BLS International Services Limited has been assigned a long-term rating of ICRA AA-(Stable) and a short-term rating of ICRA A1+ by ICRA Limited. These ratings are one notch above the company’s existing CRISIL ratings, reflecting its strong competitive position, robust growth trajectory, healthy profitability, and conservative balance sheet with significant liquidity.
BLS International Receives Upgraded Credit Ratings
BLS International Services Limited announced today that ICRA Limited has assigned a long-term rating of ICRA AA-(Stable) and a short-term rating of ICRA A1+ to the company’s rated instruments aggregating Rs. 300 crore. This marks ICRA’s first credit assessment of the company and represents a significant upgrade, with the assigned grades being one notch higher than BLS International’s current CRISIL ratings.
Key Drivers Behind the Ratings
ICRA highlighted several key factors underpinning the improved ratings:
- Strong Competitive Position: A presence in over 100 countries, long-standing relationships with over 46 government clients, and a proven execution track record in the outsourced government services sector.
- Robust Growth Trajectory: Operating income increased from Rs. 850 crore in FY2022 to Rs. 2,998 crore in FY2026, with a Compound Annual Growth Rate (CAGR) of approximately 37%.
- Healthy Profitability and Cash Generation: Segment EBITDA margins of around 40%, operating cash flow of Rs. 749 crore in FY26, and profit after tax of Rs. 723.8 crore.
- Strong Liquidity and Conservative Balance Sheet: Cash and liquid investments of Rs. 1,667 crore and a net cash position of approximately Rs. 1,218 crore as of March 31, 2026.
Financial Snapshot
The assigned ratings cover a proposed long-term Term Loan and fund-based limits totaling Rs. 44 crore (rated ICRA AA-(Stable)), along with non-fund-based limits of Rs. 256 crore (rated ICRA A1+). The company’s Total Debt/OPBDIT ratio stands at a healthy 0.5x, indicating significant financial flexibility.
Management Commentary
Mr. Amit Sudhakar, Chief Financial Officer of BLS International, stated, “ICRA’s assignment of a long-term rating of ICRA AA-(Stable) and a short-term rating of ICRA A1+ marks an important milestone for BLS International. As ICRA’s first credit assessment of the Company, with ratings one notch above our existing CRISIL ratings on both the long-term and short-term scales, it reinforces the strength of our diversified global platform, disciplined financial management and consistent execution.”
Source: BSE
