The shares of BLS International Services tumbled around 18 percent in early trade on October 13, hitting a fresh 52-week low. This comes after Ministry of External Affairs (MEA) banned the company from participating in future tenders of the ministry and India Mission abroad for two years.

The shares hit a record low of Rs 276.95 apiece. The stock later made some recovery to trade 12.4 percent lower at Rs 295 apiece, as seen as 10.08 am.

In an exchange filing released in the post market hours of October 11 (Saturday), BLS International Services informed investors about the latest order by MEA. It however informed that the order will not affect the existing contracts, which will continue as per terms. "All existing contracts with Indian Missions across the globe remain valid and continue to operate as scheduled. Additionally, the order will not have any significant bearing on the company's financial outlook," the company said.

Why did MEA ban the company from its future tenders?

The order has been issued on the account of allegations including court cases and complaints of applicants. This debarment shall not affect the financial performance of existing operations of the company, and it is evaluating the appropriate legal action against it, BLS International further said.

What is the likely impact?

Notably, during the first quarter of the FY26 (April-June), Indian Missions contributed to approximately 12 percent to the consolidated revenue and nearly 8 percent of the firm's EBITDA. "The company is working to resolve the matter. The company views this as a procedural development within the visa outsourcing industry and remains confident of a constructive resolution in due course," it added.

"Over the past few years, BLS International has strategically diversified its business portfolio, securing new and renewed contracts with key government and institutional clients across the United States, United Arab Emirates, Spain, Slovakia, Hungary, Poland, Portugal, and through the UIDAI project in India. The company further strengthened its overall business momentum by acquiring iDATA and Citizenship Invest during the last financial year. This diversification has strengthened its revenue mix and reinforced the company's resilience against regional developments," BLS said.

"The company continues to maintain its growth trajectory, underpinned by robust business fundamentals and a well-balanced global portfolio. BLS International remain committed to delivering value to its investors and stakeholders," it added.

BLS International share price history:

BLS International shares have now recorded losses for the fourth consecutive session, emerging as the top loser on the Nifty 500 index. The stock has now dropped over 20 percent in the past one month, and nearly 40 percent in 2025 so far.

The stock, which currently has a P/E ratio of over 23, is now down nearly 47 percent from its 52-week high of Rs 521.80 apiece, which it had hit in January this year.