BLS International Services Limited Digital Sales Mix Reaches 48%

BLS International Services Limited reported a 66% year-on-year rise in Digital Services revenue to Rs 463 crore in Q2 FY27, lifting the segment to about 48% of revenue from 38% a year earlier, while it generated about 14% of EBITDA. BLS International’s consolidated EBITDA margin declined to 25.5% as Digital operated at a 7.4% segment margin.

How did BLS International’s Q2 revenue mix change?

BLS International’s Q2 FY27 revenue mix shifted materially toward Digital Services, which contributed about 48% of consolidated revenue, compared with 38% in Q2 FY26. Visa & Consular Services contributed about 52%, down from 62% a year earlier, while consolidated revenue increased 32% to Rs 973 crore from Rs 737 crore.

Digital Services did not become the larger Q2 FY27 segment, as Visa & Consular retained a Rs 47 crore revenue lead, but the difference narrowed substantially. Digital added Rs 185 crore of the Rs 236 crore year-on-year increase in consolidated quarterly revenue, whereas Visa & Consular added Rs 51 crore.

The differing growth rates continued in H1 FY27, when consolidated revenue rose 29% to Rs 1,863 crore. Digital Services revenue rose 50% to Rs 793 crore, while Visa & Consular Services generated Rs 1,070 crore of H1 revenue, up 16% year on year.

Why did BLS International’s consolidated EBITDA margin fall?

BLS International’s consolidated EBITDA, or earnings before interest, tax, depreciation and amortisation, margin fell to 25.5% in Q2 FY27 from 28.9% in Q2 FY26 because the faster-growing Digital Services segment had a lower margin than Visa & Consular Services. Consolidated EBITDA nevertheless increased 17% to Rs 248 crore from Rs 213 crore.

Visa & Consular generated about 86% of Q2 FY27 EBITDA, while Digital Services generated about 14%, despite their respective revenue shares of about 52% and 48%. Visa & Consular EBITDA rose 11% to Rs 214 crore at a 41.9% margin, compared with Digital EBITDA of Rs 34 crore at a 7.4% margin.

The H1 FY27 figures showed the same segment contrast. Visa & Consular generated Rs 440 crore of EBITDA on Rs 1,070 crore of revenue, for a 41.1% margin, while Digital generated Rs 61 crore of EBITDA on Rs 793 crore of revenue, for a 7.7% margin.

At the consolidated level, H1 FY27 EBITDA rose 20% to Rs 500 crore and the margin was 26.9%. The Q2 result shows that Digital’s revenue expansion increased the segment’s weight in group sales faster than its weight in group EBITDA.

What drove BLS International’s Digital Services growth?

BLS International attributed the 66% increase in Q2 FY27 Digital Services revenue to business correspondent, or BC, operations, loan distribution activity and a full-quarter contribution from Atyati. The BC business recorded gross transaction value, or GTV, of about Rs 41,400 crore in Q2 and more than Rs 70,900 crore in H1.

Loan disbursements exceeded Rs 9,500 crore during Q2 FY27, and the Digital network had more than 1,88,200 touch points at the end of September 2026. BLS International also operates Aadhaar Seva Kendra under its Unique Identification Authority of India contract and supports more than 1,000 government citizen services through its technology and last-mile network.

Management said Atyati brings banking technology, financial inclusion and micro-lending capabilities to Digital Services. Its stated focus is to integrate the platform and use BLS International’s wider network to create further opportunities, following the full-quarter consolidation contribution in Q2.

The Rs 9,500 crore-plus loan disbursement figure does not mean BLS International carries those loans as credit exposure. Management said the loans are not on its books, because the company facilitates processing and earns commissions, leaving the underlying credit risk outside BLS International.

Can BLS International improve Digital Services margins?

BLS International management said there is scope to improve Digital Services margins as Atyati is integrated and more services are offered through the network, while recognising that Digital has a different margin profile from Visa & Consular. Digital’s H1 FY27 margin rose to 7.7% from 7.4% a year earlier, while its Q2 FY27 margin was 7.4%.

Management said Visa & Consular EBITDA margins have stabilised at around 38% to 40%, compared with the 41.9% reported for Q2 FY27. It did not provide a specific Digital Services margin target or a timetable for improvement.

When asked about the company’s 20% to 30% consolidated EBITDA margin target range, management said the outcome would depend on the revenue mix between the two segments. It also said it expects Visa & Consular to contribute approximately 60% to 65% of the business over time, with Digital Services contributing the balance.

BLS International reported net cash of Rs 1,556 crore as of September 30, 2026. Management said capital deployment would prioritise opportunities that strengthen existing businesses or add complementary capabilities, alongside investment in technology and selective strategic opportunities.

Conclusion

BLS International’s Q2 FY27 performance shows that Digital Services has become nearly half of revenue without becoming a comparable contributor to EBITDA. Digital added Rs 185 crore of year-on-year quarterly revenue growth, but Visa & Consular supplied about 86% of EBITDA because its 41.9% margin was substantially above Digital’s 7.4% margin.

The next issue is whether Atyati integration, additional services through the 1,88,200-plus touch-point network and management’s planned Digital margin improvement change the profit mix. Readers can also watch management’s expectation that Visa & Consular will account for about 60% to 65% of business over time, as well as updates on tenders in Europe, North America and other markets once contracts are finalised.