Brokerage firm Nuvama has given a ‘buy’ call to BLS International Services, raising the target price from ₹604 to ₹637 after the visa service provider announced financial results for the December quarter on February 11.
“Given its in line performance in Q3FY25 and higher-than anticipated margin guidance, we have revised our FY25/FY26 EBITDA estimate upwards by 6% each. Consequently, we raise our SoTP-based TP to INR637 from INR604. Maintain ‘BUY’,” the brokerage firm said.
BLS International Q3 FY25 results
The company reported a 43.2% increase in net profit, reaching ₹121 crore for the third quarter, up from ₹84.5 crore in the same period last year. The company’s operational revenue rose by 17% to ₹513 crore, compared to ₹438 crore in the corresponding quarter of the previous fiscal year.
The company recorded a 78.5% increase in EBITDA, reaching ₹158.1 crore in Q3FY25, compared to ₹88.6 crore in the same period last year. The EBITDA margin improved to 30.8% from 20.2% year-on-year, supported by the shift from a partner-operated model to a self-managed approach and the incorporation of newly acquired businesses.
As of December 31, 2024, BLS International Services had a net cash balance of ₹690 crore following its acquisitions in FY25.
“Its operational performance aligned with our estimates. It posted a record high quarterly revenue. As the only listed Indian company in global visa processing and G2C services outsourcing, BLSIN operates a capital light and cash-generating model, with strong growth potential. New visa contracts and an expanding digital services network can further enhance profitability. Its strong track record of acquisitions continues to broaden its market reach and service portfolio,” Nuvama added.
Founded in 2005, BLS International Services Ltd. is a trusted global tech-enabled services partner for governments and citizens, having an impeccable reputation for setting benchmarks in the domain of visa, passport, consular, citizen, e-governance, attestation, biometric, e-visa and retail services.
