TeamLease Services (TEAMLEASE) Q2 25/26 earnings summary

Executive summary

• Q2FY26 saw consolidated revenue of ₹3,041 crore, up 5% sequentially and 8% year-over-year, with net headcount addition of 11,000 and 140 new client acquisitions.

• EBITDA for Q2FY26 rose 24% quarter-over-quarter and 15% year-over-year to ₹38 crore, with net profit up 11% QoQ and 12% YoY to ₹28 crore.

• Sectoral demand was mixed: BFSI showed early stabilization, consumer and e-commerce benefited from festive season and GST 2.0, and telecom focused on tech-driven productivity.

• HR Services reached breakeven EBITDA, supported by EdTech billings.

• Free cash balance stood at ₹320 crore at quarter end.

Financial highlights

• Q2FY26 consolidated revenue was ₹3,041 crore, up 8% YoY and 5% sequentially; EBITDA margin improved to 1.3%.

• Profit after tax for Q2FY26 was ₹28 crore, up 12% YoY, with PAT margin at 0.9%.

• Basic and diluted EPS for Q2FY26 was ₹16.41, up from ₹14.66 in Q2FY25.

• Net cash from operating activities for H1FY26 was ₹44.81 crore.

• DSO at 7 days for staffing and 15 days for the group; funding exposure in staffing business at 14%.

Outlook and guidance

• Management expects continued EBITDA expansion for FY26, with focus on profit growth outpacing revenue and high teen double-digit EBITDA CAGR over the medium term.

• Over 20,000 open positions and optimism for continued demand recovery, especially in muted sectors.

• Emphasis on scaling staffing, apprenticeship, and digital HR solutions, with HR tech business expected to contribute to profitability in two quarters.