BLS International: Navigating Growth and Diversification in Q2 FY26

BLS International Services Limited, a prominent global tech-enabled services partner for governments and citizens, has once again demonstrated robust performance, reporting its highest-ever quarterly results for Q2 FY26. The company's consolidated revenue from operations surged by an impressive 48.8% year-on-year, reaching Rs 736.6 Crores. This strong top-line growth translated into a significant 29.7% increase in Operating EBITDA to Rs 212.8 Crores, with Net Profit after Tax (PAT) growing by 27.4% to Rs 185.7 Crores. The results underscore BLS International's strategic agility and operational excellence across its core business verticals.

The company's performance was driven by a combination of sustained momentum in its Visa & Consular Services and the strategic consolidation of newly acquired businesses within its Digital Services segment. The management highlighted that EBITDA margins have stabilized around 29%, reflecting the benefits of shifting to a self-operated center model and integrating recent acquisitions. This period marks a significant stride in BLS International's journey towards global leadership and diversified service offerings.

Segmental Performance: A Tale of Two Growth Engines

BLS International operates primarily through two segments: Visa & Consular Services and Digital Services. Both segments contributed to the overall robust performance, albeit with different growth dynamics.

Visa & Consular Services

This segment, contributing approximately 62% to the total revenue, saw its revenue grow by 9.8% year-on-year to Rs 458.6 Crores in Q2 FY26. The growth was fueled by an 11.7% increase in visa application volumes, reaching 11.3 lakh applications. The EBITDA for this segment rose by 26.4% to Rs 192.2 Crores, with margins improving significantly to 41.9% from 36.4% in Q2 FY25. This margin expansion is a testament to the company's continuous focus on cost efficiencies and the successful transition from a partner-run model to a self-managed model.

Digital Services

The Digital Services segment, which accounts for roughly 38% of the total revenue, witnessed an extraordinary 259.3% year-on-year revenue increase, soaring to Rs 278.0 Crores in Q2 FY26 from Rs 77.4 Crores in Q2 FY25. This remarkable growth was primarily driven by the consolidation of Aadifidelis Solutions, acquired in November 2024. EBITDA for this segment grew by 72.4% to Rs 20.6 Crores. The Business Correspondent (BC) segment processed over Rs 27,300 Crores in gross transactional value, and the Digital Business facilitated loan distribution worth Rs 8,600 Crores, significantly up from Rs 1,400 Crores in Q2 FY25. The company's digital service network now exceeds 147,000 touchpoints, reinforcing its commitment to financial inclusion across India.

Here is a financial summary of BLS International's Q2 FY26 performance:

Strategic Initiatives and Future Outlook

BLS International's strategic roadmap is characterized by aggressive bidding, expanding service offerings, customized solutions, geographic expansion, strong government partnerships, brand building, and inorganic growth. The company's recent contract wins and acquisitions are pivotal to this strategy.

A significant milestone was the award of a Rs 2,055.35 Crores contract from UIDAI to establish and operate District-Level Aadhaar Seva Kendras over six years. This reinforces BLS's capability in large-scale e-governance projects. Additionally, the company secured a three-year contract from the Ministry of External Affairs to establish Indian Visa Application Centres in China, effective October 2025, which is expected to boost visa volumes.

In a move to diversify its business portfolio, BLS International acquired 100% shareholding in Trefeddian Hotel (Aberdovey) Limited in the United Kingdom for Rs 78.3 Crores. This marks a strategic entry into the hospitality sector, with management expecting a 10-12% return on investment. The company aims to adopt an asset-light model in this new segment, similar to its core visa business.

Acquisitions like iDATA (July 2024) for visa processing and Citizenship Invest (October 2024) for residency and citizenship programs have further strengthened BLS's global footprint and diversified its revenue streams. The acquisition of Aadifidelis Solutions (November 2024) has significantly boosted the digital services revenue, despite a temporary dilution in segment-level EBITDA margins.

Here is a segment comparison table for Q2 FY26:

Management Commentary and Investor Confidence

Mr. Shikhar Aggarwal, Joint Managing Director, emphasized the company's focus on technology-led service delivery and operational excellence. He noted that while the Aadifidelis acquisition led to a lower EBITDA margin for the digital segment, the overall revenue and profitability have increased, and consolidated margins are expected to stabilize around 29-30%. The company's robust cash generation, with a net cash balance of Rs 1,306 Crores, provides a strong foundation for future growth and strategic acquisitions.

Management also addressed the temporary ban from the MEA on applying for new tenders, attributing it to customer complaints regarding waiting times. They assured that efforts are underway to resolve the matter and that existing contracts remain intact. The company's dividend policy, which now allocates 30% of surplus cash after funding requirements, reflects its commitment to shareholder returns.

BLS International's Q2 FY26 performance demonstrates strategic clarity and disciplined execution. With a strong financial position, diversified portfolio, and a clear vision for expansion, the company is well-positioned to capitalize on the growing demand for government-to-citizen services globally. The focus on technology, operational efficiency, and strategic acquisitions is expected to drive sustained growth and enhance long-term shareholder value.