There are lot of corporate governance issues in bls international as well please be careful.
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Can you list out these corporate governance issues?
Iām invested in BLS because of its strong business model and consistently healthy ROE. Ahead of the quarterly results, the stock surged 12.43% today.
In my view, the company has handled the MEA issue in a mature and balanced manner, with no negative or unfocused business decisions so far.
Can we expect strong results this quarter, and could this mark the beginning of a renewed upward cycle for the stock?
Disc: Invested & may have biased opinion
Iam sharing all the data and links,you can analyse and conclude
1)X thread on auditor allegations
- Company pressuring there employees to overcharge the customers,they changed there model before someone else was operating now they only operate and in P&L there margins as well increased but at the cost of this
3)Many governance issues in this article
Main issues from the article if I remember correctly
i)sexual harrasment by promoter group family
ii)some government banned there service after poor service
4)Recent MEA ban on them,i some where I heard they are bribing somone to get the other companies visa contract bidding prices (for this i donāt remember the source exactly)
5)it was indirectly told as an example for siphoning of money ( buying their own unlisted company at very high valuations etc)
Basically there bls e service business somewhere around couple of years back they bought there own other promoter company at very high valuation.
6)1 more thing just a observation,I know there float is low promoter holds 70% and public holds 20%
No respected FIIās and DIIās invested in the company.
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So some ill digested rehash of old hearsay allegations which has been very well discussed in the forum . Whats new and whats the point ? Any allegation and any hit job is better than a oligopolistic business at any cost ?
The āFantastic Resultsā: For Q3 FY26 (reported Feb 6, 2026), BLS reported a 33% jump in Net Profit and a 43% increase in Revenue. They even declared a 200% interim dividend.
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https://www.bseindia.com/xml-data/corpfiling/AttachLive/8b4da1e9-a454-4d9f-831a-43a5e34db2d6.pdf BLS International reported strong Q3 FY26 results with a 43.6% YoY rise in consolidated revenue to ā¹736.46 crore and a 33.1% YoY increase in net profit to ā¹170.22 crore. The company declared a 200% interim dividend (ā¹2 per share). Growth was driven by visa/consular services and recent acquisitions, despite some margin pressure.
Key Financial Highlights (Q3 FY26 vs Q3 FY25):
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Consolidated Revenue: Up 43.6% YoY to ā¹736.46 Cr, from ā¹512.85 Cr.
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Net Profit (PAT): Up 33.1% YoY to ā¹170.22 Cr, from ā¹127.91 Cr.
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EBITDA: Grew 25.3% YoY to ā¹198 Cr.
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PAT Margin: 23.11% (compared to 24.94% in Q3 FY25).
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Interim Dividend: 200% or ā¹2 per share.
Key Business Developments & Metrics:
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Global Contracts: Secured a 5-year contract with the Slovak Republic for visa services across 80+ countries.
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Expansion: Secured a new visa contract from the High Commission of the Republic of Cyprus.
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Subsidiary Performance: BLS E-Services reported a 115.5% YoY rise in total income to ā¹286.7 crore.
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Key Risk: The auditor noted an āemphasis of matterā regarding the going concern status of a subsidiary, BLS E-Solutions Private Limited, following past contract issues.
The 9-month (9M) FY26 performance showed consistent strength with revenue growing 45.5% YoY to ā¹2,183.65 crore and PAT rising 36.1% to ā¹536.90 crore.
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Thank you for sharing these.
According to my Guruji, exiting an investment based on a wrong judgment can be very costly.
I would like to take risk and wait for more concrete evidences.
PS : Invested & may have biased opinion
While browsing the RTPs in their 24-25 Financial report, Noticed very large sales to one related party (concentration) Sale of services to BLS International FZE = 4,853.58 (Rs. in lakhs) in FY 2024-25. This is a large chunk of the companyās revenue (standalone revenue = 13,848.63). See the RPT table in screenshot.
With very limited understanding of mine, it looked concerning to me on two fronts
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Cash-flow circularity ā if the listed entity is selling to the subsidiary and the cash is then recycled back as dividends (the report shows dividend received from BLS FZE = ā¹4,397.82 lakhs), how to validate if cash was not being siphoned off to benefit specific parties at the expense of the listed entityās minority owners?
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high concentration of revenue through a single related entity raises margin shifting concern. the related sale could be priced in a way that shifts margin between entities?
I could not find much of the detail for this sale. If anyone has much deeper understanding, please do post.
Update: This may not necessarily be a red flag and may simply reflect the nature of the business. As I am new to the world of investing, I am approaching this with additional skepticism.
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Companyās standalone revenue is minuscule (~6% of the overall revenue) as the company mostly operates through subsidiaries in various geographies. The 49 cr revenue highlighted is for the services provided by parent company to its Middle East subsidiary, which gets eliminated in the consolidated P&L. At a consolidated level it is only ~2% of the total revenue.
PS : Not invested.
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Any view or information, around the cash position and cash flows generated outside India. This balance is largely sitting in the Dubai subsidiary.
Does he have any plans to repatriate (which might be tax inefficient) / how to he plans to utilise the same.
Additionally, how to value this company in such case?
Consular Outsourcing BLS Services Inc., USA, a subsidiary of this Company is making losses over the last 3 years.
| FY 25 | FY 24 | FY 23 | |
|---|---|---|---|
| -5165 | -9.7 | -4.8 | |
| (*USD) |
I donāt understand why this information seems to be in the blind spot for the investor so far.
After weighing the risk and reward of the investment, I decided to invest in this company. But after digging this dirt from the AR FY 25, I am confused 
about the investment.
If this level of loss continues in the coming years, what is the point of these ongoing inorganic expansions or any other ventures?
Valid concern on BLS US sub losses (~ā¹166 Cr FY25) Its likely ramp-up costs for new contracts/tech integration in competitive visa market, common in inorganic expansions. Consolidated BLS remains robust.
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BLS International has ~ā¹2,000 Cr of reserves on its books (as of Sepā25), with ~ā¹1,250 Cr in cash and equivalents, and is actively evaluating acquisition opportunities.
A large part of future shareholder value will hinge on how this capital gets deployed. The acquisition phase will be critical ā depending on the quality, valuation, and integration of targets, it can either lead to meaningful value creation or capital misallocation.
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The mutual fund holding of BLS is decreasing.
The current mutual fund holding in BLS is 0.36% while previous quarter holding is 0.39%.
Request any views on this inspite of good business model, huge TAM, Asset light model & Cash generation.
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Indian passport, visa services in UAE: Alhind wins contract to provide consular support.
Not sure how this going to impact BLS.
https://www.khaleejtimes.com/uae/indian-passport-visa-consular-services-uae-alhind#google_vignette
No clear capital allocation plans of the Cash on Balance Sheet could be a cause of concern!
moreover, the way the management justified this hotel purchase decision is extremely questionable
Our objective is that once we learn, our objective is not to invest, but to acquire the expertise
so we can run our own brand name. Our objective is to run an asset-light model as in the visa
business. That was the strategy because our customers are the same. We are globally in touch
with all the travel agent community, customers who are demanding different types of services.
That was the reasoning behind getting into that.
We have already answered that in the last investor call also about that acquisition that we are
wanting to get into allied services. And that was a one-off thing that we did. And going forward
to utilize the experience as we want to get to a more travel services. And going forward, we
want to get into total management contract kind of experience where there is no upfront capex
deployment.
If there was a valid justification for the hotel purchase, it would be understandable, but it might just be me, but this reasoning did not make any sense.
Too many corporate governance loopholes - and questionable practices in the RPT of the firm. It is easy to get away with such allocation because theyāre already at a 30%+ ROCE so it wontā make too much of a difference but itās the character thatās questionable. Some tiny part of non-executive promoter holding is also pledged.
Disc: Not invested
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Also, looks like VFS emerged as L1 bidder for Australian CPV.
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