Team Lease Serv. Q2 FY27 Results (NSE: TEAMLEASE)
Signal: Steady quarter
The read
The trajectory is bifurcating: Q2 revenue growth slowed to 2% YoY from 5% in Q1FY27 as total headcount fell 8%, while Specialised Staffing improved its mix through 130+ GCC clients and India EBITDA margin of 7.6%; however, consolidated EBITDA margin at 1.2% remained 10bps below last year and PAT fell 7% to ₹26 crore because investment and buyback-related costs offset the operating progress.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,086 Cr | 2% | 1% |
| Net profit | ₹26 Cr | -7% | |
| EPS | ₹15 | N/A | |
| EBIT margin | 1.2% |
P&L walk
Revenue increased to ₹3,086 crore, up 2% YoY and 1% QoQ, but EBITDA declined 6% YoY to ₹36 crore as investments in people, brand and technology and buyback-related unallocated expenses offset operating improvement; PAT fell 7% YoY to ₹26 crore.
Segments
Absolute segment revenue and PBIT are not disclosed, but Specialised Staffing is the relative growth engine: headcount rose 9% YoY, GCC clients increased to 130+ from 110+ at FY26-end, and GCC contributed over 67% of segment revenue; General Staffing and Degree Apprenticeship headcount fell 6% and 22% YoY respectively.
Key positives
- Operating EBITDA increased 17% QoQ to ₹44 crore and 11% in H1FY27, despite total headcount declining 8% YoY.
- Specialised Staffing headcount grew 9% YoY to 7,670, with GCC contributing over 67% of segment revenue and the client base expanding to 130+ from 110+ at FY26-end.
- Specialised Staffing EBITDA rose 15% sequentially on better revenue mix; India achieved 7.6% EBITDA margin and Global achieved 4.3%.
- The company added 114 new client logos in Q2FY27, including 32 in General Staffing and 13 in Degree Apprenticeship.
- Net free cash stood at ₹350 crore after the buyback outflow, providing capacity for investment in people, brand, technology and potential M&A.
Key concerns
- Total headcount declined 8% YoY to 3,33,170, driven by a 6% decline in General Staffing and a 22% decline in Degree Apprenticeship.
- Consolidated EBITDA fell 6% YoY to ₹36 crore and EBITDA margin contracted 10bps to 1.2%, despite revenue growth of 2%, reflecting investments in people, brand and technology and buyback-related unallocated expenses.
- PAT declined 7% YoY to ₹26 crore and 25% QoQ, while revenue increased 1% sequentially.
- HR Services reported a 3% segment EBITDA margin and continued losses, although losses narrowed YoY; Degree Apprenticeship leadership transition in Q3FY27 adds execution risk.
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