TEAMLEASETeamLease Services Ltd.
TeamLease Services Q2 FY27 Results: Consolidated Net Profit ₹23.02 Crore on Total Income of ₹3,086 Crore
- Earnings
- Staffing and HR services
Reviewed byKeshav SehgalBlacklitt Research
TeamLease Services Limited reported consolidated total income of ₹3,086.12 crore and net profit of ₹23.02 crore for the quarter ended 30 Sep 2026. Standalone total income was ₹2,775.86 crore and standalone net profit was ₹11.81 crore.
Key highlights
Consolidated
Including its subsidiaries
- Total income: ₹3,086.12 crore, up 1.5% YoY and 1.0% QoQ
- Net profit and EPS: ₹23.02 crore, down 17.3% YoY; basic EPS ₹14.59 against ₹16.41 a year earlier
- Exceptional items: ₹1.42 crore loss on sale of joint venture investment; ₹1.56 crore impairment allowance
- Segment revenue: General Staffing and Allied Services ₹2,828.76 crore; Specialised Staffing Services ₹189.56 crore
Standalone
The company on its own, without its subsidiaries
- Total income: ₹2,775.86 crore, up 0.5% YoY and 0.5% QoQ
- Net profit and EPS: ₹11.81 crore, down 44.1% YoY; basic EPS ₹7.50 against ₹12.59 a year earlier
- Other income: ₹11.99 crore, up 3.2% YoY
Summary
| Particulars | Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ |
|---|---|---|---|---|---|
| 3,086.12 | 3,040.77 | +1.5% | 3,056.20 | +1.0% | |
| Revenue from operations | 3,075.98 | 3,032.07 | +1.4% | 3,034.69 | +1.4% |
| Other income | 10.14 | 8.70 | +16.6% | 21.51 | -52.9% |
| 23.02 | 27.84 | -17.3% | 34.45 | -33.2% | |
| Finance costs | 3.07 | 4.00 | -23.3% | 3.65 | -15.9% |
| Depreciation | 13.67 | 14.12 | -3.2% | 13.37 | +2.2% |
| Tax expense | 3.57 | 1.17 | +205.1% | 1.81 | +97.2% |
| Net profit margin | 0.75% | 0.92% | -0.17 pp | 1.13% | -0.38 pp |
| Tax as share of profit before tax | 13.4% | 4.0% | +9.39 pp | 5.0% | +8.43 pp |
| EPS, basic (₹) | 14.59 | 16.41 | -11.1% | 20.79 | -29.8% |
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Consolidated total income was ₹3,086.12 crore for the quarter ended 30 Sep 2026, up 1.5% from ₹3,040.77 crore a year earlier and up 1.0% from ₹3,056.20 crore in the previous quarter. Revenue from operations was ₹3,075.98 crore, up 1.4% YoY and 1.4% QoQ. Other income was ₹10.14 crore, against ₹8.70 crore a year earlier.
Consolidated net profit was ₹23.02 crore, down 17.3% from ₹27.84 crore a year earlier and down 33.2% from ₹34.45 crore in the previous quarter. Basic EPS was ₹14.59 against ₹16.41 for the same quarter last year. Tax expense was ₹3.57 crore, against ₹1.17 crore a year earlier.
Two exceptional items are recognised in the consolidated results for the quarter: a loss of ₹1.42 crore on the sale of the investment in the joint venture Crystal HR and Security Solutions Private Limited, and an impairment allowance of ₹1.56 crore in TeamLease Regtech Private Limited, a subsidiary. The Company transferred its entire 30% stake in Crystal HR to Crystal HR and its promoters for ₹10.12 crore, with effect from 21 Sep 2026.
By segment, General Staffing and Allied Services contributed ₹2,828.76 crore of consolidated revenue, Specialised Staffing Services ₹189.56 crore and Other HR Services ₹57.66 crore. Quarter and half-year results are stated as not comparable with the same periods of the previous year; two subsidiaries were incorporated in September 2025 and September 2026.
| Particulars | Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ |
|---|---|---|---|---|---|
| 2,775.86 | 2,761.96 | +0.5% | 2,761.08 | +0.5% | |
| Revenue from operations | 2,763.87 | 2,750.34 | +0.5% | 2,739.36 | +0.9% |
| Other income | 11.99 | 11.62 | +3.2% | 21.72 | -44.8% |
| 11.81 | 21.11 | -44.1% | 24.29 | -51.4% | |
| Finance costs | 1.98 | 2.63 | -24.7% | 2.66 | -25.6% |
| Depreciation | 10.33 | 9.88 | +4.6% | 10.28 | +0.5% |
| Tax expense | 1.01 | -0.05 | n/a | 0.74 | +36.5% |
| Net profit margin | 0.43% | 0.76% | -0.34 pp | 0.88% | -0.45 pp |
| Tax as share of profit before tax | 7.9% | n/a | n/a | 3.0% | +4.92 pp |
| EPS, basic (₹) | 7.50 | 12.59 | -40.4% | 14.49 | -48.2% |
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Standalone total income was ₹2,775.86 crore for the quarter ended 30 Sep 2026, up 0.5% from ₹2,761.96 crore a year earlier and up 0.5% from ₹2,761.08 crore in the previous quarter. Revenue from operations was ₹2,763.87 crore, up 0.5% YoY and 0.9% QoQ. Other income was ₹11.99 crore, up 3.2% from ₹11.62 crore a year earlier and down 44.8% from ₹21.72 crore in the previous quarter.
Standalone net profit was ₹11.81 crore, down 44.1% from ₹21.11 crore a year earlier and down 51.4% from ₹24.29 crore in the previous quarter. Basic EPS was ₹7.50 against ₹12.59 a year earlier. Finance costs were ₹1.98 crore, against ₹2.63 crore a year earlier, and tax expense was ₹1.01 crore.
The standalone statement records an impairment allowance of ₹6.42 crore towards the investment in TeamLease HRTech Private Limited, created in the year ended 31 Mar 2026 and recognised as an exceptional item.
Inference
The tender offer buy-back covered up to 1,487,500 equity shares at ₹1,600 a share, approved by shareholders by special resolution through postal ballot. The tender period ran from 9 Jul 2026 to 15 Jul 2026, the shares were extinguished on 29 Jul 2026, and the total cash outflow was ₹240.78 crore including transaction costs. The press release states net free cash of ₹350 crore after the buy-back outflow, and outstanding TDS receivable of about ₹160 crore.
The auditors drew attention to Provident Fund litigation involving a trust sponsored by a subsidiary, and their conclusion is not modified in respect of it. The Gujarat High Court has granted interim relief in the related proceedings, and the matter is pending final resolution. The Company states that no adjustments have been made in the results and that, in its view, PF and other statutory deductions are not applicable on the stipend paid to the trainees.
The Karnataka High Court allowed the writ appeal filed by the tax authorities in the quarter ended 30 Jun 2026, and the Company has filed a revised writ petition, which is pending final resolution. The Company says it believes the deduction claimed under Section 80JJAA is in accordance with the Act and that, on legal advice, it is reasonably confident of a positive outcome. The filing does not say when either matter will be decided.
Filed with BSE on . Reference: Original filing (PDF)
Disclaimer:
The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.