Quess Corp Q2 profit rises 44% as staffing revenue expands

Quess Corp Limited reported consolidated profit of Rs 74.661 crore for the quarter ended 30 September 2026, up 44% from Rs 51.772 crore a year earlier. Revenue from operations rose to Rs 4,396.485 crore from Rs 3,831.608 crore, with general staffing revenue increasing to Rs 3,822.715 crore and accounting for most of the growth.

How did Quess Corp perform in Q2 2026?

Quess Corp reported a 44% year-on-year increase in quarterly profit, although profit declined from the preceding quarter. Profit for the period was Rs 74.661 crore in the quarter ended 30 September 2026, against Rs 51.772 crore in the quarter ended 30 September 2025 and Rs 82.124 crore in the quarter ended 30 June 2026. Basic earnings per share were Rs 5.05, compared with Rs 3.46 a year earlier and Rs 5.50 in the June quarter.

Revenue from operations increased 15% year on year to Rs 4,396.485 crore in Q2 2026 from Rs 3,831.608 crore, while total income reached Rs 4,398.512 crore after Rs 2.027 crore of other income. Employee-benefit expense rose to Rs 4,180.581 crore from Rs 3,660.079 crore, and total expenses rose to Rs 4,333.873 crore from Rs 3,778.183 crore. Profit before exceptional items and tax consequently increased to Rs 64.639 crore from Rs 57.463 crore.

Quess Corp’s sequential profit decline followed a reduction in profit before tax to Rs 64.639 crore from Rs 85.883 crore, despite revenue rising by Rs 214.800 crore from the June quarter. Other income fell to Rs 2.027 crore from Rs 25.547 crore, while unallocated corporate expenses increased to Rs 21.314 crore from Rs 13.346 crore. The tax line was a credit of Rs 10.022 crore in the September quarter, compared with a tax expense of Rs 3.759 crore in the June quarter.

Which Quess Corp segment drove revenue growth?

General staffing drove most of Quess Corp’s quarterly revenue increase, adding Rs 505.826 crore from the year-earlier quarter. Its revenue rose to Rs 3,822.715 crore in Q2 2026 from Rs 3,316.889 crore in Q2 2025, compared with consolidated revenue growth of Rs 564.877 crore. General staffing also remained the largest segment, representing about 87% of revenue from operations in the September 2026 quarter.

General staffing segment result increased to Rs 56.850 crore from Rs 46.188 crore a year earlier. Professional staffing revenue rose to Rs 254.068 crore from Rs 223.854 crore, but its segment result edged down to Rs 26.691 crore from Rs 27.338 crore. Overseas business revenue increased to Rs 318.058 crore from Rs 290.387 crore and its segment result rose to Rs 21.979 crore from Rs 17.887 crore.

Digital Platforms returned to a segment profit of Rs 1.517 crore in Q2 2026, compared with segment losses of Rs 1.764 crore in the June 2026 quarter and Rs 2.098 crore a year earlier. Its revenue was Rs 1.644 crore, compared with Rs 0.478 crore in Q2 2025. Aggregate segment results rose to Rs 107.037 crore from Rs 89.315 crore year on year before corporate expenses, depreciation, finance costs and other income.

What changed in Quess Corp’s first-half cash flow and balance sheet?

Quess Corp’s profit for the half year ended 30 September 2026 rose to Rs 156.785 crore from Rs 102.758 crore in the comparable prior-year period. First-half revenue from operations increased to Rs 8,578.170 crore from Rs 7,483.026 crore, while profit before tax rose to Rs 150.522 crore from Rs 109.695 crore. General staffing generated Rs 7,419.191 crore of first-half revenue, up from Rs 6,438.965 crore.

Net cash flow from operating activities increased to Rs 366.150 crore in the half year from Rs 158.337 crore a year earlier. Quess Corp received net tax refunds of Rs 229.079 crore, compared with net tax payments of Rs 40.366 crore in the prior-year period. This was partly offset by a Rs 571.551 crore cash use from changes in trade receivables and unbilled revenue, compared with Rs 59.545 crore in the previous first half.

Cash and cash equivalents stood at Rs 416.795 crore on 30 September 2026, up from Rs 178.128 crore at 31 March 2026. Investing activities generated Rs 33.649 crore of net cash, compared with an outflow of Rs 34.454 crore a year earlier, while financing activities used Rs 161.878 crore. Financing cash outflows included Rs 89.508 crore of dividends paid and Rs 45.144 crore spent acquiring treasury shares.

Quess Corp’s total assets increased to Rs 3,650.357 crore at 30 September 2026 from Rs 3,039.112 crore at 31 March 2026. Unbilled trade receivables rose to Rs 1,311.465 crore from Rs 774.261 crore, while billed trade receivables increased to Rs 838.747 crore from Rs 807.980 crore. Total liabilities increased to Rs 2,464.943 crore from Rs 1,870.886 crore, including non-current provisions of Rs 626.403 crore.

What regulatory and accounting matters did Quess Corp disclose?

Quess Corp’s statutory auditors issued a qualified review conclusion on the consolidated results for the quarter and half year ended 30 September 2026 because of uncertainty around contested income-tax deductions. The company assessed contingent liabilities of Rs 387.994 crore towards tax demands including interest. It claimed a Section 80JJAA deduction of Rs 144.700 crore in the September quarter and Rs 215.263 crore for the first half.

The company disclosed that assessment orders for fiscal 2017 to fiscal 2023 had primarily disallowed deductions under Section 80JJAA of the Income Tax Act and depreciation on goodwill. Quess Corp said it had filed appeals for fiscal 2017 through fiscal 2022 and objections over fiscal 2023, and management believes the deductions will be sustained upon ultimate resolution. Deloitte Haskins & Sells LLP said it could not comment on whether adjustments were necessary pending resolution and acceptance by the Income Tax Authority.

Quess Corp also disclosed a provident-fund demand of Rs 71.656 crore for certain salary components relating to April 2018 through March 2019. The Central Government Industrial Tribunal granted a complete waiver from pre-deposit and stayed operation of the order, with the next hearing scheduled for 10 November 2026. The auditors drew attention to the provident-fund litigation but did not modify their conclusion on that matter.

The board declared an interim dividend of Rs 5 per equity share for financial year 2026-27 on 30 October 2026, aggregating to Rs 74.693 crore. Quess Corp also said the incremental impact of the new Labour Codes for billable employees was recorded in employee-benefit expense with a corresponding revenue credit because the costs are contractually recoverable from customers. The company said that treatment did not affect profit for the September quarter.

Conclusion

Quess Corp’s September-quarter results combined a 15% increase in revenue with a 44% rise in profit from a year earlier, led by the Rs 505.826 crore increase in general staffing revenue. The comparison with the June quarter was different: revenue rose, but profit before tax fell by Rs 21.244 crore as other income declined and unallocated corporate expenses increased.

Readers should watch the provident-fund hearing scheduled for 10 November 2026 and progress in the tax cases tied to Rs 387.994 crore of contingent liabilities. Quess Corp said it will also evaluate any further Labour Code impact after remaining state rules, government clarifications and confirmation of contractual terms from remaining customers.