Quess Corp (QUESS) Q4 25/26 earnings summary

Executive summary

• FY 2026 consolidated revenue was INR 15,305 crore, up 2% year-on-year, with EBITDA at INR 312 crore (19% growth) and adjusted PAT at INR 230 crore (10% growth); Q4 revenue reached INR 3,892 crore, up 6% year-on-year, and EBITDA at INR 86 crore, up 28% year-on-year with margin expansion to 2.2%.

• Achieved India's largest domestic staffing headcount at 478,594 and recognized as a Great Place to Work for the seventh consecutive year.

• Special and final dividends of INR 3 per share each were declared, with a sustainable dividend policy targeting 75% of free cash flow to shareholders post-demerger.

• High-margin businesses now contribute 50% of total profitability, reflecting a structural portfolio shift.

• The audit opinion is qualified due to unresolved income tax deduction disputes, but management believes their position will be upheld.

Financial highlights

• Q4 PAT was INR 64 crore, EPS INR 4.3; full year adjusted EPS INR 15.4; net profit for the year was INR 2,222.01 million, a significant increase from INR 458.89 million in the prior year.

• Operating cash flow conversion remained robust at 80% of EBITDA; net cash position at year-end was INR 271 crore, with zero gross debt.

• Return on equity for FY 2026 was 20%.

• EBITDA for the year was INR 3,686.15 million, up from INR 3,287.88 million year-over-year.

• Total comprehensive income for the year was INR 2,421.45 million, up from INR 380.54 million.

Outlook and guidance

• Focus for FY 2027 is on scaling professional staffing and overseas business, margin expansion, and leveraging technology and AI platforms.

• Management expects sustainable EBITDA margins above 2% in the near term, targeting 2.4% in the medium term.

• Dividend policy post-demerger aims to return 75% of free cash flow to shareholders over three years.

• Management expects the ongoing tax disputes to be resolved in their favor, supported by external legal opinions.

• The company will continue to monitor the impact of new labor codes and adjust financial reporting as required.