TeamLease Services (TEAMLEASE) Q2 24/25 earnings summary

Executive summary

• Headcount grew by 18,500 in Q2 FY25 and 31,000 in H1 FY25, with general staffing leading the expansion and total billable headcount reaching 350,240.

• EBITDA for Q2 FY25 rose 50% sequentially to ₹33 crore, with margin improvement to 1.2%; PAT increased 28% QoQ to ₹25 crore.

• General Staffing and HR Services drove growth, while Specialized Staffing improved margins despite IT sector headwinds.

• Investments in HireTech platform and HR tech solutions are underway to enhance productivity and reduce hiring costs, with platform expected to go live in FY26.

• 178 new client logos added in Q2, with active M&A discussions to enhance the HRTech portfolio.

Financial highlights

• Q2 FY25 consolidated revenue: ₹2,808 crore, up 8% sequentially and 23% year-over-year; H1 FY25: ₹5,401 crore, up 21% YoY.

• Q2 FY25 EBITDA: ₹33 crore (up 50% QoQ); EBITDA margin at 1.2% (vs 0.9% in Q1 FY25).

• Q2 FY25 PAT: ₹25 crore (up 28% QoQ, down 10% YoY); PAT margin at 0.9%.

• Free cash stood at ₹340 crore as of September 30, 2024; net cash position at ₹555 crore.

• Specialized staffing EBITDA up 18% YoY and 26% sequentially, aided by cost savings and one-time sourcing/absorption benefits.

Outlook and guidance

• Management targets strong double-digit sequential profit growth, focusing on profit expansion and continued investments in technology platforms.

• Q3 expected to be muted due to BFSI sector caution, but telecom, consumer, and EdTech segments remain growth drivers.

• EdTech profits expected to show double-digit YoY growth for FY25, with most profits booked in H2.

• Active M&A pipeline to strengthen HRTech portfolio.

• Specialized staffing anticipates steady growth in IT hiring, especially in cloud, cybersecurity, and data analytics.