Key Financial Performance (Consolidated)

All figures are in ₹ Crores except margins and per-share data.

Headline Performance:

  • Total Revenue: ₹3,056 Cr, up 6% Year-over-Year (YoY) and 4% Quarter-over-Quarter (QoQ)
  • EBITDA: ₹32 Cr, up 3% YoY but down 31% QoQ
  • EBITDA Margin: 1.05%, down 3 basis points (bps) YoY and 52 bps QoQ
  • Profit Before Tax (PBT): ₹36 Cr, up 38% YoY but down 30% QoQ
  • PBT Margin: 1.2%
  • Profit After Tax (PAT): ₹34 Cr, up 38% YoY but down 25% QoQ
  • PAT Margin: 1.1%
  • Earnings Per Share (EPS): ₹21
  • Headcount: 341,330 associates, flat QoQ (0% change) and down 3% YoY from 351,000

Business Call Outs:

  • Business EBITDA (excluding unallocated costs) grew 18% YoY to ₹38 Cr, driven by specialised staffing and operational efficiency.
  • General Staffing was impacted by headwinds in the Banking, Financial Services and Insurance (BFSI) sector and softer hiring trends.
  • The RegTech business turned profitable and is beginning to make a meaningful contribution to the bottom line.

Capital & Balance Sheet Position

  • Completed Buyback: A ₹238 Cr buyback was completed in July 2026, involving 1,487,000 shares at ₹1,600 per share.
  • Net Free Cash: The company held ₹350 Cr in net free cash as of the quarter-end.
  • Tax Refund: This position was aided by an income-tax refund of ₹38 Cr received during the quarter, which included interest of ₹8.2 Cr.
  • TDS Receivable: Outstanding TDS receivables were approximately ₹145 Cr.
  • Days Sales Outstanding (DSO): DSO in the staffing business was 6 days.
  • Funding Exposure: Funding exposure was 16%.
  • Divestment: The company divested its 30% stake in Crystal HR as part of a portfolio rationalization strategy. The financial impact of this divestment was not quantified in the disclosure.

Consolidated Segment Results

Revenue Breakdown:

  • General Staffing and Allied Services: ₹2,797 Cr, up 5% YoY and 5% QoQ.
  • Specialised Staffing Services: ₹188 Cr, up 21% YoY and 6% QoQ.
  • Other HR Services: ₹50 Cr, up 12% YoY but down 34% QoQ.
  • Total Income from Operations: ₹3,035 Cr, up 6% YoY and 4% QoQ.

EBITDA Breakdown:

  • General Staffing and Allied Services: ₹29 Cr (1.0% margin), down 5% QoQ and up 3% YoY.
  • Specialised Staffing Services: ₹12 Cr (6.2% margin), down 10% QoQ and up 5% YoY.
  • Other HR Services: (₹2) Cr (-4.7% margin), an improvement from (₹7) Cr in Q1FY26 but a decline from ₹13 Cr in Q4FY26.
  • Total Operating EBITDA: ₹38 Cr (1.3% margin), down 32% QoQ but up 18% YoY.
  • Unallocated Corporate Costs: (₹6) Cr.
  • Total Group EBITDA: ₹32 Cr.

Client & Hiring Momentum

  • General Staffing: Added 28 new client logos in the quarter, with over 65% onboarded under a variable-engagement model.
  • Degree Apprenticeship: Added 18 new client logos, with continued momentum in the Global Capability Centre (GCC) segment.
  • Specialised Staffing: Added 40 new client logos, including 15 GCCs.

Industry Context and Regulatory Watch

The presentation dedicates significant focus to the industry environment, particularly the implementation of the Four Labour Codes.

  • Structural Positive: The codes introduce a single central license, uniform wage definitions, and mandatory formal appointment letters. This raises compliance requirements, which is expected to favor large, organized players like TeamLease over unorganized contractors.
  • Near-Term Cost/Complexity: The new definition of wages (50% of CTC) raises Provident Fund (PF) and gratuity costs per associate. It also requires significant rework of payroll systems and client contracts, representing a temporary cost and change-management burden in 2026.

Growth Vector - Global Capability Centres (GCCs):

  • GCCs are identified as the single largest driver of incremental staffing demand in India.
  • YoY employment growth in specialised staffing outpaced general staffing in Q1FY27.
  • This demand is more discretionary and linked to global technology capex cycles, making it a potential risk if global IT/tech spending slows.

Company Overview & Governance

  • Profile: TeamLease is an end-to-end people supply chain solutions provider with an ISO 27001-certified IT platform supporting 350,000 associates and apprentices.
  • Scale: The company has served over 4,000 employers, placed 2.6 million people to date, and operates in 28 states across 7,500+ locations.
  • Pillars of Business: Employment (~340,000 associates), Employability (750,000+ students through Degree Apprenticeship and EdTech), and E-Workforce (1,000+ digital employer clients).
  • Board of Directors: Listed board members include Narayan Ramachandran (Chairman), Manish Sabharwal, Ashok Reddy (Executive Vice Chairman), and Suparna Mitra (Managing Director & CEO).