TeamLease Services539658Quarterly results
Q2'FY27 results approved; auditors flag Provident Fund matter
Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026 and adopted the Limited Review Reports.
By ScoutQuest · · 4 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 3,075.98 | 3,006.20 | +2.3% | 3,034.69 | +1.4% |
| Total income | 3,086.12 | 3,014.90 | +2.4% | 3,056.20 | +1% |
| Profit before tax | 26.59 | 29.01 | −8.3% | 36.26 | −26.7% |
| Profit after tax | 23.02 | 27.84 | −17.3% | 34.45 | −33.2% |
| Total comprehensive income | 22.77 | 27.48 | −17.1% | 33.93 | −32.9% |
| Basic EPS | 14.59 | 16.41 | −11.1% | 20.79 | −29.8% |
- Profit after tax YoY
- −17.3%
- Period
- 3-Months Ended 30/09/2026
Auditor's review
Conclusion: Unmodified
- Emphasis of matter: ongoing Provident Fund litigation of a Trust sponsored by the Group which received a demand, appealed before the Hon'ble High Court of Gujarat; no adjustment made pending outcome.
- Other matter: reliance on review reports of other auditors for ten subsidiaries and one joint venture; conclusion not modified.
Notes to the results
- Exceptional items in quarter ended 30/09/2026: loss on sale of investments in joint venture (1.42) and impairment allowance (1.56), total (2.98) Rs. in Crores.
- Company exercised exit option and transferred entire 30% stake in Crystal HR for aggregate consideration of Rs. 10.12 crores; Crystal HR ceased to be a joint venture w.e.f. September 21, 2026.
- Buyback of up to 1,487,500 shares at Rs. 1,600 per share completed; total cash outflow Rs. 240.78 crores; shares extinguished on July 29, 2026.
- PF demand of Rs. 395 crores on TeamLease Skills University for NEEM trainees (July 2014 to June 2022) under challenge; no adjustments made.
Results and review
- The Q2'FY27 board meeting on November 05, 2026 commenced at 12:00 Noon IST and concluded at 04:20 P.M. IST.
- The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, after the Audit Committee reviewed and recommended them. The Limited Review Reports were also adopted.
- A copy of the press release on the results was issued along with the update.
Auditor's conclusion
- S.R. Batliboi & Associates LLP reviewed the standalone and consolidated statements and stated that nothing came to their attention that would cause them to believe the statements contain a material misstatement. This is a review conclusion, not an audit opinion.
- Emphasis of Matter: provident fund litigation relating to a Trust sponsored by a subsidiary. A demand of Rs. 35.49 crores was received for the period July 2014 to June 2022, and the trust shared an appeal before the Hon'ble High Court of Gujarat challenging it. Pending the final outcome, no adjustment has been considered necessary in these results, and the conclusion is not modified for this matter.
- The note also refers to the company's legal opinion and a stay order obtained earlier from the Hon'ble High Court of Madras in respect of a similar provident fund notice, and to ad-interim relief granted by the Gujarat High Court in the current proceedings.
Standalone performance (Rs. in crores)
- Revenue from operations Rs. 2,763.87 crores for the quarter, against Rs. 2,750.34 crores in the corresponding quarter last year.
- Total income Rs. 2,775.86 crores; total expenses Rs. 2,763.04 crores.
- Profit before tax Rs. 12.82 crores, against Rs. 21.06 crores.
- Net profit for the period Rs. 11.81 crores, against Rs. 21.11 crores.
- Basic and diluted EPS Rs. 7.50, against Rs. 12.59.
- Half year: revenue from operations Rs. 5,503.23 crores, profit before tax Rs. 37.85 crores, net profit Rs. 36.10 crores, EPS Rs. 22.21.
Consolidated performance (Rs. in crores)
- Revenue from operations Rs. 3,075.98 crores, against Rs. 3,006.20 crores.
- Total income Rs. 3,086.12 crores; profit before tax Rs. 26.59 crores, against Rs. 29.01 crores.
- Net profit for the period Rs. 23.02 crores, against Rs. 27.84 crores; of this, Rs. 22.98 crores is attributable to owners of the parent.
- Basic and diluted EPS Rs. 14.59, against Rs. 16.41.
- Half year: revenue from operations Rs. 6,110.07 crores, profit before tax Rs. 62.85 crores, net profit Rs. 57.47 crores, EPS Rs. 35.59.
- Exceptional items of Rs. 2.98 crores in the quarter: loss on sale of investments in joint venture Rs. 1.42 crores and impairment allowance Rs. 1.56 crores.
Other points from the notes
- Buyback: 1,47,500 fully paid equity shares of Rs. 10 each at Rs. 1,600 per equity share, representing 8.87% of the total number of equity shares. Shareholders approved it by special resolution and the results were declared on June 29, 2026; all valid bids were settled on July 21, 2026 and the shares were extinguished on July 29, 2026. Total cash outflow was Rs. 240.78 crores, and a Capital Redemption Reserve of Rs. 1.49 crores was created.
- Crystal HR & Security Solutions Private Limited: the company exercised its exit option and transferred a 30% stake to Crystal HR and its promoters for aggregate consideration of Rs. 10.12 crores, effective September 21, 2026; Crystal HR ceased to be a joint venture of the company.
- New Labour Codes, effective November 21, 2025: an incremental impact of Rs. 2.74 crores was recognised as an exceptional item in the year ended March 31, 2026.
- An impairment allowance of Rs. 6.42 crores towards the investment in TeamLease HRTech Private Limited was recognised in the year ended March 31, 2026.
- Balance sheet (standalone) as at September 30, 2026: total assets Rs. 2,431.41 crores, against Rs. 2,484.14 crores as at March 31, 2026; total equity Rs. 748.57 crores, against Rs. 953.77 crores; paid-up equity share capital Rs. 15.28 crores, against Rs. 16.77 crores.
- Cash flow (standalone) for the half year: net cash used in operating activities Rs. 42.23 crores; net cash from investing activities Rs. 240.89 crores; net cash used in financing activities Rs. 255.41 crores.
- Investments in subsidiaries of Rs. 348.81 crores and outstanding loans to subsidiaries of Rs. 11.46 crores as at September 30, 2026.
How to read this
- The numbers are unaudited and have been subject to a limited review, which is narrower in scope than a full audit.
- The auditor's conclusion is unmodified; the Emphasis of Matter paragraph draws attention to a pending legal matter for which no adjustment has been made in the results.
- The buyback referred to in the notes was completed during the period, and the notes disclose the resulting cash outflow and reserve created.
Rs. 35.49 croresProvident Fund demand on Trust sponsored by subsidiary
Net profit for the period, consolidated23.02 crore
Profit before tax, standalone12.82 crore
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More numbers
- Revenue from operations, standalone, Q2FY272,763.87 crore
- Profit before tax, standalone, Q2FY2712.82 crore
- Equity shares bought back1,47,500 fully paid equity shares
- Provident Fund demand on Trust sponsored by subsidiaryRs. 35.49 crores
- Consideration for transfer of 30% stake in Crystal HRRs. 10.12 crores
- Total income, latest quarter3,086.12 (Rs. in Crores)
- Total income, year-ago quarter3,014.90 (Rs. in Crores)
- Total income, previous quarter3,056.20 (Rs. in Crores)
- Total comprehensive income, latest quarter22.77 (Rs. in Crores)
- Total comprehensive income, year-ago quarter27.48 (Rs. in Crores)
- Total comprehensive income, previous quarter33.93 (Rs. in Crores)
- Profit after tax, latest quarter23.02 (Rs. in Crores)
- Profit after tax, year-ago quarter27.84 (Rs. in Crores)
- Profit after tax, previous quarter34.45 (Rs. in Crores)
- Revenue from operations, latest quarter3,075.98 (Rs. in Crores)
- Revenue from operations, year-ago quarter3,006.20 (Rs. in Crores)
- Revenue from operations, previous quarter3,034.69 (Rs. in Crores)
- Profit before tax, latest quarter26.59 (Rs. in Crores)
- Profit before tax, year-ago quarter29.01 (Rs. in Crores)
- Profit before tax, previous quarter36.26 (Rs. in Crores)
Source: BSE · 5 Nov 2026
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