Quess Corp Q2 FY27 results: net profit up 44.2% to ₹74.66 crore, revenue up 14.7%

How did Quess Corp perform in Q2 FY27?

Quess Corp reported consolidated revenue of ₹4,396 crore for Q2 FY27, the July–September 2026 quarter, up 14.7% from ₹3,832 crore in Q2 FY26. Total income rose 14.7% to ₹4,398.51 crore from ₹3,835.65 crore, while total expenses increased 14.7% to ₹4,334 crore from ₹3,778 crore.

EBITDA for the quarter was ₹85.72 crore, up 11.8% from ₹76.70 crore a year earlier, with the margin at 1.9% against 2.0%. Profit before tax rose 12.5% to ₹64.64 crore from ₹57.46 crore, and net profit rose 44.2% to ₹74.66 crore from ₹51.77 crore. Basic EPS was ₹5.05 against ₹3.46.

Sequentially, revenue rose 5.1% from ₹4,182 crore in Q1 FY27, and EBITDA edged up 1.4% from ₹84.54 crore. Profit before tax fell 24.7% to ₹64.64 crore from ₹85.88 crore, net profit fell 9.1% to ₹74.66 crore from ₹82.12 crore, and basic EPS fell 8.2% to ₹5.05 from ₹5.5. On the standalone basis, revenue was ₹4,076.3 crore, up 15.1%, and profit after tax was ₹76.48 crore against ₹27.1 crore.

What changed in Quess Corp's costs and profit?

Employee cost rose 14.2% to ₹4,181 crore from ₹3,660 crore in the year-ago quarter, an increase of ₹520.50 crore. Other expenses rose 37.3% by ₹35.35 crore to ₹130.18 crore from ₹94.83 crore, and finance costs increased 8.2% by ₹1.07 crore to ₹14.12 crore from ₹13.05 crore. Depreciation fell 12.0% by ₹1.23 crore to ₹8.99 crore from ₹10.22 crore, while cost of materials was unchanged.

Other income fell 49.8% by ₹2.01 crore to ₹2.03 crore from ₹4.04 crore. There was no exceptional item in the quarter. The tax line moved from ₹5.69 crore in Q2 FY26 to a tax credit of ₹10.02 crore in Q2 FY27, a downward difference of ₹15.71 crore.

Against Q1 FY27, employee cost rose ₹221.39 crore to ₹4,181 crore and other expenses fell ₹7.77 crore to ₹130.18 crore. Other income fell ₹23.52 crore to ₹2.03 crore from ₹25.55 crore, and the tax line moved to a credit of ₹10.02 crore from ₹3.76 crore, a downward difference of ₹13.78 crore. The filings do not state reasons for these movements.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹8,578.17 crore, up 14.6% by ₹1,095.14 crore from ₹7,483.03 crore in H1 FY26. Total income rose 14.9% to ₹8,605.74 crore from ₹7,491.78 crore.

Profit before tax for the half year rose 37.2% by ₹40.83 crore to ₹150.52 crore from ₹109.69 crore, while net profit rose 52.6% by ₹54.02 crore to ₹156.78 crore from ₹102.76 crore. EPS rose 53.3% to ₹10.55 from ₹6.88.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets stood at ₹3,650.36 crore against ₹3,039.11 crore as on 31 March 2026, and total equity was ₹1,185.41 crore against ₹1,168.23 crore. Borrowings were unchanged at no borrowings reported in either period.

Cash and cash equivalents rose to ₹416.8 crore from ₹178.13 crore at the previous balance sheet date. Trade receivables were ₹838.75 crore against ₹807.98 crore, and trade payables were ₹27.85 crore against ₹27.27 crore. Inventories were reported at no amount in either period.

For H1 FY27, operating cash flow was ₹366.15 crore against ₹158.34 crore in H1 FY26, and investing cash flow was ₹33.65 crore against a negative ₹34.45 crore. Financing cash flow was a negative ₹161.88 crore against a negative ₹129.35 crore, while capital expenditure was ₹5.88 crore against no capital expenditure reported.

How has Quess Corp done over the last 8 quarters?

Revenue has risen year on year in each of the last three quarters. After the Q3 FY25 peak of ₹5,519.07 crore, quarterly revenue fell to ₹3,656.42 crore in Q4 FY25, the lowest in the series, before recovering through the following quarters to ₹4,396.48 crore in Q2 FY27.

Net profit reached a low of a loss of ₹95.45 crore in Q4 FY25, then improved to ₹50.99 crore in Q1 FY26 and peaked at ₹82.12 crore in Q1 FY27 before easing to ₹74.66 crore in the latest quarter. Profit rose year on year in each of the last two quarters.

The EBITDA margin was lowest at 1.8% in Q4 FY25 and highest at 3.6% in Q3 FY25. It has since moved in a narrower band, reaching 2.2% in Q4 FY26 and easing to 1.9% in Q2 FY27.

Which businesses drove the quarter?

General Staffing reported revenue of ₹3,822.72 crore and EBIT of ₹56.85 crore, with an EBIT margin of 1.5%. Professional Staffing reported revenue of ₹254.07 crore and EBIT of ₹26.69 crore, at an EBIT margin of 10.5%.

Overseas business reported revenue of ₹318.06 crore and EBIT of ₹21.98 crore, with an EBIT margin of 6.9%. Digital Platforms reported revenue of ₹1.64 crore and EBIT of ₹1.52 crore, at an EBIT margin of 92.3%. The filings do not give year-ago segment revenue or EBIT for comparison.

What else did the company announce?

The board, at its meeting on 30 October 2026, approved the unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026, together with the limited review report issued by the statutory auditors.

The board declared an interim dividend of ₹5 per equity share, or 50% of the face value of ₹10 each, for FY27. The record date was fixed as 6 November 2026, and payment is to be made on or before 20 November 2026.

The board also approved continuing with MUFG Intime India Private Limited as the registrar to the issue and share transfer agent, citing enhanced service standards and continuity of shareholder servicing. The proposed change of RTA will not proceed, and the earlier intimation dated 4 May 2026 stands superseded.

What did the auditors point out?

The independent auditor's review report carries a qualified conclusion. Certain tax deductions claimed by the parent and recognised in income tax expense in the current and preceding periods were disallowed by the Income Tax Authority. The parent has challenged the disallowance in a judicial forum and, supported by external opinions from legal counsel and tax experts, has concluded it is probable the deductions will be accepted upon ultimate resolution. Because of the uncertainty pending resolution, the auditor said it was unable to comment on whether adjustments were necessary.

The auditors drew attention to note 4 of the statement regarding demands received by the parent in respect of provident fund and contingency related to pending litigation, and stated that their conclusion on the statement was not modified in respect of this matter. They also said a review is substantially less in scope than an audit under Section 143(10) of the Companies Act, 2013, and that they do not express an audit opinion.

What did Quess Corp's management say?

On the earnings call on 4 November 2026, management said all three core segments posted double-digit Q2 revenue growth, with total workforce reaching about 504,000. Management added that the quarter's growth included ₹120 crore of one-time, profit-neutral Labour Code revenue, and that quarterly cash collections exceeded ₹5,000 crore, with the company ending Q2 with ₹471 crore of net cash.

Management maintained its Professional Staffing EBITDA margin guidance at 11%-12% for FY27, with an exit margin near 12%. Executive Director and Group CEO Lohit Bhatia said: "Our exit still continues and our guidance for the year continues to be between 11% to 12% with an exit near 12% is where we want to be in PS, and we are working towards that."

Management guided General Staffing to 10,000-15,000 net associate additions per quarter in Q3 FY27 and subsequent quarters, while remaining open to exceeding that if opportunities arise. It also expects 35,000-40,000 offers from the Brain channel in H2 FY27, and set out new targets for the QMS, including 50% of queries resolved by December 2026 and up to 80% by March 2027.

Management said Phase 1 of the Confluence platform and the digital fractional workforce platform are targeted for January 2027, with additional Confluence phases during 2027. Chief Financial Officer Neeraj Jain said: "In quarter 2, we have reported a first ever breakeven quarter, in fact, positive quarter for the digital platform."

Management identified risks including General Staffing demand exposure to economic and labour-market cycles, Professional Staffing investment weighing on margins for three-to-four financial years, flat Middle East revenue because of geopolitical disruption, front-loaded ESOP accounting charges, and the unresolved EPFO demand of ₹72 crore and the 80JJAA outcome, with the hearing deferred to January 2027.

How did Quess Corp shares react?

The results were filed after market hours on 30 October 2026. From the price when the filing appeared, the stock moved up 1.0% after five minutes, 3.3% after 15 minutes and 4.2% after 30 minutes. On the reaction day, the stock closed 3.3% above its previous close of ₹306.3.

Earlier reaction-day moves were mixed: the stock rose 0.7% on 29 July 2026 and 4.9% on 4 May 2026, rose 1.0% on 28 January 2026, fell 2.0% on 29 October 2025, rose 2.0% on 28 July 2025, fell 9.0% on 19 May 2025, fell 1.1% on 29 January 2025 and fell 3.6% on 28 October 2024.

How did other Diversified Commercial Services companies do?

Among the Diversified Commercial Services companies that have filed for this quarter, 24 peers were compared on revenue growth, with a median revenue growth of 18.1%, against Quess Corp's 14.7% revenue growth in Q2 FY27.

Of those peers, 11 grew slower than the company and 13 grew faster than the company. On profit, 18 peers recorded higher profit out of 30 peers compared, as on 4 November 2026.