TeamLease: Transcript of Q2FY27 Earnings Call

November 10, 2026 To To Listing Department Listing Department BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal Street, Fort, Plot no. C/1, G Block, Mumbai - 400 001 Bandra Kurla Complex, Bandra(E), Mumbai - 400 051 Scrip Code: 539658 Scrip Code: TEAMLEASE Dear Sir/Ma’am, Sub: TeamLease Services Limited (TeamLease/Company) - Transcript of Q2’FY27 Earnings Call Ref: Regulation 30 of Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015 With reference to the above-mentioned subject and pursuant to Regulation 30 of the SEBI LODR Regulations, 2015, please find enclosed the Transcript of Q2’FY27 Earnings Call hosted on Thursday, November 05, 2026, at 05:00 P.M. IST. The same is available on the website of the Company at https://group.teamlease.com/investor/earning-call-transcript/. Kindly take the above said information on record as per the requirement of SEBI LODR Regulations, 2015. Thanking You. Yours faithfully, For TeamLease Services Limited Alaka Chanda Company Secretary and Compliance Officer Encl: As above TeamLease Services Limited, CIN: L74140KA2000PLC118395 Registered Office Infinix Square, B-4, B-5, B-6, HAL Industrial Estate, HAL GB Quarters, Vibhutipura, Bengaluru, Karnataka – 560037 Ph: (91-80) 6824 3333 Fax: (91-80) 6824 3001 Email ID: corporateaffairs@teamlease.com Website: https://group.teamlease.com Business Portal: https://www.teamlease.com “TeamLease Services Limited Q2 FY27 Earnings Conference Call” November 05, 2026 MANAGEMENT: MS. SUPARNA MITRA – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – TEAMLEASE SERVICES LIMITED MS. RAMANI DATHI – CHIEF FINANCIAL OFFICER AND CHIEF OPERATING OFFICER – TEAMLEASE SERVICES LIMITED MS. NEETI SHARMA – CHIEF EXECUTIVE OFFICER, SPECIALISED STAFFING – TEAMLEASE SERVICES LIMITED MR. BALASUBRAMANIAN A. – SENIOR VICE PRESIDENT, STAFFING – TEAMLEASE SERVICES LIMITED MODERATOR: MR. ARJUN SAVLA – HDFC SECURITIES Page 1 of 16 TeamLease Services Limited November 05, 2026 Moderator: Ladies and gentlemen, good day and welcome to the TeamLease Q2 FY 2027 conference call hosted by HDFC Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. I now hand the conference over to Mr. Arjun Savla from HDFC Securities. Thank you, and over to you. Arjun Savla: Thank you. Good evening, everyone. On behalf of HDFC Securities, we welcome you all to the TeamLease Quarter Two FY 2027 earnings call. Today, we have with us the management team of TeamLease, represented by Ms. Suparna Mitra, Managing Director and CEO, Ms. Ramani Dathi, CFO and COO, Ms. Neeti Sharma, CEO of Specialized Staffing, and Mr. Bala A, Senior VP Staffing. I will now hand over the call to Ms. Suparna Mitra for the opening remarks, post which we can open the floor for Q&A session. Thank you, and over to you, Suparna. Suparna Mitra: Thank you so much. Good evening, ladies and gentlemen, and thank you for being with us today. I will share my perspective on the quarter and the priorities, after which, of course, we will take your questions. The first half of FY 2027 has been a period of deliberate reset for TeamLease. We recognize that this quarter's results fell short of our own aspirations and of the expectations of our stakeholders. At the same time, the actions we are taking will position the business on a stronger and more profitable footing in the future. The revenue for the quarter was INR3,086 crores, which is up 1% sequentially and year-on-year. For the half year, revenue grew 4% to INR6,142 crores. Operating EBITDA was INR44 crores, up 17% sequentially and 5% year-on-year. For the half year, it grew 11% to INR82 crores. It is encouraging that our operating businesses are growing profit faster than revenue. Reported EBITDA was INR36 crores, a margin of 1.2%, and higher sequentially. Year-on-year, it reflects our investment in a brand and marketing revamp and buyback-related costs held in unallocated. Profit before tax was INR30 crores, up 2% year-on-year. For the half year, it was INR66 crores, up 19%. For clarity, this includes other income, such as interest on income tax refund received in quarter one. Operating EBITDA remains a better indicator of underlying progress. Profit after tax was INR26 crores. Our headcount moderated to about 333,200. Sorry, 333,200. We added 114 new logos, including 32 in general staffing, of which more than three-quarters were onboarded under the variable engagement model. 30% of the associates we hired were first-time job seekers, which remains central to our purpose of putting India to work. DSO held at six days. Specialized staffing continues to be a strong contributor. Revenue was INR190 crores, with EBITDA growing in double digits sequentially. The India business earned a 7.6% EBITDA margin and global 4.3%. GCCs contributed over 69% of the segment revenue, Page 2 of 16 TeamLease Services Limited November 05, 2026 and we now serve more than 135 plus GCC clients, up from over 110 at the end of last year. This is the profile of business we intend to grow. In HR services, revenue rose sequentially on EdTech seasonality, with a segment EBITDA margin of 3%. We are focused on strengthening the commercial engine of HR tech solutions, where the opportunity is significant. Our priorities rest on three pillars. First, a sharper focus on higher-margin businesses. We will direct capital, talent, and leadership attention to businesses with the strongest returns, including international geographies, while pursuing growth in general staffing. Second, disciplined portfolio management. Every business and investment will be assessed on returns, strategic fit. The divestment of our 30% stake in Crystal HR, completed this quarter with no loss on capital invested, is an early example. We may have to weed some of the non-aligned businesses, which allow bandwidth to seed new verticals. Third, to establish TeamLease as a holistic talent solutions partner. We bring recruitment, staffing, apprenticeship, productivity, compliance, and HR technology under one relationship, and we believe this will deepen client accounts, improve cross-sells, and lift margins over time. To enable this, we are investing in sales productivity, hiring, AI and digital capability, our brand, and leadership depth. Our core team has grown to about 2,790 from about 2,500 in March. These investments weigh modestly on near-term margins and on productivity per core employee. We expect them to build a stronger platform for the years ahead. Our balance sheet remains a source of strength. After completing the INR238 crores buyback in July, we hold INR350 crores worth of net free cash, with about INR160 crores of TDS receivable outstanding. Funding exposure in staffing was 16%. The long-term opportunity is compelling. The formalization of India's workforce is deepening. The central rules under Labour Codes have been notified, and GCCs continue to create demand for specialized talent. TeamLease is positioning itself to lead in that environment. Thank you for your continued support. I now hand over to my colleagues for their comments, and happy to take your questions after that. Bala A: Thank you, Suparna. Good evening, everyone. In Q2 FY 2027, we closed the quarter at approximately 2.85 lakh associates, which is a net reduction of about 5,500 associates. On our Q4 call, we had guided an exit of roughly 10,000 associates across low-margin mandates through Q1 and Q2. One client within that book, which was running at a negative margin, exited this quarter with over 7,000 associates. Adjusting for that, the underlying business still added about 1,500 associates, and since that mandate was margin di [Showing first 8,000 characters — download PDF for full document]