As of Mar 28, 2026, Team Lease Services Ltd (Services - Others) has a deep value score of 59/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -35%.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
TeamLease's zero-debt balance sheet and early margin recovery signals position it for re-rating as it diversifies beyond BFSI into higher-growth staffing verticals.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Targeting 2%+ operating margins by Q1 FY27 through strategic client diversification and cost discipline
“14 bps sequential margin expansion in Q3 FY26”
Non-BFSI verticals (retail, e-commerce, telecom) driving growth acceleration as client diversification bears fruit
“107 new client logos added in Q3 FY26”
Growth in Global Capability Center-focused specialized staffing with higher margins and lower capital intensity
“Management commentary on GCC-focused approach in specialized staffing”
Risks that could prevent re-rating or deepen the value trap
Continued BFSI client insourcing activities
Impact: -50 bps margin impact
Management view: Management acknowledges headcount challenges from BFSI client insourcing but focuses on non-BFSI diversification
Monitor: Operating margin (excl. other income) trend
Reduction in other income streams
Impact: -140 bps margin impact
Management view: Management highlights operational efficiency improvements but doesn't address sustainability of non-operating income
Monitor: Other income as % of PBT
Continued economic slowdown affecting BFSI hiring
Impact: -30 bps margin impact
Management view: Management notes BFSI sector headwinds but emphasizes growth in non-BFSI verticals
Monitor: BFSI segment revenue contribution
Forward-looking targets from management for FY27
Revenue Growth Target
8%
Implied PAT Growth
50%
OPM Guidance
2%
Key Milestones
• 2%+ operating margins by Q1 FY27
• 8-10% revenue growth by Q1 FY27
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +3% | +20% | Decelerating |
| PAT (Net Profit) | +50% | +41% | Stable |
| OPM | 1.0% | 0 bps | Expanding |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Team Lease Services Ltd has a deep value score of 59/100 (rated Average). This score is calculated from three components
Team Lease Services Ltd's quarterly profit (PAT) growth trajectory
Team Lease Services Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Team Lease Services Ltd's earnings momentum is Steady — consistent growth.
Team Lease Services Ltd's valuation metrics
Team Lease Services Ltd's revenue and margin trends
Team Lease Services Ltd's trailing twelve month (TTM) performance
Team Lease Services Ltd key facts
Team Lease Services Ltd shows limited deep value signals currently — score is 59/100 (Average). Monitor for improvement.
Other deep value stocks in Services - Others
Services - Others deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Team Lease Services Ltd has 3 key growth catalysts identified from recent earnings analysis
Team Lease Services Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
