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Earnings Call Transcript

TeamLease Services Earnings Call Transcript: Key Takeaways

Q1FY27 revenue grew 6% YoY to INR 3,056cr; PBT/PAT surged 38%. Management is pivoting toward higher-margin GCC and AI-specialized staffing to drive future profitability.

Guidance and delivery
Management target EBITDA Margin 20.0% FY27
Highlights
Revenue growth6% YoY consolidated growth.
MarginsNear-term flat; expansion expected in Q3/Q4 through business mix.
Order bookSmart meter target is 1/4 installed; execution runs to March 2028.
Demand visibilityVisibility remains quarterly; open positions stand at 17,500.
Management confidenceBullish on festive season and structural tailwinds from new labor codes.

Growth

Revenue rose 6% YoY and 4% sequentially. Business EBITDA grew 18% YoY, though seasonal EdTech dips impacted sequential margins.

Outlook

Targeting 8-9% EBITDA margins in specialized staffing and 10% in EdTech. Guidance for 20% EBITDA growth in FY27.

Risks

Softness in BFSI hiring, weak monsoon, retail inflation at 4.38%, and transition to GST 2.0 impacting client models.

Last quarter's promises, checked

Delivered

  • Guided H1FY27 positive headcount → delivered 4% sequential revenue growth (= BEAT)
  • Targeted FY27 EBITDA growth >20% → Q1FY27 PBT/PAT surged 38% (= BEAT)
  • Guided operating leverage from FY26 → delivered 18% YoY Business EBITDA growth (= BEAT)

Partly delivered

  • Guided margin expansion via business mix → delivered YoY growth but sequential EdTech dip (= PARTIAL)

Missed

  • Guided 20,000 open positions → delivered 17,500 open positions (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: TEAMLEASE. Summary written with AI assistance from the document.

Read the document ↗

TeamLease Services Ltd: key numbers

Share price
₹1,173.00
Market cap
₹1,967 Cr
Revenue (annual)
₹11,791 Cr
Net profit (annual)
₹139.7 Cr
P/E (TTM)
13.3×Sector 41.4×
Promoter holding
33.29%+2.18% QoQ
FII holding
8.05%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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