As of , Team Lease Services Ltd (Services - Others) has a deep value score of 53/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -33%.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: New CEO Appointment: Suparna Mitra
“we also have Suparna, who has joined us now as the CEO and M.D. of TeamLease. She will take charge on the conversation from the next quarter.”
What: EBITDA Growth: 11% QoQ
Impact: 6 bps margin improvement
“Our initiatives on digitization and cost optimization have been consistently contributing to operating leverage, and we do see that continuing.”
What: Cash on Balance Sheet: ₹430 Cr
Impact: 3-4% ROE boost
“I think in the Q4 board meeting, the board will discuss on the capital allocation front and take a decision.”
What: PBT growth of 69% QoQ
“PBT grew by 69% on a sequential basis, primarily driven by some element of an interest credit on tax refunds.”
Earnings deceleration risks from management commentary
Trigger: Ad hoc regulatory directive from RBI to the NBFC sector.
Management view: Reducing core headcount to optimize costs in line with associate loss.
Monitor: regulatory
Trigger: Notification of new labor codes impacting gratuity and leave encashment liabilities.
Impact: PAT impact: ₹5.7 Cr
Management view: Associate employee costs are passed through to clients; core employee impact is a one-time provision.
Monitor: labor
Key quotes from recent conference calls
“Last question is on EBITDA growth, I think last quarter, you indicated about full year 30% growth to sustain across quarters. [Previous EBITDA Growth guidance]”
“I think what we have always been calling out is the drive for some element of a transition from B2B to a B2C revenue stream. [Initiative: B2C Revenue Stream Transition]”
“This reflects a regulatory-driven transition with one large NBFC client wherein they absorbed over 20,000 associates onto their own payroll. [Risk (regulatory): HIGH]”
“For core employees, Rs.5.7 crores of provision has been made towards labor code implication and has been disclosed as an exceptional item. [Risk (labor): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
Not Disclosed
Why: Sequential revenue growth was muted due to the insourcing of approximately 27,000 headcounts by a large NBFC client in the staffing and degree apprenticeship businesses.
Revenue was flat quarter-on-quarter despite an 8% year-on-year increase.
EBITDA
Not Disclosed
Why: Growth was driven by digitization, cost optimization measures, and catch-up billing in the EdTech segment.
EBITDA showed strong sequential growth of 11% despite flat revenues.
Other Highlights
• Insourcing of 27,000 associates by one large NBFC client impacted headcount.
• Income tax refunds of ₹100 crore received during the quarter.
• Free cash balance increased to ₹430 crore.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
General Staffing Headcount
2.82 lakhs
Why: Driven by the insourcing of 20,000 associates by a single large NBFC client.
PAPM (Per Associate Per Month)
680
Why: Improvement driven by higher contribution from hiring revenue.
GCC Revenue Contribution
65%
Why: GCC segment continues to be a core growth engine for specialized staffing.
Open Positions Pipeline
16,000
Why: Reflects healthy demand pipeline despite recent headcount losses.
DSO (Days Sales Outstanding)
15 days
Why: Maintained stable collection cycles.
Funding Exposure
14%
Why: Maintained at consistent levels.
IT Sector Revenue Share
6%
Why: Includes GCC; contributes nearly 30% to the bottom line.
New Client Logos (Staffing)
22
Why: Continued client acquisition with 55% on variable markup.
Forward-looking targets from management for Q4 FY26
OPM Guidance
25–25%
Expect positive growth in Q4
Maintaining 25% YoY EBITDA growth
Restore headcount levels by Q4 or Q1 next year
Guidance Changes
EBITDA Growth: 30% → 25%
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 parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Team Lease Services Ltd has a deep value score of 53/100 (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 53/100 (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 4 key growth catalysts identified from recent earnings analysis
Team Lease Services Ltd has 2 key risks worth monitoring
In Q3 FY26, Team Lease Services Ltd's management highlighted
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.
