Quess Corp (QUESS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was INR 43,964.85 million, up 15% YoY; PAT was INR 746.61 million, up 44%.

• Q2 adjusted EBITDA was INR 92 crore, up 20%; H1 revenue rose 15% to INR 8,578 crore and PAT rose 53% to INR 157 crore.

• Headcount reached 504,000, with ~21,000 net additions in Q2; quarterly cash collections exceeded INR 5,000 crore.

Financial highlights

• Q2 reported EBITDA was INR 86 crore, up 12% YoY; adjusted EBITDA excluding INR 6 crore of non-cash ESOP expense was INR 92 crore, up 20%.

• H1 reported EBITDA was INR 170 crore, up 16%; adjusted EBITDA excluding INR 8 crore of non-cash ESOP expense was INR 178 crore, up 22%.

• Q2 diluted EPS was INR 4.96; H1 diluted EPS was INR 10.38, up 51% YoY.

• Labour Code provisions added one-time revenue of INR 120 crore in Q2 and INR 298 crore in H1, with no profit impact.

Outlook and guidance

• General Staffing expects 10,000–15,000 net additions in the coming quarter, with potential to exceed that level where opportunities arise.

• Professional Staffing FY margin guidance remains 11%–12%, with an exit near 12%; Q2 margin would have been 11.7% absent recent investments.

• No material Labour Code revenue impact is expected in H2; H1 compliance was 95%–96%.

• Digital Platforms are expected to break even for FY27, with positive growth expected from next year; strategic ambition is to become the largest global staffing player by 2030.

• H2 priorities include General Staffing volume growth, returns on IT staffing investments, scaling technology initiatives and expanding higher-margin, dollar-linked businesses.