TeamLease Services Limited

Industrials — Staffing & Employment Services · NSE

₹1,149.00+₹27.30 (+2.43%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of TeamLease Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

TeamLease Services Limited engages in the provision of human resource services in India and internationally.

IndustryStaffing & Employment Services

SectorIndustrials

Employees2,209

Annual revenue₹11,721 Cr

How does it make money?

Turns over ₹11,721 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 2,209 employees supports ₹5.31 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin1.9%

Net margin1.2%

Revenue / employee₹5.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 11.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.1%

ROE13.4%

Peer median ROE15.2%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 12.1% and earnings to grow about 17.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.1%

Est. earnings growth+17.6%

Analysts11

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +49% while net margin moved -16% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+49%

Margin effect-16%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 13.4% is moderate

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

78/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

13.0x

3Y Median

29.3x

40 monthly readings · mean 32.2x · range 13.8x–54.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 56% below its 3y median of 29.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 85% below the peer median of 88.8x.

vs. its own history

Cheap

29.3x median over 40 months · -56%

vs. sector peers

Cheap

88.8x median of 3 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.0x

P/B

1.85x

EV/EBITDA

7.8x

PEG

1.66

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 155% over 3 years.
Valuation below its historical average
At 13.0x the stock trades 56% below its own median of 29.3x.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 56% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹272 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.2% CAGR
Latest reported year was 5.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 1.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹272 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹1,755 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.0x

Cheap

Cheap against the generic band

P/B Ratio

1.85x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹88.26

Profitable

Profitable on a per-share basis

ROE

13.4%

Moderate

Moderate capital efficiency

ROCE

11.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

5.0%

Modest

Modest growth

Profit Growth (YoY)

31.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹272 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,149

P/E (Forward)

11.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

0.6%

Weak

Thin margins leave little room for error

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1140.5 / 1207.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,860 Cr	₹9,312 Cr	₹11,093 Cr	₹11,721 Cr	+14.2%
EBITDA	₹165 Cr	₹183 Cr	₹175 Cr	₹217 Cr	+9.6%
EBITDA Margin	2.1%	2.0%	1.6%	1.9%	—
PAT (Net Profit)	₹111 Cr	₹112 Cr	₹109 Cr	₹140 Cr	+7.9%
EPS	₹65	₹66.65	₹64.86	₹83.3	+8.6%
ROE	13.8%	14.1%	12.0%	13.4%	—
ROCE	11.9%	13.0%	11.6%	11.1%	—
Total Debt	₹100 Cr	₹105 Cr	₹118 Cr	₹116 Cr	+5.1%
Free Cash Flow	₹107 Cr	₹97 Cr	₹73 Cr	₹272 Cr	+36.7%

🟢 Revenue has grown at 14.2% a year over 3 years.

🟢 EBITDA has grown at 9.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.9% over 3 years.

🟢 PAT (Net Profit) has grown at 7.9% a year over 3 years.

🟢 EPS has grown at 8.6% a year over 3 years.

🟡 ROE has held roughly flat at 13.4% over 3 years.

🟡 ROCE has held roughly flat at 11.1% over 3 years.

🔴 Total Debt has grown at 5.1% a year over 3 years.

🟢 Free Cash Flow has grown at 36.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,800 Cr

Total Liabilities

₹1,741 Cr

Total Debt

₹116 Cr

Cash & Equivalents

₹170 Cr

Operating Cash Flow

₹302 Cr

Capex

-₹29 Cr

Shareholding (proxy)

Institutional Holding

49.3%

Insider Holding

36.2%

Analyst Consensus

Recommendations

12 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,640.4

+42.8% vs CMP

Target Range

₹1,210 – ₹2,015

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 positive3 mixed1 general

TeamLease Services Share Price Update on Price Rise Today

Univest, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

TeamLease Services Q2FY27 Results: Earnings call scheduled for Nov 5

scanx.trade, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

TeamLease Services announces ₹238 crore share buyback at ₹1,600 per share; posts 26% rise in Q4 net profit

Livemint, 21 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Teamlease board approves share buyback worth Rs 238 crore; to buy over 14.87 lakh shares via tender offer

The Economic Times, 20 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

TeamLease Services (TEAMLEASE.NS) Edges Lower to ₹1193.1, Holding Above ₹1133.44 Support - Positive Gamma

siam.in, 23 Sept

Earnings To Watch: TeamLease Services Ltd (NSE:TEAMLEASE) Q1 2027 -- GF Value Sees 192% Upside

Yahoo Finance, 28 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong16.5/20

🔴GrowthWeak8.9/20

🔴ProfitabilityWeak6.5/15

🟢ValuationAttractive11.8/15

🟡RiskModerate6.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓Revenue growth stays above 11% a year14.2% CAGR
✓EBITDA margin holds above 0%1.9%
✓Free cash flow remains positive₹272 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 8%11.1%