Quess Corp539978Quarterly results

Board approves interim dividend of Rs. 5/- per share and Q2 FY27 results; auditor's review carries a qualified conclusion

Board approved unaudited results for the quarter and half year ended 30 September 2026 and an interim dividend of Rs. 5/- per equity share (50% of face value of Rs. 10/-), record date November 06, 2026, payment on or before November 20.

By ScoutQuest · Fri 30 Oct 2026, 8:38 PM IST · 4 min read

Consolidated · ₹ million · EPS in ₹
Line item	Latest	Year ago	YoY	Prev qtr	QoQ
Revenue from operations	43,964.85	38,316.08	+14.7%	41,816.85	+5.1%
Total income	43,985.12	38,356.46	+14.7%	42,072.32	+4.5%
Profit before tax	646.39	574.63	+12.5%	858.83	−24.7%
Profit after tax	746.61	517.72	+44.2%	821.24	−9.1%
Total comprehensive income	719.23	535.94	+34.2%	721.32	−0.3%
Basic EPS	5.05	3.46	+46%	5.50	−8.2%

Profit after tax YoY change: +44.2%
Period: 30 September 2026

Also decided at the meeting

Declared interim dividend of Rs. 5/- per equity share (50%) of face value Rs. 10/- for FY 2026-27, aggregating to INR 746.93 million.
Record date for the interim dividend fixed as Friday, November 06, 2026; dividend to be paid on or before November 20, 2026.
Board approved continuing with MUFG Intime India Private Limited as RTA; proposed change of RTA dropped, superseding intimation dated May 04, 2026.

Auditor's review

Conclusion: Qualified

Qualified: section 80JJAA and goodwill tax deductions claimed by the Parent were disallowed by Income Tax Authority; given uncertainty, auditor unable to comment whether adjustments are necessary.
Emphasis of matter: note 4 on provident fund demands received by the Parent (RPFC order demanding INR 716.56 million) and related contingency in pending litigation.

Notes to the results

Income tax: Company assessed INR 3,879.94 million as contingent liabilities for 80JJAA/goodwill disputes; claimed 80JJAA deduction of INR 1,447.00 million for the quarter.
Labour Codes: incremental impact for billable employees recognised in employee benefit expense with corresponding credit to revenue; no impact on profit for the period.

What the board approved

Unaudited financial results (standalone and consolidated) for the quarter and half year ended 30 September 2026, along with the Limited Review Report of the statutory auditors.
An interim dividend of Rs. 5/- per equity share, which is 50% of the face value of Rs. 10/- each, for the financial year 2026-27.
Continuing with MUFG Intime India Private Limited as the Registrar to an Issue and Share Transfer Agent. The proposed change of RTA will not be proceeded with, and the earlier intimation dated May 04, 2026 stands superseded.

Dividend timeline

Record date for deciding who is eligible: Friday, November 06, 2026.
The interim dividend will be paid on or before November 20, 2026.

The dividend figure in plain terms: each share carries a face value of Rs. 10/-, and the payout is Rs. 5/- per share, i.e. half of the face value.

Consolidated results, as printed in INR in millions (unaudited)

Revenue from operations for the quarter ended 30 September 2026: 43,964.85, against 41,816.85 in the quarter ended 30 June 2026 and 38,316.08 in the quarter ended 30 September 2025.
Total income for the quarter: 43,985.12; for the half year: 85,781.70.
Profit for the period: 746.61 for the quarter and 1,567.85 for the half year, against 1,027.58 in the half year ended 30 September 2025.
Basic earnings per share: 5.05 for the quarter and 10.55 for the half year (in INR, not annualised).

Segment view (quarter, INR in millions)

General staffing revenue 38,227.15; professional staffing 2,540.68; overseas business 3,180.58; digital platforms 16.44.
Total segment results 1,070.37 for the quarter, before unallocated corporate expenses, depreciation and finance costs.

Balance sheet and cash flow (consolidated, INR in millions)

Total assets 36,503.57 as at 30 September 2026, against 30,391.12 as at 31 March 2026.
Total equity 11,854.14; total liabilities 24,649.43.
Cash and cash equivalents 4,167.95 as at 30 September 2026.
Net cash flows from operating activities 3,661.50 for the half year ended 30 September 2026.

What the auditor's report says

The Limited Review Report by Deloitte Haskins & Sells LLP carries a Qualified Conclusion. The auditor says that, except for the possible effects of the matter described, nothing came to their attention that suggests the statement is not prepared in line with Ind AS 34 and the listing requirements.
Basis for the qualification: certain tax deductions claimed by the parent and recognised in computing income tax expense in the current and preceding periods have been disallowed by the Income Tax Authority. The parent has challenged this in a judicial forum and, supported by external legal counsel and tax expert opinions, believes these deductions are probable to be accepted on ultimate resolution. The auditor notes that, given the uncertainty, it cannot comment on whether any adjustments are necessary. This matter also qualified the earlier reports for the quarter ended 30 June 2026, the quarter and half year ended 30 September 2025 and the year ended 31 March 2026.
The auditor also reports observations received in January 2024 from another regulatory authority on the applicability of certain deductions, referred to as "new information", which the parent has taken into account.
Emphasis of Matter: attention is drawn to pending provident fund demands received by the parent and the contingency related to pending litigation. The conclusion is not modified for this matter.
Per the auditor, interim financial information of 6 subsidiaries was reviewed by other auditors, and results of 16 subsidiaries were not reviewed by their auditors; management states these are not material to the Group.

How to read this as a shareholder

The dividend is the concrete, dated cash event: Rs. 5/- per share, with the record date of November 06, 2026 deciding eligibility.
The results show the scale of the business through revenue from operations and profit for the period, and the balance sheet shows total assets and total equity as at the reporting date.
The auditor's qualified conclusion and emphasis of matter are the points to watch, as they relate to tax deductions and provident fund demands that are still pending before forums; the company's stated position is that it expects these to be resolved in its favour.

₹1,567.85 Mn

Q2 FY27₹746.61 MnH1 FY27₹1,567.85 Mn

Consolidated profit for the period, (INR in millions: ₹746.61 Mn (Q2 FY27) and ₹1,567.85 Mn (H1 FY27).

₹1,567.85 MnConsolidated profit for the period, (INR in millions

Profit after tax, quarter821.24 (INR in millions)

Profit after tax, latest quarter746.61 (INR in millions)

Consolidated profit for the period, (INR in millions ₹1,567.85 Mn: Profit after tax, quarter 821.24 (INR in millions), Profit after tax, latest quarter 746.61 (INR in millions).

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