TeamLease Services (TEAMLEASE) Q2 24/25 earnings summary

Executive summary

• Headcount grew by 18,000–18,500 in Q2 FY25 and 31,000 in H1 FY25, with general staffing leading the expansion and total billable headcount reaching approximately 298,000.

• EBITDA improved by 50% quarter-over-quarter, driven by operating leverage in staffing, seasonal EdTech billings, and cost optimization.

• Revenue increased 8% sequentially and 23%–26% year-over-year in Q2 FY25, with strong client additions and HR Services revenue up 110% quarter-over-quarter.

• Investments in HireTech platform and HR tech solutions are underway to enhance productivity and reduce hiring costs, with platform launch expected in FY26.

• Specialized Staffing faced IT sector headwinds but improved margins through cost optimization and higher associate absorption.

Financial highlights

• Q2 FY25 consolidated revenue: ₹2,808 crore (up 8% QoQ, 23% YoY); H1 FY25: ₹5,401 crore (up 21% YoY).

• Q2 FY25 EBITDA: ₹33 crore (up 50% QoQ); EBITDA margin at 1.2% (vs 0.9% in Q1 FY25).

• Q2 FY25 PAT: ₹25 crore (up 28% QoQ, down 10% YoY); PAT margin at 0.9%.

• Free cash stood at ₹340 crore as of September 30, 2024; net cash position at ₹555 crore.

• Basic EPS for Q2 FY25: ₹14.66; H1 FY25: ₹27.06.

Outlook and guidance

• Q3 expected to be muted due to BFSI sector caution, but telecom, consumer, and EdTech segments remain growth drivers.

• Management targets strong double-digit sequential profit growth, focusing on profit expansion and continued investments in technology platforms.

• EdTech profits expected to show double-digit year-on-year growth for FY25, with most profits booked in H2.

• Active M&A pipeline in HRTech aims to strengthen the technology portfolio.

• Specialized Staffing anticipates steady growth in IT hiring, especially in cloud, cybersecurity, and data analytics.