TeamLease Services Q3FY26 Results: Revenue ₹3,037Cr, Net Profit Surges 50% YoY
TeamLease Services delivered robust Q3FY26 performance with consolidated revenue of ₹3,036.7 crores and net profit jumping 50% year-on-year to ₹42.5 crores. The company demonstrated strong operational efficiency with EBITDA growing 22% to ₹42.5 crores and improved margins despite facing headcount challenges from BFSI client insourcing activities. Nine-month revenue reached ₹8,981.5 crores with 8% growth, while the company maintains strong cash position of ₹430 crores and added 107 new client logos during the quarter.
*this image is generated using AI for illustrative purposes only.
TeamLease Services has delivered strong financial performance in Q3FY26, reporting consolidated revenue of ₹3,036.7 crores and net profit of ₹42.5 crores, marking a significant 50% year-on-year increase. The company demonstrated robust operational efficiency with EBITDA growing 22% to ₹42.5 crores despite facing headcount challenges in certain segments.
Q3FY26 Financial Performance Overview
The company's third quarter results showcase substantial improvements across key financial metrics:
| Financial Metric: | Q3FY26 | Q3FY25 | YoY Growth |
|---|---|---|---|
| Total Revenue: | ₹3,036.7 crores | ₹2,931.5 crores | +4% |
| Operating Revenue: | ₹3,013.0 crores | ₹2,921.3 crores | +3% |
| EBITDA: | ₹42.5 crores | ₹34.9 crores | +22% |
| EBITDA Margin: | 1.41% | 1.20% | +21 bps |
| Net Profit: | ₹42.5 crores | ₹28.4 crores | +50% |
| PAT Margin: | 1.40% | 1.00% | +40 bps |
| EPS: | ₹25.30 | ₹17.00 | +49% |
Segment-wise Performance Analysis
TeamLease's diversified business model showed mixed performance across segments during Q3FY26. General Staffing faced headcount challenges due to client insourcing activities, while Specialized Staffing demonstrated strong growth momentum:
| Business Segment: | Revenue Growth | Key Highlights |
|---|---|---|
| General Staffing: | Impacted by BFSI insourcing | 22 new logos added, 55% under variable model |
| Specialized Staffing: | +30% YoY, +2% QoQ | 115 net additions, serves 100+ GCC clients |
| Degree Apprenticeship: | Affected by BFSI segment | 17 new logos, 30% adopted learning solutions |
| HR Services: | Seasonal improvement | 7% EBITDA margin, managing 3.5 lakh records |
Headcount and Operational Metrics
The company's total headcount stood at 335,165 in Q3FY26, representing a 5% year-on-year decline from 353,500 in Q3FY25. The reduction was primarily attributed to insourcing activities by a BFSI client, resulting in a 7% quarter-on-quarter decline. However, Specialized Staffing showed positive momentum with 115 net additions during the quarter:
| Headcount Segment: | Q3FY26 | Q3FY25 | YoY Change |
|---|---|---|---|
| General Staffing: | 282,000 | 299,600 | -6% |
| Degree Apprenticeship: | 46,000 | 47,200 | -3% |
| Specialized Staffing: | 7,165 | 6,700 | +7% |
| Total Headcount: | 335,165 | 353,500 | -5% |
Nine-Month Performance and Strategic Outlook
For the nine-month period ending Q3FY26, TeamLease achieved total revenue of ₹8,981.5 crores compared to ₹8,332.9 crores in the corresponding period last year, representing 8% growth. The company's EBITDA for the nine-month period reached ₹111.9 crores, showing a robust 24% year-on-year increase from ₹90.6 crores.
The company added 107 new client logos during the quarter and maintains a strong cash position of ₹430 crores following an income tax refund of ₹106.1 crores. Executive Vice Chairman Ashok Reddy noted that digitization and cost optimization initiatives continue contributing to operating leverage, with the full impact of BFSI headcount reduction expected to be absorbed by Q1FY27.
Historical Stock Returns for Teamlease Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.18% | -5.92% | -10.91% | -31.94% | -35.65% | -59.36% |
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