TeamLease Services Q2 FY27 results: net profit down 17.3% to ₹23.02 crore, revenue up 1.4%

How did TeamLease Services perform in Q2 FY27?

TeamLease Services reported consolidated revenue of ₹3,076 crore for Q2 FY27, up 1.4% from ₹3,032 crore in Q2 FY26 and 1.4% from ₹3,035 crore in Q1 FY27. Total income was ₹3,086.12 crore, up 1.5% year on year and 1.0% sequentially. The company also filed standalone results for the quarter and half year ended 30 September 2026.

Consolidated EBITDA was ₹36.17 crore in Q2 FY27, down 5.6% from ₹38.30 crore in Q2 FY26 but up 14.9% from ₹31.47 crore in Q1 FY27. The EBITDA margin was 1.2%, compared with 1.3% a year earlier and 1.0% in the previous quarter. Profit before tax was ₹26.59 crore, down 7.9% year on year and 26.1% sequentially.

The company reported a net profit of ₹23.02 crore for Q2 FY27, down 17.3% from ₹27.84 crore in Q2 FY26 and 33.2% from ₹34.45 crore in Q1 FY27. Profit attributable to owners was ₹22.98 crore, while basic EPS was ₹14.59, compared with ₹16.41 a year earlier and ₹20.79 in the preceding quarter.

What changed in TeamLease Services' costs and profit?

Employee cost was ₹2,948 crore in Q2 FY27, up ₹80.31 crore or 2.8% from ₹2,867 crore in Q2 FY26. Total expenses rose ₹44.66 crore or 1.5% to ₹3,057 crore, while other expenses fell ₹34.27 crore or 27.1% to ₹92.18 crore. Finance costs declined ₹0.93 crore to ₹3.07 crore and depreciation fell ₹0.45 crore to ₹13.67 crore.

Other income increased ₹1.44 crore or 16.6% to ₹10.14 crore, compared with ₹8.70 crore in Q2 FY26. The company recorded an exceptional charge of ₹2.98 crore in Q2 FY27, while there was no exceptional item in the year-ago quarter. Tax expense rose ₹2.40 crore or 205.1% to ₹3.57 crore.

Against Q1 FY27, employee cost increased ₹43.63 crore to ₹2,948 crore and other expenses fell ₹7.04 crore to ₹92.18 crore. Other income declined ₹11.37 crore to ₹10.14 crore, and tax expense increased ₹1.76 crore to ₹3.57 crore. Q1 FY27 had no exceptional item, against the ₹2.98 crore charge in Q2 FY27.

How did the first half of FY27 go?

For H1 FY27, TeamLease reported consolidated revenue of ₹6,110.67 crore, up 3.2% from ₹5,923.47 crore in H1 FY26. Total income rose 3.3% to ₹6,142.32 crore from ₹5,944.8 crore. Profit before tax increased 14.1% to ₹62.55 crore from ₹54.84 crore.

H1 FY27 net profit was ₹57.47 crore, up 8.7% from ₹52.85 crore in H1 FY26. Basic EPS increased 10.4% to ₹35.59 from ₹32.24. The quarter figures and half-year figures in this article use the consolidated basis; the company also filed standalone results for the same periods.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹2,796.31 crore, compared with ₹2,800.48 crore at 31 March 2026. Total equity fell to ₹875.88 crore from ₹1,059.84 crore, while borrowings rose to ₹45.07 crore from ₹34.23 crore. Cash declined to ₹127.05 crore from ₹169.75 crore.

Trade receivables fell to ₹636.21 crore from ₹798.29 crore, and trade payables were ₹78.39 crore against ₹78.75 crore. The company reported no inventories at either balance sheet date. H1 FY27 operating cash flow was a cash outflow of ₹2.29 crore, compared with an inflow of ₹44.81 crore in H1 FY26.

H1 FY27 investing cash flow was ₹207.69 crore, compared with ₹22.6 crore in H1 FY26, while financing cash flow was an outflow of ₹251.51 crore against an outflow of ₹23.9 crore. Capital expenditure was ₹14.75 crore in H1 FY27, compared with ₹20.88 crore in H1 FY26.

How has TeamLease Services done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. Across the reported period, revenue reached ₹3,075.98 crore in Q2 FY27 and its low was ₹2,857.92 crore in Q4 FY25. The direction for revenue is now higher, although profit after tax was ₹23.02 crore, below the ₹46.05 crore peak reported in Q4 FY26.

EBITDA margin peaked at 1.7% in Q4 FY25 and bottomed at 1.0% in Q1 FY27. It recovered to 1.2% in Q2 FY27, while profit after tax declined from ₹34.45 crore in Q1 FY27 to ₹23.02 crore. The quarter therefore showed continued revenue growth alongside lower quarterly profit.

Which businesses drove the quarter?

General Staffing reported Q2 FY27 revenue of ₹2,828.76 crore, up 1.6% from ₹2,783.41 crore in the year-ago quarter. EBIT was ₹26.02 crore, compared with ₹26.17 crore, and the segment’s reported EBIT margin was 0.9%.

Specialised Staffing revenue was ₹189.56 crore, down 0.9% from ₹191.29 crore, while EBIT rose to ₹12.76 crore from ₹12.49 crore. Its reported EBIT margin was 6.7%. Other HR Services revenue was ₹57.66 crore, up 0.5% from ₹57.37 crore, and EBIT was a loss of ₹1.57 crore compared with a loss of ₹3.72 crore; the reported EBIT margin was -2.7%.

What else did the company announce?

On 5 November 2026, the Board reviewed and approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. The board outcome did not announce a dividend, fund raise or new appointment. The company also filed an investor presentation for Q2 FY27, while the financial results and limited review reports were enclosed with the board outcome.

The company separately informed the exchanges that Nipun Sharma resigned as Chief Executive Officer – Degree Apprenticeship for personal reasons and would be relieved with effect from 22 December 2026. Vamsikrishna Ithamraju resigned as Chief Digital and Information Officer for personal reasons and would be relieved with effect from 13 November 2026. The board noted both resignations.

TeamLease also filed that it had received an extension until 24 November 2026 to respond to a Karnataka GST show-cause notice for FY 2022-23. The company said the matter remained at the notice stage and that it was evaluating the notice. The filing recorded a 5-day delay in submitting that intimation due to an internal communication gap and said the reporting process had been strengthened.

What did the auditors point out?

S.R. Batliboi & Associates highlighted ongoing Provident Fund litigation involving a Trust sponsored by a subsidiary. The Trust received a demand and filed an appeal before the Hon’ble High Court of Gujarat challenging it. Pending the final outcome, no adjustment was considered necessary in the financial results.

The auditors stated that their conclusion was not modified in respect of this matter. They also reported that nothing had come to their attention that caused them to believe the statements had not disclosed the information required under the Listing Regulations or contained a material misstatement. The review was performed under Standard on Review Engagements 2410 and did not constitute an audit opinion.

What did TeamLease Services' management say?

Management said Q2 business outcomes were below its aspirations, while operating EBITDA for the first half increased 11% year on year. Management also reported that General Staffing and Apprenticeship headcount fell to 3,33,700 from 3,54,950 in Q2 FY26, and FTE productivity fell to 289 from 324 in Q1 FY27. Reported Q2 headcount attrition was 5,500 in General Staffing and 2,700 in Apprenticeship.

Management said GCC-led Specialised Staffing delivered profitable growth, although revenue from GCC accounts represented about 70% of Specialised Staffing revenue and ~67+% of gross margin. Other HR Services remained loss-making despite narrowing losses year on year. Management identified weaker General Staffing and Apprenticeship volumes as factors affecting the quarter’s outcome.

Management said ₹350 crore of net free cash after the buyback was available for investment in people, brand, technology and new M&A opportunities. The priorities were to build higher-margin adjacencies, deepen account penetration through structured cross-selling and strengthen sales execution. No explicit capital expenditure target or timeline, and no numerical guidance, was disclosed in the presentation.

Management also highlighted GCC concentration, weaker headcount and productivity, Q2 attrition and continued losses in Other HR Services as risks. The presentation referred to analyst questions concerning Q2 performance, business priorities, capital allocation and the outlook, but it did not provide numerical guidance for future revenue, EBITDA or profit.

How did other Diversified Commercial Services companies do?

Twenty-eight other Diversified Commercial Services companies that had filed this quarter were compared with TeamLease. Their median revenue growth was 18.1%, while 8 peers grew slower than TeamLease and 20 peers grew faster than TeamLease. Of the peers for which profit was compared, 25 reported higher profit.