Team Lease Services Ltd (Services - Others) — fundamental analysis, earnings data, and key metrics. PE: 14.3. ROE: 12.2%. This stock is not currently in the Nifty 500 momentum outperformers list.
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
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's latest quarterly results (Dec 2025) show
Team Lease Services Ltd's current PE ratio is 14.3x.
Team Lease Services Ltd's price-to-book ratio is 2.0x.
Team Lease Services Ltd's fundamental strength based on key financial ratios
Team Lease Services Ltd has a debt-to-equity ratio of N/A.
Team Lease Services Ltd's return ratios over recent years
Team Lease Services Ltd's operating cash flow is positive (FY2025).
Team Lease Services Ltd currently does not pay a significant dividend (yield 0.00%).
Team Lease Services Ltd's shareholding pattern (Dec 2025)
Team Lease Services Ltd's promoter holding has remained stable recently.
Team Lease Services Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Team Lease Services Ltd has 3 key growth catalysts identified from recent earnings analysis
Team Lease Services Ltd has 3 key risks worth monitoring
Team Lease Services Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why Team Lease Services Ltd may be worth studying
Team Lease Services Ltd investment thesis summary:
Team Lease Services Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
