Quess Corp Limited (Quess) is India’s leading business services provider, leveraging its extensive domain knowledge and future-ready digital platforms to drive client productivity through outsourced solutions.
Q3 FY26 Earnings Results
- Revenue from Operations: Consolidated ₹3,930 cr, +3% QoQ but −2% YoY vs ₹4,000 cr; standalone not separately highlighted but aligned with group trends showing marginal sequential stability amid softer demand in staffing/services.
- EBITDA: ₹80 cr, +28% YoY and +4% QoQ, margin 2.03% (expansion driven by cost discipline and operational efficiencies despite revenue dip).
- PAT: Reported ₹55 cr (+32% YoY), adjusted PAT ₹62 cr (+29% YoY, +19% QoQ), EPS ₹4.1 (+19% QoQ); exceptional item −₹7 cr related to Labour Code impact excluded from adjusted figures.
- Other key metrics: 9M revenue ₹11,411 cr (+1% YoY), EBITDA ₹273 cr (+8% YoY), adjusted PAT ₹166 cr (+13% YoY); Global Technology Solutions secured 61 new contracts (ACV ₹147 cr), EXM Payroll processed 4.4 mn slips (+2% QoQ), Operating Asset Management +15% YoY revenue with 52 new contracts (ACV ₹171 cr).
Management Commentary & Strategic Decisions
- Despite revenue softness from macroeconomic caution and Labour Code transitions, profitability surged on efficiency gains, cost optimization, and strong execution in tech/digital payroll segments; 9M results underscore resilience.
- Strategic moves: Declared interim dividend (amount not specified in updates); strategic acquisition of Archer Integrated Services’ food catering/facilities management business to bolster Operating Asset Management; no formal FY26 guidance issued.
Q2 FY26 Earnings Results
- Revenue from Operations: Consolidated ₹3,831 cr (+3.6% YoY vs ₹3,701 cr, +4.9% QoQ), H1 ₹7,483 cr (+3% YoY); growth across segments despite staffing headwinds.
- EBITDA: Record ₹77 cr (+11% YoY, margin 2% +13 bps YoQ), H1 PAT ₹103 cr (+3% YoY).
- PAT: ₹52 cr (+2% YoY), H1 ₹103 cr (+3% YoY); EPS stable with operational cash flow ₹158 cr (H1).
- Other key metrics: Added 21,000 associates; H1 revenue ₹7,483 cr (+3% YoY); focus on tech/digital verticals +5% QoQ, platform business +11% QoQ.
Management Commentary Q2
- Q2 delivered record EBITDA through disciplined execution amid evolving labour landscape; added headcount signals demand recovery.
- Strategic moves: Mutual fund investments/redeemals for liquidity (₹215 cr); capex ₹26 cr H1; positioned for Labour Code reforms-driven growth.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.