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
-1.60%	-1.79%	-6.78%	-20.81%	-45.91%	-38.66%

TeamLease Services Limited has witnessed significant developments in both its shareholding structure and international expansion strategy, with recent promoter share pledging activities and continued growth in Singapore operations.

Recent Share Pledge Transaction

Hansini Management Consultant Private Limited, a promoter of TeamLease Services Limited, has pledged 84,050 equity shares representing 0.50% of the total share capital. The pledge was executed on December 16 and reported on December 17.

Transaction Details:	Information
Pledged Shares:	84,050 equity shares
Percentage of Capital:	0.50%
Pledgee:	Kotak Securities Limited
Purpose:	Loan against property
Loan Amount:	₹22.00 crores
Transaction Date:	December 16
Reporting Date:	December 17

The shares have been pledged as security with Kotak Securities Limited for a loan against property approved for Hansini Management Consultant Private Limited. This transaction involved the transfer of shares from one demat account to another as part of the pledging process.

Previous Share Pledge Activities

Earlier, the same promoter entity had released a pledge on 84,050 equity shares in August. The shares were previously pledged to Kotak Mahindra Bank Limited as security for a loan against property worth ₹22.00 crores. Following that release, Hansini Management Consultant Private Limited's total shareholding stood at 1,31,442 shares, representing 0.78% of the total share capital.

Singapore Expansion Strategy

TeamLease Digital Singapore Pte. Ltd., a step-down subsidiary, has incorporated TeamLease Digital Solutions Pte. Ltd. as a wholly-owned subsidiary in Singapore. The incorporation was completed on September 1, with confirmation received on September 3.

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

This strategic expansion enhances TeamLease's presence in Southeast Asia's staffing market, positioning the company for growth in the Asia-Pacific region. The new entity strengthens the company's international footprint and operational capabilities in Singapore's competitive staffing industry.