Quess Corp (QUESS) Q4 24/25 earnings summary

Executive summary

• Completed a three-way demerger ahead of schedule, sharpening strategic focus and unlocking long-term value, with leadership transition and transfer of assets and liabilities to new entities.

• Recognized as India's leading staffing company with ~459,000 headcount and certified as a Great Place to Work for the sixth consecutive year.

• Joined the World Employment Confederation as the first Indian corporate member, enhancing global HR industry presence.

• Consolidated financial results for FY25 were audited with a qualified opinion due to unresolved income tax deduction disputes.

Financial highlights

• FY25 revenue: INR 14,967 crore (9% YoY growth); EBITDA: INR 262 crore (12% YoY growth); EBITDA margin: 1.8%.

• Adjusted PAT: INR 210 crore (52–54% YoY growth); reported PAT impacted by exceptional items.

• Net cash position: INR 255 crore; gross debt: INR 12 crore as of March 2025.

• Final dividend of INR 6/share recommended, total FY25 dividend at INR 10/share; total dividend payout INR 1,487.35 million.

• Q4 FY25 revenue: INR 3,656 crore (3% YoY growth, down 9% QoQ); EBITDA: INR 67 crore; Q4 PAT: -INR 95 crore; adjusted PAT: INR 63 crore.

Outlook and guidance

• Targeting double-digit revenue growth and nonlinear EBITDA growth, with margin improvement above 2% by year-end.

• Aims to become a global staffing player by 2030, focusing on tech-driven workforce ecosystem and global expansion.

• Recovery from NBFC client ramp-down expected within two quarters; bullish on offsetting headcount loss.

• Focus on high-margin business mix, operational efficiency, and leveraging AI and automation.

• Management expects favorable resolution of tax disputes, supported by external legal opinions.