Bluspring Q2 revenue hits ₹1,250 crore, margin reaches 5.4%

Bluspring Enterprises Limited reported Q2 FY27 revenue excluding foundit of ₹1,250 crore, up 49% year on year, while EBITDA margin reached 5.4%, up 188 basis points. EBITDA rose 130% to ₹67 crore and profit after tax increased 95% to ₹32 crore in the quarter ended September 30, 2026.

How did Bluspring perform in Q2 FY27?

Bluspring delivered revenue of ₹1,250 crore excluding foundit in Q2 FY27, representing 49% year-on-year growth and 34% sequential growth. Management said this was the first quarter in which quarterly revenue crossed ₹1,000 crore, while its existing businesses grew 16% year on year, separate from acquired-business contributions.

Profit growth exceeded revenue growth during the September quarter. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 130% year on year and 90% sequentially to ₹67 crore, while profit after tax, or PAT, increased 95% year on year and 96% sequentially to ₹32 crore. EBITDA margin rose to 5.4% from a level 188 basis points lower a year earlier, and PAT margin rose 60 basis points to 2.5%.

For H1 FY27, Bluspring reported revenue of ₹2,180 crore, up 35% year on year, EBITDA of ₹102 crore, up 93%, and PAT of ₹48 crore, up 76%. H1 PAT margin improved 51 basis points to 2.2%, while management attributed revenue growth partly to new-contract additions and mobilisation with annual contract value exceeding ₹900 crore.

What drove Bluspring’s EBITDA margin expansion?

Bluspring said the 5.4% Q2 FY27 EBITDA margin was driven by a shift toward higher-margin Energy and Aviation activities, large energy-contract mobilisation and reversals of expected credit-loss provisions after collections from aged receivables. Management said inorganic growth changed the business mix, while the provision reversals also aided the 188-basis-point year-on-year margin expansion.

All three operating segments recorded higher margins from a year earlier in Q2 FY27. Smart Infra, Energy and Engineering expanded 266 basis points to 10.9%, Facility and Food Services increased 72 basis points to 4.7%, and Security Services improved 19 basis points to 3.2%. Management compared the group’s current 5.4% margin with the 3% EBITDA margin it reported at listing last year.

Bluspring completed its acquisition of LSG Sky Chefs India in August 2026 and consolidated its financials from that month. Management said the acquisition adds in-flight catering and aviation support services, including Bengaluru Airport catering infrastructure under a concession agreement through 2039, and that LSG had added an international airline client without naming it or disclosing contract value.

Which Bluspring segments contributed most to growth?

Bluspring’s Smart Infra, Energy and Engineering segment was the fastest-growing business in Q2 FY27, with revenue of ₹449 crore, up 189% year on year and 101% sequentially. Segment EBITDA rose 283% year on year and 136% sequentially to ₹49 crore, resulting in a 10.9% margin, compared with 4.7% in Facility and Food Services and 3.2% in Security Services.

The segment mobilised 16 additional contracts with combined annual contract value of ₹641 crore during Q2 FY27. Its H1 FY27 revenue reached ₹672 crore, up 119% year on year, and EBITDA rose 186% to ₹70 crore. Management linked the growth to full-quarter consolidation of STEAG and energy-contract mobilisation, while describing telecom growth as relatively muted during the quarter.

Facility and Food Services remained Bluspring’s largest revenue segment, contributing almost half of Q2 FY27 revenue. Revenue increased 17% year on year and 15% sequentially to ₹601 crore, while EBITDA grew 38% to ₹29 crore. Management said new-client additions and the August 2026 consolidation of aviation catering supported revenue, despite inflationary pressure in food services.

Security Services reported Q2 FY27 revenue of ₹201 crore, up 20% year on year and 7% sequentially. The segment added 20 new clients with annual contract value of ₹30 crore, while EBITDA rose 27% year on year to ₹6 crore. H1 FY27 revenue was ₹387 crore, up 22%, and EBITDA reached ₹12 crore, up 34%.

How are acquisitions affecting Bluspring’s debt and cash flow?

Bluspring paid ₹340 crore in purchase consideration for two entities acquired in H1 FY27, largely financed through acquisition debt, although the acquired businesses brought about ₹188 crore of cash balances. Depreciation and amortisation rose from ₹10 crore in Q1 FY27 to ₹16 crore in Q2 FY27, which management attributed to acquired entities and amortisation of customer-relationship and brand intangibles.

Interest cost doubled sequentially from ₹8 crore in Q1 FY27 to ₹16 crore in Q2 FY27, predominantly because of acquisition debt. Bluspring generated operating cash flow equal to 76% of operating EBITDA in H1 FY27 and reported net debt of ₹126 crore at the end of Q2 FY27. Working-capital days were 38, nearly unchanged sequentially, and management expects them to settle near 40 as H2 mobilisation proceeds.

Bluspring’s workforce exceeded 100,000 employees after it added more than 8,000 people in H1 FY27, including more than 2,800 through inorganic growth. The top 30 clients accounted for 53% of revenue, while the industrial sector accounted for 37%. Management said the larger workforce supports nationwide recruitment, training and deployment across its service operations.

What is Bluspring targeting for FY27?

Bluspring retained management’s FY27 targets of revenue above ₹4,700 crore, EBITDA above ₹200 crore and PAT of ₹100 crore. Management based the targets on H1 FY27 performance, operating momentum and the execution pipeline, while warning that forward-looking statements remain subject to business, regulatory, macroeconomic and geopolitical risks.

Foundit remains outside the group financial figures that management discussed for Bluspring’s core results. Foundit’s Q2 FY27 sales were ₹30 crore, up 62% year on year and 19% sequentially, while revenue rose from ₹19 crore in Q1 FY27 to ₹22 crore. Its EBITDA loss narrowed sequentially from ₹14 crore to ₹12 crore as earlier sales began converting into revenue.

Conclusion

Bluspring’s Q2 FY27 performance combined 49% revenue growth with faster growth in profitability, as EBITDA rose 130% and PAT increased 95%. The 5.4% group EBITDA margin reflected higher margins across all three operating segments, led by the 10.9% margin in Smart Infra, Energy and Engineering, alongside acquisition consolidation and contract mobilisation.

The next measures to watch are execution of H1 contract additions with annual contract value above ₹900 crore, integration of STEAG and LSG, and management’s deleveraging plan. Management intends to reduce acquisition debt to about ₹150 crore by the end of FY27, expects working-capital days near 40, and has maintained its FY27 revenue, EBITDA and PAT targets.