TeamLease Services (TEAMLEASE) Q1 25/26 earnings summary

Executive summary

• Achieved group-level headcount addition of 5,000 in Q1 FY2026, with total billable headcount reaching 351,000 and growth across Staffing, Degree Apprenticeship, and Specialized Staffing businesses.

• Added 118 new client logos and maintained growth despite macroeconomic headwinds in BFSI and IT services.

• EBITDA grew 39% year-on-year to ₹31 crore, though sequentially down 35% from Q4FY25; PAT margin improved to 0.9%.

• Degree Apprenticeship trainees increased by about 2,000, with strong policy support and new client additions.

• Free cash balance at ₹310 crore after CapEx, with net free cash at ₹300 crore excluding TDS refundable.

Financial highlights

• Revenue grew 12% year-on-year to ₹2,904 crore, with sequential growth of 1%.

• EBITDA up 39% year-on-year, with margin at 1.1%, down from 1.7% in the previous quarter.

• PAT increased 29% year-on-year to ₹25 crore; EPS at ₹16 vs. ₹12 last year.

• Year-on-year PBT and PAT increased by about 30%.

• Free cash balance at ₹310 crore net of CapEx; DSO at 17 days for the group.

Outlook and guidance

• Management expects steady profit expansion for the remainder of FY26, targeting at least 30% year-on-year EBITDA growth for the next quarters.

• Q2 outlook is positive, with open positions at 20,000 and expectations of sectoral acceleration in muted segments.

• Resilient demand from enterprise clients and Global Capability Centers is expected to sustain growth momentum.

• General staffing volume growth expected to improve if Q2 tailwinds persist into Q3.