Whalesbook
BLS International Services is set for sustained 20-25% annual revenue growth, according to Joint Managing Director Shikhar Aggarwal. This positive outlook is supported by a worldwide trend of governments outsourcing visa and citizen services.
Expanding Global Reach and Application Volumes
The company handled approximately 45 lakh visa applications in fiscal year 2026, with quarterly volumes surpassing 11 lakh. Aggarwal anticipates ongoing expansion through securing new government tenders and renewing current agreements. This rise in application numbers is a primary factor behind the projected growth.
Better Margins in Visa Processing
Margins in BLS International's main visa operations have significantly improved, rising to around 40% from nearly 34% the previous year. Overall consolidated margins are steady at about 25%, mainly due to including lower-margin digital services from the recent RD Phillips acquisition. The company expects these higher visa margins to remain consistent.
New Contracts Boost Business Momentum
Key contracts won this year include agreements with the governments of China, Cyprus, Slovakia, Italy, Poland, and Portugal. A significant addition is a contract from India's Unique Identification Authority of India (UIDAI). The UIDAI project is already in its early stages, with over 50 offices active across India, and is expected to fully contribute to revenue within the next six to seven months.
Navigating Geopolitical Issues and Travel Demand
Despite geopolitical conflicts in West Asia and Europe, Aggarwal noted these events have only caused brief business interruptions. Long-term travel demand, especially to Europe, remains strong and is higher than last year, even with policy changes and uncertainties. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) and profit after tax saw strong growth over 35% in FY26, reaching more than ₹800 crore.
Gaining Market Share and Future Growth Avenues
BLS International aims to expand its market share in the global visa outsourcing sector, having grown from 5-7% ten years ago to the current 15-18%. New outsourcing opportunities are emerging in Latin America and Africa, alongside services like passport renewal outsourcing, identified as potential areas for future expansion. The company currently has a market capitalization of ₹11,084.07 crore, though its shares have decreased by over 31% in the past year.