Our first question comes from the line of Vansh Solanki from RSPN Ventures.

Yes. So, as we saw in this quarter, our visa applications grew very well to 17% YoY. And the management also talking like for many quarters that many big contracts a re coming globally. So my question on that can you just say in next 1 year or 2 years, which of the country's contracts are going to renew and how much that will be worth like c ountry-wise, like I know that there will be opportunity of very big. But just country-wise that in next 1 or 2 years, which big country is going to give a big order?

So, as we have said that we have grown, our application volume has also grown by 19% this quarter, and we have already announced that we have won a lot of new contracts with different governments this quarter. So, there are many governments which are comin g out, and we are actively working on it as we regularly do. And as and when the results come, we announce that to the market.

Okay. And the second question is on employee expense. This quarter, the employee expense grew significantly from like QoQ, if I see, it was 108 to 123. So, is there any one -off or these are the expenses due to the UIDAI centres, I assume?

I think ,primarily because of the UIDAI.

So like this will be from the normal range from now on, right? This will continue in the future also. There is no one-off?

Yes, there is no one-off.

Okay. And just one of a bookkeeping question. Can you just give a revenue of ASPL Citizenship, iDATA. And also in this quarter, we will have a revenue for U.K. hotel also. So can you just point the number these four?

So Aadifidelis about INR200 crores was the revenue, Citizenship invest is about INR12 crores. And third one, U.K. Hotel is about INR11 crores.

Okay. And iDATA?

iDATA is about INR70 crores.

And are you going to continue the visa application as you are seeing the travel is going on. So, the 15% growth you have mentioned for the FY '26. So, will it be continued through FY '27 and '28 also?

Yes, we have already said that for the next 5 years, our target is to achieve 20% to 25% growth.

Our next question comes from the line of Shreya Kejriwal from Moneyvesta Wealth Management.

Congratulations on the great results. I want to understand the revenue growth split between organic and inorganic. And also, regarding the EBITDA margin, as I see that it has been like contracted on year-on-year basis. So, could you elaborate on the key drivers behind this? And how should we think about the margin normalization going ahead?

Yes. So, the organic growth has been in the range around 26% in the current quarter.

Yes. So my second question was regarding the EBITDA margin. As I see that on year-on-year basis, the margin has been contracted. So like what's the key driver behind this? Like how should we think about the margin normalisation going forward?

So as we have explained in our last call also, the sales mix has changed a little bit . In the visa business, we have improved our margins Y -o-Y. If you see the segment result s, in the digital business, the growth has been more than 100%, where the margins have contracted because of Aadifidelis, which has a lower EBITDA margin business.

Our next question comes from the line of Varun Subramanian from Ascent Capital.

Just a couple of things on the consular services business. I see that if I just compare the 9-month numbers for FY '25 versus '26 , I think the revenue has come from around INR440 crores to INR280 crores. There's actually degrowth in that piece, right, ex of visa revenue essentially. So if you could just talk about that business, Is the number correct? Secondly, what is the revenue model there? is it only India or is it outside India as well? And also, like, why it's going down and what the margin profile looks like for that? Because it looks like your margin profile is improving as that revenue share is reducing?

Amit, if you can answer because I didn't understand what revenue he's talking about.

Yes. Our margins have been improving in the visa business.

Okay. Let me explain. In your visa and consular business, you have the net revenue that's coming from visa applications. That number has been steadily going up, right? So if I take your total visa and consular revenue and subtract that, you understood it now?

We missed out.

Okay. I'm saying that if you take the total visa and consular services revenue, right? And you subtract the visa revenue, which is your net revenue per application revenue, right? That is the consular revenue, correct? Now that consular revenue has been coming down.

So the difference between the revenue and the net revenue is basically the cost of services that we exclude or we reduce. There is no separate revenue of visa or consular services. It's all clubbed into one.

Okay. So the way we should look at revenue is only the net revenue should be looked at. The gross revenues is typically including the cost of service basically?

See, if you look at our visa revenue, and you reduce the cost of services, which is a direct services cost, that is the net revenue.

Okay. And so where does the consular revenue get booked?

It is part of it, the visa consular is one single segment.

We don't report separately visa and consular services. It's part of that.

No, that's what I'm trying to tell you that the visa and consular services is a single segment that we report. We don't separately report visa and consular services revenue. So if you look at our INR449 crores of revenue in the visa segment, this is both for visa and consular services. EBITDA of INR180 crores or 40% is for both the businesses together.

Yes, exactly. So within that, is the visa revenue INR362 crores? Or is that just the net revenue for the entire segment?

Okay, I can explain you. INR449 crores is the revenue from operations of the visa and consular services. There are certain cost of services that we have to incur. This is basically , if you look at, we have at certain places, we have partner model. So we have to pay to a partner, we have to pay to certain vendors. So net revenue is the actual revenue that comes to my kitty after paying off various costs, - direct cost. So INR362 crores is the net revenue for me.

You can look at it like gross profit of the business. Whatever the direct costs we reduce.

Understood. So that means the cost of services have been coming down, that's because of your own model, the shift to own model?

Exactly, exactly.

Understood. Okay. That's helpful.

Thank you. Our next question comes from the line of Shikha Mehta from Time and Tide Advisors.

So I actually just had one question regarding our all our acquisitions. So (a), do we have acquisitions planned in the future? Going forward, do we have a pipeline of companies we are looking to acquire? And (b), internally, do we have an IRR we want to make as BLS or companies acquired by us?

I think on the first part, I can answer. And as you have seen, we've been acquiring companies in the last few years. Last year, we spent around INR1,300 crores on acquisitions. And again, the synergy has started to come in. We've combine d those offices, etcetera. And so I think definitely, we have M&A team, we are constantly looking at opportunities, but we are very conservative in the kind of companies we want to buy. It gives us long value addition.

Can you elaborate on conservative, sorry? When you say we are extremely conservative, you mean on a valuation front, you mean on the kind of companies you look to acquire?

I meant on synergies, we look at only allied services. These accounts are our government services business, which can provide synergies to our business. The valuations are healthy. We can grow the business quickly. From our existing offices, we can synergize. There can be cost reduction, etcetera. So those are the couple of parameters that we look at.

So then the U.K. acquisition we did, I don't think that actually synergizes with our business, right? So what was the thought process like?

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 se rvices. And going forward, we want to get into total management contract kind of experience where there is no upfront capex deployment.

So is the understanding correct that if we find another possible acquisition in hotel management at a good valuation, we would look to acquire, or is this a one-off?

As we have explained that last time also that this was that we did to understand experience, gain experience and now we'll utilize that experience to get into management contracts.

Understood. Yes, sir. And lastly, on the IRR generated to BLS as an investor in these acquired companies, what range do we look at?

If we look at the ROI, at least in double-digits minimum and especially when it is outside India, that is quite a decent return which we are looking at.

So say, on iDATA, Aadifidelis, etera, we look at getting double-digit return over a longer-term period of time as a company that has invested in these businesses?

That's right.

So I mean, is it possible for you to give a payback period or something of sorts? Because we have a very large goodwill on our books. And if you give a payback period, maybe even ballpark on the 3, 4 companies we've acquired recently, it would help us understand your thought process much better.

So currently, what we have acquired, they all have a payback between 5 to 7 years.

Five to 7 years. Okay. Understood.

Our next question comes from the line of Mehul Panjuani from 40 Cents.

Sir, I'm new to your company. So I would like to understand what all entails in the digital services? What services come under our digital offerings?

So in digital offering, we have currently 3 verticals. One is the business correspondent which is a banking business wherein we provide the last mile banking. Then we have our loan distribution company, which we acquired last year, and the third is the E-governance where we provide, (we call it G2C ) government to citizens. We provide services on behalf of the government to the citizens. So these are the 3 verticals we have.

And sir, please correct me if I'm wrong. Sir, BLS E-Services is that catering to all the digital services? Or is that a wrong understanding?

No, that's correct. That is the one which is providing all the 3 services.

Our next question comes from the line of Atharv from Sonar Capital.

Sir, which geographies or visa categories are currently seeing the strongest growth for BLS. And do you expect this trend will continue over the next quarter or the next year also?

See, globally, all the geographies for us are growing. We have seen good growth coming in from the Middle Eastern market, the East Asian market, India, China, Latin American countries, definitely, the trend we see continuing. Going forward, definitely, the re is some war that is happening between Russia and Ukraine that gets streamlined, which there is hope. And definitely, we'll see a good growth in volume coming from that region as well. Because pre-war that was a very big volume for us. But I think after this spends probably the volumes, if they come back then that could be a very big reason.

Okay. So now India and Europe, trade deal is almost done. So do you expect some or more volumes from Europe also?

It's too soon. As you know, the trade deal was announced, but it will take time for it to get ratified by different bodies in Europe. But definitely, there will be a jump in the relationship between Europe and India. And definitely, we see that volumes cou ld increase in the future because of that.

Our next question comes from the line of Siyaa Deshmukh from Pune E Stock Broking Limited.

I have 2 questions. First is Slovak contract and the international acquisitions can contribute what kind of revenue in top line terms? And second was which quarter can be considered strongest for the company?

Volumes you will be able to know once these contracts have been active but quarter-wise, Q4 and Q1 are the ones which are the highest volumes and revenues we get.

Our next question comes from the line of Abhijeet from PI Assets.

Regarding the Slovak Republic contract, should we expect the temporary margin compression due to consolidated expenses before the is entire series of premium utilization?

We will be utilizing a lot of centres from our existing centres as well across the world. So there will be economies of scale. So definitely, initially in any contract that we win or deploy in different countries, there is investment. But after that, it is quite streamlined.

And there was a mention of AI in the investor presentation. So how are you leveraging AI? And can you quantify the impact AI had on the bottom line in the last quarter?

See, it's very difficult to quantify right now of savings that we have made, but we have implemented AI in a very practical manner in different departments of the organization, right from HR to call centre to customer engagement. So our answer percentage has increased. A lot of calls, we picked up quality has improved. Our recruitment has become better. We are able to put more people faster. Very difficult to quantify in terms of costs, but we definitely have cost savings that we have seen in terms of some of the angles. But I think it's too soon to quantify exactly the number.

And lastly, I just wanted to get your views on the reason behind allocation of capital and management bandwidth to the digital segment because it effectively and valuably consolidated margin profile. And also regarding this, how do you see the mix of visa and digital services over the next 2 years?

See as we have said this was because of the one of the acquisitions that we did of Aadifidelis Solutions, which is at a 3% EBITDA margin, the digital business definitely is growing. And as we see that we can add more services to that loan business, more margin will come in. So we definitely feel the mix will maintain because we see major growth coming in both the segments of the business.

So do you foresee margin expansion in the digital services?

I mean visa business also, if you see the margin has expanded to upwards of 40% now in the last few years. So definitely, we see a growth, in the future, in the digital business as well. But right now, as and when we introduce more value-added services and ancillary services, we will see margin improvements.

No, that's right. The reason I was asking is that because the contribution of Visa segment itself is coming down gradually. So even if the margin has expanded to, say, 38%, 40%, the net impact on the blended margin, I mean it's not that meaningful simply due to the fact that there is severe margin contraction happening in the digital services?

Yes. Amit, I think what we have discussed is that this was an acquisition that we did to enhance the company. And I think we are very happy with that because going forward, we can grow that company from our existing centres and zero mass. So definitely, we feel that whatever is achieved now will maintain and our target is to improve as such.

Next question comes from the line of Viren Sameer Deshpande from Alphapeak Investment.

Sir, congratulations for the good set of numbers. And the digital services you explained have been growing quite well and all those things. That is good. But actually, as you explained that the salaries and employee benefits have gone up now almost more than 50% year-on-year? So if you take the blended level of our turnover is about INR740 crores in this quarter. And the employee cost is INR123 crores. So what do you expect to be the normalized employee cost going forward?

If you see our last year audited numbers, our employee cost was about 14.75%. Now our 9 months is about 15.5%. So overall, if you see, we are in that range of 15%.

So, it will be similar because of this UIDAI or Bihar and all those things, which what we are doing, that is not going to increase it significantly?

No, See, we have got people on board and revenue will start coming now from this quarter onwards.

Okay. Okay. But as you mentioned, it will be in the range of around 14.5%, 15%, similar to the last year's level. And secondly, what are the cash and cash equivalents at the end of this quarter?

About INR1,400 crores.

Okay. And what was it last quarter?

It was about INR1,290 crores or something.

So, there is an accretion of about INR100 crores. And this Chinese operations which what we have been allowed by the Ministry of External Affairs to set up offices across China for this purpose. Has the work started there and because there is expected to be a lot of exchange in India and China, which had been halted for COVID, etc. But do you see a good significant revenue coming from that Chinese operations?

Yes. We see a good jump in revenue in the future.

Because exclusively, we will be operating from Indian side.

Correct.

So that will be a good booster for us.

I hope you heard the name of company called Atlys. So the new age business like Atlys would give hassle-free visa coverages in India of almost all the countries. And personally, I even tried that and they did a great job. So what negatives and positives will have on our business from these type of service businesses? Can you please elaborate on this?

See, we are in the business of exclusive government contracts where anyone who has to apply for a visa for the government we work for will have to go through us. So any company, any travel agent or any start-up or any company that works in the visa domain has to go through one of the providers as our competitors for applying for any business. So we are in the business of exclusive outsourcing, and that is what we are focused on.

Okay. And my second question is on Slide 10, it's mentioned that your digital services margin drastically reduced from 14.2% to 7%. So can you please explain about that?

As we explained earlier, this is because of the Aadifidelis, the new acquisition we did last year. And there, the margins are around 3% to 4% of EBITDA. So that Sales mix has changed the overall percentage.

Next question comes from the line of Varun Subramanian from Ascent Capital.

I have one question on the e -Visa. So I just wanted to check in terms of when you go to governments or embassies to renew contracts, have they been discussing implementing e-Visa as a process instead of the manual process, one? And what part of that process will necessitate people to still come to an embassy? Maybe the biometrics part is one that stands out. But if you could just walk me through what an e-visa process would look like, let's say, if someone like Spain is a large customer for us now, our source of income moves to exclusively e-Visa for their visa application process. How would that affect our business? How would we still play a role? And what will be the revenue impact according to you?

I think if you do your research and you see that in Europe, they have announced in the next few years, they are also digitizing part of the process. So that will lead to an increase in volume for us itself, and people will have to still come to the centre to do the biometric. So it is only part of the process that we will only handle digitize. So all the governments that we are working for, the numbers will grow in the near future. And the governments to handle the capacity better, they want to digitize part of the process where we will be digitizing it for them. Certain applications will come in that category, all will processed through us. So we see the new technologies that are coming in the future as enhancing our business. Biometric was not there 5, 7 years back. It got to reduced 7 years back. So definitely, we feel that we have a very good grip on the market and we are in touch with the government. We feel that going forward itself, we will see good growth in numbers as you can see more volumes coming in, and we are adopting whatever technology is coming on.

So the customer will still have to come to a BLS centre. That's the main point?

Correct.

Ladies and gentlemen, due to the time constraint, that was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you, and over to you, team.

Thank you, everyone, for joining this call today. If you have any further questions or clarifications, you can reach out to Gaurav Chu gh or EY team. Thank you so much. Have a good weekend.

Thank you so much, sir. Ladies and gentlemen, on behalf of the BLS International Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

This is a transcription and may contain transcription errors. The Company takes no responsibility of such errors, although an effort has been made to ensure high level of accuracy. Some minor editing may have been done for better readability. In case of discrepancy, the audio recordings uploaded on the stock exchange on February 06, 2026, will prevail