TeamLease Services Limited (NSE: TEAMLEASE, BSE: 539658) announced its results for Q3FY26. Profit Before Tax (PBT) increased by 69% on a sequential basis, primarily driven by interest credit on tax refunds. The company added 107 new logos during the quarter. The company received an Income Tax refund for AY 2024-25 amounting to Rs.106.1 crore.
Financial Performance
TeamLease Services Limited reported a 11% sequential growth in EBITDA and 22% year-over-year in Q3FY26. PBT increased by 69% on a sequential basis due to interest credit on tax refunds. The company received an Income Tax refund for AY 2024-25 amounting to Rs.106.1 crore, which includes interest of Rs.10.1 crore. As a result, net free cash now stands at Rs.430 crore.
Key Figures
Key financial figures for Q3FY26 include:
- Total Revenue: Rs. 3,036.7 Crores
- EBITDA: Rs. 42.5 Crores, with a margin of 1.41%
- PBT: Rs. 49.1 Crores, with a margin of 1.6%
- Profit after Tax: Rs. 42.5 Crores, with a margin of 1.4%
- EPS: Rs. 25.3
Segment Highlights
Several segments contributed to the company’s performance:
- General Staffing: 22 new logos added with over 55% under the variable model. Headcount growth was impacted by insourcing by a BFSI client, resulting in a 7% decline QoQ.
- Degree Apprenticeship (DA): Headcount impacted due to insourcing in the BFSI segment. 17 new logos were added.
- Specialized Staffing: Gross revenue grew by 2% QoQ and 30% YoY.
- HR Services: EBITDA % improved to 7% because of EdTech seasonality billing.
Operational Developments
TeamLease added 107 new logos during the quarter. The DSO of 7 days and funding exposure of 14% stayed consistent with the prior year.
Management Commentary
According to Mr. Ashok Reddy, Executive Vice Chairman & Whole-Time Director, initiatives on digitization and cost optimization have contributed to operating leverage. He mentioned that the new logo acquisition is stable, and the YTD EBITDA grew 24% YoY, setting a strong base for the future.
Source: BSE
