New Delhi: Shares of BLS International Services Ltd, a leading Indian digital visa and passport services provider, tumbled sharply on Monday, marking the company’s worst trading day since March 2020. The decline followed a directive from India’s Ministry of External Affairs (MEA) barring the firm from participating in government tenders for a two-year period. At 11:44 a.m. IST, BLS shares were down approximately 13% at ₹294.3, making it the top percentage loser on the 100-member Nifty small-cap index, which itself was down 0.5%.
The MEA’s order prevents BLS from bidding on tenders floated by the ministry and Indian Missions, which comprise India’s diplomatic and consular offices abroad. According to the company, the ban stems from ongoing court cases and complaints from applicants, although no further specifics were provided. Despite this, BLS has confirmed that its existing contracts with Indian Missions will continue unaffected, and the order is not expected to immediately impact the company’s financials or operations.
BLS International operates in a competitive landscape, contending with other major visa processing firms such as VFS Global, TeamLease Services, and Quess Corp. The broader Indian immigration consulting services market is projected to grow at a compound annual growth rate of 7% to 10% from 2025 to 2029, fueled by steady demand for international education and residency services, according to Technavio research.
Indian Missions contributed approximately 12% of BLS International’s consolidated revenue in the first quarter of fiscal year 2026. Despite assurances from management, the market reacted negatively, reflecting investor concerns over the potential long-term consequences of the ban. BLS shares have declined around 39% so far this year, compared with a nearly 4% drop in the small-cap index, highlighting the significant impact of regulatory actions on investor confidence in the digital services sector.
This development underscores the challenges faced by service providers in navigating regulatory compliance while sustaining growth in India’s increasingly competitive digital and immigration services market.