Quess Corp Limited announced its unaudited financial results (standalone and consolidated) for the quarter ended June 30, 2026, approved by the Board of Directors at a meeting held on July 29, 2026, from 6:00 PM to 7:30 PM IST. The results were prepared pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance (Consolidated)

For Q1 FY27 (quarter ended June 30, 2026):

  • Revenue from operations: ₹41,816.85 million
  • Other income: ₹255.47 million
  • Total income: ₹42,072.32 million
  • Employee benefits expense: ₹39,591.93 million
  • Finance costs: ₹143.95 million
  • Depreciation and amortization: ₹98.08 million
  • Other expenses: ₹1,379.53 million
  • Total expenses: ₹41,213.49 million
  • Profit before exceptional items and tax: ₹858.83 million
  • Exceptional items: Nil
  • Profit before tax: ₹858.83 million
  • Tax expense: ₹37.59 million (Current tax: ₹18.94 million, Deferred tax: ₹18.65 million)
  • Net profit: ₹821.24 million
  • Other comprehensive loss: ₹(99.92) million
  • Total comprehensive income: ₹721.32 million
  • Profit attributable to owners: ₹818.99 million
  • Basic EPS: ₹5.50 (not annualized)
  • Diluted EPS: ₹5.45 (not annualized)
  • Paid-up equity share capital: ₹1,493.60 million (face value ₹10 per share)

Segment Performance (Consolidated)

  • General Staffing: Revenue ₹35,964.76 million, Segment result ₹511.71 million
  • Professional Staffing: Revenue ₹2,521.23 million, Segment result ₹278.66 million
  • Overseas Business: Revenue ₹3,328.48 million, Segment result ₹206.12 million
  • Digital Platforms: Revenue ₹2.38 million, Segment loss ₹(17.64) million

Standalone Financial Performance

For Q1 FY27:

  • Total income: ₹38,869.32 million
  • Profit before exceptional items and tax: ₹815.28 million
  • Exceptional items loss: ₹9.87 million (impairment loss on subsidiary loans)
  • Profit before tax: ₹805.41 million
  • Tax expense: ₹18.65 million
  • Net profit: ₹786.76 million
  • Basic EPS: ₹5.28 (not annualized)
  • Diluted EPS: ₹5.23 (not annualized)

Audit Qualification

Deloitte Haskins & Sells LLP issued a qualified review opinion due to uncertainty regarding certain tax deductions claimed under section 80JJAA of the Income Tax Act that have been disallowed by income tax authorities for fiscal years 2017-2023. The company has challenged these disallowances and believes based on external legal opinions that the deductions will be accepted upon ultimate resolution. The contingent liability is assessed at ₹3,879.94 million including interest.

Emphasis of Matter

Auditors highlighted provident fund demands of ₹716.56 million received from the Regional PF Commissioner for alleged non-remittance of PF on certain salary components from April 2018 to March 2019. The company has appealed to the Central Government Industrial Tribunal, which has granted a stay and waiver from pre-deposit. The next hearing is scheduled for August 20, 2026.

Subsidiary Information

The consolidated results include 23 subsidiaries listed in Annexure 1. The auditors did not review 6 subsidiaries representing revenues of ₹2,929.73 million and net profit of ₹124.31 million, and relied on other auditors' reports. Another 16 subsidiaries not reviewed by their auditors represented revenues of ₹647.91 million and net profit of ₹24.48 million, which management considers immaterial.

Labour Code Impact

Effective November 21, 2025, the company has accounted for incremental impact of new Labour Codes on employee benefit liabilities. For billable employees, the impact is recognized in employee benefit expense with corresponding revenue credit as these costs are contractually recoverable from customers.

Corporate Development

The company incorporated Quess Corp Limited Employees Welfare Trust on April 2, 2026 to administer the Quess Stock Ownership Plan 2026 (QSOP 2026) and future employee benefit plans.