Financially strong stock to buy now for an upside of 35%; Do you own it?

Synopsis:
The firm is seeing strong growth backed by major government contracts, expanding digital services, and rising margins. With robust profitability, increasing global mandates, and a scalable digital ecosystem, its long-term outlook remains compelling, supported by recurring revenues and strengthening operational momentum.

India’s Tour, Travel Related Services sector is booming, fueled by rising incomes and digital savvy travelers. In 2024, it contributed $244.7 billion to GDP (6.6%) with 20 million international visitors and $36.8 billion in foreign spend. Projections for 2025 hit $256 billion total, supporting 48.2 million jobs, as domestic trips surge alongside global recovery.

With a market capitalization of Rs 13,235.41 crore, the shares of BLS International Services Ltd were trading at Rs 321.60 per share, decreasing around 3.25 percent as compared to the previous closing price of Rs 332.60 apiece.

Brokerage Recommendations

IDBI Capital has issued a ‘Buy’ call on the stock, setting a target price of Rs 445, which suggests a strong 35% upside from the current level of Rs 321. The brokerage’s optimism reflects confidence in the company’s growth outlook, improving revenue visibility, and strengthening business fundamentals.

As per the brokerage, BLS International benefits from long-term government contracts that create predictable, renewal-driven revenue streams. Its visa and consular business enjoys strong margins, rising to 41.9% in Q2FY26, supported by minimal vendor switching and consistent tender-based onboarding. The new three-year MEA mandate in China strengthens revenue visibility, while diversified country contracts reduce volatility and enhance long-term growth stability.

The company’s strategic shift toward digital identity and e-governance services is unlocking higher-margin, recurring revenue. Digital segment revenue surged 259% YoY, aided by platform contracts and acquisitions. The landmark Rs 20.55-billion UIDAI project expands its digital footprint, while subscription-like models improve margin trajectory. As digital contributions scale, profitability is expected to compound meaningfully, supporting a structural valuation re-rating.

Financial & operational highlights 

The company delivered strong financial growth, with revenue rising 48% from Rs 495 crore in Q2FY25 to Rs 737 crore in Q2FY26. Net profit also improved 27%, increasing from Rs 146 crore to Rs 186 crore. The performance reflects robust operational momentum and healthy demand during the period.

BLS International reported strong operational progress in Q2FY26, highlighted by major contract wins and strategic expansion. It secured a Rs 2,055.35-crore UIDAI mandate to set up and operate Aadhaar Seva Kendras over six years and a three-year MEA contract to run visa centres in China. The company also acquired Trefeddian Hotel in the UK for Rs 78.3 crore and strengthened its net cash position to Rs 1,306 crore.

BLS International is a leading global partner for governments, offering visa, passport, consular and digital citizen services. With operations across 70+ countries, it serves 46 governments worldwide. The company manages 1,47,000+ touchpoints, 45,400+ business correspondents, and 1,000+ e-stores, processing 360 million+ applications, strengthening service delivery for citizens globally.

BLS International is a global outsourcing and technology service partner trusted by governments for managing visa, passport, consular, and citizen services. With a wide international presence and deep operational expertise, it supports seamless public-service delivery, helping millions of people access essential government services efficiently and securely across multiple countries.

Written by Abhishek Singh

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