BLUSPRING

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.

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.

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.

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.

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.

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.