Quess Corp (QUESS) Q3 24/25 earnings summary

Executive summary

• Revenue and EBITDA grew in double digits for the nine months, with PAT and EPS up over 50% year-on-year; Q3 FY25 revenue reached INR 5,519 crore, EBITDA at INR 197 crore, and PAT at INR 85 crore.

• Headcount reached 617,000, up 11% YoY, maintaining leadership in business services.

• Board approved an interim dividend of INR 4 per share, totaling INR 594.75 million.

• Three-way demerger process is on track, with approvals from shareholders and creditors; final NCLT approval expected in Q4.

• Challenging macro environment with high inflation and interest rates impacted consumer and business spending, especially in BFSI and overseas staffing.

Financial highlights

• Q3 FY25 revenue grew 14% YoY and 7% sequentially to INR 5,519 crore; EBITDA rose 6% YoY to INR 197 crore.

• PAT for Q3 FY25 increased 34% YoY to INR 85 crore; EPS at INR 5.4, up 26% YoY.

• Gross debt reduced to INR 224 crore after repaying INR 150 crore in nine months; net cash position improved 188% YoY to INR 412 crore.

• Interim dividend payout of INR 60 crore declared.

• Dividend payout since FY21 totals INR 548 crore.

Outlook and guidance

• Demerger completion and listing of three entities targeted for Q1 FY26.

• Expecting margin recovery in workforce management to 2.4–2.5% by year-end, with a long-term target of 3%.

• Anticipate continued BFSI slowdown in Q4, but other sectors like manufacturing and telecom show resilience.

• Investments in leadership, technology, and verticalization expected to drive future growth.

• Company maintains its stand on tax deductions under section 80JJAA and expects favorable resolution.