Quess Corp (QUESS) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 delivered steady execution, margin expansion, and disciplined financial performance despite mixed demand due to Labour Code implementation.

• Achieved headcount of 4,83,503, maintaining position as India's largest domestic staffing player.

• Consolidated revenue from operations for the quarter ended 31 December 2025 was INR 39,297.08 million, with total income at INR 39,312.56 million, reflecting stable performance compared to previous quarters.

• Leadership changes included elevation of Lohit Bhatia to CEO and Neeraj Jain joining as CFO, strengthening execution and governance.

• Certified as a Great Place to Work for the seventh consecutive year.

Financial highlights

• Q3 FY26 revenue at INR 3,930 crore (up 3% QoQ, down 2% YoY); EBITDA at INR 80 crore (up 28% YoY, up 4% QoQ), with margin at 2.03%.

• Adjusted PAT at INR 62 crore, up 29% YoY and 19% QoQ; Adjusted EPS at INR 4.1/share, up 29% YoY and 19% QoQ.

• 9M FY26 revenue at INR 11,413 crore, up 1% YoY; EBITDA at INR 226 crore, up 16% YoY; Adjusted PAT at INR 166 crore, up 13% YoY.

• EBITDA to OCF conversion at 92%; net cash position of INR 325 crore.

• Profit before tax for the quarter was INR 510.87 million, with profit for the period at INR 550.94 million.

Outlook and guidance

• Q4 expected to see net headcount addition exceeding 15,000, with a strong open mandate pipeline and anticipated growth in manufacturing and construction.

• Professional Staffing aims for a INR 30 crore EBITDA run rate per quarter, with continued focus on high-margin, niche roles.

• Margin guidance for consolidated EBITDA remains at 1.95%-2.05% for coming quarters.

• Dividend payout policy targets up to 75% of free cash flow over a three-year block.

• Focus on digital platforms and GCC services for future growth.