TeamLease Services (TEAMLEASE) Q3 25/26 earnings summary

Executive summary

• Q3FY26 revenue was flat sequentially at ₹3,036.7 crore but up 4% year-over-year, with EBITDA growing 11% sequentially and 22% year-over-year; PBT surged 69% sequentially and 72% year-over-year, aided by interest credit on tax refunds.

• Headcount dropped by 27,000 due to regulatory-driven insourcing by a large BFSI client, impacting General Staffing and Degree Apprenticeship segments.

• Specialized Staffing added 115 net headcount, now serving over 100 GCC clients and contributing over 65% of segment revenue.

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

• 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, up 3%.

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

Outlook and guidance

• Positive headcount growth and margin improvement expected in Q4 across all employment clusters, with full impact of BFSI headcount loss to be absorbed by Q1FY27.

• Specialized Staffing and Degree Apprenticeship segments anticipate recovery and sustained growth, supported by strong sales pipelines.

• Digitization and cost optimization initiatives to continue driving operating leverage.

• EdTech seasonality expected to drive higher Q4 EBITDA.

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