TeamLease Services (TEAMLEASE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue reached ₹3,056 crore, up 6% YoY and 4% sequentially, with PBT and PAT both increasing 38% YoY to ₹36 crore and ₹34 crore, respectively, though both declined sequentially due to EdTech seasonality and annual appraisals.

• Business EBITDA (before corporate costs) grew 18% YoY, but declined 31% sequentially; overall EBITDA was ₹32 crore, up 3% YoY.

• 127 new client logos were added, and a buyback of ₹238 crore (8.87% of paid-up capital) was completed.

• Regtech business turned profitable and is expected to contribute meaningfully to the bottom line.

Financial highlights

• Revenue from operations: ₹3,035 crore (+6% YoY, +4% QoQ); EBITDA: ₹32 crore (+3% YoY, -31% QoQ); EBITDA margin: 1.0%.

• PBT: ₹36 crore (+38% YoY, -30% QoQ); PAT: ₹34 crore (+38% YoY, -25% QoQ); EPS: ₹21 (+31% YoY, -21% QoQ).

• Net free cash at ₹350 crore, aided by a ₹38 crore income-tax refund.

• Operating cash flow to EBITDA conversion at 100% for the quarter.

Outlook and guidance

• Management expects continued growth in specialised staffing and operational efficiency, with investments in technology platforms and higher-margin adjacencies.

• EBITDA margin in staffing expected to remain at 1% for Q2, with margin expansion anticipated in H2 as investments in sales and hiring engines take effect.

• Specialized staffing EBITDA margin targeted at 8%-9% over the next four to five quarters.

• HR services (EdTech and Regtech) expected to achieve 8%-10% EBITDA margin for the full year.

• Labour code reforms and formalization trends favor organized staffing, benefiting large players.