BLS E-Services Q2 FY27 Results (NSE: BLSE)
Signal: Margin pressure
The read
The trajectory has shifted from Q1FY27's +24.6% revenue growth to +57.4% in Q2FY27 after Atyati's inclusion, but EBITDA margin remains only 7.6%, down 210bps YoY, because employee costs rose +210.0% and depreciation +287.2%; the key test is whether acquired scale converts into margin recovery.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹424.44 Cr | +57.4% | +39.6% |
| EBIT | ₹26.59 Cr | +7.3% | |
| Net profit | ₹20.54 Cr | +12.4% | |
| EPS | ₹0.96 | +12.9% | |
| EBIT margin | 7.6% |
P&L walk
Consolidated revenue increased to ₹42444.46 lakh, +57.4% YoY and +39.6% QoQ, but EBITDA rose only +23.4% YoY to ₹3244.59 lakh as employee costs grew +210.0% and depreciation grew +287.2%; PAT still rose +12.4% to ₹2054.49 lakh.
Segments
The group reports one Digital Services segment; the ₹42444.46 lakh consolidated revenue and ₹2054.49 lakh PAT versus standalone revenue of ₹2850.23 lakh and PAT of ₹424.67 lakh show that the acquisition-led subsidiaries, particularly Atyati, are driving the consolidated uplift.
Key positives
- Consolidated revenue reached ₹42444.46 lakh, +57.4% YoY and +39.6% QoQ, accelerating from Q1FY27's +24.6% YoY growth.
- Consolidated PAT rose +12.4% YoY to ₹2054.49 lakh despite other income falling -41.5% YoY to ₹368.01 lakh, so the profit increase was not driven by higher treasury income.
- Operating cash flow increased to ₹2032.79 lakh in H1FY27 from ₹1019.47 lakh in H1FY26.
- Finance cost remained low at ₹17.06 lakh, down -8.8% YoY, while the group reported no borrowings in the consolidated balance-sheet extract.
Key concerns
- EBITDA margin fell to 7.6% from 9.7% YoY and 8.8% QoQ even as revenue grew +57.4% YoY, indicating that scale has not yet translated into operating profitability.
- Employee benefits expense rose +210.0% YoY to ₹3464.97 lakh, far faster than revenue, while depreciation rose +287.2% to ₹585.67 lakh.
- Standalone PAT declined -14.7% YoY to ₹424.67 lakh despite standalone revenue growth of +19.6%, confirming that consolidated profit growth is primarily acquisition-led.
- The consolidated results include Atyati from July 2, 2026 and are therefore not fully comparable with the prior period; its purchase price allocation remains provisional and measurement-period adjustments may occur.
Research and educational content only. Not investment advice.