BLS Q2 Revenue Rises 32% as EBITDA Margin Falls to 25.5%

BLS International reported Q2FY27 revenue from operations of Rs 972.7 crore, up 32.0% year on year, while its consolidated EBITDA margin fell to 25.5% from 28.9% as Digital increased its revenue mix to 48% from 38%. EBITDA nevertheless rose 16.6% to Rs 248.1 crore during the quarter.

How did BLS perform in Q2FY27?

BLS increased consolidated revenue from operations by Rs 236.1 crore year on year to Rs 972.7 crore in Q2FY27, from Rs 736.6 crore in Q2FY26. The presentation attributes the increase to growth across the Visa & Consular and Digital Services businesses. Consolidated EBITDA increased by Rs 35.3 crore to Rs 248.1 crore from Rs 212.8 crore.

BLS’s profitability growth was lower than revenue growth in Q2FY27. EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 16.6%, compared with 32.0% revenue growth, and the EBITDA margin declined by 3.4 percentage points to 25.5%. Profit before tax before exceptional items rose 9.8% to Rs 222.8 crore, while its margin declined to 22.9% from 27.5%.

Profit after tax, or PAT, rose 8.6% to Rs 201.7 crore in Q2FY27 from Rs 185.7 crore a year earlier. PAT margin declined to 20.7% from 25.2%, while finance costs rose to Rs 7.7 crore from Rs 6.1 crore and depreciation increased to Rs 40.5 crore from Rs 22.5 crore.

Why did BLS’s consolidated EBITDA margin decline?

BLS said a change in segment mix moderated consolidated EBITDA margin to 25.5% in Q2FY27 from 28.9% in Q2FY26, even as management said margins expanded across both business segments. Digital represented 48% of revenue in Q2FY27, up 10 percentage points from 38% a year earlier, while Visa & Consular’s revenue share declined to 52% from 62%.

The revenue and EBITDA mix shows the differing weight of the two businesses in group profit. Visa & Consular supplied 86% of consolidated EBITDA in Q2FY27 despite generating 52% of revenue, whereas Digital accounted for 14% of EBITDA and 48% of revenue. In Q2FY26, Visa & Consular had contributed 90% of EBITDA on 62% of revenue, while Digital accounted for 10% of EBITDA on 38% of revenue.

BLS does not disclose a standalone Digital EBITDA margin in the presentation. However, the change in revenue and EBITDA contribution supports management’s stated explanation that a greater Digital revenue contribution diluted the consolidated margin, despite segment-level margin expansion cited by management.

What happened in BLS’s Visa & Consular business?

BLS’s Visa & Consular revenue, including the Citizenship Invest and Hotels Business, rose 11.2% to Rs 509.9 crore in Q2FY27 from Rs 458.6 crore in Q2FY26. Segment EBITDA also increased 11.2%, reaching Rs 213.7 crore from Rs 192.2 crore, while the reported EBITDA margin remained 41.9% in both quarters.

Excluding the Citizenship Invest and Hotels Business, Visa net revenue rose 6.5% to Rs 387.9 crore in Q2FY27 from Rs 364.0 crore. BLS defines net revenue as Visa business revenue less cost of services, excluding the Citizenship Invest and Hotels Business. Net revenue per application increased 10.2% to Rs 3,553 from Rs 3,223.

BLS processed 10.9 lakh applications in Q2FY27. The increase in net revenue per application was greater than the 6.5% growth in net revenue excluding Citizenship Invest and Hotels, while the presentation does not provide a comparable Q2FY26 application-volume figure.

How did BLS’s H1FY27 result compare with Q2FY27?

BLS reported H1FY27 revenue of Rs 1,863.2 crore, up 28.7% from Rs 1,447.2 crore in H1FY26, which was slower than the 32.0% growth recorded in Q2FY27. H1 EBITDA increased 20.0% to Rs 500.5 crore from Rs 417.0 crore, and consolidated EBITDA margin declined to 26.9% from 28.8%.

The first-half revenue mix also moved toward Digital. Digital’s H1FY27 revenue contribution increased to 43% from 36% in H1FY26, while Visa & Consular’s share declined to 57% from 64%. Visa & Consular contributed 88% of H1 EBITDA, down from 91%, and Digital contributed 12%, up from 9%.

Visa & Consular revenue in H1FY27 increased 16.4% to Rs 1,070.0 crore and EBITDA rose 16.2% to Rs 439.5 crore. Its reported EBITDA margin was 41.1% in both H1FY27 and H1FY26. Excluding Citizenship Invest and Hotels, Visa net revenue increased 8.6% to Rs 786.2 crore and net revenue per application rose 10.7% to Rs 3,537, with 22.2 lakh applications processed.

Which costs and targets should readers track at BLS?

BLS reported Q2FY27 cost of services of Rs 450.4 crore, compared with Rs 337.1 crore in Q2FY26. Employee benefit expenses rose to Rs 170.2 crore from Rs 108.4 crore, while other expenses increased to Rs 104.0 crore from Rs 78.3 crore. These three expense lines together increased by Rs 201.8 crore, against the Rs 236.1 crore increase in revenue.

Management attributed the lower Q2FY27 PAT margin partly to the changed revenue mix and higher amortisation of intangible assets related to recent acquisitions. At September 2026, BLS reported intangible assets of Rs 148.9 crore, compared with Rs 55.3 crore at March 2026, while goodwill was Rs 1,211.4 crore compared with Rs 1,212.8 crore.

For FY30, management targets revenue of Rs 6,300 crore to Rs 6,500 crore, annual revenue growth of 20% to 25%, and EBITDA margin of 28% to 30%, compared with 27.3% in FY26. Its stated growth levers include visa renewals, pricing, Digital Services, new tender wins, technology platforms, government-to-citizen services and selective, capability-led acquisitions.

Conclusion

BLS delivered higher Q2FY27 revenue, EBITDA and PAT, but revenue grew faster than EBITDA and PAT, reducing consolidated profitability ratios. The central reported factor was the revenue-mix shift: Digital gained 10 percentage points of quarterly revenue share, while Visa & Consular continued to account for a substantially larger share of group EBITDA than of group revenue.

The next results will indicate whether BLS can progress toward management’s FY30 EBITDA-margin target of 28% to 30% while Digital expands. Disclosed measures to watch include the Visa & Consular revenue share, Digital’s contribution to EBITDA, net revenue per application, application volumes, acquisition-related amortisation and management’s conversion of new tenders and stated growth initiatives.