BLS Internat. Q2 FY27 Results (NSE: BLS)
Signal: Margin pressure
The read
The trajectory remains high-growth but mix-sensitive: revenue accelerated to 32.0% YoY at ₹972.7 crore, led by Digital Services revenue growth of 66.4%, while consolidated EBITDA margin contracted 340bps to 25.5% and PAT growth moderated to 8.6% because the lower-margin mix and higher acquisition-related amortisation offset operating growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹972.7 Cr | +32.0% | N/A |
| Net profit | ₹201.7 Cr | +8.6% | |
| EBIT margin | 25.5% |
P&L walk
Revenue increased 32.0% to ₹972.7 crore, led by Digital Services growth of 66.4%, while EBITDA grew 16.6% to ₹248.1 crore and margin contracted 340bps to 25.5% on the segment mix shift; PAT rose 8.6% to ₹201.7 crore, below EBITDA growth partly because higher amortisation affected profitability.
Segments
Digital Services was the growth engine, with revenue up 66.4% to ₹462.7 crore versus Visa & Consular growth of 11.2% to ₹509.9 crore; its 7.4% EBITDA margin versus Visa's 41.9% explains the consolidated margin dilution.
Key positives
- Revenue reached a record ₹972.7 crore, growing 32.0% YoY, with H1FY27 revenue up 28.7% to ₹1,863.2 crore.
- Digital Services revenue grew 66.4% to ₹462.7 crore and EBITDA grew 66.9% to ₹34.4 crore, confirming strong scaling in business correspondent and loan disbursement activities.
- Visa & Consular retained a high 41.9% EBITDA margin while revenue grew 11.2% to ₹509.9 crore; net revenue per application increased 10.2% to ₹3,553.
- The company surpassed 500 million applications processed and operates across 100+ countries, expanding the scale of its government-services platform.
Key concerns
- Consolidated EBITDA margin declined 340bps YoY to 25.5% despite 32.0% revenue growth because Digital Services grew faster than the higher-margin Visa business.
- PAT growth of 8.6% to ₹201.7 crore lagged EBITDA growth of 16.6% to ₹248.1 crore, with higher amortisation of acquisition-related intangible assets cited as a drag.
- Digital Services EBITDA margin was 7.4%, materially below Visa & Consular's 41.9%, making future mix-led growth dependent on Digital margin improvement.
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