BLS E-Services Q2 FY27 results: net profit up 12.4% to ₹20.54 crore, revenue up 57.3%

How did BLS E-Services perform in Q2 FY27?

BLS E-Services reported consolidated revenue from operations of ₹424.44 crore for Q2 FY27, up 57.3% from ₹269.75 crore in Q2 FY26 and 39.6% from ₹304.09 crore in Q1 FY27. Total income was ₹428.12 crore, up 55.1% from the year-ago quarter and 38.2% from the previous quarter. On the standalone basis, revenue was ₹28.5 crore and net profit was ₹4.25 crore.

EBITDA was ₹28.77 crore in the quarter, against ₹20 crore in Q2 FY26 and ₹21.22 crore in Q1 FY27. The EBITDA margin was 6.8%, down 0.6 percentage points from 7.4% a year earlier and 0.2 percentage points from 7.0% in the previous quarter. Profit before tax was ₹26.42 crore, up 7.4% from ₹24.59 crore, and the net profit was ₹20.54 crore, up 12.4% from ₹18.28 crore and 10.3% from ₹18.63 crore.

Basic EPS was ₹0.96 for Q2 FY27, down 43.5% from ₹1.7 in Q2 FY26 and 42.9% from ₹1.68 in Q1 FY27. Profit attributable to owners of the company was ₹17.87 crore, up 15.8% from ₹15.43 crore a year earlier. The board approved the un-audited standalone and consolidated results for the quarter and half year ended 30 September 2026 on 2 November 2026, along with the limited review reports of the statutory auditors.

What changed in BLS E-Services' costs and profit?

Total expenses were ₹401.71 crore in Q2 FY27, up ₹150.25 crore or 59.8% from ₹251.46 crore in Q2 FY26. Cost of materials was ₹347.85 crore, up ₹112.91 crore from ₹234.94 crore, while employee benefit expense was ₹34.65 crore, up ₹23.47 crore from ₹11.18 crore. Other expenses rose to ₹10.44 crore from ₹3.64 crore, and depreciation and amortisation was ₹5.86 crore against ₹1.51 crore.

Other income fell to ₹3.68 crore from ₹6.29 crore, a decline of ₹2.61 crore or 41.5%. Finance costs were ₹0.17 crore, down ₹0.02 crore from ₹0.19 crore. There was no exceptional item in either quarter, and tax expense was ₹5.87 crore, down ₹0.44 crore from ₹6.31 crore.

Against Q1 FY27, total expenses were up ₹117.27 crore, with employee benefit expense up ₹23.49 crore to ₹34.65 crore and depreciation up ₹4.43 crore to ₹5.86 crore. Other income was lower by ₹1.98 crore at ₹3.68 crore, and tax was lower by ₹0.81 crore at ₹5.87 crore. Profit before tax rose ₹1.11 crore to ₹26.42 crore.

How did the first half of FY27 go?

For the first half of FY27, revenue from operations was ₹728.54 crore, up 41.8% from ₹513.74 crore in H1 FY26. Total income was ₹737.88 crore, up 40.0% from ₹527.22 crore, and profit before tax was ₹51.73 crore, up 7.9% from ₹47.96 crore.

Net profit for H1 FY27 was ₹39.17 crore against ₹35.8 crore a year earlier, a rise of 9.4%. Basic EPS for the half year was ₹1.8, down 45.6% from ₹3.31 in H1 FY26.

What do the balance sheet and cash flow show?

Total assets rose to ₹871.77 crore as on 30 September 2026 from ₹761.92 crore as on 31 March 2026, and total equity was ₹606.36 crore against ₹569.81 crore. The company reported no borrowings on either date. Cash and cash equivalents were ₹81.07 crore, lower than ₹87.93 crore at the previous balance sheet date, while trade receivables were ₹160.68 crore against ₹119.24 crore.

Trade payables fell to ₹64.48 crore from ₹82.06 crore and inventories were ₹0.34 crore against ₹0.2 crore. In H1 FY27, operating cash flow was ₹20.33 crore, up from ₹10.19 crore in H1 FY26, while investing cash flow was negative ₹20.29 crore against negative ₹15.87 crore. Financing cash flow was negative ₹6.9 crore against negative ₹11.37 crore, and capital expenditure was ₹5.71 crore against ₹1.1 crore.

How has BLS E-Services done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis, and profit also rose year on year in each of the last eight quarters. Revenue reached ₹424.44 crore in Q2 FY27, the highest in the series shown, against a low of ₹127.63 crore in Q3 FY25. In the prior quarter, revenue was ₹304.09 crore, so the sequential direction was upward after the Q1 FY27 step down from ₹323.37 crore.

Net profit of ₹20.54 crore in Q2 FY27 was the highest in the series shown, compared with ₹14.01 crore at the low point in Q3 FY25. The EBITDA margin stood at 6.8% in the latest quarter, above the 5.9% low in Q3 FY26 but below the 7.4% of Q2 FY26. The margin peaked at 12.4% in Q3 FY25.

What else did the company announce?

The board approved the un-audited standalone and consolidated financial results for the second quarter and half year ended 30 September 2026, along with the limited review reports of the statutory auditors, on 2 November 2026. The results had been recommended by the audit committee. The company filed an investor presentation and a press release on the same day alongside the results.

The filings recorded that the acquisition of Atyati Technologies Private Limited was completed on 2 July 2026, with 100% of the equity acquired for a consideration of ₹14,582.69 lakhs net of contingent consideration. The company said the excess of consideration paid over the provisional fair value of net assets acquired had resulted in goodwill, with potential for measurement period adjustments. IPO proceeds of ₹13,800.00 lakhs had been utilised towards the Atyati acquisition, and ₹1,453.64 lakhs remained unutilised as on 30 September 2026.

What did BLS E-Services' management say?

Management said the Atyati Technologies acquisition, completed effective 2 July 2026, contributed to performance and expanded the rural business-correspondent and technology platform. In the investor presentation, management said Q2 gross transaction value reached ₹41,400+ Crores, and the network covered 1,88,200+ touchpoints and 74,400+ BCs. Management also noted that year-on-year margins were compressed, with Q2 EBITDA margin at 7.6% against 9.5% and PAT margin at 4.8% against 6.6%.

Management said it was pursuing volume-led growth across business verticals of BCs, Loan Disbursement, E-Gov and Assisted E-services, with no timeframe stated. It said the company would follow an aggressive strategy to win new government tenders for E-governance business, add new tie-ups with banks, insurance companies and NBFCs, engage new vendors to expand B2B2C service offerings, and enhance service quality and customer experience. Management also said it would strengthen technology infrastructure to develop new capabilities and consolidate existing platforms.

Management flagged margin compression, with H1 EBITDA margin declining to 8.0% from 9.7% and PAT margin to 5.3% from 6.8%. It also flagged that profit growth lagged revenue growth, with Q2 PAT up 12.4% against revenue growth of 57.3%. The company expects the increasing scale of the platform, deeper penetration of underserved markets, integration of acquired capabilities and continued addition of institutional relationships to support its growth journey.

How did BLS E-Services shares react?

By the next day's close the stock was up 0.0% from its pre-results close, against a 0.4% median move for the industry, an excess of negative 0.4 percentage points. Earlier results-day moves were mixed: down 2.6% on 6 August 2026, up 4.3% on 18 May 2026, down 5.2% on 5 February 2026 and down 4.8% on 10 November 2025. The largest move in the listed series was up 14.8% on 14 May 2025.

How did other IT Enabled Services companies do?

Twenty-seven IT Enabled Services companies have filed for the quarter as on 4 November 2026, and their median revenue growth was 22.5%. BLS E-Services' revenue growth of 57.3% was faster than the median, with 6 peers growing faster than the company and 21 growing slower. Eighteen of the 24 peers for which profit was compared reported higher profit.