Revenue surged, but BLS E-Services’ margin slipped again
Costs grew slightly faster than revenue, while higher depreciation and a lower tax rate shaped the quarter’s profit outcome.
Filed 02 Nov 2026, 15:10 IST · BLS E-Services Ltd (BLSE)
Key takeaways
- Consolidated revenue grew +39.58% sequentially to Rs 424.44 cr, but expenses grew faster at +39.88%, trimming operating margin by 0.20 percentage points.
- Net profit rose only +10.25% sequentially as depreciation jumped +309.79% and other income supplied 13.93% of pre-tax profit.
- The stock gained +3.03% on results day, versus a 0.86% median absolute move after its last three results, all of which were declines.
Price around the results
Revenue jump came with near-matching cost growth
BLS E-Services reported consolidated revenue growth of +39.58% sequentially, but expenses rose +39.88%, leaving operating profit growth at +35.58%. The company’s investor presentation said its acquisition of Atyati Technologies added 25,900+ customer service points across approximately one lakh villages. It also said Atyati brings 35+ banks and financial institutions onto one platform.
Depreciation and tax changes shaped reported profit
Operating margin narrowed by 0.20 percentage points because costs grew faster than revenue. Depreciation increased +309.79% sequentially, while interest rose +21.43%, limiting the benefit from operating profit growth. Net profit was also supported by a 4.17 percentage-point reduction in the tax rate, and other income accounted for 13.93% of pre-tax profit.
Margin decline extends across the reported trend
Operating margin has declined from 8.12% in Q4FY25 to 7.27% in Q1FY26, 6.98% in Q1FY27 and 6.78% in Q2FY27. Among 42 Information Technology peers that have reported, the company’s margin was 12.79 percentage points below the sector median of 19.57%. Its margin ranked fifth from the bottom in that comparison.
The market reaction was unusual for this stock
The stock rose +3.03% on the results-day reaction measure, with a +1.35% relative move and a 0.91 volume ratio. That contrasts with the last three result reactions, all declines of -2.24%, -0.86% and -0.70%. Their median absolute move was 0.86%, making the latest gain larger than the stock’s recent typical reaction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹424 cr | ₹304 cr | +39.58% |
| Other income | ₹4 cr | ₹6 cr | -34.98% |
| Expenses | ₹396 cr | ₹283 cr | +39.88% |
| Operating profit | ₹29 cr | ₹21 cr | +35.58% |
| Operating margin (%) | 6.78% | 6.98% | — |
| Interest | ₹0 cr | ₹0 cr | +21.43% |
| Depreciation | ₹6 cr | ₹1 cr | +309.79% |
| Profit before tax | ₹26 cr | ₹25 cr | +4.39% |
| Tax | ₹6 cr | ₹7 cr | -12.13% |
| Net profit | ₹21 cr | ₹19 cr | +10.25% |
| EPS (₹) | ₹0.96 | ₹1.68 | -42.86% |
Operating margin of 6.78% compares with a Information Technology sector median of 19.57% across 42 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.03% | +1.35% |
Volume on the results session was 0.91× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- BLS acquired 100% of Atyati Technologies, adding 25,900+ CSPs across approximately one lakh villages.
- Atyati Technologies brings 35+ banks and financial institutions onto one platform.
What to watch
- Whether operating margin holds above 6.78% after its decline across the reported trend.
- Whether expenses continue to grow faster than revenue after the +39.88% versus +39.58% sequential increase.
- Whether depreciation remains above Rs 5.86 cr and other income remains a material contributor to pre-tax profit.