Quess General Staffing headcount rises to 486,000 in Q2 FY27

Quess Corp’s General Staffing segment reached 486,000 associates in Q2 FY27 after reporting 20,857 associate additions and 116 new contracts. Revenue rose 15% year on year to Rs 3,823 crore, while earnings before interest, tax, depreciation and amortisation margin was 1.5%; the presentation also disclosed a one-time Rs 120 crore Labour Code-related revenue increase.

How much did General Staffing's workforce grow in Q2 FY27?

General Staffing closed Q2 FY27 with 486,000 associates, compared with 466,000 in Q1 FY27 and 468,000 in Q2 FY26. The closing headcount therefore rose by 20,000 sequentially and by 18,000 year on year, while the presentation separately reports 20,857 associate additions during the quarter.

The segment added 116 contracts and recorded its highest-ever sourcing of about 57,000 during Q2 FY27. Management attributed the sourcing outcome to technology and recruiter productivity. The hiring snapshot also states gross additions of about 133,000 versus 104,000, although it does not label the period for the 104,000 comparison.

Retail accounted for 34,779 gross additions in the sector hiring snapshot, followed by industrials at 33,775 and banking, financial services and insurance (BFSI) at 20,601. Telecom contributed 14,880, fast-moving consumer goods contributed 14,722, and e-commerce and logistics contributed 8,693.

Maharashtra recorded 22,862 gross additions, ahead of Karnataka at 12,974, Tamil Nadu at 11,936 and Uttar Pradesh at 11,558. Gujarat added 10,313, while the geographic category labelled Others recorded 31,439 additions.

How did General Staffing's revenue and EBITDA change?

General Staffing generated Rs 3,823 crore of revenue in Q2 FY27, up 6% from Rs 3,596 crore in Q1 FY27 and 15% from Rs 3,317 crore in Q2 FY26. This was the highest revenue in the five reported quarters, exceeding Rs 3,409 crore in Q3 FY26 and Rs 3,328 crore in Q4 FY26.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were Rs 57 crore in Q2 FY27, compared with Rs 51 crore in Q1 FY27 and Rs 46 crore in Q2 FY26. The presentation reports sequential EBITDA growth of 11% and year-on-year growth of 23%, while the EBITDA margin was 1.5%, against 1.4% in each comparison quarter.

Revenue declined from Rs 3,409 crore in Q3 FY26 to Rs 3,328 crore in Q4 FY26 before increasing in both subsequent quarters. EBITDA followed a different sequence, rising to Rs 52 crore in Q4 FY26, easing to Rs 51 crore in Q1 FY27 and then reaching Rs 57 crore in Q2 FY27; margin ranged from 1.3% to 1.6% across the five quarters.

The presentation says the New Labour Code created a one-time Rs 120 crore increase in Q2 FY27 revenue. Management separately described revenue and operating-profit growth as double digit with a stable margin profile, but it did not provide revenue or EBITDA excluding the one-time effect.

What operating measures changed for General Staffing?

General Staffing’s associate-to-core full-time-equivalent (FTE) ratio improved to 289 in Q2 FY27 from 273 in Q1 FY27 and 286 in Q2 FY26. The ratio had fallen to 270 in Q4 FY26, then rose for two consecutive quarters as the segment reported about 57,000 sourcing in Q2 FY27.

The collect-and-pay percentage was 74% in Q2 FY27, down from 75% in Q1 FY27 and 76% in each of Q2 FY26, Q3 FY26 and Q4 FY26. The presentation does not give a reason for the decline, but it reports quarterly cash collection of about Rs 4,300 crore, its highest-ever level.

Days sales outstanding (DSO) improved to 24 days in Q2 FY27, while accounts receivable (AR) remained stable at 15 days. The presentation does not state the earlier DSO figure or the period against which it improved, but these measures were reported alongside Rs 3,823 crore of quarterly revenue.

The hiring mix was 80% male and 20% female in Q2 FY27, versus 78% and 22%, respectively, in Q1 FY27. Transfers accounted for 57% of the sourcing mix, down from 62%, while sourcing represented 43%, up from 38%; existing formalisation increased to 72% from 57%.

Which sectors made up General Staffing's workforce?

General Staffing’s largest closing workforce category was the source label CRT, which the presentation does not expand, at 51% in Q2 FY27. CRT was down from 53% in Q1 FY27 but above 43% in Q2 FY26, while manufacturing and industrials rose to 25% from 19% sequentially and 18% year on year.

BFSI accounted for 18% of the workforce in Q2 FY27, compared with 21% in Q1 FY27 and 24% in Q2 FY26. The category labelled Others was 6%, down from 7% in the preceding quarter and 10% a year earlier, showing that the increase in manufacturing and industrials coincided with lower BFSI and Others shares.

The sector hiring snapshot offers a separate view of additions rather than closing concentration: retail recorded 34,779 gross additions and industrials 33,775, compared with 20,601 in BFSI. Average age was 26 for male hires, down from 27 in Q1 FY27, and 25 for female hires, unchanged from the previous quarter.

Conclusion

General Staffing expanded its closing associate base to 486,000 in Q2 FY27 while revenue reached Rs 3,823 crore and EBITDA reached Rs 57 crore. The quarter included 116 new contracts, about 57,000 sourcing and an associate-to-core FTE ratio of 289, with EBITDA margin at 1.5%.

The next quarterly update will indicate whether growth continues after the disclosed one-time Rs 120 crore Labour Code-related revenue increase. The disclosed measures to monitor are collect-and-pay at 74%, DSO at 24 days, AR at 15 days, and the 25% manufacturing and industrials workforce share versus BFSI at 18%.