Quess Corp delivered exceptional financial performance in Q3 FY26, achieving a record quarterly EBITDA milestone while demonstrating strong operational discipline across all business segments. The company's earnings call held on January 29, 2026, revealed significant improvements in profitability metrics and margin expansion strategies.

Record Financial Performance

The company's Q3 FY26 results showcase remarkable financial achievements across key metrics. EBITDA reached a new quarterly milestone, reflecting the success of the company's diversified business model and operational efficiency initiatives.

Segment-Wise Business Performance

General Staffing: Stable Operations Despite Challenges

General Staffing maintained resilience with revenue of ₹3,409 crores and segment EBITDA of ₹45 crores, representing 1.3% margins. The segment managed 4,70,774 associates with improved operational metrics including 24-day average DSO and 76% collect-and-pay coverage.

Professional Staffing: Margin Leadership

Professional Staffing delivered outstanding performance with revenue of ₹230 crores and EBITDA of ₹29 crores, achieving record margins of 12.5%. The segment added 18 new logos in Q3, with GCC engagements accounting for 72% of total headcount of 6,934 associates.

Overseas Business: Regional Diversification Success

The Overseas segment crossed the ₹20 crores EBITDA mark with revenue of ₹290 crores, delivering 26% YoY growth and margins exceeding 7%. The Middle East region maintained double-digit margins while Malaysia and Philippines showed strong improvement.

Leadership Transitions and Strategic Focus

The company announced key leadership changes with Lohit Bhatia elevated to Chief Executive Officer effective January 1, 2026, and Neeraj Jain joining as Chief Financial Officer on December 3, 2025. These planned successions reflect the organization's leadership depth and strategic continuity.

Labour Code Impact and Future Outlook

Quess Corp conducted over 830 client consultations regarding Labour Code implementation, taking a one-time exceptional charge of ₹7 crores. The company expects minimal ongoing impact of ₹1.5-2 crores while positioning for long-term benefits from increased formalization and consolidation in the staffing industry.

Key Highlights and Dividend Declaration

The Board approved an interim dividend of ₹5 per share, reinforcing the company's commitment to shareholder returns while maintaining strong balance sheet discipline and cash generation capabilities.

Quess Corp Limited has received a final income tax assessment order for Assessment Year 2022-23, resulting in a demand of ₹159.92 crore from the Income Tax Department. The company disclosed this development through a regulatory filing under SEBI Listing Regulations on February 01, 2026.

Assessment Order Details

The final assessment and demand orders were dated January 24, 2026, and received by the company on January 31, 2026 at 04:33 PM via email. The orders were issued by the Deputy Commissioner of Income Tax, Central Circle 2(1), under the provisions of Sections 143(3) read with Section 144C(13) and Section 156 of the Income Tax Act, 1961.

Nature of Disallowances

According to the company's preliminary review, the major disallowances in the assessment order relate to:

• Deduction under Section 80JAA of the Income Tax Act
• Disallowance of certain expenses claimed by the company

The assessment order follows a similar pattern to adjustments made in previous financial years from 2016-17 to 2020-21, against which the company is currently contesting before the Income Tax Tribunal.

Company's Response Strategy

Quess Corp has indicated its intention to challenge the assessment order through appropriate legal channels. The company's management stated that it reserves the right to file an appeal and intends to vigorously contest its position based on:

• Interpretative stance of relevant IT Act sections
• Judicial precedents supporting its position
• Strong legal advice and court decisions

The management emphasized that it believes its position is legally defensible and will take appropriate steps to challenge the assessment order with the appropriate forum. The company continues to rely on legal precedents and various court decisions to support its stance on the disputed matters.