Concall AI

Bluspring Enterprises Limited — Q4 FY26 earnings call

Call held 20 May 2026

Management summary

Bluspring Enterprises Limited delivered a strong Q4 FY26, concluding its first full financial year as an independent listed company with robust growth and margin expansion. The company announced two strategic acquisitions, STEAG Energy Services and LSG Sky Chefs, poised to significantly enhance revenue and profitability. While the foundit business continues to incur losses, management is committed to achieving EBITDA breakeven by the end of FY27 and improving overall capital efficiency.

Highlights

FY26 Revenue reached ₹3,304 crores, marking an 11% YoY growth.
Q4 FY26 EBITDA grew 44% YoY and 9% QoQ to ₹35 crores, with EBITDA margin expanding to 4.2%.
FY26 Adjusted PAT increased by 26% YoY to ₹67 crores, translating to an EPS of ₹4.5 per share.
Working capital days improved significantly to 37 days from 46 days a year back.
Strategic acquisitions of STEAG Energy Services and LSG Sky Chefs are expected to boost top-line by ~₹810 crores and improve pro forma EBITDA margins by 90-100 bps.

Concerns

Telecom vertical growth remained muted due to delays in planned capital expenditure from leading operators.
The foundit business continued to incur EBITDA losses of ₹9 crores in Q4 FY26, though reduced from ₹12 crores in Q3.

Key financials

2 periods

Headline

Revenue
₹3,304 Cr
YoY +11%
EBITDA
₹121 Cr
YoY +10%
Adjusted PAT
₹67 Cr
YoY +26%
Adjusted EPS
₹4.5
Net Cash Position
₹15 Cr
Working Capital Days
37 days

Q4

Revenue
₹846 Cr
YoY +8% QoQ 0%
EBITDA
₹35 Cr
YoY +44% QoQ +9%
EBITDA Margin
4.2%
QoQ +0.35%
Adjusted PAT
₹20 Cr
YoY +73% QoQ +6%

What they filed

Q1 FY27: revenue up 19.1%, net profit up 77.8% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	770	791	802	797	857 +11%	863 +9%	865 +8%	949 +19%
Expenses	748	770	797	786	840	839	840	929
EBITDA	23	21	5	12	17 −23%	24 +16%	25 +429%	21 +76%
Margin	3%	3%	1%	1%	2%	3%	3%	2%
Other income	2	-154	-6	-0	5	-28	1	5
Interest	12	7	8	7	8	11	7	10
Depreciation	12	11	11	12	13	11	11	14
Profit before tax	1	-152	-20	-9	2 +50%	-26 +83%	8 +139%	2 +128%
Tax rate	-24%	4%	14%	-16%	-63%	-11%	52%	167%
Net profit	2	-158	-23	-7	4 +98%	-23 +85%	4 +116%	-2 +78%
EPS	—	—	—	-0.32	0.35	-1.34	0.28	-0.03

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 (Q4)

₹864 Cr Total

Facility and Food Services ₹519 Cr 60.1%
Security Services ₹169 Cr 19.6%
Telecom and Industrials ₹157 Cr 18.2%
foundit (Investment Vertical) ₹19 Cr 2.2%

Capital allocation

high confidence

Debt Debt disclosed
- Rate reset Borrowing rates revised downwards after Bluspring was rated by Fitch Group Company.
Our interest cost reduced sequentially by 41% to a steady state of around INR 5 to 6 crores per quarter. We got Bluspring rated recently by Fitch Group Company and we saw downward revisions in our borrowing rates since then.
M&A STEAG Energy Services (India) Private Limited Acquisition · Signed · Consideration ₹[object Object] (mixed)

Leading energy services company with end-to-end plant management solutions, annuity-based business model, and strong visibility into stable and recurring cash flows.
Expected to add nearly 20% to top line and improve pro forma EBITDA margins by approximately 90 to 100 basis points. ROE and PAT accretive.

We recently announced the signing of definitive agreement for acquisition of STEAG Energy Services (India) Private Limited, a leading energy services company... The company clocks annual revenues of INR 700 crores with EBITDA margins in high-single digits... STEAG acquisition, we're going to pay enterprise value of INR 180 crores... expected to add nearly 20% to our top line and improve our pro forma EBITDA margins for the year by approximately 90 basis to 100 basis points.
M&A LSG Sky Chefs India's Bengaluru operations Acquisition · Signed

Leading provider of in-flight catering and allied aviation services, with access to in-flight catering facilities at Bangalore airport under a long-term concession agreement until 2039, tapping into high-growth aviation catering segment.
Generates revenue of over INR 110 crores and mid-to-high teens EBITDA margins, which would augment overall margins. PAT and ROE accretive.

We signed definitive agreement of acquisition of LSG Sky Chefs India's Bengaluru operations in April 2026... LSG India's Bangalore operations generate revenue of over INR 110 crores and mid-to-high teens EBITDA margins... EBITDA margins of this business are in mid-to-high-teens, which would augment our margins further. The transaction would also be PAT and ROE accretive.
Liquidity Cash ₹15 Cr Company is in a net cash position and generated cash during its first year of operations, guiding for 55-60% operating cash flows to EBITDA ratio (excluding foundit).

We are happy to report that we stand at a net cash position of INR 15 crores as of March 2026... If you see our cash flow, you know, excluding foundit, we've done close to around 70% of, you know, operating cash flows to EBITDA ratios. So we've generated cash during the first year itself and we'll continue to guide the market to be a, you know, a 55% to 60% operating cash flow company vis-à-vis operating EBITDA.

Guidance & targets

EBITDA Margin

Company EBITDA Margin EBITDA Margin · FY27 · Medium confidence touching distance of 5%

And with this acquisition, our internal estimate is that we should definitely be in the touching distance of 5% margins.

— Kamal Pal Hoda
Organic Business EBITDA Margin EBITDA Margin · FY27 · High confidence 4%

Organically, we've touched 4% EBITDA. So that's the range of EBITDA that we want to be from an organic businesses.

— Kamal Pal Hoda
Company EBITDA Margin (Post-Acquisitions) EBITDA Margin · FY27 · High confidence 4% to 5%

With these two acquisitions, the EBITDA margins jump from 4% to 5%.

— Kamal Pal Hoda

Revenue Growth

Organic Revenue Growth Revenue Growth · FY27 · High confidence 15% to 16%

So from our organic businesses, we expect a 14% to 15% growth... confidence to commit 15%, 16% organic growth.

— Kamal Pal Hoda

Net Profit

PAT (excluding foundit) Net Profit · annually · High confidence INR 100 crores

On a profit after-tax, we believe with both these operations integrated well both financially as well as culturally, we should cross on an annualized basis a INR 100 crores PAT company with both these acquisitions integrated well.

— Kamal Pal Hoda

EBITDA

foundit EBITDA EBITDA · end of this financial year (FY27) · High confidence break-even

So in the near-term, we've given a guidance that by end of this year, quarter four, we want to be a EBITDA break-even.

— Kamal Pal Hoda

Operating Cash Flow

Operating Cash Flow to EBITDA Ratio Operating Cash Flow · FY27 · High confidence 55% to 60%

we'll continue to guide the market to be a, you know, a 55% to 60% operating cash flow company vis-à-vis operating EBITDA.

— Kamal Pal Hoda

What to watch in Q1 FY27

STEAG Acquisition Closure & Consolidation

Q1 FY27

Current Expected to close 'within this week' (May 2026)

Target Closed and consolidated into Bluspring financials

Why it matters

Confirms the first major inorganic growth step and its immediate financial impact on the company's reported results.

STEAG acquisition we are expected to close within this week. So starting Q1, we'll start consolidating STEAG with Bluspring.

Risks & concerns

Muted Growth in Telecom Vertical
medium

Overall segment growth in telecom was muted due to delay in planned capital expenditure from leading telecom operators.

Management acknowledged
foundit Business Losses
medium

The foundit business incurred EBITDA losses of ₹9 crores in Q4 FY26, though management is committed to achieving breakeven by end of FY27.

Management acknowledged
Integration Challenges for Acquisitions
low

Management emphasized focusing all efforts on integrating acquired businesses and unlocking synergies, implying potential complexities in the integration process.

Management acknowledged

Q&A highlights

8 direct

EBITDA Margin Target Post-Acquisitions Direct

So you are right, you know, as mentioned in our speech and also reflected from our numbers, we've moved from 3% which was our starting margins in Q1 of FY26 to 4%, 4.2% now in FY26 Q4. And with this acquisition, our internal estimate is that we should definitely be in the touching distance of 5% margins.

Management confirmed a clear target for overall EBITDA margin improvement to 5% post-acquisitions, providing a key profitability outlook.

Asked by Grish

Acquisition Closure Timelines Direct

In terms of timelines, since these are two separate acquisitions, STEAG acquisition we are expected to close within this week. So starting Q1, we'll start consolidating STEAG with Bluspring. And as far as LSG acquisitions, we are looking at a timelines of another 30 to 45 days within which we assume the acquisitions to get completed.

Provides specific timelines for the closure and integration of the two significant acquisitions, crucial for understanding their immediate impact.

Asked by Grish

Organic Growth vs. Inorganic Contribution Direct

So there is an organic growth as we've demonstrated last year, you know, we've done a double-digit growth. So from our organic businesses, we expect a 14% to 15% growth. And with these inorganic acquisitions, you know, with INR 700 crores of annualized revenue from STEAG and INR 110 crores of annualized revenues from LSG, that will add on to the existing organic growth.

Clarifies the expected organic growth rate and quantifies the additional revenue contribution from the acquisitions, giving a comprehensive view of future revenue expansion.

Asked by Yash Sharma

Acquisition Financial Impact (EBITDA & PAT) Direct

So both put together, we expect another INR 80 crores of EBITDA to be added on a combined basis... On a profit after-tax, we believe with both these operations integrated well both financially as well as culturally, we should cross on an annualized basis a INR 100 crores PAT company with both these acquisitions integrated well.

Quantifies the expected additional EBITDA (₹80 crores) and the overall PAT target (₹100 crores excluding foundit) post-acquisitions, providing clear financial uplift metrics.

Asked by Yash Sharma

foundit Business Strategy & Breakeven Direct

So in the near-term, we've given a guidance that by end of this year, quarter four, we want to be a EBITDA break-even... So in the medium-term, we will not shy away in, you know, coming down and becoming let's say a minority investor in foundit, but till that time we want to scale up this asset and find out a right, you know, investor for foundit.

Addresses investor concerns about the loss-making foundit business, outlining a clear path to EBITDA breakeven and a medium-term strategy for potential monetization or minority investment.

Asked by Sarvesh Gupta

Sustainability of STEAG's Revenue Direct

So they've been growing and, you know, it's not that it's a one-time revenue. They have access to long-term contracts. Generally power plant contracts range from three to five years and as of now, the visibility of their revenue is definitely there for next three years.

Reassures investors about the quality and sustainability of STEAG's revenue, countering potential concerns about the acquisition's valuation and long-term viability.

Asked by Sarvesh Gupta

Exceptional Items and Future Reporting Direct

So that's the only one-off that we have and nothing else... And the second exception was only the acquisition cost for these two acquisitions... for future standpoint also, we want to continue to report all operating expenses and operating profits.

Clarifies the nature and one-off status of recent exceptional items and commits to transparent reporting of operating expenses and profits going forward, enhancing investor confidence.

Asked by Ashish Pareek

foundit PAT Positive Run Rate Direct

Yes, that's the range. So that's the cost base of foundit right now and we do not need to invest anything further in terms of people or product. So you're right, INR 34 crores, INR 35 crores is the range.

Provides a specific revenue run rate (₹34-35 crores) at which the foundit business is expected to become PAT positive, offering a clear metric for its profitability target.

Asked by Zaki Nasser

3 min read 6 chapters

Detailed narrative

Robust Financial Performance in First Independent Year

Bluspring Enterprises Limited successfully completed its first full financial year as an independent listed company with strong results. For FY26, the company reported a revenue of INR 3,304 crores, marking an 11% year-on-year growth, while Q4 revenue grew 8% year-on-year to INR 846 crores. EBITDA for FY26 increased by 10% to INR 121 crores, with Q4 EBITDA reaching INR 35 crores, a 44% YoY increase, and the EBITDA margin expanding to 4.2% in Q4 from 3.1% in Q1. Adjusted PAT for FY26 stood at INR 67 crores, up 26% YoY, translating to an EPS of INR 4.5 per share.

Strategic Acquisitions to Drive Growth and Margins

The company announced two significant acquisitions: STEAG Energy Services (India) Private Limited and LSG Sky Chefs India's Bengaluru operations. STEAG, an energy services company with INR 700 crores in annual revenue and high-single digit EBITDA margins, is expected to add approximately 20% to the top line and improve pro forma EBITDA margins by 90-100 basis points. LSG Sky Chefs, an in-flight catering business with over INR 110 crores in annual revenue and mid-to-high teens EBITDA margins, will further augment overall margins. These acquisitions are PAT and ROE accretive and will be funded through debt and internal accruals, with a priority on aggressive debt repayment post-integration.

Segmental Performance and Headcount Growth

The Facilities and Food Services segment remained the largest contributor, with FY26 revenue of INR 2,031 crores (up 12% YoY) and Q4 revenue of INR 519 crores (up 10% YoY). The Telecom and Industrials vertical grew 7% YoY to INR 615 crores, though overall growth was muted by telecom capex delays, while the industrial sub-vertical showed strong QoQ growth. The Security Services business achieved its highest-ever headcount of over 24,000, adding approximately 2,900 guards in FY26, and recorded FY26 revenues of INR 659 crores, up 14% YoY.

foundit Turnaround and Path to Breakeven

The investment vertical, foundit, showed signs of a turnaround in Q4 FY26. Sales reached INR 26 crores, a 50% jump from the average of INR 17 crores in previous quarters, and EBITDA losses were reduced from INR 12 crores in Q3 to INR 9 crores in Q4. Management aims for foundit to achieve EBITDA breakeven by the end of FY27, driven by increased marketing spend, AI adoption, and continued cost efficiencies. In the medium term, the company is open to monetizing its investment or bringing in a minority investor to scale the platform.

Improved Working Capital and Cash Position

Bluspring demonstrated strong working capital management, reducing its working capital days to 37 days in FY26 from 46 days a year prior. The company achieved a net cash position of INR 15 crores as of March 2026. Furthermore, interest costs decreased by 41% sequentially to INR 5-6 crores per quarter, aided by a Fitch Group rating that led to downward revisions in borrowing rates. Management expects to maintain an operating cash flow to EBITDA ratio of 55-60% going forward, excluding foundit.

Future Outlook and Strategic Focus

For FY27, Bluspring targets an organic revenue growth of 15-16% and aims for organic EBITDA margins in the 4% range. With the two acquisitions, the company expects its overall EBITDA margins to jump from 4% to 5% and projects to cross INR 100 crores in PAT (excluding foundit). The strategic focus for the coming year will be on integrating the acquired businesses, unlocking synergies, and continuing to drive growth, enhance margins, and improve return on equity.

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