General Staffing Net Headcount Addition
26,000
-42% YoY
Added 26,000 net headcount in FY26 vs historical average of 45-50k, partly due to 7,000 project discontinuation.
QUESS
Other
15 May 2026
Quess Corp Ltd — Q4 FY26
Quess Corp delivered a steady Q4 FY26 with revenue of ₹3,892 crore (+6% YoY) and EBITDA of ₹86 crore (+28% YoY), driven by margin expansion in professional staffing (12%+ margin) and overseas (6.2% blended).
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2-Min Summary
Quess Corp delivered a steady Q4 FY26 with revenue of ₹3,892 crore (+6% YoY) and EBITDA of ₹86 crore (+28% YoY), driven by margin expansion in professional staffing (12%+ margin) and overseas (6.2% blended). PAT surged 167% YoY to ₹64 crore, aided by operating leverage and lower exceptional items. The structural shift toward high-margin businesses (now 50% of profitability) underpins the 2.2% EBITDA margin, up 37 bps YoY. Management guided for 2%+ margins in the near term and 2.4% over three years, with professional staffing targeting 11-12% margins. General staffing added 26,000 net headcount but faced headwinds from labor code implementation and project discontinuations. Key risk: geopolitical instability in the Middle East could impact overseas revenue, though management noted portfolio diversification into essential services.
Key Numbers
Professional Staffing EBITDA Margin
12.7%
+470 bps YoY
Professional staffing margins expanded to 12.7% in Q4, driven by GCC focus and niche skill sets.
New Logos Added (Professional Staffing)
61
+0% YoY
Added 61 new logos in professional staffing during FY26, with 90% from GCC customers.
Overseas EBITDA Margin (Middle East)
11%
+0 bps YoY
Middle East business closed FY26 with 11% EBITDA margin, supported by essential services exposure.
Management Guidance
Professional staffing revenue growth of 12-13% in FY27
Management expects professional staffing to return to 10-11% headcount growth and 12-13% revenue growth in FY27, driven by new GCC mandates.
growthBlended EBITDA margin of 2%+ in near term, 2.4% in medium term
Management guided for 2%+ EBITDA margin in the near term and 2.4% over a three-year period, assuming current portfolio mix.
marginsProfessional staffing margins to sustain 11-12% in medium term
Professional staffing margins are expected to remain in the 11-12% range, supported by GCC-led demand and niche skill focus.
marginsOverseas blended margins to remain 6%+
International business is expected to maintain blended EBITDA margins above 6%, with Middle East and Philippines at double-digit levels.
marginsKey Risks
Geopolitical instability in Middle East
Ongoing geopolitical tensions could disrupt operations or demand in the Middle East, though management highlighted portfolio diversification into essential services.
high · analyst_questionLabor code implementation impact on general staffing
The new labor code has caused client uncertainty; full confirmation of client approaches is expected only by Q2 FY27, potentially affecting revenue and margins.
medium · management_commentarySlowdown in GCC hiring due to AI impact
Analyst raised concern that AI may reduce headcount demand from existing GCCs; management countered that skill requirements are shifting to higher-value roles.
medium · analyst_questionContingent liabilities from ATJJ and GST litigations
The company faces contingent liabilities from industry-wide ATJJ litigation and a GST dispute; management expects no near-term cash impact but uncertainty remains.
low · analyst_questionNotable Quotes
High margin businesses now contribute 50% of the total profitability. A structural shift that is beginning to reflect in our margin trajectory.
It would be safe to say that we would continue to remain and measure ourselves in the 11 to 12% margin category for the medium term.
We remain concerned and we continue to keep watching that situation extremely carefully.