1. At a Glance

TeamLease Services Ltd — the HR and staffing juggernaut — just reported another quarter where it proved that “India works because TeamLease works.” WithQ2FY26 revenue of ₹3,041 croreandPAT of ₹27.8 crore, the company has once again shown how you can run a ₹11,703 crore annual business while keeping margins so slim you could slice onions with them.

At amarket cap of ₹2,830 croreand aP/E of 24.1x, the stock trades at2.95x book value, priced like a premium staffing sushi in a thali market. Over the past year, the stock has been the HR equivalent of a rejected resume — down37%, despite steady profits and zero debt worries (debt-to-equity:0.13).

The company commands3.62 lakh active associates and traineesacross India, providing payrolls, apprenticeships, and headaches for every HR head. And just to keep life spicy, the Karnataka High Court quashed a reassessment case for AY2017–18 while a₹395 crore Provident Fund noticelooms like a “you missed a TDS” text from the Income Tax department.

Q2FY26 in a line?Payroll up, profit steady, drama constant. Exactly what you’d expect from India’s HR backbone.

2. Introduction

If India’s startup ecosystem is the brain of new-age business, TeamLease is the nervous system — transmitting salaries, compliance, and HR paperwork across 7,500+ locations in 28 states. The company has placedover 23 lakh peoplein jobs since inception, probably more than your entire college placement committee combined.

But here’s the irony: while TeamLease helps millions get their paychecks, it doesn’t seem too eager to share one with its own shareholders —zero dividend payoutsince forever. Investors hoping for cash returns might as well enroll in TeamLease’s training program instead.

Its business is split into three arms:

• General Staffing (93% of revenue)— the big boss of the lot, driving top-line growth.
• Specialized Staffing (5%)— for IT and telecom geeks.
• HR Services (2%)— where compliance meets coffee.

Despite thin margins (OPM 1.29%,NPM <1%), the company has delivered steady double-digit sales growth. Think of it as the accountant who never takes a day off but also never takes a promotion.

While the stock’s 3-year return is-16%, management has been busy reshaping the org chart, buying new companies, and filing appeal letters faster than your CA during ITR season.

The new CEO,Nipun Sharma, now leads the show, taking over from a long list of predecessors — because apparently, TeamLease changes CEOs more frequently than some startups change logos.

3. Business Model – WTF Do They Even Do?

TeamLease is essentially India’s HR Swiss Army knife — staffing, recruiting, training, and ensuring no one goes to jail for missed EPF filings.

a) General Staffing (93%)

This is the cash cow. It covers bulk manpower, payroll processing, and theNational Employability Through Apprenticeship Program (NETAP). The segment grew22% YoY in 9M FY25, backed by a 16% jump in headcount. That’s over2.99 lakh general staff— enough to fill Eden Gardens ten times over.

b) Specialized Staffing (5%)

Focused onIT and telecom, this division’s revenue grew2% YoY— slower than Airtel’s billing system but still afloat. With6,700 associates(down from 7,600 YoY), this segment looks like the quiet kid in class who knows stuff but never raises a hand.

c) HR Services (2%)

The intellectual cousin — includes compliance SaaS tools, training, job portals, and theDegree Apprenticeship (DA)program. Revenue grew21% YoY, proving that training people to work can sometimes be more profitable than the actual work.

TheirDA headcount at 47,200 traineesshows India’s hunger for employability — or at least certificates that say so.

With3,900+ active clients, TeamLease covers everything from corporates to SMEs, operating across “Employment,” “Employability,” and “E-Workforce.” Basically, if there’s a salary slip somewhere in India, chances are TeamLease formatted it.

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