Quess Corp Q2 FY27 Profit Surges 44% to INR 75 Crore

Revenue at INR 4,396 crore; Interim dividend of INR 5 per share declared.

Reader Takeaway: Strong hiring and contract wins drive growth, though investors should watch pending tax and EPFO regulatory matters.

What just happened

Quess Corp delivered a robust second quarter for FY27, with consolidated revenue climbing 15% year-on-year to INR 4,396 crore. The company reported a 44% jump in Profit After Tax (PAT), reaching INR 75 crore. Adjusted EBITDA also saw a healthy 20% growth, landing at INR 92 crore.

Why this matters

The company’s operational scale continues to expand, with total headcount now at approximately 504,000. The addition of 21,000 employees in Q2 highlights improved market conditions. Investors should note that the General Staffing segment, a core revenue driver, posted 15% growth, supported by 116 new contract wins.

Digital and Strategic Developments

Quess Corp reached a significant milestone in its digital platform business, achieving EBITDA breakeven in Q2. Management is actively integrating its AI-led sourcing engine, 'The Brain,' which now facilitates 13% of all hiring in General Staffing. The company remains committed to its 'Quess 2.0' strategy, aiming to pivot toward higher-margin, value-added services.

Risks to watch

Investors must monitor two key legacy issues: an outstanding EPFO contingent liability of INR 72 crore and ongoing 80JJAA tax litigation. While management remains optimistic about its legal positions—citing four favorable judgments in tax cases—these items remain potential points of uncertainty.

Context metrics

• H1 FY27 Revenue: INR 8,578 crore (up 15% YoY).
• H1 FY27 PAT: INR 157 crore (up 53% YoY).
• Net Cash Position: INR 471 crore.

What to track next

The company expects a lag effect from recent headcount additions to positively influence Q3 revenue. Market participants should look for the conversion of the current pipeline of contract wins into sustained revenue growth and updates on regulatory outcomes.