TeamLease Services Reports 11.9% Growth in Q2 Net Profit, Driven by Strong Performance Across Segments

TeamLease Services Limited , one of India's leading staffing companies, has announced its financial results for the second quarter, showcasing robust growth across key metrics.

Financial Highlights

The company reported a consolidated net profit of ₹27.84 crore for Q2, marking an 11.9% increase from ₹24.85 crore in the same quarter last year. This growth was supported by a strong performance across various business segments.

Metric (in Crore Rupees)	Q2 Current	Q2 Previous	YoY Change
Revenue from Operations	3,032.07	2,796.83	+8.4%
Total Income	3,040.77	2,807.52	+8.3%
EBITDA	38.00	33.00	+15.2%
EBITDA Margin	1.3%	1.2%	+10 bps
Profit Before Tax (PBT)	29.01	25.91	+12.0%
Net Profit	27.84	24.85	+11.9%

Operational Performance

TeamLease Services demonstrated strong operational growth during the quarter:

Total headcount reached 362,000, a 3% increase year-over-year
General Staffing headcount grew to 303,350, up 2% from the previous year
Degree Apprenticeship program saw a significant 14% growth, reaching 51,600 apprentices
Specialized Staffing increased by 6% to 7,050 employees

Segment-wise Performance

General Staffing

Revenue grew by 4% quarter-on-quarter
37 new client logos added, with over 65% under the variable model
23% of Q2's net headcount came from new client acquisitions
23% of gross associates hired were first-time job seekers

Degree Apprenticeship (DA)

Net addition of 2,600 headcount in Q2
19 new logos added during the quarter
31% of total associates have fully adopted learning solutions

Specialized Staffing

Gross revenue increased by 8% quarter-on-quarter and 28% year-on-year
Organic year-on-year growth stood at 17%
320 net additions, including 25 from Singapore operations
GCC (Gulf Cooperation Council) segment contributed over 60% of net revenue

HR Services

Achieved breakeven EBITDA for the quarter, driven by EdTech billing improvements
Managing over 3.5 lakh monthly records in the HCM (Human Capital Management) business

Management Commentary

Ashok Reddy, Managing Director of TeamLease Services Limited, commented on the results: "We had an overall decent quarter with 11,000 net adds and 24% QoQ growth in EBITDA. Our GCC-focused approach in Specialized Staffing with diversified product offerings has helped with growth momentum in both revenues and profits. While BFSI headwinds in general staffing persist, contributions from retail, e-commerce, consumer, and telecom verticals are promising. We are confident of expanding the overall EBITDA for the year with continued focus on growth and operating leverage."

Future Outlook

TeamLease Services appears well-positioned for continued growth, leveraging its diverse service offerings and strong market presence. The company's focus on specialized staffing, particularly in the GCC region, and its growing apprenticeship program are expected to be key drivers of future performance. However, investors should note the potential challenges in the BFSI sector, which may impact the general staffing segment.

As TeamLease Services continues to expand its client base and diversify its service offerings, it remains a significant player in India's evolving human resource solutions landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.83%	-2.68%	-5.39%	-10.21%	-37.48%	-23.73%

Teamlease Services Limited, a prominent player in the staffing industry, has made significant strides in its global expansion strategy while also witnessing changes in its promoter shareholding structure.

Singapore Expansion

TeamLease Digital Singapore Pte. Ltd., a step-down subsidiary of TeamLease Services Limited, has incorporated a new wholly-owned subsidiary named TeamLease Digital Solutions Pte. Ltd. in Singapore. The incorporation took place on September 1, with the company receiving confirmation on September 3.

Key details of the new subsidiary:

Name: TeamLease Digital Solutions Pte. Ltd.
Registration Number: 202538664Z
Authorized and Paid-up Capital: S$50,000.00
Industry: Staffing
Registered Office: 18 Boon Lay Way #05-95 Tradehub 21 Singapore 609966

This strategic move is aimed at enhancing TeamLease's global footprint, particularly in the Southeast Asian market. The new entity is expected to strengthen the company's presence in Singapore's staffing industry.

Share Pledge Release

In a separate development, TeamLease Services Limited has reported a significant change in its promoter shareholding structure. Hansini Management Consultant Private Limited, a promoter of the company, has released a pledge on 84,050 equity shares, representing 0.50% of the total share capital.

Details of the pledge release:

Promoter: Hansini Management Consultant Private Limited
Number of Shares Released: 84,050
Percentage of Total Share Capital: 0.50%
Date of Pledge Release: August 12
Previous Pledge Details: The shares were previously pledged to Kotak Mahindra Bank Limited as security for a loan against property worth Rs 22.00 crores.

Following this release, Hansini Management Consultant Private Limited's total shareholding in TeamLease Services Limited stands at 1,31,442 shares, representing 0.78% of the total share capital.

These developments showcase TeamLease Services' commitment to expanding its international presence while also highlighting changes in its domestic shareholding structure. The company continues to position itself strategically in the global staffing industry, with a particular focus on the Asia-Pacific region.