Bluspring Enterprises: Navigating Growth and Strategic Shifts in Q2 FY26

Bluspring Enterprises Limited, a prominent player in India's integrated infrastructure management sector, has reported a robust top-line performance for the second quarter of Fiscal Year 2026. The company's consolidated revenue, excluding its foundit business, reached ₹837 crores, marking an impressive 14% year-on-year and 8% quarter-on-quarter growth. This growth was broad-based, with all core business verticals contributing positively, signaling the effectiveness of recent strategic investments and operational enhancements.

Kamal Pal Hoda, CEO of Bluspring, highlighted the positive business environment, supported by strong momentum in Indian office real estate and a significant increase in government capital expenditure. The company's strategic focus on new sales additions, seasonal improvements in the food business, and enhanced operational efficiency across its diverse segments were key drivers of this performance. For the first half of FY26, Bluspring recorded a revenue of ₹1,614 crores, a 14% year-on-year increase, underscoring a consistent growth trajectory.

Segmental Performance: A Closer Look

Bluspring's business is diversified across four main segments: Facility and Food Services, Telecom and Industrial Services, Security Services, and the foundit platform. Each segment contributed uniquely to the quarter's results.

Facility and Food Services, the largest segment, accounted for 60% of the group's H1 revenue, reaching ₹990 crores. This segment grew 14% year-on-year and 8% quarter-on-quarter, primarily due to 14 new contracts with an Annual Contract Value (ACV) of ₹37 crores and a seasonal uplift from education institutes reopening. The company is also expanding into new areas like sports and leisure, serving as an exclusive hospitality partner for the World Para Athletics Championship, and plans to open a new central kitchen in Bengaluru to expand its footprint in corporate offices and GCCs.

Telecom and Industrial Services contributed 19% of H1 revenue, with ₹307 crores. The segment grew 11% year-on-year but saw muted quarter-on-quarter growth due to lower capital expenditure by telecom majors. Despite this, the industrial sub-vertical showed strong growth, adding six major contracts with an ACV of ₹40 crores. Bluspring is strategically diversifying its telecom revenue streams into solar EPC and satellite communications to mitigate cyclical risks.

Security Services also represented 19% of H1 revenue, totaling ₹317 crores. This segment delivered robust growth, with revenues up 19% year-on-year and 13% quarter-on-quarter. The growth was fueled by the highest-ever quarterly net addition of 1,374 man-guards and 17 new client logos, reflecting the success of investments in new sales teams.

foundit, the AI-powered job search platform, generated ₹41 crores in H1 revenue, accounting for 2% of the total. While still in a phase of cost optimization and product enhancement, foundit's revenue grew 5% sequentially. The company focused on improving its search engine, revamping the recruiter interface, and reducing site latency by 25%, leading to a significant reduction in its quarterly cost base from ₹43.5 crores to ₹33 crores.

Here's a financial summary of Bluspring's Q2 FY26 performance (excluding foundit):

Strategic Initiatives and Future Outlook

Bluspring's management articulated a clear strategic direction focused on expansion, efficiency, and differentiation. Key initiatives include hyperscale growth of the Foods business, pivoting towards sunrise sectors in industrial maintenance, and unlocking synergistic and cross-selling opportunities across its services.

Despite the positive revenue growth, the company faced challenges with its Days Sales Outstanding (DSO), which increased to 105 days from a typical 85-90 days. This was primarily attributed to delays in contract novations following the demerger, impacting billing and collection cycles. Prapul Sridhar, CFO, assured that with novations behind them, they are confident in reducing net debt to sub-₹100 crore levels by year-end and achieving at least breakeven operating cash flow for the full year.

Management reiterated its long-term guidance of reaching a 6% EBITDA margin by 2030 and growing revenue at 3x GDP growth. The company is also exploring strategic value-based acquisitions, particularly in the food and industrial maintenance businesses, prioritizing opportunities that are EBITDA, ROE, and ROCE accretive.

Conclusion: Building a Strong Foundation

Bluspring Enterprises is in a transformative phase, building a strong and sustainable foundation for future growth. The company's focus on accelerating sales, adopting a technology-driven operating model, and identifying new growth avenues is yielding results. The improved EBITDA margin quarter-on-quarter demonstrates the effectiveness of their disciplined growth strategy. With a clear vision and strategic investments, Bluspring aims to continue its trajectory as India's leading integrated infrastructure management company.