Bluspring Enterprises Limited has announced a significant acquisition in the power services sector through its wholly owned subsidiary. The company disclosed that Bluspring New Horizon One Private Limited executed a Share Purchase Agreement on March 19, 2026, to acquire 100% shareholding in STEAG Energy Services India Private Limited for ₹180 crores.

Strategic Expansion in Power Infrastructure

The acquisition marks a significant milestone in Bluspring's long-term strategy to build a comprehensive, end-to-end infrastructure management services platform. STEAG India is a leading service provider of Operations and Maintenance, Digital Solutions, and end-to-end Engineering & Management Advisory Services to the conventional and renewable power industry across India, Botswana, Middle East and other overseas markets.

About STEAG Energy Services India

Founded in 2001, STEAG Energy Services India Private Limited operates with a workforce of nearly 2,000 professionals and generates annual consolidated revenues of over ₹600 crores. The company is currently a wholly owned subsidiary of STEAG Power GmbH, a leading energy company in Germany.

Financial and Operational Metrics

Enhanced Capabilities and Digital Solutions

The acquisition significantly enhances Bluspring's capabilities across upstream and downstream power services. STEAG India's established digital capabilities in Performance Monitoring, Predictive Analytics, Diagnostics and Training Simulator with Flexibilization and Simulation studies will further enhance Bluspring's ability to deliver high-value, technology-enabled operations and maintenance solutions to its global client base.

Management Commentary

Kamal Pal Hoda, Executive Director & CEO of Bluspring Enterprises Limited, stated that with India's installed power generation capacity now exceeding 500 GW, the sector offers substantial growth opportunities. The company expects the transaction to be margin and EPS-accretive, enhancing return on equity profile over the near to medium term.

Ujjwal Kanti Bhattacharya, Managing Director of STEAG Energy Services India, expressed confidence that Bluspring's growing infrastructure services platform and strong engineering capabilities position the company well for the next phase of growth.

Corporate Structure and Regulatory Approvals

Post completion of the share transfer, STEAG Energy Services India will become a wholly owned subsidiary of Bluspring Enterprises Limited. The company has two subsidiaries that will become step-down subsidiaries of Bluspring New Horizon One Private Limited:

• STEAG Energy Services (Botswana) (Pty) Ltd. - a wholly-owned subsidiary in Botswana
• STEAG O&M Company Private Limited - a joint venture with Hinduja Energy (India) Limited

The transaction is expected to close within 60-90 days, subject to customary closing conditions and does not constitute a related party transaction.

Bluspring Enterprises Limited has received credit rating assignments from India Ratings and Research (Ind-Ra) for its debt instruments, marking a significant development for the diversified infrastructure services company. The rating agency has assigned ratings to bank loan facilities and proposed commercial paper totaling INR 5,700 million.

Credit Rating Details

India Ratings has assigned the following credit ratings to Bluspring Enterprises' debt instruments:

The rating assignment was communicated to stock exchanges on March 6, 2026, in compliance with SEBI listing regulations. The rating letter and rationale are available on India Ratings' website and will be hosted on the company's investor relations portal.

Rating Rationale and Business Profile

The ratings factor in Bluspring Enterprises' diversified business profile spanning four key segments: facility management and food services, telecom and industrials, security management, and talent acquisition services. The company benefits from experienced management and strong promoter support from Ajit Isaac and Fairbridge Capital Mauritius Limited (Fairfax Group), who hold a combined 58.2% shareholding as of December 2025.

Business Segment Performance

The company serves over 1,000 clients with a 95% customer retention rate, while the top 10 customers contribute 28%-29% to consolidated revenue, indicating manageable concentration risk.

Financial Performance and Metrics

Bluspring Enterprises demonstrated consistent revenue growth, with consolidated revenue increasing 10% year-on-year to INR 25,172 million in 9MFY26 from INR 22,848 million in 9MFY25. However, the growth was partially offset by a 41% revenue decline in the Foundit business segment.

Key Financial Indicators

The company's EBITDA margins remained low at 2.1% in 9MFY26, primarily due to elevated losses in Foundit's business, increased employee expenses from senior leadership hiring, and descoping of high-margin clients in the integrated facility management segment.

Rating Constraints and Challenges

Despite the positive rating assignment, India Ratings highlighted several constraints affecting the company's credit profile. The elongated working capital cycle remains a key concern, with receivable days (including unbilled receivables) at 106 days in H1FY26 compared to 92 days in FY25, largely due to contract novation post-demerger.

The consolidated net leverage increased significantly to 2.9x as of 9MFY26 from 1.02x in FY25, primarily due to increased utilization of fund-based working capital limits and cash requirements for the elongated working capital cycle. The adjusted interest coverage remained subdued at 2.5x in 9MFY26.

Growth Outlook and Strategic Initiatives

India Ratings expects the company to sustain a monthly revenue rate of INR 2,900 million, leading to organic revenue growth of 9%-10% over FY26-FY27. Growth drivers include:

• Industry-wide transition from unorganized to organized players in security services and facility management
• Increased end-to-end service integration in the industrial segment
• Possible inorganic initiatives
• Rebound in telecom tower deployment following relief on government dues for key telecom players

The company is expanding its food business by setting up a central kitchen in Bengaluru with a capacity of 20,000 meals per day, while also pivoting towards end-to-end operation solutions and diversifying into solar installations under its telecom and industrials vertical.

Liquidity and Rating Sensitivities

The company maintains adequate liquidity supported by unencumbered cash and cash equivalents of INR 152 million at end-September 2025, unutilized fund-based working capital limits with 63% average peak utilization, and zero principal payment obligations as outstanding financial debt comprises only working capital debt.

India Ratings indicated that substantial improvement in EBITDA or cash profitability leading to sustained improvement in net leverage could result in positive rating action, while deterioration in EBITDA or net leverage sustaining above 3.0x could lead to negative rating action.