Quess Corp Limited – Investor Presentation Summary

Key Operational Highlights

  • Headcount of 504,000 – India's largest staffing player with net addition of 21,000 in Q2 FY27
  • Monthly onboarding of ~40,000+ gross adds
  • Active clients: ~2,300 with ~30% clients having 5+ year tenure
  • 116 new contracts added in General Staffing with highest ever cash collection of ~₹4,300 Cr in the quarter
  • Core to associate ratio improved to 289 in General Staffing
  • 57,000 new UANs for FY26 and 166,000+ first-time workers formalized in FY25
  • Key drivers: Technology-enabled recruitment, extensive tier 2 & 3 reach, 70+ sourcing hubs

Segment-wise Performance

General Staffing (97% of headcount, 86% of revenue)

  • Q2 FY27 Revenue: ₹3,823 Cr (▲15% YoY, ▲6% QoQ)
  • Q2 FY27 Operating Margin: ₹57 Cr (▲23% YoY, ▲11% QoQ)
  • H1 FY27 Revenue: ₹7,419 Cr (▲15% YoY)
  • H1 FY27 Operating Profit: ₹108 Cr (▲18% YoY)
  • Includes Consumer, Retail & Telecom (CRT), Manufacturing, Banking and Financial Services & Insurance (BFSI), Construction

Professional Staffing (1.5% of headcount, 6% of revenue)

  • Q2 FY27 Revenue: ₹254 Cr (▲13% YoY, ▲1% QoQ)
  • Q2 FY27 Operating Margin: ₹27 Cr (▼2% YoY, ▼4% QoQ)
  • H1 FY27 Revenue: ₹506 Cr (▲8% YoY)
  • H1 FY27 Operating Profit: ₹55 Cr (▲4% YoY)
  • Includes Digital & Technology Skills, Global Capability Centre (GCC) Services, Recruitment Services, International Mobility
  • GCC contributing 71% of headcount and revenue
  • Headcount at quarter exit: 7,566 with addition of 437 associates
  • Open mandates at 1,100+ primarily in niche and high value roles

Overseas Business (1.1% of headcount, 8% of revenue)

  • Q2 FY27 Revenue: ₹318 Cr (▲10% YoY, ▼4% QoQ)
  • Q2 FY27 Operating Margin: ₹22 Cr (▲23% YoY, ▲7% QoQ)
  • H1 FY27 Revenue: ₹651 Cr (▲13% YoY)
  • H1 FY27 Operating Profit: ₹43 Cr (▲20% YoY)
  • Operations in APAC (Singapore, Malaysia, Philippines, Vietnam, Sri Lanka) and Middle East
  • 6,000+ associates across 7+ countries

Financial Highlights

Q2 FY27 Performance:

  • Revenue: ₹4,396 Cr (▲15% YoY, ▲5% QoQ)
  • Adj. EBITDA: ₹92 Cr (▲20% YoY, ▲7% QoQ)
  • Adj. EBITDA Margin: 2.1% (▲10 bps YoY, ▲4 bps QoQ)
  • PAT: ₹75 Cr (▲44% YoY, ▼9% QoQ)
  • PAT Margin: 1.7% (▲35 bps YoY, ▼27 bps QoQ)
  • EPS: ₹5.0 (▲44% YoY, ▼9% QoQ)

H1 FY27 Performance:

  • Revenue: ₹8,578 Cr (▲15% YoY)
  • Adj. EBITDA: ₹178 Cr (▲22% YoY)
  • Adj. EBITDA Margin: 2.1% (▲12 bps YoY)
  • PAT: ₹157 Cr (▲53% YoY)
  • PAT Margin: 1.83% (▲45 bps YoY)
  • EPS: ₹10.4 (▲51% YoY)

Drivers of financial performance: Higher revenue growth across all segments, operational efficiencies, one-time revenue increase of ₹120 Cr in Q2 due to new Labour Code implementation

Comparison to market estimates: Not Specified

Key Risks: Not Specified

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

  • Domestic: Primary market with operations across 30+ offices in India
  • Export/International: Operations in 7+ countries including Singapore, Malaysia, Philippines, Vietnam, Sri Lanka, Middle East (Dubai and Abu-Dhabi)
  • Regional Breakdown: Not Specified

Balance Sheet Snapshot

  • Net cash position: ₹471 Cr after final dividend of ~₹45 Cr of FY26 paid in Q2
  • Cash collection of more than ₹5,000 Cr during the quarter
  • Financial Health Insights: Strong cash flow generation, improved liquidity

Capex & Cash Flow Health

H1 FY27 Cash Flow:

  • Cash generated from operations: ₹137 Cr
  • Income taxes refund received: ₹229 Cr
  • Net Operating cashflows: ₹366 Cr
  • Expenditure on PPE: (₹6) Cr
  • Net Investing cashflows: ₹34 Cr
  • Net Financing cashflows: (₹162) Cr
  • Net change in cash flows: ₹238 Cr

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: ₹137 Cr for H1 FY27

Net Debt Movement: Net cash position of ₹471 Cr

Investment Rationale: Focus on technology platforms, capacity expansion

Strategic & R&D Initiatives

Investments in Innovation: Technology Investments, Blue-Collar Job & HRMS Platform, On-demand Gig Platform, proprietary AI technology powering 1,400+ recruiters

Expected impact on growth: Not Specified

Strategic Rationale: Expanding into high-growth markets, reducing operational costs, building tech-driven workforce ecosystem

Industry Trends & Business Environment

Macro/Industry Trends: Implementation of new Labour Code, growing formalization of workforce, market growth in staffing sector

Impact on Company: One-time revenue increase of ₹120 Cr in Q2 due to Labour Code implementation, improved compliance framework

Management Commentary & Growth Outlook

Strategic Outlook: To build a tech-driven workforce ecosystem that empowers businesses and talent to thrive

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified

ESG Updates

  • ESG ratings: CFC Finlease – 7.4 (Very Good) and SES ESG – 63.3
  • CSR initiatives improving 75 schools, 28 anganwadis, benefiting 17,000+ children
  • 84,000+ women employees building inclusive workforce
  • Great Place to Work certifications: India (7th consecutive year), UAE, Middle-East, Singapore
  • Won National POSH Excellence Award 2026

Corporate Governance

  • Board of 8 Directors including 4 Independent Directors
  • Statutory auditors: Deloitte Haskins & Sells LLP
  • Internal auditors: Grant Thornton Bharat LLP
  • Robust Enterprise Risk Management (ERM) framework
  • Publicly disclosed policies and governance frameworks