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Quess Corp Ltd
NSE: QUESS BSE: 539978 INE615P01015 Services Commercial Services & Supplies 🔎 Screen
Microcap 250
₹3,080 Cr
Market Cap
13.2
P/E
0.54
PEG
23.0%
ROCE
20.4%
ROE
0.11
D/E
2.0%
OPM
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Quess Corp Limited (Quess) is India’s leading business services provider, leveraging its extensive domain knowledge and future-ready digital platforms to drive client productivity through outsourced solutions.

✓ Strengths 3
  • Stock is providing a good dividend yield of 4.73%.
  • Company has been maintaining a healthy dividend payout of 151%
  • Debtor days have improved from 36.5 to 19.3 days.
! Concerns 4
  • Stock is trading at 2.70 times its book value
  • The company has delivered a poor sales growth of 7.15% over past five years.
  • Tax rate seems low
  • Company has a low return on equity of 12.3% over last 3 years.
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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Strong beat on profitability: EBITDA margin hit record 2.2%, but revenue growth remained muted at 6% YoY. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹3,892 Cr
+6% YoY
EBITDA Margin
2.2%
+37bps YoY
PAT (Adjusted)
₹64 Cr
+2% YoY (adjusted for exceptional items)
Headcount
4,78,594
+4% YoY, but -1% QoQ
What Went Right
  • EBITDA up 28% YoY to ₹86 Cr, highest margin of 2.2% (+37bps)
  • Professional Staffing EBITDA surged 47% YoY to ₹30 Cr, margin at 12.7%
  • Overseas revenue grew 16% YoY to ₹332 Cr led by Malaysia (+83%) and Middle East (+27% revenue, +40% EBITDA)
  • Net cash of ₹271 Cr, ROE at 20%, and dividend policy commits ~75% free cash flow payout over three years
  • General staffing added 281 new contracts in FY26; open mandates of 35k+ at quarter end
What to Watch
  • Revenue growth stalled at just 6% YoY (₹3,892 Cr) with sequential decline of 1% QoQ
  • General staffing headcount fell 1% QoQ to 463k and revenue slipped 2% QoQ; telecom sector saw decline
  • Adjusted PAT growth was only 2% YoY, underscoring weak core earnings momentum
  • Overseas EBITDA margin dipped from 7.0% in Q3 to 6.2% in Q4, driven by mix shift
  • Exceptional costs from labor code and demerger continued to distort reported figures (PBT impact of ₹-7 Cr in Q3)
Investor Lens
Quess delivered a strong profit beat in Q4 FY26, with EBITDA margin reaching a record 2.2% and double-digit growth in high-margin segments (Professional +47%, Overseas +18%). However, topline growth remains anaemic at 6% YoY, and general staffing – the core volume business – showed both sequential headcount and revenue decline. The company’s net cash position (₹271 Cr) and 20% ROE support the dividend story, but without faster revenue acceleration, margin expansion alone cannot sustain premium valuation. Key monitorables for next quarter: whether general staffing headcount recovers, professional staffing maintains double-digit margins, and overseas business can hold or improve EBITDA rates. The investment thesis is intact but hinges on re-igniting volume growth.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Massive 167.4% Net Profit surge despite stagnant margins and modest 6.5% revenue growth
Revenue
Revenue grew by a modest 6.5% YoY to ₹3,892.0 Cr, indicating steady but slow top-line expansion. Sequentially, the company saw a minor decline of 1.0% compared to the December 2025 quarter.
Profitability
Net Profit witnessed an exceptional jump of 167.4% YoY to reach ₹64.0 Cr, significantly aided by a low tax rate of 7%. This surge is further reflected in the EPS turning positive to 4.30 compared to -6.41 in the previous year.
Margins
Operating Profit Margin (OPM) remained static at a very thin 2% for both the current and previous quarters. While absolute operating profit grew by 28.4% YoY to ₹86.0 Cr, the business continues to operate on razor-thin margins characteristic of the high-volume services sector.
Balance Sheet
The balance sheet remains lean with a low Debt-to-Equity ratio of 0.11 and total borrowings of ₹124.0 Cr. Reserves stand at ₹1,017.0 Cr against total assets of ₹3,039.0 Cr, indicating a stable financial position.
Key Risks
The primary risk is the incredibly thin OPM of 2%, which leaves very little room for error if operational costs rise. Additionally, the ROCE and ROE are both below 10%, suggesting relatively low efficiency in capital utilization.
Outlook
The massive turnaround in profitability provides a strong base, but long-term value will depend on scaling the 2% margins. With a PE of 13.5, the market appears cautious about the sustainability of this earnings growth.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
a) General Staffing
3,409
EBIT 45
3,328
EBIT 52
b) Professional staffing
230
EBIT 29
232
EBIT 30
c) Overseas business
290
EBIT 20
332
EBIT 21
d) Digital Platforms
0
EBIT -2
1
EBIT -1
Total 3,930 3,892

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Industry-specific KPIs with historical trend — AI-extracted from investor presentations
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📊 Analysis Methodology

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Investment Risk:
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