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Quess Corp Q4 FY25 results: net loss of ₹95.45 crore vs ₹97.84 crore profit, revenue down 25.5%
Quess Corp Limited reported consolidated revenue of ₹3,656 crore in Q4 FY25, down 25.5% from Q4 FY24, and a net loss of ₹95.45 crore compared with a net profit of ₹97.84 crore. EBITDA fell to ₹67.36 crore and the margin declined to 1.8% from 4.0%, while the company also reported a qualified audit opinion and an emphasis of matter.
Key points
- Consolidated Q4 FY25 revenue was ₹3,656 crore, down 25.5% from Q4 FY24 and down 33.7% from Q3 FY25.
- EBITDA was ₹67.36 crore, down 65.5% year on year, while EBITDA margin declined to 1.8% from 4.0%.
- The company reported a net loss of ₹95.45 crore in Q4 FY25 against a net profit of ₹97.84 crore in Q4 FY24; basic EPS was negative ₹6.42.
- FY25 revenue was ₹14,967 crore, down 21.6% from FY24, while PAT was ₹45.89 crore, down 83.6%.
- The board recommended a final dividend of ₹6 per equity share, subject to shareholder approval; the company’s management also discussed returning up to 75% of free cash flow over three years.
How did Quess Corp perform in Q4 FY25?
Quess Corp’s consolidated revenue for Q4 FY25, the January–March 2025 quarter, was ₹3,656 crore, down 25.5% from ₹4,910 crore in Q4 FY24 and 33.7% from ₹5,519 crore in Q3 FY25. EBITDA was ₹67.36 crore, compared with ₹195.17 crore and ₹197.28 crore in the respective comparison quarters. The EBITDA margin was 1.8%, down 2.2 percentage points year on year and 1.8 percentage points sequentially.
The company reported a net loss of ₹95.45 crore in Q4 FY25 against net profits of ₹97.84 crore in Q4 FY24 and ₹85.14 crore in Q3 FY25. Loss before tax was ₹98.91 crore, compared with profit before tax of ₹94.80 crore and ₹88.58 crore in the respective quarters. Basic EPS was negative ₹6.42, against ₹6.36 and ₹5.42. On a standalone basis, revenue was ₹3,364.64 crore, down 16.7%, and the company reported a net loss of ₹81.26 crore; standalone profit before tax was ₹103.94 crore.
| ₹ crore | Q4 FY25 | Q3 FY25 | Q4 FY24 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 3,656 | 5,519 | 4,910 | −25.5% | −33.7% |
| Other income | 10.94 | 8.89 | 5.04 | +117.1% | +23.1% |
| Total expenses | 3,608 | 5,417 | 4,814 | −25.1% | −33.4% |
| EBITDA | 67.36 | 197.28 | 195.17 | −65.5% | −65.9% |
| EBITDA margin | 1.8% | 3.6% | 4.0% | −2.2 pp | −1.8 pp |
| Profit before tax | −98.91 | 88.58 | 94.80 | turned to loss | turned to loss |
| Tax | −3.46 | 3.44 | −3.04 | ||
| Net profit | −95.45 | 85.14 | 97.84 | turned to loss | turned to loss |
| EPS (₹) | −6.42 | 5.42 | 6.36 | turned to loss | turned to loss |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Quess Corp's costs and profit?
Total expenses were ₹3,608 crore in Q4 FY25, down 25.1% from ₹4,814 crore a year earlier and 33.4% from ₹5,417 crore in Q3 FY25. Employee cost fell to ₹3,454 crore from ₹4,273 crore in Q4 FY24 and ₹4,892 crore in Q3 FY25. Cost of materials was ₹0.08 crore, against ₹108.26 crore and ₹50.92 crore, while depreciation was ₹10.17 crore, against ₹73.15 crore and ₹68.88 crore.
Other income rose to ₹10.94 crore from ₹5.04 crore in Q4 FY24 and ₹8.89 crore in Q3 FY25. Other expenses were ₹134.97 crore, against ₹333 crore and ₹378.69 crore, while finance costs were ₹9.05 crore, compared with ₹26.56 crore and ₹26.60 crore. The quarter included an exceptional charge of ₹157.99 crore, compared with ₹5.71 crore in Q4 FY24 and ₹22.11 crore in Q3 FY25; management attributed the FY25 items to ECL on discontinued skilling and utility projects, goodwill impairment and demerger costs. The tax figure was negative ₹3.46 crore, compared with negative ₹3.04 crore and ₹3.44 crore.
| ₹ crore | Q4 FY25 | Q4 FY24 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 0.08 | 108.26 | −108.18 | −99.9% |
| Employee cost | 3,454 | 4,273 | −819.32 | −19.2% |
| Finance costs | 9.05 | 26.56 | −17.51 | −65.9% |
| Depreciation | 10.17 | 73.15 | −62.98 | −86.1% |
| Other expenses | 134.97 | 333 | −198.03 | −59.5% |
| Total expenses | 3,608 | 4,814 | −1,206 | −25.1% |
| Other income | 10.94 | 5.04 | +5.90 | +117.1% |
| Tax | −3.46 | −3.04 | −0.42 | |
| Exceptional items | −157.99 (charge) | −5.71 (charge) |
Source: Company's results filing (XBRL).
How did Quess Corp do in FY25 as a whole?
For FY25, Quess Corp reported consolidated revenue of ₹14,967 crore, down 21.6% from ₹19,100 crore in FY24. Total income was ₹14,990.82 crore, down 21.6% from ₹19,129.59 crore, while profit before tax was ₹41.80 crore, down 85.8% from ₹295.29 crore.
FY25 PAT was ₹45.89 crore, down 83.6% from ₹280.40 crore, and EPS was ₹3.08, down 83.5% from ₹18.72. Management presented adjusted PAT of ₹210 crore on its investor presentation, compared with ₹136 crore in FY24, excluding exceptional items for goodwill impairment, ECL and demerger expenses; the presentation also reported FY25 EBITDA of ₹262 crore and a net cash position of ₹255 crore.
| ₹ crore | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue from operations | 14,967 | 19,100 | −21.6% |
| Profit before tax | 41.80 | 295.29 | −85.8% |
| Net profit | 45.89 | 280.40 | −83.6% |
| EPS (₹) | 3.08 | 18.72 | −83.5% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 31 March 2025, total assets were ₹2,811.83 crore, compared with ₹6,413.89 crore at 30 September 2024, and total equity was ₹1,085.99 crore, compared with ₹3,086.28 crore. Borrowings fell to ₹12.06 crore from ₹252.64 crore, while cash declined to ₹249.12 crore from ₹445.03 crore. Trade receivables were ₹1,529.45 crore and trade payables ₹58.63 crore; inventories were nil, compared with ₹6.79 crore earlier.
For FY25, operating cash flow was ₹380.48 crore, compared with ₹529.27 crore in FY24. Investing cash flow was ₹2.20 crore against ₹49.49 crore, while financing cash flow was negative ₹318.15 crore against negative ₹496.50 crore. Closing cash in the FY25 data was not specified; FY24 closing cash was ₹520.12 crore.
| ₹ crore | As of 31 March 2025 | As of 30 September 2024 |
|---|---|---|
| Total assets | 2,812 | 6,414 |
| Total equity | 1,086 | 3,086 |
| Borrowings | 12.06 | 252.64 |
| Cash and equivalents | 249.12 | 445.03 |
| Inventories | 0 | 6.79 |
| Trade receivables | 1,529 | 1,676 |
Source: Company's results filing (XBRL).
| ₹ crore | FY25 | FY24 |
|---|---|---|
| Cash from operations | 380.48 | 529.27 |
| Cash from investing | 2.20 | 49.49 |
| Cash from financing | −318.15 | −496.50 |
| Capital expenditure | 0 | 0 |
Source: Company's results filing (XBRL).
How has Quess Corp done over the last 8 quarters?
Revenue rose across the first three quarters of FY25 from ₹5,003.11 crore in Q1 to ₹5,179.36 crore in Q2 and ₹5,519.07 crore in Q3, before falling to ₹3,656.42 crore in Q4. The EBITDA margin peaked at 4.0% in Q4 FY24 and reached 1.8% in Q4 FY25, while PAT moved from ₹111.68 crore in Q1 FY25 to a net loss of ₹95.45 crore in Q4 FY25. The company’s management attributed the Q4 revenue impact to an NBFC client ramp-down that removed 38,000 headcount, and guided to recovery in approximately two quarters.
Which businesses drove the quarter?
General Staffing reported revenue of ₹3,148.86 crore and EBIT of ₹43.15 crore in Q4 FY25. Professional Staffing reported revenue of ₹219.02 crore and EBIT of ₹20.16 crore. The presentation reported year-on-year revenue growth of 3% for General Staffing and 26% for Professional Staffing, with Q4 FY25 EBIT shown at ₹43 crore and ₹20 crore, respectively.
Overseas business reported revenue of ₹286.83 crore and EBIT of ₹17.49 crore, while Digital Platforms reported revenue of ₹2.10 crore and EBIT of ₹1.31 crore. The investor presentation showed year-on-year revenue growth of 3% for General Staffing, 26% for Professional Staffing, and a decline of 5% for Overseas Business; Digital Platforms revenue was shown as up 528%. The presentation also showed Q4 operating margins of 1.4% for General Staffing, 9.2% for Professional Staffing, 6.1% for Overseas Business and 62.7% for Digital Platforms.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| General Staffing | 3,149 | 43.15 | 1.4% | |
| General Staffing | 3,149 | 43.15 | 1.4% | |
| Professional staffing | 219.02 | 20.16 | 9.2% | |
| Professional staffing | 219.02 | 20.16 | 9.2% | |
| Overseas business | 286.83 | 17.49 | 6.1% | |
| Overseas business | 286.83 | 17.49 | 6.1% | |
| Digital Platforms | 2.10 | 1.31 | 62.7% | |
| Digital Platforms | 2.10 | 1.31 | 62.7% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
On 19 May 2025, the board approved the audited standalone and consolidated financial results for the quarter and financial year ended 31 March 2025. It recommended a final dividend of ₹6 per equity share, representing 60% of the ₹10 face value, subject to shareholder approval at the ensuing Annual General Meeting. The board also approved shifting the registered office to Quess Tower in Bengaluru with effect from 20 May 2025. The company filed an investor presentation for Q4 FY25 on the same day.
What did the auditors point out?
Deloitte Haskins & Sells LLP issued a qualified opinion on the annual consolidated financial results for the year ended 31 March 2025 and a qualified conclusion on the unaudited consolidated results for the quarter ended 31 March 2025. The basis for qualification concerned certain tax deductions claimed by the parent that the Income Tax Authority had disallowed, the challenge in a judicial forum, and the auditors’ statement that they were unable to comment whether adjustments were necessary because of the uncertainty.
The auditors drew attention to Provident Fund demands received by the parent and the contingency related to pending litigation. They also drew attention to the Composite Scheme of Arrangement among Quess Corp, Digitide Solutions and Bluspring Enterprises, approved by the National Company Law Tribunal, Bengaluru Bench by an order dated 17 March 2025. The filing states that the auditors found the evidence obtained sufficient and appropriate to provide a basis for the qualified audit opinion.
What did Quess Corp's management say?
Management said the company expected to improve its EBITDA margin from 1.8% to about 2% by the exit of FY26 through mix shift, IDC rationalisation and AI-led productivity. It also targeted double-digit like-to-like revenue growth in the lower teens for FY26, expected recovery of the 38,000-headcount and about 7% revenue impact from the NBFC ramp-down in approximately two quarters, and said the company was on track to become net debt-free. Adjusted ROE was expected to cross 20% from FY26, against the company’s stated FY25 level in the high teens.
Management said Q4 included exceptional items of ₹158 crore, comprising ECL on discontinued skilling and utility projects, goodwill impairment and demerger expenses. It said Professional Staffing delivered its best-ever EBITDA, with margins above 9%, while GCC accounted for 70% of segment revenue and 45 new clients were added. The company also said Singapore IT staffing continued to face visa-related headwinds, while the Middle East had overtaken Singapore; the Philippines and Malaysia contributed growth.
CEO Guruprasad Srinivasan said the three-way demerger had created a sharper focus and was intended to unlock value, support strategic transformation and deliver sustained growth. CFO Sushanth Pai said the board had approved a policy under which the company expects to return up to 75% of free cash flow through dividends or share buybacks over a cumulative three-year block. Lohit Bhatia said the company should be able to offset the headcount loss in the next one to two quarters. No analyst questions were listed in the supplied record.
How did Quess Corp shares react?
The stock’s reaction-day move was below the industry median by 9.0 percentage points, and it was below the median by 10.3 percentage points by the fifth session. Earlier reaction-day moves were down 1.1% on 29 January 2025, down 3.6% on 28 October 2024, up 1.0% on 29 July 2024 and up 3.3% on 9 May 2024. The stock was down 19.5% over one month from the pre-results close.
| After the filing | Stock | Diversified Commercial Services median |
|---|---|---|
| 5 minutes | −5.3% | |
| 15 minutes | −7.0% | |
| 30 minutes | −6.8% | |
| Reaction day | −9.0% | +0.0% |
| Next day | −9.1% | −0.1% |
| 5 days | −11.4% | −1.1% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 29 January 2025 | −1.1% |
| 28 October 2024 | −3.6% |
| 29 July 2024 | +1.0% |
| 9 May 2024 | +3.3% |
Source: MarketPing price-reaction measurement.
How did other Diversified Commercial Services companies do?
Among 77 Diversified Commercial Services companies compared, the median revenue growth was 19.5%. Eleven peers grew more slowly than Quess Corp and 66 grew faster. Profit rose for 45 peers, with 102 peers assessed for the profit comparison.
| Quess Corp revenue growth (YoY) | −25.5% |
|---|---|
| Median of 77 other Diversified Commercial Services companies | +19.5% |
| Companies with slower revenue growth than Quess Corp | 11 of 77 |
| Companies with faster revenue growth than Quess Corp | 66 of 77 |
| Companies whose net profit rose | 45 of 102 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Quess Corp's revenue in Q4 FY25?
Revenue from operations was ₹3,656 crore, down 25.5% from ₹4,910 crore in Q4 FY24 (consolidated).
Did Quess Corp make a profit in Q4 FY25?
No. It reported a net loss of ₹95.45 crore, against a net profit of ₹97.84 crore in Q4 FY24.
What was Quess Corp's EPS in Q4 FY25?
Basic loss per share was ₹6.42, against ₹6.36 in Q4 FY24.
How did Quess Corp shares react to the Q4 FY25 results?
On the reaction day the stock moved −9.0% from the previous close; the median Diversified Commercial Services stock moved +0.0%.
When did Quess Corp announce its Q4 FY25 results?
On 19 May 2025, in a filing to the NSE.
Sources
- Outcome of Board Meeting (NSE, 19 May 2025) · PDF
- General Updates (NSE, 19 May 2025) · PDF
- Outcome of Board Meeting (NSE, 19 May 2025) · PDF
- The earnings call (23 May 2025)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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