Bluspring Enterprises Ltd (NSE: BLUSPRING) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Kamal Pal Hoda — Chief Executive Director
Prapul Sridhar — Chief Financial Officer
Nibodh Shetty — Head, Investor Relations
Analysts:
Unidentified Participant
Kaustav Bubna — Analyst
Anant Mundra — Analyst
Presentation:
operator
It. Sa. It. Sa. Sa. Foreign. Ladies and gentlemen, good day and welcome to the Blue Spring Enterprises Ltd. Q3FY26 earnings conference call hosted by IIFL Capital Services Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Nibod Shetty from Blue Spring Enterprises. Thank you. And over to you sir.
Nibodh Shetty — Head, Investor Relations
Good morning everyone. Thank you for joining Blue Spring Enterprise Limited Q3 FY26 earnings call. this point I would like to highlight that today’s discussion may include some further forward looking statements which are based on current expectations and are subject to business risk, regulatory changes and macroeconomic conditions. We do not guarantee these statements or results and are not obliged to update them at any given point of time. These statements will be read in conjunction with the safe harbor clause outlined on slide number two of our investor presentation. With that backdrop, I hand the call over to our CEO Mr.
Kamal Balhuddha followed by Mr. Papul Sridhar, our CFO for the opening remarks.
Kamal Pal Hoda — Chief Executive Director
Thank you Nibot. Good morning everyone and thank you for joining the call today. Let me begin by sharing some brief context on Blue Spring’s operating environment during the quarter. In the continued push towards formalization of employment, the government notified the new Labor Codes in November after announcing employment linked incentive schemes in August. These codes significantly simplify the earlier framework of labor laws and remove ambiguities around the calculation and payment of statutory dues. We believe the implementation of these codes will act as a tailwind for fully compliant formal employers as it will become increasingly difficult for principal employers to work with non compliant vendors. As mentioned in our Q3 disclosures, we have provided for a one time cost related to higher gratuity and leave encachements.
These costs are one time in nature and going forward we expect both revenue and margin tailwinds from the implementation of both the Labor Codes as well as the ELI schemes. Now let’s discuss Q3 and 9 months performance Bluesping recorded Q3 revenue of 844 crores. Excluding the investments vertical, this represents an increase of 10% year on year and 1% quarter on quarter. The 10% year on year revenue growth was driven by new sales additions in the facility management and security verticals. Quarter on quarter growth remained flattish due to the industrial vertical as weakness in telecom network rollouts persisted throughout the quarter.
For nine months the revenue stood at 2,458 crores, an increase of 12% year on year. With all the three verticals clocking double digit growth year on year. Our revenue base continues to be well diversified across customers and sectors with the top 30 customers contributing only 49% of revenue and 8 different sectors each contributing more than 5% of overall revenue. Enhancing the robustness of our business, Q3 EBITDA stood at 32 crores, an increase of 12% year on year and 12% quarter on quarter while 9 months EBITDA remains flat at 85 crores. As discussed in the earlier calls, flat EBITDA on a nine month basis is due to investments in leadership and sales team enhancements.
As these investments continue to get absorbed by the revenue growth, EBITDA growth will only pick up as evidenced by the 12% quarter on quarter growth this quarter the sales engine continues to perform strongly. In nine months we have secured contracts worth 278 crores across facility management, food and industrial verticals. The security vertical deployed over 2,000 guards during the year from new sales only. The sales pipeline remains strong and will continue to drive growth in the coming quarters. Moving on to segment wise updates starting with facility and food services, this segment had a solid quarter with Q3 revenue of 521 crores growing by 11% year on year.
The year on year growth was driven by new contract mobilizations. Nine months revenue stood at 1511 crores, a growth of 13% year on year. New sales continue to be strong in Q3 with business winning contracts worth 79 crores of ACV, industrial and healthcare were the major drivers for new sales with strong Q3. The total ACV1 for the year stood at 189 crores for this vertical. In housekeeping, focus on quality deals have seen the new deals being won at 150 to 200 basis points higher margins versus last year. With growth drivers in place, the business is now focusing on margin improvement initiatives through efficiency gains, accelerating digital adoption across processes and vendor consolidations.
Moving on to telecom and industrials starting with safety updates, I’m happy to report that our industrial vertical once again logged zero fatalities and lost time injuries in quarter three. The industrial vertical has now logged over 19,000 health and safety training hours in nine months itself. Q3 revenue remained flattish at 151 crores as delayed rollouts by telecom majors continue to hamper the telecom business growth however. Finally, cost optimization efforts around resources, tools and vendor optimization ensured profitability growth with business delivering double digit EBITDA margins during the quarter, we expect telecom rollouts to pick up in quarter four driving high single digit quarter on quarter revenue growth.
The segment reported nine months revenue of 458 crores growing 10% year on year on the back of new sales done earlier quarters in the industrial subsegment, our focus on transitioning from a manpower provider to a strategic operational partner continue to yield results as we won a 20 crore ACV contract for consolidated electrical instrument maintenance for a large manufacturing client. This contract will be mobilized in quarter four. Excluding this industrial vertical has won 51 crores of ACV for the nine months in the current financial year. As I mentioned during Q2 earnings call, our telecom active infra business is focusing on diversifying its revenue streams.
The business took a significant step in that direction with the first overseas project where we are now deploying 50 plus resources outside the country. Moving on to security business, the business continued its upward trajectory in Q3 with revenue of 173 crores, a 15% year on year increase. Similarly, the business clocked 9 months revenue of 489 crores, an increase of 14% year on year. This is powered by headcount addition of around 2,500 over last 12 months, a growth of 12% year on year. While the Q3 focus was on operational consolidation, the business continued to add new logos and in Q3 we deployed 594 headcount against the new contracts won the new sales have NOW added over 50 new logos in the present financial year.
As mentioned in the Q2 call, strengthening of sourcing channels continue to be the key focus area in this segment. We have invested in the sourcing team throughout the year and we are starting to see some early results in improved deployments. With both sales and sourcing team in place, we are confident of achieving similar growth trend in the coming quarters. Moving on to FoundIt, our AI powered job search platform which delivered a revenue of 18 crores in quarter three with 45% sales productivity increase in quarter three over quarter one. For Q3 our key focus levers for sales were driving new productivity, improving renewal rates and optimizing our channel mix on platform product revamp is competed with better UI UX for both seekers and recruiters while positioning founded as a skill first platform focus for Q4 would be on strategic sales and marketing spends to accelerate growth.
I will now hand over to our CFO Praful Sridhar for the financial deep dive. Over to you Praful.
Prapul Sridhar — Chief Financial Officer
Thank you Komal and A very good morning to all of you present in this call. At the onset, I would like to speak about the elephant in the room, the New Labor Code as you are aware, the government has now implemented a major reform that has been in progress for several years. 29 separate labor laws have been consolidated into branch books. These reforms are aimed at strengthening compliance, ensuring timely wage payments, formalizing employer employee relationships and addressing the long standing issue of labor exploitation in unorganized sectors. In the immediate term, these changes do have an impact on operating costs.
We have assessed an incremental liability of 29.8 crores relating to past service cost in gratuity and leave liabilities. We expect that these costs will largely be passed to the clients over time as we have enough safeguards in our contract terms that allow us to revisit pricing in every event of statutory revisions. We have already initiated discussions with clients on revised revision of wages to comply with the new Labor Code. While such discussions will take some time to conclude, in the interim, management has taken a prudent approach and recognized this as a one time charge as a balance sheet debt.
Given its regulatory driven nature, materiality and nonrecurring characteristics, this impact has been classified as an exceptional item in our financials. Now I will take you through the consolidated financial performance excluding founded for quarter before discussing segment wise results and other corporate updates. We reported a consolidated revenue of 844 crores for the quarter. It’s a 10% year on year and percent sequential growth. Year on year growth was driven above facilities, food, intel and security solution verticals while we saw some headwinds in telecom vertical due to slowdown in rollouts of new projects. During the quarter we have mobilized close to around 39 new contracts contributing to an ACV of 89 crores.
We continue to have a well diversified sector base with top three sectors I.e. industrials, commercial spaces and government and public infra continue to contribute to close to around 50% of our revenue base. EBITDA for the quarter stood at 32 crores which is up 12% year on year and sequentially EBITDA margins have improved by 37 basis points over the last quarter to 3.8% in line with our margin guidance. As given in the previous quarters. The strong growth in EBITDA and expansion of margins was aided by volume growth in food, facility and security space with new contracts being mobilized at better margins.
Margin expansion in food was seen as generally in Q3 is a strong quarter for the education sector. Second, we saw some efficiencies across businesses arising out of shared services teams consolidations. Our pad for the quarter stood at 19 crores. The pad was up 15 EPS for the quarter stood at 1.2 per share. Our interest cost has spiked by 3 crores of which 2.2 crores was due. To true up of fair valuation of. Put liability of an acquisition of Vedant’s remaining 1% equity. We continue on our previously stated trajectory of reducing DSOs and net debt levels. As of 31st December our net debt level is 107 crores, a reduction of 29 crores quarter on quarter. While our DSO stands as against 105 days reported in the last quarter. With novation activity largely behind us, we are on course to bring net debt levels to 700 levels. As guided earlier. Moving now towards segment, our facilities and food verticals continues to be our largest segment contributing to 60% of our revenues. This vertical grew 11% year on year and 1% sequentially to 521.
Growth driven by continued client additions during the quarter. With an annual contract value of 79 as reiterated in previous quarters, our focus. Remains firmly on profitable growth. We added new across.
operator
So could you please come a little closer to the microphone? Your voice. Voice is a little distorted every now and then.
Prapul Sridhar — Chief Financial Officer
Is it better now?
operator
Yes sir. Please go ahead. Thank you.
Prapul Sridhar — Chief Financial Officer
Hello.
operator
Yes sir, please go ahead.
Prapul Sridhar — Chief Financial Officer
Okay, so I’ll just. Yeah, I’ll just repeat the previous one. Our facilities and food services business continues to be our largest segment contributing to 60% of our total revenues. This vertical grew 11% year on year and 1% sequentially to 521 crores. This growth was driven by 20 new client additions during the quarter. With an annual contract value of 79 crores. As reiterated in the previous quarters, our focus remains firmly on profitable growth. We added new clients across education, commercial, BFSI and healthcare sectors. EBITDA for this segment stands at 4.5%, a 50 basis points jump from the previous quarter.
This was aided due to our food. Performance gaining momentum in education sector and new contracts coming at higher margins during the quarter. Commencement of our new central kitchen in Whitefield area remains on track and we expect the same to be operational starting next quarter. Our telecom and industrial segment reported a revenue of 151 crores, a growth of 2% year on year and down sequentially by 3%. And telecom business performance was muted as network operators have briefly slowed down new network rollouts. As mentioned earlier in our industrial vertical, we have begun to reposition ourselves as an end to end O and M player in Line with our long term strategy to move away from traditional manpower supplies and labor arbitrage businesses to SLA based EBITDA for this vertical stands at 9.9% for the quarter.
A 160 basis points jump. The strong EBITDA growth was aided by one time shutdown activities ECL improvement on account of better collections. Our security services business delivered another strong quarter with revenues up 15% year on year and 3% sequentially to 173 crores in nine months. We have mobilized close to around 2,500 plus headcounts. However, the EBITDA for the business was muted for the quarter due to certain one offs on bonus billings and provisioning towards receivables investments in Foundit. Coming to Foundit, revenues for the quarter were 18 crores. We continue to maintain our EBITDA losses at similar levels as last quarter.
We are confident that our new initiatives and revamped product will start seeing some traction soon and it would reflect in the numbers. To conclude, we are a young company that has consistently delivered strong results since our listing. We remain confident that we firmly are on course to achieve the guiding principles that we set out to ourselves and are committed to building on this momentum as we move forward. Thank you again. Now the floor is open for Q and A session.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Khushi Kapoor from Nijen Capital. Please go ahead.
Unidentified Participant
Hello, this is Khushi Jain from NIJN Capital. So my first question is that the founded revenue has decreased by almost 27% year on year basis. So. But the whole business of digitized by the increasing by 15%. So what kind of point does the board consider that we are going to divest our assets or sale of the asset like a specific deadline for the turnaround because it is impacting our consolidated margins.
Kamal Pal Hoda
Is that the only question? Khushi, you said this is the first question.
Unidentified Participant
Hello.
operator
Yes Khushi, please go ahead. Any more questions? Yes, please go ahead.
Unidentified Participant
Yeah, one more question.
Prapul Sridhar
So you write it out. The revenues have dropped.
operator
I’m sorry to interrupt sir, your voice is distorted again. If you could come a little closer to the microphone.
Prapul Sridhar
Our apologies for not having a, you know, clear line. Am I audible now.
operator
Yes sir. Much better. Thank you.
Prapul Sridhar
Okay, so as mentioned in the present. Earnings call, you know, most of the product related work and investments is complete. You know the product revamp is now completed with a better UI UX for both seeker and recruiter. We’re extremely confident that there’ll be a upward revenue trajectory starting with this current quarter onwards. And in the run up to this we’ve also been bringing down our cost base to levels that we have visibility of breakeven in next three quarters. So it has probably taken three to four quarters more than what we had originally anticipated. But like I said, with the revamp product and the strategic sales and marketing spends that we are doing presently, we expect the revenues to significantly go up starting with the current quarter itself.
Unidentified Participant
Okay, got it. So you’re saying that the breakeven which is going to happen by next quarter, which it will take like three to four more quarters. Correct. And. Okay. Okay, thank you.
Prapul Sridhar
Thank you.
operator
Our next question comes from the line of Adars Pincha from Nietzsche Capital. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Prapul Sridhar
Yes, yes.
Unidentified Participant
So my question was regarding the company that you have founded itself. So my question was you have guided for founded break even by the end of FY26 but with revenue shrinking, is break even being achieved through cost cutting my future growth or do you see. A genuine revival in recruitment demand? If not, what is your plan B. If lost being in FY27?
Kamal Pal Hoda
Sure. Thanks for your question Adarsh. So see we’ve used this year to do two, three different things with FoundIt. One is on the product itself. We’ve revamped the product and you know the product obviously is now with much better UI ux. Much, much better such capabilities. We have some fantastic feedback from a lot of clients to whom we have taken this new product only in the current quarter which is Q3. We’ve got some very encouraging feedback and we are confident and this should now help us go back to the regular revenue trajectory of 25 plus crores a quarter which we used to see in founded earlier.
We feel that starting Q4 onwards, current quarter onwards, we should be able to see that uptick in the revenue. And in a run up to the product revamp we had actually reduced our spend base and brought down founded to you know, a year back when founded used to be at almost a 45 crores a quarter kind of spend base to a present year 30 crores quarter kind of a spend base. So we’ve right sized the company, made it a very agile company and also got the product up now with some strategic revising the P and L and like I said, we look forward probably another three quarters for a breakeven and I think we start seeing uptick in the revenue starting this quarter itself.
Unidentified Participant
Okay, thank you sir.
operator
Thank you. Our next question comes from the line of Kausto Bhavna from BMSPL Capital. Please go ahead.
Kaustav Bubna
Yeah, hi, thanks for taking my question. So wanted to understand exactly how you feel margins will expand due to the new labor code. Also wanted to understand, you know, what’s the update and correct me if I’m wrong, wasn’t the government supposed to notify on a universal basis minimum wage which they still haven’t or have or have you all got some communication? Could you please speak a little bit about this?
Prapul Sridhar
Sure. Thank you. Kaustubh this is Prapul here on this labor Code. It was a notification given by government of India on 21st November. Certain clarifications on other aspects of national floor wages is still not announced. But there are many laws that is already effective immediately. So based on those clarifications or already a law, we have taken a liability based on the assessment of our gratuity and leave components. Now to your question as to what will happen to the margin profile post implementation of. So this is an exercise not different from any of the minimum wages change that happen twice in in a year for every state or once in every once in every year.
So basically it will be a discussion. Between us and the customer this time. The additional thing that we have to do is we have to actually see what is the right structure for an employee which is a discussion that we have to have a client and our contract allows us majority of any changes towards the statute be passed back to the customer. We don’t see any margin profile coming down because of labor code.
Kamal Pal Hoda
Yeah, if I may add Kaustal, while. Obviously the downside is not there, but there is a huge potential upside as these codes have obviously stringent compliance requirements. And we believe that it’s going to. Become increasingly difficult for people to work with non compliant vendors and with, you know, nationally scaled safety first and high compliant environment in which we operate. We believe that this could be a tailwind opportunity for players, formalized players like blue screen.
Kaustav Bubna
So basically you’re saying your bargaining power should increase with your customer. But if you could please elaborate a little bit on the codes that are already passed. And will the codes that are already passed, will they already start impacting unorganized competition and why so and isn’t the Announcement of the national minimum wage. One of the most important aspects of this code, of this labor code. And we can’t really have the labor code to its full effect until that’s announced because obviously every state has different minimum wages right now. And it’s all very scattered.
Kamal Pal Hoda
Yeah, sure. So let me attempt. It’s a very elaborate subject to be covered on an IR call, but let me attempt that custom. There were 29 codes as mentioned by Praful. And the 29 codes have been replaced by 4 codes now. And the 4 codes are already into existence. So to your question, whether you know, there needs to come something for let’s say non organized players. No, the answer is that codes have been already notified and they are already in place. So there were four codes on wages which have been replaced by a single code called the code of Wages.
You know, There were almost 30 legislations on, on health and working conditions which has been replaced by a single code called the OSH code. There were almost nine existing legislations on Social Security which has been replaced by a single code on Social Security. And then there were three separate legislations. On the industrial relations which has been again consolidated into one industrial relations code. And all of them are already effective. What we meant by the minimum wages, there is an expectation that government will come with a minimum floor wage which will be at a national level moving away from the present statewide minimum wages. So that’s something yet to be notified, which you know, once gets notified will have effect immediately. However, in terms of the key changes which has already been done is there is a clarity now in the definition of wages. What has to be considered and what has to be excluded and what will become, let’s say, base for calculation of gratuity, what tenures to be considered, what will be the definition of fixed term employment and related obligations on employers towards gratuity and leave encashment.
So there is abundant clarity on some of these aspects and are already effective. And hence you would see not just us but a lot of companies have taken significant provisions. In our case We’ve taken a 29 crores provision which is a one time effect which you believe since most of our contracts have clauses where these statutory changes are a pass through, we should be able to over the course of next six months work with our thousand plus clients and you know, effect the changes of the new labor code.
Kaustav Bubna
Okay, okay. Thank you so much.
Kamal Pal Hoda
Thank you.
operator
Thank you. The next question comes from the line of Anand Mundra from my temple capital. Please go ahead.
Anant Mundra
Hello. Thank you for the opportunity, sir. So I had a few questions. One was the labor code charge that we’ve put as an exceptional item that you said on the, on the pnl, is this recoverable from the client? That was question number one. The second question was as you mentioned that over six months you’ll probably sit down with your clients and you know, revise how the wage is structured, salaries are structured. So do you expect some kind of margin volatility or some kind of a revenue headwind over the next six months as things stabilize? And number three was that there was also a CLI scheme that the government had announced which has now been notified I think from the 1st of August 2025.
So have you worked around any numbers of how much that could benefit us on the bottom line? So these are the three questions mainly around labor codes and.
Kamal Pal Hoda
Thank you for that question. So let me cover the first aspect on the recoverability of whatever is the cost that we have already provisioned for. So this 29 crores that you can see has two splits in this. One is the core employees of 1400 people that we are having. That is not possible back to the customer. That is close to around 9 crores. So the remaining 20 odd crores is what we have taken for what we call it as associate population who are our revenue generators. So these cost on gratuity and leave encashment as it earlier we have to go back to the customer and actually get.
We have a legal framework already agreed with the customer which allows us to go back and recover these cost. However, we have to have such discussions with the customer before changing any of the structure of wages and and enhancing the cost. So that’s why we have not recognized any unbilled revenue towards these cost inflations during the quarter which we believe that should be predominantly a revenue accretive in the future quarters to come. So that’s answer number one on the margin profile for your second question. We as iterated earlier, we don’t see any margin profile tailing down because of labor code changes.
In fact we have some tailwinds coming. Through because this will put everybody into. A framework of all statutories and retireals to be taken at a particular level which will only enhance organized players like us in terms of either continuing with the same margin profile or enhancing it. Number two, what was your last question.
Prapul Sridhar
That was on the Eli Ski Eli.
Kamal Pal Hoda
So Anand, you’re right Eli schemes are effective from 1st of August. There are two parts of the incentivization. One is towards the employer and one is towards the employees. Both These incentives are only going to become due end of February after completion of the first six monthly cycle of the scheme. So from the 1st of August we’ve been doing our workings and you know, calculating the impacts. But you know, being a government scheme, we would want to recognize this only on receipt basis because this will be a first time that, you know, such a scheme is announced.
So we will wait for the money to be credited, which may take a couple of months post it becoming due. So the first date it becomes due. Is 1st of March after let’s say. The new set of employees have completed a minimum period of 6 months post which there will be obviously some compliances that government would want us to do in terms of filing certain returns for claiming this money. And once this money is received is when we would want to account it in the books. And you know, most likely that will happen either in the current quarter Q4 or Q1 of next year and we’ll come back to the investor community to share the impact as and when we receive this amount.
Anant Mundra
Got it, Got it. So just one more follow up on the labor code answer that you’ve mentioned. So just want to understand, so this, this quarter our revenue growth has been slightly muted as compared to the previous quarter. So are there any headwinds because of this labor code where clients are trying to understand what the impact is and then take a call on new contracts and new hiring? One more question as a follow up and the other question was also like, just want to understand, do we also get benefits of 80 on the tax side? Just want to understand how should we look at our tax rate.
And also because I think we had some accumulated losses because of impairments. So do we, I mean do we have any carry forward losses or we recognize GTA for those carry forward losses?
Kamal Pal Hoda
Yeah, so I’ll take the first aspect of muted growth. You’re right. Quarter on quarter at a blended level, our operating businesses have sequentially grown by 1%, wherein you can see this telecom has telecom and industrial verticals, they grow by 3%. So what we see is starting from September onwards, the new rollouts and the network rollouts that we had received the plan from the telecom operators have not happened. It has slowed down. That is the reason we see that telecom vertical has seen a slight dip in revenue as against what we had planned. In terms of our security business, it’s grown 3% quarter on quarter, which is on course our facilities and food business saw some revamp in terms of the entire client profile.
While you can actually see a growth of 1%. But if you actually take a gross impact, it is almost a 3.5% growth that we have done. There are certain accounts that we have identified at the start of the contract which we actually did not want those profiles to continue because of the margin trajectory commitment that we have given. And hence we have let go some of the contracts there which was there in the Q3. That, that is the net effect that you’re seeing in facilities and food. Net on net. Except telecom vertical, all our operating businesses have grown close to around 2 to 3% quarter on quarter. So that’s one with respect to your tax question. Our Blue Spring Enterprise Ltd. Entire operating profile effective tax rate is close to around 17 to 20%. But however, you see a different aspect because of the deferred tax asset that is being created for the differential on the retireals that we actually provide for versus what is the payout. So that’s the difference that you, you can see in our etr. Quarter on quarter.
Anant Mundra
Oh good. Of course. And from the security side, why were the margins impacted this quarter? And I. You also mentioned that there was some stake increase that happened. So I think it’s about 75% now. Do we plan to get to 100%?
Prapul Sridhar
Yeah. So basically in our security vertical, even 20, 30 lakhs quarter movement in terms of the absolute EBITDA makes a lot of difference in terms of the percentages. So while the revenue has grown by 3%, we would have expected EBITDA to grow at 3% as well, which is a miss of around 75 lakhs. So these 75 lakhs to 80 lakhs of one time provision. We have taken on certain receivables which post confirmation from the client. We have seen that there are certain leeways and penalties while we are provided for it. We are also, you know, going back to the customer in terms of reconciling these receivables back into our P and L.
This is a prudent method that we follow here which is called estimated credit loss which, which actually follows a flow rate of provisioning based on the aging of a receivable. That’s the reason you see a slight dip in security other than this 75 to 80 lakh rupees, if at all we account for that. I think they are in the trajectory of the growth of revenue. In terms of the stake sale actually stake purchase. Rather was in Vedant, wherein you know, we were already holding close to around 97% of the company and we increased. Our stake by further 2 percentage points. As Far as Terrier is concerned, you know, 25% of the company is with. The employee trust and the balance 75% is with blue screen.
Anant Mundra
Okay. Thank you for the detailed answer, sir. I have a few more questions I’ll get back to making. Thank you.
operator
Thank you. The next question comes from the line of Aryaman Shukla from Prudent Corporate. Please go ahead.
Unidentified Participant
Yeah, so it’s RMN from Prudent. Actually sir, I basically had two questions, one unfounded actually. So I understand that we are going through a recovery phase right now. But what can be the expected burn in the next three quarters till we break even that you guided and then number two was on telecom. So I think we’ve seen a decent slowdown here. So I mean should there be a revision in the guidance for the telecom segment and how should this impact our margin guidance? Because they give a decent chunk of margin to our overall company. So yeah, these two questions.
Yeah, thank you.
Kamal Pal Hoda
Thank you, Ariman. So let me start with Telecom. We’ve not changed our guidance. We believe that while there has been a bit of a slowdown in the rollouts but we’ve also been working on how do we diversify our revenue streams in the telecom business. And one of them I have called. Out in my speech that we’ve been able to go international and you know, the first overseas project where we have deployed 50 plus resources in one of. The countries outside India in the current. Quarter we actually plan to do one more. So we will Most likely by Q1 of next year would be in two. Geographies outside India so that we can. Continue to maintain this better margin business that we have in the Blue Spring portfolio. We believe on a sustained basis this business should grow 12 to 15% year on year. Coming back to Foundit, as I said, we expect revenues to start coming back from the current quarter itself to disproportionate levels than what we have been reporting for last two, three quarters. And on the back of that I’m confident that in another three quarters from now we’re looking at breakeven in terms of burn over next three quarters on a cumulative basis I believe, you know, somewhere between 30 to 35 crores.
We may have to invest further in the business post which the P and L will start looking positive.
Unidentified Participant
Thanks a lot.
operator
Thank you. The next question comes from the line of Priyanshrivastav from KC Capital. Please go ahead.
Unidentified Participant
Hello. Hi. So thank you so much for the opportunity. So I want to ask what is your target written on capital at project level? In facility management business like do you have a threshold?
Prapul Sridhar
Are you asking about the capital of facility management? I’m sorry, can you elaborate your question please?
Unidentified Participant
Target return on capital. The target return on capital.
Prapul Sridhar
Okay, got it. So our ROC currently is a double digit ROC at a blended level because we manage cash and debt at a overall level including all other verticals. We don’t have a ready answer in terms of what exactly is facilities and food ROCE that you are seeing. But I would assume I can give you an indirect answer here. So we have made investments close to around 300 or crores in terms of facilities and food verticals to be where we are. This was mostly inorganic that we have done earlier. So we see that ROCE trajectory should only improve going forward.
Right now I can only give you answer at the overall operating blue spring level, not at individual facilities and food business. But I can actually come back to you one on one, you know, post we have the answer at a business level.
Unidentified Participant
Okay, sure. Thank you so much. That was helpful. And the second, would you consider pursuing a buyback instead of allocating capital towards acquisitions?
Prapul Sridhar
See, buyback is, is. Is not an option as of now. So basically we are not thinking about any of such corporate restructuring as of now for the very reason that first we want to stabilize the entire operating business of ours, bring it to a stage where we believe the value will be right and post that. And also mind you, our cash scenario as of now is around 107 crores of debt. We have also called out in our previous calls that this is a company that we will not hesitate in terms of growing inorganically as well.
So the priority of buyback as of now is not there. While we will have a priority of growing this business organically and inorganically, which requires capital.
Unidentified Participant
Okay, got it. Thank you so much. Thank you.
operator
Thank you. The next question comes from the line of Aryaman Shukla from Prudent. Please go ahead.
Unidentified Participant
Yes, sir. Thank you. I’m just quickly booking questions. Can you please call out the cash and debt on balance sheet currently? And what do our DSO days look like this quarter? Sorry, I missed that.
Kamal Pal Hoda
Yeah. So our operating businesses, if you see we have a debt levels of 107 crores. In terms of our debt levels as on December, our DSO days as mentioned in my speech is close to around 98 days. For our operating businesses which was around 105 days last quarter, our debt has reduced by 29 crores quarter on quarter. And as I mentioned earlier that we believe that our cash generation is usually robust in Q4 and we have guided the markets that we will be a OCF to EBITDA ratio of around 50%. So having said that, we should actually see a sub 100 debt levels by March end and our DSO levels from 98 days also should improve further.
Unidentified Participant
Thank you.
operator
Okay, thank you. The next question comes from the line of Kausto Bhavna from BMSPL Capital. Please go ahead.
Kaustav Bubna
Yeah, please help me understand better because I’m not really. So. So this cash burn, how is it being funded? Because for the last few years you have been OCF negative. So I’m just trying to understand how have you been funding this rise in short term borrowings over the last many quarters from March? I’m just looking at the disclosed figures. March 25th was 79 crores, September was 194 crores. They’re saying right now it’s 107 crores in December. So why was this debt. Can you exactly list the purpose of the rise in debt and how is found it being funded? And if we are going to do acquisitions and keep funding the Foundit losses with how are we doing that with if cash accruals aren’t coming in as of the moment?
Prapul Sridhar
Yeah. So cost of. There are two three aspects around cash flows. I think this year for six months we had not some great operating KPIs. On cash flows on the back of. Novations that we had to do. So the entire thousand plus clients we had to go and novate our contracts from Quest to Blue Spring. And that was one of the reasons. Why we had a higher DSO days, poor cash flows in the first six. Months and also a reason why our. Debt levels shot up irrespective of whether. We were investing in Foundit or not. That position has been completely addressed. All our contracts have been novated. Our Q3 cash flows are much better than quarter one and quarter two. And as Praful mentioned that on a full year basis we believe that we will be able to do 50% of operating cash flows visa vis the operating EBITDA which should help us manage our working capital levels. The second questions on acquisition and funding the acquisitions through debt. We will come back when we have identified asset with proper diligence completed and a proposal we’ll definitely share, how are we going to fund those acquisitions? In general we have said that in long run we want to grow 3x of GDP both organically and inorganically put together.
And hence we would be looking at adjacencies to some of our existing businesses. Which will give us. Let’s say better margin, better ROE businesses or better digital businesses to add to our existing businesses. Coming back to Foundit, Foundit also as I said, we probably are looking at only another 3035 crores of investment other than whatever we have so far invested. We had done a fundraise for foundit back in 2022 and we had also taken borrowings at Foundit level to the extent of close to around 50 odd crores. So foundit has been funded basis the previous fundraise and the debt levels that have been raised at founded level. And I think we are very close to seeing a turnaround in this business and would want to continue to push the revenue trajectory in this business which like I said is visible from the Q4 onwards.
Kaustav Bubna
Okay, just one last thing. You said 35 crores more investment and founded how much investment has been made till date? Not including the 35 crores.
Prapul Sridhar
We would have invested close to around 250 odd crores. But that’s not just our investment. This also includes the fundraise for which the money was also raised from the. Investors outside of Blue spring. Okay, so 250 crores and plus 35.
Kamal Pal Hoda
Yep.
Kaustav Bubna
Okay, thank you so much. Thank you.
operator
Thank you ladies and gentlemen. We will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Kamal Pal Hoda
Thank you. Before I conclude I’d like to once. Again emphasize that over the last three. Quarters we’ve taken all round efforts to drive profitable growth and this has resulted in double digit revenue growth in all. Verticals and 78 basis points improvement in. Our EBITDA margins in quarter three to 3.8% from 3.1% reported in quarter one. Once again demonstrating that our strategy of growth with discipline is working. Looking ahead, our focus for quarter four will be on sustaining healthy double digit revenue growth while expanding EBITDA margins further to our stated guidance of 4%. Thank you everybody for joining this call.
operator
Thank you sir. Ladies and gentlemen, on behalf of IIFL Capital Services Limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines. It.