Teamlease Services , a leading staffing company in India, has reported a robust performance in the second quarter, with significant growth across key financial metrics and headcount additions.

Financial Highlights

The company demonstrated strong financial performance in Q2:

On a year-on-year basis, EBITDA grew by 25.00%, with inorganic contributions accounting for about 5.00% of this growth.

Headcount Growth and Client Acquisition

TeamLease Services reported a net addition of over 7,000 headcount across all three employment business units in Q2. The company's staffing business alone added over 8,000 net headcount, representing a 3.00% quarter-on-quarter growth. Notably, 23.00% of these additions came from new client acquisitions.

The company's focus on client acquisition remained strong, with over 140 new logos added during the quarter. Approximately 67.00% of the new logo sign-ups were on a variable markup model, which is expected to contribute to margin improvements in the future.

Sector-wise Performance

• BFSI Sector: Showed early signs of stabilization after a slowdown. Banks and NBFCs resumed controlled hiring, particularly in Tier 2 and 3 locations.
• Consumer Business: Demonstrated resilience in semi-urban and rural markets, despite pressure from weak urban demand and unseasonal weather affecting FMCG sales.
• E-commerce and Logistics: Experienced short-term staffing increases linked to festive season volumes.
• Telecom: Continued targeted expansion of manpower in areas such as frontline sales and network management.

Specialized Staffing and Global Capability Centers (GCCs)

The specialized staffing segment saw positive momentum, particularly from Tier 2 IT services companies and GCCs. This segment reported an 18.00% quarter-on-quarter growth and a 17.00% year-on-year growth. GCCs continued to be a core growth engine, contributing about 62.00% of the overall net revenue in specialized staffing.

Degree Apprenticeship

The degree apprenticeship program added about 2,600 apprentices across various schemes and increased operational PAPM by Rs. 11.00. The company added 19 new logos in this segment during the quarter.

Operational Efficiency and Future Outlook

TeamLease Services maintained stable balance sheet metrics with DSO at 7 days for the staffing business and a free cash balance of Rs. 320.00 crores. The company's FTE productivity improved to 382, enabling management of headcount growth without additional overhead.

Looking ahead, the management expects continued momentum in client acquisitions and revenue growth, with over 20,000 open positions currently available. The company remains optimistic about demand positions in the next two quarters, projecting them to be more positive than in the first two quarters.

Ashok Reddy, Managing Director and CEO of TeamLease Services, commented on the results, stating, "We had a consistent quarter for the company. Our continued focus on driving productivity, especially in sales and hiring, combined with the momentum we are seeing from our digital transformation, gives us strong conviction about the year ahead."

As TeamLease Services continues to navigate the evolving employment landscape in India, its diversified portfolio and focus on operational excellence position it well for sustained growth in the coming quarters.

Teamlease Services has announced the completion of its acquisition of TSR Darashaw HR Services Private Limited (TSR Darashaw), marking a significant expansion in its managed payroll services portfolio. The company, which had previously acquired a 90% stake in TSR Darashaw on December 20, 2024, has now secured the remaining 10% stake, making TSR Darashaw a wholly-owned subsidiary as of November 7, 2025.

Acquisition Details

About TSR Darashaw

TSR Darashaw HR Services Private Limited, incorporated on April 23, 2018, is a leading provider of HR services, specializing in:

• Payroll processing
• Reimbursement processing
• Full & final settlements
• Investment proof checking
• MIS reports
• Email helpdesk
• Web-based employee services

The company has shown consistent growth over the past three years:

Strategic Implications

This acquisition strengthens TeamLease's position in the managed payroll services space in India. TSR Darashaw brings to the table:

• A client base of 70 enterprises
• Over 1.65 lakh payroll records
• Normalized Operating PBT margin of 20% (FY25)

Management Commentary

Ashok Reddy, Managing Director & CEO of TeamLease Services Limited, commented on the acquisition: "Our acquisition of TSR Darashaw's payroll processing business provides crucial infrastructure for our vision of becoming India's largest Human Capital Management (HCM) service provider. This transaction enables us to serve over 450 Corporates, managing 465,000 payroll records, in addition to the 350,000 payroll records already handled within our employment cluster."

Market Impact

The completion of this acquisition aligns with TeamLease's strategic vision to strengthen client partnerships by offering innovative, differentiated business solutions and delivering talent at scale. It also positions TeamLease to capitalize on the growing demand for outsourced HR and payroll services in India's evolving business landscape.

As TeamLease continues to expand its service offerings and client base, investors and market watchers will be keen to observe how this acquisition translates into revenue growth and market share expansion in the coming quarters.