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QUESS - Quess Corp

📊 NSE: QUESS 🏢 Diversified - Large 📅 Last Updated: 12/14/2025 11:25

📢 Recent Corporate Announcements

Quess Corp Allots 14,918 Equity Shares Under Stock Ownership Plan-2020

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 23 Feb 2026, 06:06 PM

Quess Corp Limited has approved the allotment of 14,918 equity shares of Rs. 10 each to employees who exercised their Restricted Stock Units (RSUs) under the Quess Stock Ownership Plan-2020. This allotment results in a marginal increase in the company's total paid-up share capital from 14,92,02,689 to 14,92,17,607 equity shares. The new shares will rank pari-passu with existing equity shares in all respects. The total paid-up capital value now stands at approximately Rs. 149.22 crore.

Allotment of 14,918 equity shares of face value Rs. 10 each under QSOP 2020
Total paid-up share capital increased to 14,92,17,607 equity shares
Aggregate paid-up capital value rose from Rs. 1,49,20,26,890 to Rs. 1,49,21,76,070
New shares carry the same rights (pari-passu) as existing shares

💡 No action is required as this is a routine administrative allotment for employee compensation. The equity dilution is negligible and will not impact the stock's valuation or performance.

Quess Corp Q3 FY26: Record EBITDA of ₹80 Cr; Interim Dividend of ₹5/share Declared

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 03 Feb 2026, 08:39 PM

Quess Corp reported a steady Q3 FY26 with revenue growing 3% QoQ to ₹3,930 crores and a record EBITDA of ₹80 crores, up 28% YoY. The company achieved significant margin expansion in its Professional Staffing segment to an all-time high of 12.5%, while General Staffing remained stable despite seasonal churn. A ₹5 per share interim dividend was announced, supported by strong operating cash flow conversion of 92% of EBITDA. Management transitions are now complete with Lohit Bhatia elevated to CEO and Neeraj Jain joining as CFO.

Consolidated EBITDA reached a quarterly milestone of ₹80 crores, up 28% YoY with margins expanding to 2.03%.
Adjusted PAT rose 29% YoY to ₹62 crores, excluding a ₹7 crore exceptional item related to Labour Code implementation.
Professional Staffing segment achieved record EBITDA margins of 12.5%, with GCCs now accounting for 72% of headcount.
Board approved an interim dividend of ₹5 per share, reflecting strong cash flow and balance sheet strength.
Operating cash flow conversion remained robust at 92% of EBITDA, with average DSO improving to 24 days.

💡 Investors should take note of the structural margin improvement in the Professional Staffing segment and the healthy dividend payout. The stock remains a key play on India's formalization, though monitoring the long-term impact of the new Labour Code on headcount is advised.

Quess Corp Receives Income Tax Demand Order of Rs 159.92 Crore for AY 2022-23

🔴 NEGATIVE ⭐ 7/10

LEGAL 📅 01 Feb 2026, 03:39 PM

Quess Corp Limited has received a final assessment order from the Income Tax Department for Assessment Year 2022-23, resulting in a demand of Rs 159.92 crore. The demand primarily arises from disallowances related to Section 80JJAA deductions and certain expense claims. The company noted that these adjustments are consistent with those made for FY 2016-17 to FY 2020-21, which are currently being contested before the Income Tax Tribunal. Quess Corp intends to vigorously appeal the order, maintaining that its tax positions are legally defensible.

Income Tax Department issued a demand of Rs 159.92 crore for Assessment Year 2022-23.
Major disallowances involve deductions under Section 80JJAA and specific business expenses.
The order follows a pattern of adjustments previously made for the period FY 2016-17 to FY 2020-21.
Company is already contesting similar historical demands at the Income Tax Tribunal level.
Management plans to file a fresh appeal and believes the position is supported by judicial precedents.

💡 Investors should monitor the outcome of the ongoing Income Tax Tribunal cases for previous years, as they will likely determine the final liability for this new demand. While the amount is significant, the company's decision to contest suggests no immediate cash outflow until the appeal process concludes.

Quess Corp Declares Rs 5 Interim Dividend; Sets Feb 6, 2026, as Record Date

🟢 POSITIVE ⭐ 7/10

DIVIDEND 📅 30 Jan 2026, 06:30 PM

Quess Corp Limited has declared an interim dividend of Rs 5 per equity share (50% of face value) for the Financial Year 2025-26. The company has fixed February 6, 2026, as the record date to identify eligible shareholders for this payout. The dividend is scheduled to be paid on or before February 16, 2026. Additionally, the company has provided detailed instructions regarding Tax Deduction at Source (TDS) for both resident and non-resident shareholders.

Interim dividend of Rs 5 per equity share declared for FY 2025-26
Record date for dividend entitlement is Friday, February 6, 2026
Payment to be completed on or before February 16, 2026
Standard TDS of 10% for resident shareholders with valid PAN; 20% for those without
Deadline for submitting tax exemption documents (Form 15G/15H) is February 7, 2026

💡 Eligible shareholders should ensure their PAN and bank account details are updated in their demat accounts and submit tax exemption forms by Feb 7 to minimize tax outflow.

Quess Corp Limited Releases Recording of Analyst Call Held on January 29, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 29 Jan 2026, 06:09 PM

Quess Corp Limited has informed the stock exchanges that the recording of its analyst and institutional investor call, held on January 29, 2026, is now available for public access. The recording has been uploaded to the company's official website under the Investor Relations section in compliance with SEBI Listing Obligations and Disclosure Requirements. This routine disclosure ensures transparency by providing all investors access to the management's discussion and Q&A session. The call was conducted via digital means to discuss recent developments or performance.

Recording of the analyst call conducted on January 29, 2026, is now live.
Disclosure made pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015.
Investors can access the audio via the company's dedicated investor relations web link.
The filing confirms the completion of the scheduled digital interaction with institutional investors.

💡 Investors should listen to the recording to understand management's outlook on the staffing industry and specific business segment performance. This is a routine update and does not require immediate portfolio changes.

Quess Corp Q3 FY26: EBITDA Grows 28% YoY to ₹80 Cr; Declares ₹5 Interim Dividend

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 09:31 PM

Quess Corp reported a strong Q3 FY26 with EBITDA reaching a milestone of ₹80 crore, a 28% YoY increase, despite a slight 2% YoY dip in revenue to ₹3,930 crore. The company's focus on high-margin segments paid off, with Professional Staffing EBITDA growing 42% YoY and margins hitting 12.5%. Adjusted PAT rose 29% YoY to ₹62 crore, and the Board has rewarded shareholders with an interim dividend of ₹5 per share. The company maintains a robust net cash position of ₹325 crore with high cash conversion efficiency.

EBITDA reached ₹80 Cr with margins expanding 47bps YoY to 2.03%.
Professional Staffing segment delivered 42% YoY EBITDA growth with 12.5% margins.
Board approved an interim dividend of ₹5 per share; Adjusted EPS grew 29% YoY to ₹4.1.
Maintained a strong balance sheet with net cash of ₹325 Cr and 92% EBITDA to OCF conversion.
Total headcount remains high at 4,83,503, with GCCs contributing 72% of Professional Staffing headcount.

💡 Investors should view the margin expansion and growth in high-margin Professional Staffing and GCC services as a positive structural shift. The ₹5 interim dividend provides an immediate yield benefit while the company continues to improve its profitability profile.

Quess Corp Q3 EBITDA Grows 28% YoY to ₹80 Cr; Announces ₹5 Interim Dividend

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 09:23 PM

Quess Corp reported a robust 28% YoY growth in EBITDA to ₹80 crore for Q3 FY26, despite a slight 2% YoY dip in total revenue to ₹3,930 crore. The company's profitability improved significantly with Adjusted PAT rising 29% YoY to ₹62 crore, supported by high-margin segments like Professional Staffing and Overseas Business. The Board has declared an interim dividend of ₹5 per share, reflecting a sustainable payout policy. Management expects to achieve a 20% ROE by the end of FY26, driven by continued momentum in tech-led staffing and manufacturing.

Reported EBITDA increased by 28% YoY to ₹80 crore with margins expanding by 47 bps to 2.03%
Adjusted PAT grew by 29% YoY to ₹62 crore, resulting in an Adjusted EPS of ₹4.1 per share
Professional Staffing segment saw 42% YoY EBITDA growth with double-digit margins of 12.5%
Board approved an interim dividend of ₹5 per share and targets a ~20% ROE for FY26
General Staffing added 4k+ headcount in Manufacturing and Automation during the quarter

💡 Investors should take note of the significant margin expansion and the healthy interim dividend as signs of improved operational efficiency. The shift towards high-margin professional staffing and GCC-led growth provides a positive outlook for the stock.

Quess Corp Declares ₹5 Interim Dividend; Q3 Net Profit Rises to ₹550.94 Million

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 09:08 PM

Quess Corp reported a consolidated net profit of ₹550.94 million for Q3 FY26, an increase from ₹417.25 million in the same period last year. The Board declared an interim dividend of ₹5 per equity share (50% of face value), with the record date set for February 06, 2026. While profits grew, revenue from operations saw a slight year-on-year decline to ₹39,297.08 million. Investors should note that auditors issued a qualified opinion regarding disputed tax deductions and highlighted ongoing provident fund litigation.

Declared an interim dividend of ₹5 per equity share (50% of face value) for FY 2025-26.
Consolidated net profit for Q3 FY26 rose to ₹550.94 million from ₹417.25 million YoY.
Revenue from operations for the quarter stood at ₹39,297.08 million compared to ₹40,191.28 million YoY.
Auditors issued a qualified conclusion due to uncertainties surrounding disputed tax deductions.
Nine-month FY26 profit reached ₹1,578.52 million, up from ₹1,413.35 million in the previous year.

💡 Investors may find the dividend and profit growth attractive, but should monitor the legal and tax uncertainties highlighted by the auditors. To be eligible for the ₹5 dividend, shares must be held by the record date of February 06, 2026.

Quess Corp Declares Rs 5 Interim Dividend; Q3 Net Profit Rises to Rs 550.94 Million

🟢 POSITIVE ⭐ 7/10

DIVIDEND 📅 28 Jan 2026, 09:05 PM

Quess Corp has declared an interim dividend of Rs 5 per share (50% of face value) for FY 2025-26, with the record date set for February 6, 2026. The company reported a consolidated net profit of Rs 550.94 million for Q3 FY26, up from Rs 417.25 million in the same quarter last year. Revenue from operations remained stable at Rs 39,297.08 million. However, the auditors have issued a qualified opinion concerning ongoing tax deduction disputes and provident fund litigation.

Declared an interim dividend of Rs 5 per equity share with a face value of Rs 10.
Consolidated net profit for Q3 FY26 increased to Rs 550.94 million from Rs 417.25 million YoY.
Revenue from operations for the quarter ended December 31, 2025, was Rs 39,297.08 million.
Record date for dividend eligibility is February 6, 2026, with payment by February 16, 2026.
Auditors raised a qualified conclusion regarding disputed tax deductions and pending PF litigation.

💡 Investors should benefit from the dividend payout and improved profitability, but should remain cautious regarding the legal and tax uncertainties highlighted by the auditors.

Quess Corp Q3 PAT Rises 32% YoY to ₹550.9M; Declares ₹5 Per Share Interim Dividend

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 09:03 PM

Quess Corp reported a consolidated net profit of ₹550.94 million for the quarter ended December 31, 2025, marking a 32% increase from ₹417.25 million in the previous year's corresponding quarter. While revenue from operations saw a marginal decline of 2.2% YoY to ₹39,297.08 million, the company's profitability improved significantly. The Board has declared an interim dividend of ₹5 per equity share, representing a 50% payout on the face value. Investors should note that auditors maintained a qualified opinion regarding ongoing tax deduction disputes and provident fund litigation.

Consolidated Net Profit increased to ₹550.94 million in Q3 FY26 from ₹417.25 million in Q3 FY25.
Revenue from operations stood at ₹39,297.08 million, a slight decrease from ₹40,191.28 million YoY.
Declared an interim dividend of ₹5 per equity share with a record date of February 06, 2026.
Total comprehensive income for the quarter rose to ₹510.96 million versus ₹288.33 million in the same period last year.
Auditors issued a qualified conclusion due to uncertainties surrounding Section 80JJAA tax deductions and PF demands.

💡 Investors can benefit from the ₹5 per share dividend by holding the stock before the February 6 record date, but should monitor the legal resolution of the tax and PF disputes mentioned in the auditor's report.

Quess Corp Schedules Q3 FY26 Earnings Conference Call for January 29, 2026

🟡 NEUTRAL ⭐ 4/10

EARNINGS 📅 23 Jan 2026, 08:48 PM

Quess Corp Limited has scheduled its Q3 FY26 earnings conference call for Thursday, January 29, 2026, at 11:00 AM IST. The call will involve senior management, including the CEO and CFO, discussing the company's financial performance for the quarter ended December 2025. This interaction follows the formal declaration of results and provides a platform for institutional investors and analysts to engage in a Q&A session. The event is being coordinated by IIFL Capital with multiple international dial-in options provided.

Conference call scheduled for January 29, 2026, at 11:00 AM IST.
Management participants include ED Guruprasad Srinivasan, CEO Lohit Bhatia, and CFO Neeraj Jain.
The session will focus on Q3 FY26 earnings performance and future outlook.
Universal dial-in numbers for India are +91 22 6280 1259 and +91 22 7115 8160.
International toll-free numbers available for USA, UK, Singapore, and Hong Kong.

💡 Investors should review the Q3 FY26 financial results once released and attend the call to understand management's commentary on margin improvements and headcount growth.

Quess Corp Submits SEBI Compliance Certificate for Quarter Ended Dec 2025

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 06 Jan 2026, 07:11 PM

Quess Corp Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests for the quarter ended December 31, 2025, were processed within prescribed timelines. It verifies that physical share certificates were mutilated, cancelled, and the name of the depositories substituted in the register of members. This is a standard administrative filing ensuring the integrity of the company's shareholding records.

Compliance certificate issued for the quarter ended December 31, 2025.
Registrar MUFG Intime India Private Limited confirmed all dematerialization requests were accepted or rejected as per norms.
Securities comprised in the certificates are listed on the relevant stock exchanges.
Physical certificates were mutilated and cancelled after due verification by the depository participant.

💡 No action is required from investors as this is a routine regulatory filing confirming standard administrative compliance.

Quess Corp Announces Resignation of Mohit Mathur, Chief Business Officer - Origint

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 05 Jan 2026, 09:40 PM

Quess Corp Limited has informed the exchanges about the resignation of Mr. Mohit Mathur, who served as the Chief Business Officer (CBO) for the Origint division. The resignation is effective from the close of business hours on January 05, 2026. Mr. Mathur has cited personal reasons for his departure and confirmed there are no other material reasons for his decision. This change in senior management is a routine disclosure under SEBI Listing Regulations.

Mr. Mohit Mathur resigned as Chief Business Officer - Origint effective January 05, 2026.
The resignation is attributed to personal reasons with no other material concerns reported.
The disclosure was made in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015.
Mr. Mathur confirmed his departure as a Senior Management Personnel (SMP) of the company.

💡 Investors should monitor for any further leadership changes or the appointment of a successor to ensure business continuity in the Origint segment. No immediate portfolio action is required as this appears to be a routine management exit.

Quess Corp to Close Trading Window from Jan 1, 2026 for Q3 FY26 Results

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 29 Dec 2025, 06:22 PM

Quess Corp Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the results are officially announced. The specific date for the board meeting to approve these results will be communicated at a later date.

Trading window closure effective from Thursday, January 1, 2026
Closure pertains to the unaudited financial results for the quarter ended December 31, 2025
Window to reopen 48 hours after the declaration of financial results
Complies with SEBI Prohibition of Insider Trading Regulations and Company Code of Conduct

💡 This is a routine regulatory announcement and requires no immediate action from general investors. Monitor for the upcoming announcement of the board meeting date to assess Q3 performance.

Quess Corp Receives Adverse DRP Order for FY 2021-22 Income Tax Matter

🔴 NEGATIVE ⭐ 6/10

LEGAL 📅 24 Dec 2025, 06:20 PM

Quess Corp has received an order from the Dispute Resolution Panel (DRP) regarding an income tax dispute for the Financial Year 2021-22. The DRP directions align with previous tax adjustments made for FY 2017-18 through FY 2020-21, which the company is already contesting before the Tax Tribunal. While the exact tax liability is yet to be quantified by the Deputy Commissioner of Income Tax (DCIT), the company intends to vigorously appeal the final assessment. This development indicates a continuation of multi-year tax litigation that could impact future contingent liabilities.

DRP order dated December 23, 2025, issued directions for FY 2021-22 tax assessment.
Directions are consistent with adjustments made for five consecutive years (FY 2017-18 to FY 2021-22).
DCIT is yet to quantify the specific monetary tax liability for the period.
Company plans to file an appeal against the final assessment order once received.
Quess Corp will reassess and disclose revised contingent liabilities following the DCIT's final quantification.

💡 Investors should monitor the upcoming DCIT order for the specific tax demand amount to evaluate the impact on the company's cash flows. The outcome of pending appeals for previous financial years at the Tax Tribunal remains a critical catalyst for resolving these liabilities.

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💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 reached INR 3,832 Cr, growing 3% YoY. Segmental growth: General Staffing grew 3% YoY to INR 3,317 Cr; Professional Staffing grew 11% YoY to INR 224 Cr; Overseas Business grew 3% YoY to INR 290 Cr; and Digital Platforms surged 115% YoY to INR 0.5 Cr.

Geographic Revenue Split

The Overseas business contributed INR 290 Cr (approx. 7.6% of Q2 FY26 revenue), with growth driven by APAC and the Middle East. Singapore operations faced headwinds due to visa regulation changes, while domestic India operations account for the remaining ~92% of revenue.

Profitability Margins

Operating profit margins (OPM) remained range-bound at 1.8% in FY25 compared to 1.7% in FY24. Reported PAT for Q2 FY26 was INR 52 Cr (1.35% margin), while Adjusted PAT for FY25 stood at INR 210.2 Cr (1.4% margin), up 54% YoY from INR 136.4 Cr.

EBITDA Margin

EBITDA margin for Q2 FY26 crossed the 2% mark (2.00%), up 13 bps YoY. Absolute EBITDA reached a record INR 77 Cr, up 11% YoY. Professional Staffing achieved a high EBITDA margin of 12.2%, while General Staffing margins were thinner at 1.4% due to the impact of an NBFC client ramp-down.

Capital Expenditure

While specific future Capex figures are not disclosed, the company invested INR 90 Cr in dividends and maintained a net cash balance of INR 273 Cr in Q2 FY26. Investments are primarily directed toward digital transformation, AI-led productivity, and leadership bandwidth for the demerger.

Credit Rating & Borrowing

ICRA maintains a comfortable credit profile with Net Debt/OPBDITA at 0.2x as of March 31, 2024. The company has an average working capital buffer of INR 717.1 Cr. Interest expenses decreased 32% YoY to INR 38.6 Cr in FY25 due to lower debt levels.

⚙️ Operational Drivers

Raw Materials

As a service-oriented staffing firm, 'Human Capital' is the primary cost, with employee expenses accounting for 93.9% of total revenue in FY25, up from 91.4% in FY24.

Import Sources

Not applicable for a workforce solutions provider; sourcing is primarily domestic across India, Singapore, and the Middle East.

Key Suppliers

Not applicable; the company relies on its internal sourcing engine which added 55,000 associates in Q2 FY26 compared to 30,000 in Q1 FY26.

Capacity Expansion

Current capacity is measured by associate headcount, which stood at 483,115 as of Q2 FY26 (up 5% YoY). The company added 21,283 net associates in Q2 FY26, the highest in 6 quarters.

Raw Material Costs

Employee expenses rose to 93.9% of revenue in FY25. The company is rationalizing low-margin contracts, such as the sunsetting of a large MSP program, to improve the mix of high-margin business.

Manufacturing Efficiency

Efficiency is tracked via the Associate to Core FTE ratio, which improved to 286 in Q2 FY26 from 357 in Q2 FY25, indicating higher productivity per internal employee.

Logistics & Distribution

Not applicable; distribution is handled through a digital sales engine and a network of regional offices for staffing delivery.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

The company aims for double-digit revenue growth by focusing on high-margin segments like GCCs (Professional Staffing) and Overseas business, which currently contribute 50% of total contribution. Strategy includes rationalizing low-margin MSP contracts and leveraging a 27,000-strong open mandate pipeline.

Products & Services

General staffing, IT staffing, facility management, domestic BPO, customer lifecycle management (CLM), and digital talent platforms.

Brand Portfolio

Quess, Conneqt, Allsec, foundit, Origint (GCC offering).

New Products/Services

Expansion of GCC (Global Capability Centre) offerings and AI-led productivity tools; GCCs are expected to be a primary driver for the 12.2% margin Professional Staffing segment.

Market Expansion

Targeting growth in APAC and Middle East regions for the Overseas business and deepening penetration in Indian manufacturing and BFSI sectors.

Market Share & Ranking

Quess is India's largest domestic staffing player with 483,115 associates and is ranked 36th among India's Best Employers 2025 by TIME/Statista.

Strategic Alliances

The company is undergoing a demerger to create three demerged entities to simplify the corporate structure and unlock value.

🌍 External Factors

Industry Trends

The industry is shifting toward tech-led hiring and gig work. Quess is positioning itself as a technology-enabled workforce solutions leader to capture the growing SME demand for digitized HRMS.

Competitive Landscape

Faces intense competition from large domestic and international players in staffing, and fragmented unorganized players in facility management.

Competitive Moat

Moat is built on scale (483k associates) and a mature sourcing engine (55k onboarded in Q2). Sustainability is driven by the 'Collect & Pay' model which ensures cash flow stability despite thin margins.

Macro Economic Sensitivity

Highly sensitive to festive season hiring (manufacturing/retail) and GST reforms which provide tailwinds for formal staffing.

Consumer Behavior

Moderation in private consumption and high inflation have negatively impacted consumer business spending, affecting the CRT (Consumer, Retail, Telecom) segment.

Geopolitical Risks

Visa regulation changes in Singapore act as a trade barrier, impacting the ability to deploy Indian talent overseas.

⚖️ Regulatory & Governance

Industry Regulations

Impacted by changes in labor laws, GST reforms, and specific sector regulations like NBFC staffing norms and international visa laws (Singapore).

Environmental Compliance

Not disclosed as a significant cost driver for this service-based business.

Taxation Policy Impact

Effective tax rate is a key monitorable post-demerger; FY25 tax was a credit of INR 4.1 Cr on a consolidated basis due to exceptional items.

Legal Contingencies

Exceptional items of INR 164.3 Cr in FY25 included expected credit losses (ECL) for discontinued projects and demerger-related expenses.

⚠️ Risk Analysis

Key Uncertainties

The margin trajectory in FY26 is a key uncertainty due to the exit from low-margin contracts and the impact of the NBFC sector slowdown (potential 5-10% impact on headcount growth).