Revenue rose 1.36% QoQ, but net profit fell 33.18%
Lower other income and a higher tax rate offset the improvement in operating margin, while the 1.18% margin remained well below the Services peer median.
Filed 05 Nov 2026, 18:51 IST · after market close · Team Lease Services Ltd (TEAMLEASE)
Key takeaways
- Consolidated revenue rose 1.36% QoQ, but net profit fell 33.18% as other income dropped 67.17% and the tax rate rose 8.44 percentage points.
- Operating margin improved 0.14 percentage points to 1.18% because revenue grew faster than expenses, but it remained 21.24 percentage points below the Services peer median.
- Management said GS and Apprenticeship recorded more than 62,500 gross joinees and TeamLease added 114 corporate identities in Q2FY27.
Price around the results
Operating improvement did not flow through to profit
Consolidated revenue grew 1.36% QoQ while expenses grew 1.22%, lifting operating profit by 14.93% and expanding operating margin by 0.14 percentage points. Profit before tax still fell 26.67% and net profit declined 33.18%, as other income dropped 67.17% and the tax rate rose 8.44 percentage points to 13.43%. Other income accounted for 26.93% of pre-tax profit in the quarter, making reported profit more dependent on non-operating income.
TeamLease remains near the bottom of its Services peer set
The 1.18% operating margin was 21.24 percentage points below the median for the 50 Services companies that had reported the same quarter, placing TeamLease fifth from the bottom. Sequentially, margin improved from Q1FY27 by 0.14 percentage points, while lower interest expense partly offset the pressure from the higher tax rate.
New logos and joinees were the operating highlights
Management said GS and Apprenticeship recorded more than 62,500 gross joinees in Q2FY27, while the company added 114 new corporate identities. The presentation said TeamLease expanded into Singapore and the UAE during FY22-26 and launched Hiretech, an AI-based search engine. It also flags a projected 1.1 million AI professional deficit by 2027.
Results were filed after market close
The consolidated results were filed after market close on 05 Nov 2026. The stock's post-results reaction is therefore not covered in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹3,076 cr | ₹3,035 cr | +1.36% |
| Other income | ₹7 cr | ₹22 cr | -67.17% |
| Expenses | ₹3,040 cr | ₹3,003 cr | +1.22% |
| Operating profit | ₹36 cr | ₹31 cr | +14.93% |
| Operating margin (%) | 1.18% | 1.04% | — |
| Interest | ₹3 cr | ₹4 cr | -15.89% |
| Depreciation | ₹14 cr | ₹13 cr | +2.24% |
| Profit before tax | ₹27 cr | ₹36 cr | -26.67% |
| Tax | ₹4 cr | ₹2 cr | +97.24% |
| Net profit | ₹23 cr | ₹34 cr | -33.18% |
| EPS (₹) | ₹14.59 | ₹20.79 | -29.82% |
Operating margin of 1.18% compares with a Services sector median of 22.42% across 50 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- GS and Apprenticeship recorded more than 62,500 gross joinees in Q2 FY27.
- TeamLease added 114 new corporate identities in Q2 FY27.
Expansion
- TeamLease expanded into Singapore and the UAE during FY22-26.
New initiatives
- TeamLease launched Hiretech, an AI-based search engine.
Problems & risks
- The document identifies a projected 1.1 million AI professional deficit by 2027.
What to watch
- Whether operating margin remains above 1.18% as revenue and expenses grow in tandem.
- Whether the tax rate moves down from 13.43% after rising 8.44 percentage points QoQ.
- Whether gross joinees and new corporate identities build on the 62,500-plus and 114 reported for Q2FY27.