What Caused BLS International Shares to Plunge 17%?
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Synopsis
Shares of BLS International Services plummeted after the MEA barred the company from new tenders for two years. This article delves into the implications of this restriction and the company's response, providing insights into its financial health and long-term performance.
Key Takeaways
- BLS International shares fell by 17.85% after MEA's tender ban.
- The prohibition is effective for two years, starting from October 9.
- Ongoing contracts remain unaffected, according to the company.
- Indian Missions contributed 12% to consolidated revenue in Q1 FY26.
- Despite recent declines, the company has strong long-term growth.
Mumbai, Oct 13 (NationPress) Shares of BLS International Services faced a significant drop on Monday after the government prohibited the company from engaging in future tenders of the Ministry of External Affairs (MEA) and Indian Missions worldwide for a period of two years. The stock fell by as much as 17.85%, reaching a 52-week low of Rs 277 per share on the Bombay Stock Exchange (BSE).
The MEA had announced this restriction on October 9, preventing BLS International from submitting bids for new projects.
Nevertheless, the company reassured stakeholders that this decision will not impact its existing contracts or financial stability. In a regulatory filing, BLS International stated, “This development does not impact the company’s current financials or ongoing operations. All existing contracts with Indian Missions globally remain valid and continue to operate as scheduled.”
Furthermore, the firm emphasized, “The order will not significantly affect the company’s financial outlook.”
BLS International is actively working on resolving the situation and views it as a procedural matter within the visa outsourcing sector. “We remain confident of a constructive resolution in due course,” the company declared.
In the first quarter of FY26, Indian Missions accounted for approximately 12% of BLS International’s consolidated revenue and around 8% of its EBITDA.
Despite this recent downturn, BLS International has demonstrated strong long-term growth. The stock has decreased by 21% in the past month, over 24% in three months, and nearly 40% year-to-date.
However, it remains up 17% over the past two years and has yielded an impressive 1,455% return over the last five years.
During early trading, BLS International shares were down 14.40% at Rs 288.65 on the BSE.
Point of View
The restrictions placed on BLS International Services highlight the intricate relationship between governmental policies and corporate operations. While the immediate impact on share prices is concerning, the assurance from the company regarding ongoing contracts suggests a level of resilience that may stabilize the situation in the long run. It's crucial for stakeholders to remain informed as developments unfold.
NationPress
13/10/2025
Frequently Asked Questions
What caused the drop in BLS International shares?
The shares dropped sharply after the Ministry of External Affairs barred the company from participating in new tenders for two years.
Will this restriction affect ongoing contracts?
No, BLS International clarified that the order will not impact its existing contracts or financial performance.
What percentage of revenue comes from Indian Missions?
In the first quarter of FY26, Indian Missions contributed approximately 12% to BLS International's consolidated revenue.
How has BLS International performed over the years?
Despite the recent decline, BLS International has shown a strong long-term performance with a 1,455% return over the past five years.
What is the company's outlook after this development?
BLS International is optimistic about resolving the issue and believes it is a procedural development within the visa outsourcing industry.
