TeamLease Services (TEAMLEASE) Q2 26/27 earnings summary

Executive summary

• Q2 outcomes were below aspirations; 114 client logos were added, while H1 operating EBITDA grew 11% YoY.

• Strategic focus is on profitable growth, higher-margin adjacencies and a holistic talent-solutions offering, with investment in people, brand, technology and leadership.

Financial highlights

• Q2 revenue from operations was ₹3,075.98 crore, up 2.3% YoY; H1 revenue was ₹6,110.67 crore, up 4.0%.

• Operating EBITDA was ₹44 crore in Q2, up 17% QoQ, and ₹82 crore in H1, up 11% YoY; reported EBITDA was ₹36 crore in Q2 and ₹68 crore in H1.

• Q2 PBT before exceptional items was ₹29.57 crore versus ₹29.01 crore YoY; H1 PBT was ₹65.83 crore versus ₹55.27 crore.

• Q2 net profit was ₹23.02 crore after ₹2.98 crore of exceptional items; H1 net profit was ₹57.47 crore versus ₹52.85 crore.

• H1 operating cash flow was negative ₹2.29 crore versus positive ₹44.81 crore YoY, with increased receivables, including unbilled revenue, weighing on working capital.

Outlook and guidance

• Priorities include higher-margin adjacencies and investment in people, brand, technology and potential M&A; net free cash after the buyback was ₹350 crore.

• Specialised Staffing’s GCC business remains a growth focus, with 130+ active GCC clients and 16 new GCC clients added in H1.

• Degree Apprenticeship leadership transition is planned for Q3 FY27, with a focus on stabilising the business and returning it to growth.