticals.

    Concerns

    3
    • Flat EBITDA on a year-on-year basis due to investments in leadership and sales team enhancement.

    • DSO increased to 105 days from usual 90 days, largely attributable to delays from novation of contracts post-demerger.

    • EBITDA for the Facility and Food Services segment was down 20% year-on-year.

    Key financials

    Metrics

    8

    Periods

    2

    Headline

    4
    • H1 Revenue
      ₹1,614 Cr
      YoY+14.0%
    • H1 EBITDA
      ₹53 Cr
      YoY-5%
    • DSO
      105 days
    • Net Debt (ex-foundit)
      ₹136 Cr

    Q2

    4
    • Revenue (ex-foundit)
      ₹837 Cr
      YoY+14.0%QoQ+8%
    • EBITDA
      ₹29 Cr
      YoY+1%QoQ+22%
    • PAT
      ₹16 Cr
      YoY+19%QoQ+38%
    • EBITDA Margin
      3.5%

    Segment breakdown

    • Facility and Food Services₹514 Cr59.9%
    • Telecom and Industrials₹155 Cr18.1%
    • Security₹168 Cr19.6%
    • foundit (Investments)₹21 Cr2.4%
    Donut· Share of Q2 Revenue

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Debt

    Net ₹136 crores

    Cost 7.3%

    Guidance & targets

    9
    CategoryTargetPriority
    Revenue
    Full Year Revenue Growth
    14%
    High
    Working Capital
    DSO
    sub-100 days
    High
    Debt
    Net Debt (ex-foundit)
    sub-100 crores
    High
    Profitability
    foundit Break-even
    very near
    Medium
    Profitability
    EBITDA Margin
    4%
    High
    Profitability
    ROE
    20%
    High
    Growth
    Overall Growth Rate
    3x GDP growth rate
    High
    Operating Cash Flow
    OCF Conversion
    20-30%
    Medium
    Operating Cash Flow
    OCF Breakeven
    breakeven
    High

    DSO Reduction

    by year-end
    Current105 days
    Targetsub-100 days

    Why it matters

    Improvement in DSO is crucial for working capital management and cash flow generation.

    However, with novation's behind us, we are confident of reducing the DSO days and bringing the net debt to sub-100 levels by the year-end.

    How to verify

    key_financials.metrics[label='DSO']

    Risks & concerns

    3
    RiskSeverity

    Increased Days Sales Outstanding (DSO)

    DSO increased to 105 days from a normal 85-90 days due to delays in contract novation post-demerger, impacting collections.Management acknowledged

    medium

    Flat EBITDA growth year-on-year

    EBITDA growth was flat YoY due to strategic investments in leadership and sales team enhancement, which are expected to normalize as the business scales.Management acknowledged

    low

    Cyclicality of Telecom business

    The telecom industry has cycles, with growth potentially slowing after major rollouts like 5G, necessitating diversification into areas like solar EPC and satellite communications.Management acknowledged

    medium

    Q&A highlights

    8

    “So, as of now, our DSO levels as reiterated is around 105 days and normally this business will be operating at a sub 85 to 90 days rate. Now, we have an increase in the number of days of DSOs because of our innovations of contract that got delayed because of the demerger in the last six months.”

    Analyst questioned the significant increase in DSO, which impacts working capital and cash flow. Management attributed it to contract novation post-demerger and expressed confidence in reducing it.

    asked by Zaki Nasser

    3 min read6 chapters

    Detailed Narrative

    01

    Overall Performance and Business Environment

    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.

    02

    Segmental Performance Highlights

    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.

    03

    foundit Progress and Cost Optimization

    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.

    04

    Working Capital Management and Debt

    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%.

    05

    Strategic Initiatives and Growth Drivers

    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.

    06

    Margin Trajectory and Future Outlook

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.