TeamLease Services (TEAMLEASE) Q3 24/25 earnings summary

Executive summary

• Q3FY25 consolidated revenue was Rs. 2,931 crore, up 4% sequentially and 19% year-on-year, with EBITDA up 4% QoQ and net headcount addition of over 3,000.

• General Staffing added over 1,300 net headcount, reaching approximately 300,000 billable associates; Degree Apprenticeship added up to 2,000 trainees, driven by NAPS and WILP.

• HR Services revenue surged 66% YoY, with ongoing integration of TSR Darashaw HR Services and Crystal HR; EdTech revenue improved 19% sequentially.

• Announced acquisition of 80% stake in Ikigai Enablers Pte. to expand IT staffing in Singapore and Middle East.

• Maintained free cash balance of Rs. 310 crore as of December 31, 2024.

Financial highlights

• Q3FY25 consolidated operating revenue: Rs. 2,931 crore (up 4% QoQ, 19% YoY); 9MFY25 revenue: Rs. 8,333 crore (up 20% YoY).

• EBITDA for Q3FY25: Rs. 35 crore, up 4% QoQ, margin at 1.2%; PAT at Rs. 28 crore, up 14% QoQ, margin at 1.0%.

• Headcount at 353,500, up 1% QoQ and 14% YoY.

• EPS (Basic and Diluted) for Q3FY25: Rs. 17.

• Net cash position at Rs. 467 crore, including Rs. 310 crore in free cash.

Outlook and guidance

• Marginal headcount decline expected in Q4 due to BFSI sector weakness, with normalization and positive outlook from Q1 FY26.

• Integration of recent acquisitions and expansion into new geographies expected to drive future growth.

• HR Services anticipated to turn profitable in Q4 as delayed EdTech billings are recognized.

• No EBITDA contribution expected from Ikigai in Q4 FY25; meaningful impact projected from FY26 onward.