BLS International Services Ltd (BLS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to BLS International Services Limited Q2 and H1 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Deepali Kumari from Arihant Capital. Thank you, and over to you, ma'am.
Deepali Kumari (Arihant Capital): Thank you. Good evening, everyone. Thank you all for joining the Q2 H1 FY '27 earnings call of BLS International Services Limited. Before we proceed, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with the company's business risks that could cause future results, performance or achievements to differ significantly from what may be expressed or implied by such forward-looking statements. From the management today, we have Mr. Nikhil Gupta, Managing Director; Mr. Shikhar Aggarwal, Joint Managing Director; and Mr. Amit Sudhakar, Chief Financial Officer. I would like to hand over the call to Mr. Shikhar Aggarwal for his opening remark, post which Mr. Amit Sudhakar will discuss the financial performance of the company and then we will open the floor for an interactive Q&A session. Thank you and over to you, sir.
Shikhar Aggarwal (BLS International Services Ltd): Good afternoon, everyone, and thank you for joining us for BLS International's Q2 and H1 FY '27 earnings call. I hope you've had a chance to go through our results and investor presentation. We have had a good first half with both business contributing to growth. In Q2, revenue reached a record ₹973 crores, an increase of 32% over last year. EBITDA grew 17% and PAT by around 10% for H1. For H1, revenue was up 29% and EBITDA grew by 20%. The margins in both businesses remain healthy. The movement in the consolidated margin is mainly because digital business now makes up a large share of our revenue following the consolidation of Aadhaar. I will leave the financial explanation to Amit. We also crossed around 500 million applications processed globally during the quarter. It is a significant milestone for our team and reflects the scale of the platform we have built over the years with operations now spanning in more than 100 countries. In Visa and Consular service business, we continue to perform steadily. Q2 revenue and EBITDA both grew by 10% 11% year-on-year with EBITDA margin of about 42%. For the first half, segment revenue was around ₹1,070 crores. We processed around 11 lakh applications in Q2 and revenue per application increased by 10% to ₹3,553. This was supported by better pricing on your contracts and higher contribution from value-added services. It is encouraging to see revenue per application improving even as volumes vary across markets. We remain focused on improving operational efficiency, growing self-managed operations and maintaining service quality. We're actively participating in tenders across Europe, North America and other markets. We will share update on new contracts once they're finalized. In Digital Services, the company continues to grow strong. Q2 revenue increased by 66% to ₹463 crores and EBITDA grew by 67% to ₹34 crores. The growth came from our BC business and loan distribution business as well as full quarter contribution from Athyathi. Our BC business recorded GTV of around ₹41,400 crores in Q2 and over ₹70,900 crores in H1. Loan disbursements were over ₹9,500 crores during the quarter. At the end of September, our network has more than 1,88,200 touch points. We also continue to expand our Citizen Services work. This includes operating Aadhaar Seva Kendras under the UIDAI contract and supporting more than 1,000 government-to-citizen services through our technology and last-mile network. Athyathi adds banking technology, financial inclusion and micro lending capabilities to this business. Our focus now is on integrating the platform and using our wider network to create further opportunities. Alongside business growth, we have continued
Shikhar Aggarwal (BLS International Services Ltd): we strengthened our Global Advisory Board with appointment of former Estonian President as a global strategic advisor. This follows the earlier appointment of differing strategic advisors. We are also certified a Great Place to Work in India in September. Alongside this, we are investing in AI-focused training and upscaling so that our people are ready for the changes in our business. I now hand over the call to Mr. Amit Sudhakar to take care, our Chief Financial Officer, to take care of the financials.
Amit Sudhakar (BLS International Services Ltd): Thank you, Shikhar. Good afternoon, everyone. I will take you through the consolidated financial performance for the quarter and six months ended 30th September, 2026. For Q2, consolidated revenue was Rs. 973 crores, up 32% from Rs. 737 crores last year. This is the highest quarterly revenue we have recorded. EBITDA increased by 17% to Rs. 248 crores compared to Rs. 213 crores in corresponding quarter. The EBITDA margin was 25.5% compared to 28.9% last year. This is mainly due to the changing, changing revenue mix. Digital service is growing faster and now contributes a large share of revenue, but its margin is lower than the Visa, Consular. Both businesses continue to maintain healthy segment margins. For H1 FY FY'27, revenue was Rs. 1,863 crores, up 29%. EBITDA grew by 20% to Rs. 500 crores with a margin of 26.9%. PAT was Rs. 403 crores compared to Rs. 367 crores in the last half, half last year, in an increase of 20, 10%. Visa Consular contributed about 52% of the revenue in Q2 while digital service contributed about 48%. A year ago, the mix was 62 and 38% respectively. In terms of EBITDA, Visa Consular contributed about 86% with digital service contributing the remaining 14%. This show how quickly the digital service is, is carrying, scaling up. Visa Consular continues to contribute the larger share of the profit while digital is expanding our reach and adding new growth opportunities. Visa and Consular service segment Q2 revenue was 5,000, 510 crores, up 11% from Rs. 459 crores. EBITDA also grow, grew by 11% to Rs. 214 crores with a margin of 41.9%. For half, first half segment revenue was Rs. 1,070 crores, up 16% and EBITDA was Rs. 440 crores, also up 16%. EBITDA margin was 41.1%. Net revenue per application for the first half was Rs. 5, 350, 3,537 rupees, up 11%. Digital segment revenue for Q2 was Rs. 463 crores, up 66% from Rs. 278 crores. EBITDA grew by 67% to Rs. 34 crores from Rs. 21 crores with a margin of 7.4%. Growth was driven by business correspondent and loan distribution activity along with full quarter cons- consolidation of Satyathi. For H1, revenue was Rs. 793 crores, up 50% and EBITDA was Rs. 61 crores, up 57%. The margin improved to 7.7% from 7.4% last year. As we integrated Satyathi and offer more services through our network, we see scope of improving the margin over time while recognizing that digital service has a different margin profile from Visa and Consular. The balance sheet, the net, the company has a healthy net cash position of Rs. 1,556 crores as on 30th September, 2026.
Amit Sudhakar (BLS International Services Ltd): six. We will continue to deploy capital carefully with priority given to opportunities that strengthens our existing businesses or add complementary capabilities. During Q During the current quarter, ICRA rated the company to AA- for the long term and A1+ for the short term. This reflects the growth of our financial position. We remain well placed to support our growth plan through investment in our businesses, technology, and selective selective strategy opportunities while maintaining financial discipline. With that, I will hand over the call for to the moderator for the question-and-answer session. Thank you.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pritam Kamaji from Purnartha Investment Advisers. Please proceed.
Pritam Kamaji (Purnartha Investment Advisers): Hi. So my first question is related to net revenue per application. So now as most of the transition is complete, what growth is company expecting in net revenue per application going ahead?
Shikhar Aggarwal (BLS International Services Ltd): Okay, thank you. So, see, current net revenue per application basically means the direct costs which we have incurred against the revenue which we earn. And this basically is a cumulation of all the business we are doing in globally in different countries. And it varies country to country. And as the new contracts are coming at a better pricing, and we are adding new services, we see this growing at 5 to 6% per annum.
Pritam Kamaji (Purnartha Investment Advisers): Okay. Great. And I have one more question. So in the PPT, it was mentioned that till FY30, we were targeting like 20 to 25% revenue growth. So can you also give split of how much growth are we targeting in visa and how much growth are we targeting in digital business?
Shikhar Aggarwal (BLS International Services Ltd): So, actually we missed out. Can you repeat your second question?
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