Quess margin trails Services peer median by 22.33 percentage points
The consolidated quarter ended with a 2.02% operating margin, while a 4.38% tax rate also aided reported net profit.
Filed 29 Jul 2026, 20:33 IST · after market close · Quess Corp Ltd (QUESS)
Key takeaways
- Quess's consolidated Q1FY27 operating margin was 2.02%, 22.33 percentage points below the 24.35% Services median across nine reported peers.
- The 4.38% tax rate and Rs 25.55 cr of other income supported reported net profit of Rs 82.12 cr against profit before tax of Rs 85.88 cr.
- Management reported headcount of 4,82,214 and said it aspires for dollar-linked revenue to reach approximately 20–25% within three to four years.
Price around the results
Q1FY27 leaves a narrow operating cushion
Quess's consolidated revenue of Rs 4,181.69 cr translated into operating profit of Rs 84.54 cr, leaving only a 2.02% operating margin. The small operating surplus leaves reported earnings more exposed to below-the-line items than a higher-margin quarter would.
Low tax rate and other income lifted reported profit
Profit before tax was Rs 85.88 cr after interest of Rs 14.39 cr and depreciation of Rs 9.81 cr. Other income contributed Rs 25.55 cr, while the 4.38% tax rate reduced the tax charge to Rs 3.76 cr; both factors supported net profit of Rs 82.12 cr relative to operating profit.
Margin sits at the bottom of the reported Services peer set
Quess's 2.02% operating margin was 22.33 percentage points below the 24.35% median for nine Services companies that had reported the quarter. It ranked first from the bottom in that peer comparison.
Staffing scale and dollar-linked revenue aspiration
Management reported headcount of 4,82,214 in Q1FY27 and described Quess as India's largest domestic staffing player. Management also said the company aspires to raise dollar-linked revenue to approximately 20–25% within three to four years.
Results filed after market close
Quess filed the consolidated results at 20:33 IST on 29 Jul 2026, after market close. The next trading session will provide the first market response to the 2.02% operating margin and its 22.33-point gap to the Services peer median.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹4,182 cr |
| Other income | ₹26 cr |
| Expenses | ₹4,097 cr |
| Operating profit | ₹85 cr |
| Operating margin (%) | 2.02% |
| Interest | ₹14 cr |
| Depreciation | ₹10 cr |
| Profit before tax | ₹86 cr |
| Tax | ₹4 cr |
| Net profit | ₹82 cr |
| EPS (₹) | ₹5.50 |
Operating margin of 2.02% compares with a Services sector median of 24.35% across 9 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Quess reported headcount of 4,82,214 in Q1 FY27.
Guidance & outlook
- Quess aspires for dollar-linked revenue to reach approximately 20–25% within three to four years.
Competition
- Quess describes itself as India’s largest domestic staffing player.
What to watch
- Whether operating margin moves above or below 2.02% next quarter.
- Whether headcount remains near the reported 4,82,214 level.
- Progress against management's stated aspiration for 20–25% dollar-linked revenue within three to four years.