Bluspring turns cash-positive as debt reaches ₹498 crore

Bluspring recorded ₹55 crore of net operating cash flow in H1 FY27, reversing a ₹127 crore outflow a year earlier, while consolidated debt reached ₹498 crore at September 2026 from ₹80 crore at March 2026 after ₹150 crore of net cash acquisition spending and ₹418 crore of net borrowing.

How did Bluspring's operating cash flow change?

Bluspring's net operating cash flow turned to an inflow of ₹55 crore in H1 FY27 from an outflow of ₹127 crore in H1 FY26. Cash generated from operations moved to ₹85 crore from negative ₹97 crore, a ₹182 crore year-on-year change, while income-tax payments were unchanged at ₹30 crore in both first-half periods. H1 means the first half of the financial year.

The operating-cash movement was larger than the change in profit after tax, or PAT. Consolidated PAT improved to ₹11 crore in H1 FY27 from a ₹4 crore loss in H1 FY26, a ₹15 crore movement, whereas cash generated from operations improved by ₹182 crore. The cash-flow statement therefore shows that the operating-cash reversal extended beyond the reported change in PAT.

The ₹55 crore operating inflow did not cover the ₹188 crore net investing outflow in H1 FY27. Financing cash flows of ₹384 crore, together with the operating inflow, exceeded investing cash use and produced a ₹251 crore increase in cash during the half.

What did Bluspring spend on STEAG and LSG?

Bluspring reported ₹150 crore of acquisition spending for STEAG and LSG, net of cash, in H1 FY27. This was the largest identified investing item in the cash-flow statement and did not appear in H1 FY26, when total net investing cash outflow was ₹15 crore.

Expenditure on property, plant and equipment, or PPE, and intangibles was ₹16 crore in H1 FY27, compared with ₹12 crore in H1 FY26. Bluspring also invested ₹22 crore in mutual funds, while other investing activities generated ₹1 crore, versus a ₹3 crore outflow in the earlier first half.

These items resulted in a ₹188 crore net investing outflow, ₹173 crore more than the prior-year outflow. The acquisition payment accounted for about four-fifths of the H1 FY27 investing outflow, while the combined ₹38 crore spent on PPE, intangibles and mutual funds formed the other identified cash uses.

The September 2026 balance sheet recorded fixed assets and intangibles of ₹737 crore, up from ₹521 crore at March 2026. Other non-current assets rose to ₹237 crore from ₹164 crore over the same period, alongside the separately reported ₹150 crore acquisition payment in the cash-flow statement.

Why did Bluspring's debt rise to ₹498 crore?

Bluspring's consolidated debt increased by ₹418 crore to ₹498 crore at September 2026 from ₹80 crore at March 2026. Its H1 FY27 cash-flow statement reported net borrowing, after repayments, of ₹418 crore, compared with ₹115 crore of net borrowing in H1 FY26.

Net financing cash flow rose to ₹384 crore in H1 FY27 from ₹92 crore a year earlier. The ₹418 crore net borrowing inflow was partly offset by ₹15 crore of lease-liability repayments and ₹19 crore of interest payments; the corresponding H1 FY26 figures were ₹14 crore and ₹9 crore.

Cash and cash equivalents stood at ₹306 crore at September 2026, compared with ₹55 crore at the start of H1 FY27 and ₹20 crore at the end of H1 FY26. The higher closing cash balance followed the ₹251 crore net change in cash reported for H1 FY27, rather than operating cash flow alone.

The balance sheet expanded alongside the borrowing. Total assets rose to ₹2,746 crore at September 2026 from ₹1,690 crore at March 2026, while trade receivables and unbilled revenue increased by ₹454 crore to ₹1,331 crore. Other liabilities rose by ₹568 crore to ₹1,439 crore and share capital and other equity increased by ₹70 crore to ₹810 crore.

Did Bluspring's earnings improve in H1 FY27?

Bluspring's consolidated earnings improved in H1 FY27, with revenue rising 34% year on year to ₹2,221 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, increasing 156% to ₹74 crore. EBITDA margin increased to 3.3% from 1.8%, a rise of 159 basis points, where one basis point is one-hundredth of a percentage point.

Consolidated PAT moved to ₹11 crore from a ₹4 crore loss, while profit before tax rose to ₹22 crore from a ₹6 crore loss. Depreciation and amortisation increased to ₹34 crore from ₹25 crore, and interest expense increased to ₹28 crore from ₹15 crore. Interest expense in the income statement differs from the ₹19 crore interest payment shown in the H1 FY27 cash-flow statement.

In Q2 FY27, consolidated revenue was ₹1,272 crore, 34% above Q1 FY27 and 48% above Q2 FY26. Quarterly EBITDA was ₹54 crore, compared with ₹21 crore in Q1 FY27, and the EBITDA margin was 4.2%, compared with 2.2% in the preceding quarter.

The income statement excluding Foundit reported H1 FY27 revenue of ₹2,180 crore and EBITDA of ₹102 crore. By comparison, consolidated H1 FY27 revenue was ₹2,221 crore and EBITDA was ₹74 crore; Foundit reported Q2 FY27 revenue of ₹22 crore and EBITDA excluding employee stock-option costs of negative ₹12 crore.

Conclusion

Bluspring's H1 FY27 figures show a material change in cash generation, with operations producing ₹55 crore after consuming ₹127 crore in the prior-year half. At the same time, the ₹150 crore STEAG and LSG acquisition payment, ₹16 crore of PPE and intangible expenditure, and ₹22 crore mutual-fund investment lifted investing cash use to ₹188 crore, while debt increased by ₹418 crore.

The next disclosures need to show how the larger balance sheet develops, including the ₹1,331 crore of trade receivables and unbilled revenue and the ₹498 crore debt balance. The presentation gives no debt-reduction target or acquisition-integration timetable, while interest expense reached ₹28 crore in H1 FY27 and cash and cash equivalents stood at ₹306 crore at September 2026.