Quess Corp , a leading staffing and workforce solutions provider, has set ambitious financial targets for FY26 and is experiencing significant growth in smaller cities, according to recent company statements.

Financial Targets and Business Restructuring

Quess Corp is aiming for an Ebitda of Rs 350.00 crore and a blended margin of 2.00% by FY26. CEO Guruprasad Srinivasan expressed the company's goal to achieve a return on equity (ROE) close to 20.00%. These targets come after the company's recent demerger, completed in June, which has resulted in a simplified structure comprising four main business lines:

1. General staffing
2. India professional staffing
3. International business
4. Incubated digital platform

The restructuring has also left the company debt-free, positioning it for potential growth and improved financial performance.

Job Market Dynamics and Hiring Trends

Quess Corp currently boasts over 42,000 open job mandates, indicating robust hiring activity across various sectors. Key areas of growth include:

• Manufacturing
• Consumer goods
• Retail
• Telecom

Notably, nearly 37.00% of hiring is taking place in Tier 2 and Tier 3 cities. This trend is primarily driven by the expansion of e-commerce and related delivery solutions in these areas.

Global Capability Centres and IT Services

The Global Capability Centre (GCC) segment, which represents over 10.00% of India's 1,600 GCCs, is expected to grow at a rate of 20.00% year-on-year. This presents a significant opportunity for Quess Corp in the professional staffing sector.

While IT services hiring has softened, Quess Corp's exposure to this segment is limited to 15.00-16.00% of its business. The company has managed to offset this slowdown by catering to demand from non-tech companies and GCCs.

Stock Performance

Despite the positive outlook and strategic initiatives, Quess Corp's shares closed 0.94% lower at Rs 264.05 on the day of the announcement.

Conclusion

Quess Corp's strategic focus on diversifying its business lines, expanding into Tier 2 and Tier 3 cities, and targeting specific growth sectors positions the company to capitalize on evolving market trends. The ambitious financial targets for FY26 reflect the management's confidence in the company's restructured business model and its ability to navigate the dynamic job market landscape.

Quess Corp , a leading staffing and business services provider, has reported mixed results in its latest quarterly performance, highlighting significant trends in the IT services and staffing sectors.

IT Hiring Remains Sluggish

According to Quess Corp CEO Guruprasad Srinivasan, the IT services sector has experienced stagnant hiring for six to seven quarters. The company does not anticipate any active demand in the second quarter, signaling continued challenges for IT recruitment.

Shift in Demand Landscape

Despite the slowdown in IT hiring, Quess Corp has observed a notable shift in demand sources:

• 73% of the company's demand now comes from non-IT companies and global capability centers.
• There is a strong focus on technology talent for AI, cloud, and cybersecurity roles.
• These specialized positions command average wages of Rs 1.25 lakhs, with margins ranging from 15-18%.

Financial Performance Highlights

Quess Corp's financial results reflect the changing market dynamics:

• Consolidated profit after tax increased by 4% to Rs 51.00 crore, compared to Rs 49.00 crore in the previous year.
• The growth was primarily driven by the professional staffing segment.

Segment-wise Performance

Workforce Additions

Despite the challenges in IT hiring, Quess Corp reported positive workforce growth:

• Net addition of 2,000 employees in the quarter
• 6,500 additions in June alone
• Key sectors contributing to growth: manufacturing, banking, financial services, consumer retail, and telecom

The company's ability to adapt to changing market conditions and its strong performance in professional staffing demonstrate its resilience in a challenging economic environment. As the IT services sector continues to navigate through a period of stagnant hiring, Quess Corp's diversification into non-IT sectors and focus on specialized technology roles appear to be strategic moves to maintain growth and profitability.