Synopsis:
BLS International Services is in focus as it tends to become one of the top companies in providing visa outsourcing capabilities. With strong fundamentals, a healthy retention rate with over 46 government clients, and spanning over 70 countries, it’s a top contender to look out for.
With a market capitalization of Rs 13,600 crore, the shares of BLS International Ltd are currently trading at Rs 330 per share, representing a decline of 37 percent from its 52-week high of Rs 522.30 per share. Over the past five years, the stock has delivered a multibagger return of 1,500 percent.
About the company and Product Offerings
BLS International is among the top two global players in providing visa, passport, consular, and citizen services. It works closely with governments worldwide, offering outsourced visa and passport solutions under its Government-to-Citizen (G2C) segment. In India, the company also provides front-end citizen services such as Business Correspondent, E-Governance, and Assisted E-Services for various state governments.
BLS International makes money in two main ways: Visa & Consular Services, where it runs visa centers for 46+ governments worldwide (like Spain, Italy, Germany, India) and manages applications, biometrics, and fees.
The other is Digital Services, which supports people in towns and villages with banking, government papers, and digital payments through its wide network. The visa side is global, high-margin, and stable, while the digital side is local, lower-margin but very large-scale, giving BLS both worldwide strength and domestic growth.
The company entered into the visa processing business in 2005 with its first contract for the Portuguese Embassy in New Delhi, now regarded as a valued partner to over 46 client governments globally, with operations in 70+ countries. As of 2024, the company holds a 17 percent market share in terms of value and 10 percent in terms of volumes.
Recent Acquisitions
BLS successfully acquired the 100 percent stake in iData for 80 million euros or Rs 720 crore in July 2024. iData is a leading Turkey-based visa processing and consular services provider with a specialized focus on European markets.
Again, in October 2024, the company made a fresh acquisition worth Rs 260 crore in Citizenship Invest (CI), which is basically a company engaged in the business of providing long-term visas, to diversify its portfolio by entering the high-margin sector of long-term visa solutions, such as citizenship and residency programs.
Additionally, in November 2024, the company acquired a controlling 57 percent stake in Aadifidelis Solutions Pvt Ltd (ASPL) and its affiliates for an enterprise value of Rs 190 crore. ASPL is one of India’s largest loan distribution and processing companies with a comprehensive financial services approach.
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Financial Highlights
BLS International reported a revenue of Rs 710.6 crore in Q1 FY26, up by 44 percent from its Q1 FY25 revenue of Rs 492.7 crore. As of FY25 data, it derived 75 percent of its revenue from its dominant Visa & Consular segment, and the remaining 25 percent is sourced from its digital segment.
EBITDA grew 53 percent to Rs 204.2 crore in Q1 FY26 from Rs 133.2 crore. During the same period, its EBITDA margins also expanded by 170 bps and currently stand at 28.7 percent. One of the key reasons behind this margin expansion is that the company has shifted from a partnership model to a self-managed model.
Regarding its profitability, the company reported a net profit of Rs 181 crore in Q1 FY26, up by 50 percent from its Q1 FY25 net profit of Rs 121 crore. Its PAT margin also expanded by 100 bps and currently stands at 25.5 percent.
It also reported a stellar segmental performance during the period. Its Visa & Consular Services revenue grew by 11 percent to Rs 460.7 crore and its digital business grew by a staggering 218 percent to Rs 249.9 crore in Q1 FY26.
Additionally, the total number of applications grew by an impressive 34 percent and currently stands at 11.4 lakh. Also, its net revenue per application grew by 19 percent to Rs 3,167 in Q1 FY26.
Over the past years, it reported a stellar revenue CAGR of 46 percent in its topline and a staggering 81 percent CAGR in its bottom line, highlighting strong performance in the segment.
Future Outlook and Other Highlights
The company has set a target to grow steadily at 20–25 percent in both revenue and profitability over the coming years. Along with this strong growth guidance, it expects to maintain its healthy EBITDA margin at the current levels, highlighting strong confidence from the management.
BLS International shared that about 90 percent of its contracts were already renewed in the past year, which gives them good visibility of revenues for the next 4–5 years (6-7 years of revenue). Some contracts will come up for renewal in 2 or 3 years, but they don’t see this as a risk. For example, they recently won contracts with the US government that run for 10 years, which provides strong stability.
On the question of competition, BLS explained that while the outsourcing market has grown a lot (from just 10–20 percent earlier to about 50 percent now), most of their growth has come from winning contracts from competitors and also from governments outsourcing new services or expanding into new geographies. The industry is tough to enter because qualification requirements are very strict, which means only a few big players like BLS and VFS dominate.
Growth Triggers
The company is one of the top two global providers of visa services, having a strong presence in 70+ countries and 46+ government clients. The company is transitioning from a Partner-run model to a Self-managed model by which the company is effectively cutting down its costs.
The Global Travel & Tourism Industry is expected to grow at an 8 percent CAGR from 2024 to 2029. Also, the Outsourcing Visa Market (except the USA) is expected to grow at a 14% CAGR, and the Global Consular Services Market is expected to grow at a staggering 32 percent during the same period.
Additionally, the company has stated that the majority of its contracts were already renewed, which gives a long-term revenue visibility over the next few years. However, in the next two years, many contracts would be up for renewal, presenting an attractive opportunity in the range of $1-2 billion.
BLS International has strategically made itself one of the two biggest players in the visa outsourcing market, supported by solid revenue growth, recent acquisitions, long-term contracts, and an extension in digital services. As the international travel and outsourcing markets are expected to expand, the company will have several ways to achieve further growth.
Nevertheless, rivalry with VFS, next contract renewals, and the performance of their self-operated model will be important factors to monitor. BLS’s ability to become the number one global visa outsourcing company is still uncertain, but its ongoing drive and development initiatives place it firmly in the running.
Written by Satyajeet Mukherjee
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