TeamLease Services (TEAMLEASE) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue was flat sequentially but up 4% year-over-year, with EBITDA growing 11% sequentially and 22% year-over-year, and PBT up 69% sequentially, aided by an interest credit on tax refunds.

• Headcount dropped in General Staffing and Degree Apprenticeship due to regulatory-driven insourcing at BFSI clients, while Specialized Staffing added net headcount and now serves over 100 GCC clients.

• 107 new client logos were added in Q3FY26, with 22 in General Staffing and 17 in Degree Apprenticeship.

• Leadership transition underway, with a new CEO and MD inducted to drive future growth and margin improvement.

• Free cash balance stood at ₹430 crore at quarter end.

Financial highlights

• Consolidated revenue for Q3FY26 was ₹3,036.7 crore, up 4% year-over-year; operating revenue at ₹3,013 crore.

• EBITDA for Q3FY26 was ₹42.5 crore, up 11% sequentially and 22% year-over-year; EBITDA margin improved to 1.41%.

• PBT before exceptional items was ₹49.1 crore, up 69% sequentially and 72% year-over-year; PAT at ₹42.5 crore, up 53% sequentially and 50% year-over-year.

• EPS for Q3FY26 stood at ₹25.3, up from ₹16.0 in Q2FY26 and ₹17.0 in Q3FY25.

• Net free cash at ₹430 crore, with an income tax refund of ₹106.1 crore received during the quarter.

Outlook and guidance

• Positive headcount and demand outlook for Q4 across staffing, specialized staffing, and degree apprenticeship segments.

• Margin improvement expected to continue, supported by cost optimization and digitization.

• Management expects the full impact of BFSI headcount loss to be absorbed by Q1FY27.

• Focus remains on absolute profit expansion, capital frugality, and governance.

• Anticipated recovery in BFSI and continued growth in consumer, e-commerce, and technology-led roles.