The Ministry of External Affairs (MEA) has barred BLS International Services Ltd from participating in tenders issued by Indian Missions and Posts abroad for the next two years. The order, issued on Friday, restricts the company from bidding for new projects with Indian embassies, consulates, and diplomatic offices worldwide. BLS said the action relates to certain court cases and complaints from applicants, but did not share further details.
Following the announcement, BLS International shares fell sharply on Monday. The stock dropped as much as 11% before settling at ₹299 by 1.20 pm. The decline reflects investor concern over the potential impact of the decision on upcoming business opportunities.
Ongoing Contracts and Company Response
In its clarification, the company stated that existing contracts with Indian Missions will continue to operate, ensuring visa, passport, and biometric services for Indians abroad remain uninterrupted. BLS confirmed that the MEA order applies only to future tenders and will not affect ongoing agreements. Indian Missions contributed around 12% of its consolidated revenue in the first quarter of FY26.
BLS International said it is reviewing the MEA order and may take legal action if needed. The company described the decision as “a procedural development within the visa outsourcing industry” and expressed confidence in reaching “a constructive resolution in due course.”
Despite the challenge, BLS reported strong financial performance in the first quarter of FY26, with a 44% year-on-year rise in consolidated revenue. It also secured a ₹2,055 crore contract from the Unique Identification Authority of India (UIDAI) to operate Aadhaar Seva Kendras, thereby strengthening its domestic portfolio and enhancing its long-term visibility.
Global Operations and Outlook
The company continues to provide visa processing, passport facilitation, and biometric data collection in over 60 countries, supporting Indian embassies and other government missions. For Non-Resident Indians (NRIs), BLS confirmed that all services will continue without disruption. Current embassy and consulate partnerships remain active; however, new tenders issued during the restriction period may be awarded to other vendors.
Analysts say the ban poses a reputational challenge, potentially affecting confidence in future government and international contracts. While the ministry has not disclosed the full reasons behind the action, reports link it to complaints and ongoing litigation concerning service delivery. Market experts believe that BLS’s diversified presence will help mitigate the financial impact.
The company has also been expanding globally, holding contracts across the United States, the UAE, Spain, Slovakia, Hungary, Poland, Portugal, and other markets. In FY25, it acquired iDATA and Citizenship Invest, enhancing its position in citizenship and residency solutions. These moves align with its strategy to reduce reliance on Indian government contracts and secure stable international revenue streams.
Although the MEA’s two-year restriction prevents BLS from bidding for new tenders, ongoing projects remain unaffected. For now, NRIs and Indian travelers can expect uninterrupted visa and passport services. The company’s performance in maintaining service quality, addressing regulatory challenges, and expanding internationally will define how it navigates this phase.
