TeamLease Services (TEAMLEASE) Q3 24/25 earnings summary

Executive summary

• Q3FY25 revenue grew 4% sequentially and 19% year-on-year to Rs. 2,931 crore, with EBITDA up 4% quarter-on-quarter and net headcount addition of over 3,000 associates, reaching 353,500.

• Specialized Staffing returned to net headcount growth, while Degree Apprenticeship and HR Services segments saw top-line growth but faced profitability challenges due to delayed billings.

• HR Services revenue surged 66% YoY, with ongoing integration of TSR Darashaw HR Services and Crystal HR; investments in HR tech and international expansion (Ikigai) are expected to support future growth.

• 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

• Consolidated Q3FY25 revenue: Rs. 2,931 crore, up 4% QoQ and 19% YoY; 9MFY25 revenue: Rs. 8,333 crore, up 20% YoY.

• EBITDA for Q3FY25: Rs. 35 crore, up 4% QoQ but down 3% YoY; EBITDA margin at 1.2%.

• PAT for Q3FY25: Rs. 28 crore, up 14% QoQ but down 9% YoY; PAT margin at 1.0%.

• EPS (Basic and Diluted) for Q3FY25: Rs. 17; headcount at 353,500, up 1% QoQ and 14% YoY.

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

Outlook and guidance

• Q4 is expected to see a marginal decline in headcount due to BFSI sector weakness, but normalization and growth are anticipated from Q1 FY26.

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

• EdTech is expected to contribute significantly in Q4 due to delayed university billings, with full-year EBITDA margin guidance of 6%-7%.