Team Lease Services provides employment related services. It provides solutions for staffing, recruitment, training, payroll processing and regulatory compliance.
Its major business segments are: General staffing, Specialized staffing, HR Services
- Revenue from Operations: ₹3,037 cr, +4% YoY (vs ₹2,931 cr in Q3 FY25).
- EBITDA: ₹43 cr, +22% YoY; EBITDA Margin: 1.41% (vs 1.2% in Q3 FY25).
- PBT (before exceptional items): ₹49.1 cr, +72% YoY (exceptional item ₹5.68 cr due to labour code impact).
- PAT: ₹42.5 cr, +50% YoY; PAT Margin: 1.4% (improved vs 1.0% in Q3 FY25).
- EPS (Diluted): ₹25.3 (+47% YoY).
- 9M FY26 YTD: Total revenue ₹8,981.5 cr vs ₹8,332.9 cr YoY; consolidated trend shows revenue and profit expansion.
Management Commentary & Strategic Decisions
- Operational focus: Management highlighted cost optimisation and digitisation initiatives contributing to improved operating leverage and margin expansion, even with headwinds in certain staffing verticals.
- Segment dynamics: Specialised staffing saw healthy YoY growth (notably in GCC (Global Capability Centres) segment contributing >65% of revenue), while General Staffing experienced headcount decline due to insourcing by a BFSI client during Q3.
- Cash & working capital: TeamLease maintained free cash balance of ₹430 cr, aided by an income tax refund of ₹106.1 cr, supporting liquidity and strategic flexibility.
- Client additions: Company added 107 new logos in Q3 and continues to focus on expanding client footprint and service mix across General, Specialized, EdTech and RegTech services.
- Labour code impact: A one-time expense (₹5.68 cr) related to the New Labour Codes was recorded during the quarter.
Q2 FY26 Earnings Results
- Revenue from Operations: ₹3,032.07 cr, +8.4% YoY and +5% QoQ, record quarterly revenue.
- EBITDA: ₹38 cr, +15% YoY; EBITDA Margin: 1.3%.
- PBT: ₹29 cr, +12% YoY; PBT Margin: 0.96%.
- PAT: ₹28 cr, +11.9% YoY; PAT Margin: 0.9%.
- EPS: ₹16.4.
Management Commentary Q2
- Management reported strong revenue scale (highest at that point) and modest margin improvement despite inherent low-margin dynamics of staffing services, particularly noting EBITDA growth (~15% YoY) driven by diversified client demand and improved operating efficiency.
- Growth commentary: General staffing saw demand resilience with new client additions, while the GCC-focused approach in specialised staffing helped sustain growth momentum in revenue and profitability.
- BFSI sector headwinds persisted in general staffing, but non-BFSI verticals (retail, e-commerce, telecom) remained promising, broadening revenue base.
- Management stressed focus on operating leverage and profitability expansion for the remainder of the fiscal year.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.