Summary
BLS International Services Limited - Q3 FY26 Earnings Call Summary Friday, February 06, 2026, 04:00 PM IST
Event Participants
Executives 5 Amit Sudhakar (CFO), Gaurav Chugh (VP & Head - Investor Relations), Lokanath Panda (COO, Digital Business), Nikhil Gupta (MD), Shikhar Aggarwal (Joint MD)
Analysts 8 Abhijeet (PI Assets), Atharv (Sonar Capital), Ikshit Naredi (Individual Investor), Mehul Panjuani (40 Cents), Moez Chandani (Ambit Capital), Shreya Kejriwal (Moneyvesta Wealth Management), Siyaa Deshmukh (Pune E Stock Broking), Vansh Solanki (RSPN Ventures), Varun Subramanian (Ascent Capital), Viren Sameer Deshpande (Alphapeak Investment)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹737 crores | +44% YoY; driven by volume growth and digital business scale-up. |
| EBITDA | ₹198 crores | +25% YoY; overall margins impacted by changes in segment mix. |
| PAT | ₹170 crores | +33% YoY; reflects operational efficiencies and inorganic consolidation. |
| Visa Applications | 10.7 lakh | +18% YoY; increased from 9.1 lakh in Q3FY25. |
| Net Revenue per Application | ₹3,383 | +19% YoY; driven by shift to self-managed model from partner-led. |
| Digital Business Revenue | ₹287 crores | +109% YoY; primarily due to BC and loan distribution growth. |
| Visa EBITDA Margin | 40% | +275 bps YoY; improvement from 37% due to business model transition. |
| Digital EBITDA Margin | 7.0% | -720 bps YoY; lower due to consolidation of Aadifidelis (3-4% margin). |
| Cash & Equivalents | ₹1,400 crores | +₹110 crores QoQ; strong internal accruals despite acquisition spends. |
Geographic & Segment Commentary
- Visa and Consular Services: Revenue grew 20% YoY to ₹449 crores with EBITDA rising 28% to ₹180 crores. Growth was supported by new contracts (Slovak Republic, China, Cyprus) and a successful transition to a self-managed operating model.
- Digital Services: Revenue more than doubled to ₹287 crores, though EBITDA margins contracted to 7% due to the Aadifidelis acquisition. The segment saw massive traction in loan lead generation (₹9,700+ crores) and GTV (₹27,000 crores).
- Global Footprint: Strong growth witnessed in Middle Eastern, East Asian, and Latin American markets. The company secured a 5-year global contract for the Slovak Republic spanning 80 countries.
Company-Specific & Strategic Commentary
- M&A Integration: Management spent ₹1,300 crores on acquisitions last year, including iDATA (₹70 cr revenue) and Aadifidelis (₹200 cr revenue), focusing on allied services with a 5-7 year payback period.
- Strategic Contracts: Awarded a 3-year contract by the MEA, India, to operate visa centers in China and a ₹100 crore project from the Government of Bihar for Aadhaar centers.
- Digital Infrastructure: Reached a milestone of ₹10,000 crores in aggregate bank balances through BLS E-Services channels, supported by 1.51 lakh touchpoints.
- Technology Adoption: Implementing AI across HR, call centers, and customer engagement to improve response rates and recruitment speed.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 20% - 25% CAGR | Target for the next 5 years based on global mobility normalization and new contracts. |
| Operational Seasonality | Q4 and Q1 Strength | Management expects these quarters to remain the strongest for volume and revenue. |
| Employee Costs | 14.5% - 15.5% of Revenue | Range expected to stabilize as revenue starts flowing from UIDAI and Bihar projects. |
Risks & Constraints
| Risk | Context |
|---|---|
| Margin Dilution | The rapid growth of the Digital segment and low-margin acquisitions (Aadifidelis) are diluting the consolidated EBITDA margin profile. |
| Geopolitical Conflict | Ongoing Russia-Ukraine war has impacted historical high-volume regions; recovery depends on conflict resolution. |
| Digital Transition | While EU digitization may increase volumes, it requires ongoing investment in biometric and digital processing capabilities. |
Q&A Highlights
Visa Business Model
- Question: Why is “net revenue” per application rising while gross costs appear to fluctuate? (Varun Subramanian)
- Answer: The shift from partner-led to self-managed models reduces payouts to third parties, effectively increasing the “net revenue” or gross profit per application (Gaurav Chugh).
New Acquisitions & Synergies
- Question: How does the U.K. hotel acquisition synergize with the core visa business? (Shikha Mehta)
- Answer: It was a one-off move to gain experience in asset-light management contracts for travel services; future focus remains on allied government services (Shikhar Aggarwal).
Digital Segment Margins
- Question: What caused the drastic drop in digital margins from 14% to 7%? (Ikshit Naredi)
- Answer: Primarily due to the consolidation of Aadifidelis, which operates at a 3-4% EBITDA margin, changing the overall sales mix (Amit Sudhakar).
AI and Efficiency
- Question: Can you quantify the bottom-line impact of AI? (Abhijeet)
- Answer: It is too early to quantify exact savings, but AI has significantly improved recruitment speed and call center answer percentages (Shikhar Aggarwal).
Key Takeaway
BLS International delivered a robust Q3 FY26, with revenue growing 44% YoY to ₹737 crores, nearly matching the previous full year’s revenue within nine months. Performance was anchored by an 18% increase in visa application volumes and a massive 109% surge in Digital Business revenue following the Aadifidelis acquisition. While consolidated EBITDA margins saw some dilution to 26.8% due to the low-margin digital mix, the core Visa segment margins expanded to 40% through successful model transitions. Strategically, the company is diversifying into allied services and high-volume digital governance projects like UIDAI, supported by a strong cash pile of ₹1,400 crores. Management maintains a confident outlook for 20-25% CAGR over the next five years, contingent on the successful execution of new global contracts in China and the Slovak Republic.
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