Key Financial Figures - FY26 Performance

  • Revenue: ₹15,305 crore
  • EBITDA: ₹312 crore (19% growth year-over-year)
  • EBITDA Margin: 2.0% (20 basis points improvement)
  • Adjusted PAT: ₹230 crore (10% growth)
  • Net Cash Position: ₹271 crore (zero debt)
  • Return on Equity: 20%
  • Total Workforce: 478,594 associates and employees
  • Dividend Declaration: Total ₹11 per share (₹5 interim + ₹3 special interim + ₹3 final dividend)
  • Dividend Amount: Approximately ₹165 crore distributed to shareholders
  • Operating Cash Flow Conversion: 80% of EBITDA

Q1 FY27 Performance Update

  • Revenue: ₹4,182 crore (15% growth)
  • EBITDA: 21% growth
  • PAT: 61% growth
  • One-time items: ₹176 crore revenue increase from new Labour Code implementation and income tax refund from earlier years
  • Maintained zero-debt status

Segment-wise Performance Breakdown

General Staffing (Scale Engine)

  • Associates: 465,000+
  • Revenue: ₹13,176 crore
  • Operating Profit: ₹189 crore (marginally lower due to softer hiring in banking and retail)
  • Sectors Served: Consumer & Retail, Telecom, BFSI, Manufacturing & Industrials, E-commerce & Logistics, Public Enterprises

Professional Staffing (Margin Engine)

  • Revenue: ₹930 crore (13% growth)
  • Operating Profit: 44% growth
  • Margins: Double digits (11.9%)
  • Global Capability Centres Contribution: 70% of headcount and nearly 70% of revenue
  • New Client Additions: 61 new logos in FY26

Overseas Business (Expansion Engine)

  • Revenue: ₹1,197 crore
  • Operating Profit: 22% growth
  • Geographic Presence: South-East Asia and Middle East
  • Currency: Dollar-linked revenue
  • Market Performance: Middle East grew 27% revenue with 40% EBITDA growth at 11% margin; Malaysia grew 83%; Philippines grew 49% at 10%+ margins

Profit Mix Shift

  • Professional Staffing + Overseas Contribution: 50% of operating profit (vs. 42% in FY25)
  • High-margin dollar-linked revenue: Currently 7% of total revenue

Strategic Priorities (Quess 2.0 Strategy)

  • Target: Increase high-margin dollar-linked revenue from 7% to 20% in next 3-4 years
  • Target: Increase profit share from Professional Staffing and Overseas from 50% to 65%
  • Four Key Priorities:

1. Deepen core business with mix shift toward Construction, Manufacturing, and Value-Added Services (Construction vertical delivered 8.3% margins in FY26)

2. Build international talent corridors (partner-led, capital-light)

3. Support GCCs across full lifecycle from talent provider to full-lifecycle partner

4. Use AI to lift productivity across company

International Expansion Initiatives

  • Japan Corridor: Signed agreement for two-way talent mobility, recruitment, and digital transformation for Japanese enterprises in India and Indian talent placement in Japan
  • Other Markets: European countries, Israel, and North America under development
  • Approach: Partner-led corridors rather than setting up overseas staffing companies

Technology and AI Initiatives

  • AI Investment: Across sourcing, screening, payroll, and engagement processes
  • Digital Onboarding: 4-minute multilingual AI-powered process
  • Applicant Tracking: AI-powered system with over 10 million candidate profiles
  • Automated Engagement: AI agent voice calling and candidate engagement platforms
  • Market Context: India has 16% of world's AI professionals; AI market expected to exceed $17 billion by 2027

Dividend Policy

  • Policy: Up to 75% of free cash flow returned to shareholders over rolling three-year block
  • Reinvestment: Balance reinvested only where returns exceed cost of capital
  • Historical Returns: Over ₹800 crore returned through dividends in last six years (₹54 per share)

Social Impact and Governance

  • Wage Distribution: Channeled over ₹14,000 crore in wages and statutory benefits to associates
  • Formalization: Brought 57,277 individuals into formal social security system through new EPFO Universal Account Numbers (28% women)
  • Apprenticeship: Supported approximately 57,000 apprentices under NAPS and NATS schemes (India's largest Third-Party Administrator)
  • CSR: Quess Foundation reached over 16,000 children across 75 government schools in Bengaluru
  • Certifications: ISO 27001 (information security), ISO 9001 (quality), ISO 37001 (anti-bribery), CMMI Level 3

Auditor Qualifications

  • Modified Opinion: Certain tax deductions claimed by company and recognized in income tax expense computation have been disallowed by Income Tax Authority
  • Status: Company has challenged disallowance in judicial forum
  • Company Assessment: Supported by external legal counsel and tax experts, believes deductions will probably be accepted upon ultimate resolution
  • New Information: In January 2024, another regulatory authority made observations on applicability of certain conditions in Income Tax Act related to these deductions
  • Impact: Uncertainty in outcome pending ultimate resolution and acceptance by Income Tax Authority
  • Disclosure: Detailed in Note 37.3 (Standalone) and Note 38.3 (Consolidated) of financial statements

AGM Proceedings and Resolutions

  • Meeting Date: August 25, 2026, at 3:30 PM IST through Video Conferencing
  • Cut-off Date for Voting: August 18, 2026
  • E-voting Period: August 21, 2026 (9:00 AM) to August 24, 2026 (5:00 PM) through CDSL
  • Scrutinizer: M/s. V. Sreedharan & Associates
  • Results Timeline: To be intimated to stock exchanges within 2 working days from AGM conclusion

Ordinary Business Resolutions

1. Adoption of Audited Standalone Financial Statements for FY26

2. Adoption of Audited Consolidated Financial Statements for FY26

3. Re-appointment of Mr. Ajit Isaac (DIN: 00087168) as Director liable to retire by rotation

4. Confirmation of interim dividend of ₹5 per share, special interim dividend of ₹3 per share, and declaration of final dividend of ₹3 per share for FY26

Special Business Resolution

5. Appointment of Mr. Anish Thurthi (DIN: 08713000) as Non-Executive Director

Shareholder Q&A Highlights

  • International Markets: Middle East and Southeast Asia strongest markets; Japan corridor signed and in execution
  • AI Strategy: Internal process enhancement and external portfolio shift toward AI-complementary work
  • GCC Focus: 70% of Professional Staffing business from GCCs; working with 140+ of 2,100+ Indian GCCs
  • Margin Improvement: Through segment mix shift, technology investments, and accounts receivable discipline (DSO held at 38 days)
  • Subsidiaries: 21 legal entities are operating entities covering specific jurisdictions or business lines
  • Contingency Funds: Zero debt with ₹271 crore cash; 25% of free cash flow retained for contingencies and growth investments

Management Outlook

  • Demographics: India has 200 million people aged 18-25 with 10 million entering workforce annually
  • GCC Ecosystem: 2,100+ GCCs in India adding 250-300 new centers annually
  • Global Talent Mobility: Aging populations in advanced economies creating demand for skilled workers (estimated 85 million skilled worker shortage by 2030)
  • Labor Formalization: New Labour Codes expected to accelerate shift toward organized, compliant employers