BLS Q1 FY27: PAT growth slows to 11% YoY on tax spike despite 25% revenue surge

BLS International's consolidated Q1 FY27 (quarter ended June 30, 2026) results show revenue from operations of ₹890.5 Cr, up 25.3% YoY (from ₹710.6 Cr) and 9.3% QoQ (from ₹814.6 Cr). Profit before tax rose a similar 17.7% YoY to ₹235.6 Cr, but net profit for the period (₹201.6 Cr, including non-controlling interests; ₹190.1 Cr attributable to owners) grew just 11.4% YoY and 7.9% QoQ — trailing both revenue and PBT growth. Basic EPS was ₹4.62 versus ₹4.15 a year ago. The print fell short of Street: Univest's pre-result estimate had pegged revenue at ₹1,025 Cr (+44% YoY) and PAT at ₹271 Cr (+50% YoY); actual revenue and PAT both missed, by roughly 13% and 26% respectively.

The gap between PBT growth (+17.7% YoY) and PAT growth (+11.4% YoY) is a tax story, not an operating one: the effective tax rate jumped to 14.4% this quarter from 9.6% a year ago and 8.2% in the March 2026 quarter, eating into the bottom line even as core profitability held up — OPM (EBITDA/revenue) was 28.3%, close to the year-ago 28.7% and well above the March quarter's 25.0%. Net profit margin (PAT/total income) compressed to 22.1% from 24.6% YoY, though it was roughly flat versus the March quarter's 22.1%. Within segments, Digital services revenue grew 32.3% YoY to ₹330.4 Cr but its segment PBT margin fell to 7.7% from 9.6% a year ago — a headwind to management's stated aim of margin improvement in Digital as it scales. Visa & Consular Services, the larger segment, grew revenue 21.6% YoY to ₹560.1 Cr with a broadly stable segment PBT margin near 38.9%.

The stock went into the print at ₹254.33, up 8.4% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.

Management's FY27 guidance from the May 2026 concall called for 20-25% revenue growth on continued Visa & Consular and Digital momentum, while aiming to hold EBITDA margins with room for Digital margin improvement. Revenue growth of 25.3% YoY sits at the top of that range, but the promised Digital margin improvement did not show up this quarter, and tax-driven PAT growth of 11.4% lagged the pace revenue delivered — a miss on the profitability leg of the guidance even as the topline held up. No standalone management press release was available to cross-check company framing of the quarter. Results include the Trefeddian Hotel (Aberdovey) acquisition (completed October 2, 2025), which the company itself flags makes the year-ago (June 2025) quarter not directly comparable.