Key Financial Performance – Q1 FY27
Consolidated Financials:
- Revenue: ₹4,182 crore, representing 15% year-on-year growth and 7% quarter-on-quarter growth
- EBITDA: ₹85 crore, with 21% year-on-year growth and margin of 2.02%
- PAT: ₹82 crore, growing 61% year-on-year and 28% quarter-on-quarter
- EPS: ₹5.5, up 61% year-on-year
- Headcount: 482,214 associates, up 4.5% year-on-year
One-Time Items:
- Labor Code implementation impact: ₹176 crore one-time revenue pass-through
- Income tax refund: ₹261 crore received during quarter (includes ₹22 crore interest)
- Zero-debt company status maintained as of June 2026
Dividend Declaration:
- Final dividend of ₹3 per share declared for FY26
- Payment subject to approval at AGM scheduled for August 25, 2026
Segment-wise Performance
General Staffing Business:
- Revenue: ₹3,596 crore, up 15% YoY and 8% QoQ
- EBITDA: ₹51 crore, up 12% YoY but down 2% QoQ
- Headcount: 469,000 associates, with net addition of 3,800+ associates
- New contracts: 86 added during quarter
- DSO: 15 days AR, 28 days including UBR
- Growth drivers: CRT, Manufacturing and Allied verticals
- Open mandates: 37,000 at quarter-end
Professional Staffing Vertical:
- Revenue: ₹252 crore, up 3% YoY and 9% QoQ
- EBITDA: ₹28 crore, up 12% YoY with 11% margin
- Headcount: 7,129, up 7% YoY
- GCC contribution: 71% of headcount and 68% of revenue
- New contracts: 36 added during quarter
- Open mandate: 1,100+ positions
- Gross margin to EBITDA conversion: 50%
Overseas Business:
- Revenue: ₹333 crore, up 17% YoY (flat QoQ)
- EBITDA: ₹21 crore, up 17% YoY with 6.2% margin
- New logos: 37 added during quarter
Geographic Performance:
- Singapore: 17 new contracts, 37 local nationals added
- Malaysia: 55% YoY revenue growth, 873 headcount, 4.1% EBITDA margin
- Middle East: 27% revenue growth, 12% EBITDA margin, 18% EBITDA growth
- Philippines: 17% revenue growth, 10% net margin
Strategic Initiatives – Quess 2.0
The company is repositioning toward higher-margin, value-accretive growth through:
- Partner-led capital-light talent corridors across five focus segments: Healthcare, Technology, MEP and Civil, Hospitality and Allied, Finance and Professional
- Current corridor status:
- Japan: Signed and in execution
- Europe (Nordics): Advanced stages of discussion
- Israel: In discussion
- North America: Early stages of exploration
- Target: 20-25% revenues from higher-margin businesses in 3-4 years
Recognition & Awards
- Certified "Great Place to Work" for 7th consecutive year (India)
- Ranked 19th among "India's Best Workplaces in 2025"
- Certified "Great Place to Work" in Singapore (3rd year) and UAE (first time)
- CMMI Level 3 Certified Organization
- Ranked 188th in Fortune 500 list and 175th in ET 500 List
- Certified as "Leadership Factory for India" for 2026-2028
Management Outlook
- Positive demand outlook heading into festive season
- Strong foundation with increased headcount and contracts to capture growth
- Professional Staffing and international business expected to aid margin growth
- Target to scale Professional Staffing to ₹30 crore quarterly EBITDA run rate
Labor Code Implementation Impact
- 68% of customers covered by Q1 FY27
- Expected full coverage by end of Q2/early Q3
- Remaining liability expected to be less than ₹176 crore booked in Q1
- Normal recurring liability will be small going forward
Q&A Session Highlights
- BFSI vertical facing regulatory headwinds affecting growth
- Manufacturing vertical offers higher PAPM (₹800-1,100 vs normal ₹600-700) and gross margins (5-6% vs 2-3%)
- Fixed vs variable contract mix: 70% fixed, 30% variable (38% of new contracts in Q1 were variable)
- GCC expansion opportunity: Only 10% captured of 2,407 GCCs in India
- Sourcing strength: 1,400 recruiters, 46,000 additions in Q1 (vs 29,000-30,000 year ago)
- International strategy focused on capital-light partnership models rather than operating staffing companies