TeamLease Services Limited (TEAMLEASE) AI Stock Analysis

• Market Cap: ₹23.21B
• Dividend Yield: N/A
• Average Volume (3M): 756.00
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.71
• Revenue Growth: 14.13%
• EPS Growth: 13.09%
• Country: IN
• Employees: 2,117
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 24.89
• Shares Outstanding: 16,768,900
• 10 Day Avg. Volume: 609
• 30 Day Avg. Volume: 756
• PEG Ratio: -10.65
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 42.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹1,485.00 ▼(-6.33% Downside)

The overall stock score reflects a combination of steady financial performance and bearish technical indicators. While the company shows strong revenue growth, concerns about cost management and cash flow efficiency weigh on the score. The stock's current downtrend and moderate valuation further influence the overall assessment.

Positive Factors

Revenue Growth

Double-digit revenue growth reflects sustained demand for outsourced staffing and HR services. Over a multi-month horizon this supports scale economies, recurring client billing and capacity to invest in sales/training, underpinning durable top-line momentum across cycles.

Diversified Business Model

Multiple, related revenue streams—temporary staffing, placements, training and payroll/compliance—reduce single-market dependence. Cross-selling and recurring payroll services increase client stickiness and revenue stability, enhancing resilience to sector-specific shocks.

Manageable Leverage

A healthy equity base and moderate leverage provide financial flexibility to fund growth, absorb working-capital swings, and invest in technology or training. Manageable debt levels lower default risk and support longer-term strategic initiatives without immediate refinancing pressure.

Negative Factors

Free Cash Flow Volatility

Declining and volatile free cash flow weakens the company’s ability to convert earnings into cash for capex, recruitment, or to smooth payroll cycles. In staffing businesses, stable cash conversion is critical for funding wage advances and scaling operations sustainably.

Margin Pressure

A recent dip and historical fluctuation in gross margins suggest cost or pricing pressures—likely from higher wage costs or competitive fee compression. Persistent margin erosion reduces incremental profitability and limits reinvestment capacity over the medium term.

Rising Liabilities

A trend toward higher liabilities versus assets can tighten liquidity and increase reliance on external funding. Coupled with weaker free cash flow, this reduces balance sheet resilience and heightens risk if hiring demand softens or payment cycles lengthen.

TeamLease Services Limited Business Overview & Revenue Model

Company Description

TeamLease Services Limited provides human resource services to various industries in India. The company offers temporary and permanent recruitment, payroll process outsourcing, regulatory compliance, and vocational training/education and assessment services. It also provides staffing services, including consumer, industrial, retail and e-commerce, emerging, IT, telecom, and BFSI sector staffing; hiring services; infrastructure and assets management services for hardware, software, personal protect equipment, office space and transportation, office and administration, hygiene and sanitization, and other areas; learning solutions, such as higher education solutions, corporate learning solutions, and CSR services; and degree apprenticeship services comprising hiring apprentices, apprenticeship facilitation, and placement program for institutes. The company offers its solutions primarily to financial services, consumer, electronics, manufacturing, telecom, technology, healthcare, agriculture, chemicals, retail, ecommerce, and logistics and transportation industries. TeamLease Services Limited was incorporated in 2000 and is headquartered in Bengaluru, India.

How the Company Makes Money

TeamLease generates revenue primarily through its staffing services, which include providing temporary and permanent workforce solutions to businesses. The company charges clients a fee based on the salaries of the employees it places, which typically includes a margin over the payroll costs. Additionally, TEAMLEASE earns revenue from payroll and compliance outsourcing services, where they manage the entire payroll process for clients, ensuring compliance with labor laws and regulations. The company also has a skill development initiative, which is funded by government partnerships and corporate training contracts, contributing to its overall revenue. Strategic partnerships with various organizations and government bodies further enhance its service offerings and revenue potential.

TeamLease Services Limited Financial Statement Overview

Summary

TeamLease Services Limited shows steady revenue growth and stable profitability margins. However, there are concerns about cost management and cash conversion efficiency, which need monitoring.

Income Statement

TeamLease Services Limited has demonstrated a strong revenue growth trend over the years, with a notable increase from 2020 to 2025. The Gross Profit Margin has fluctuated, with a dip in the latest annual report, indicating some potential issues with cost management. The Net Profit Margin is stable, and the EBIT and EBITDA Margins show consistent profitability, albeit with some room for improvement.

Balance Sheet

The company's balance sheet highlights a healthy equity position with a moderate Debt-to-Equity Ratio, suggesting manageable leverage levels. The Return on Equity has been positive, reflecting the company's ability to generate profits from shareholders' investments. The Equity Ratio indicates a stable capital structure, although there is a slight increase in liabilities over assets, which needs monitoring.

Cash Flow

Cash flow analysis reveals fluctuating free cash flow, with a decrease in the latest year. The Operating Cash Flow to Net Income Ratio is positive, indicating cash earnings are backing reported profits. However, the decline in free cash flow growth is a concern, and the Free Cash Flow to Net Income Ratio suggests potential issues in converting income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	114.67B	111.56B	93.22B	78.70B	64.80B	48.81B
Gross Profit	3.24B	2.77B	3.21B	3.00B	6.78B	5.18B
EBITDA	1.80B	1.38B	1.80B	1.64B	903.17M	1.30B
Net Income	1.15B	1.09B	1.12B	1.11B	384.28M	775.01M
Balance Sheet
Total Assets	0.00	21.45B	19.37B	17.68B	15.40B	13.11B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.41B	4.32B	4.39B	3.43B	3.50B
Total Debt	0.00	1.18B	1.05B	1.00B	598.33M	228.49M
Total Liabilities	-9.23B	12.22B	11.26B	9.47B	8.35B	6.55B
Stockholders Equity	9.23B	9.07B	7.98B	8.08B	6.93B	6.52B
Cash Flow
Free Cash Flow	0.00	733.90M	973.00M	1.07B	-195.45M	2.93B
Operating Cash Flow	0.00	1.04B	1.18B	1.26B	-61.48M	3.03B
Investing Cash Flow	0.00	-1.48B	407.90M	-1.23B	-885.02M	-122.67M
Financing Cash Flow	0.00	-350.30M	-1.51B	-243.59M	-130.74M	-444.03M

TeamLease Services Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1585.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TEAMLEASE, the sentiment is Neutral. The current price of 1585.4 is above the 20-day moving average (MA) of 1460.05, above the 50-day MA of 1550.91, and below the 200-day MA of 1789.07, indicating a neutral trend. The MACD of -39.96 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 44.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:TEAMLEASE.

TeamLease Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAJGVK	72 Outperform	₹22.56B	15.60	―	0.48%	9.49%	40.16%
UNIPARTS	70 Outperform	₹19.81B	17.02	―	3.06%	-3.81%	14.23%
MSTCLTD	64 Neutral	₹31.45B	7.56	―	9.28%	-48.50%	92.06%
TEAMLEASE	58 Neutral	₹23.21B	20.37	―	―	14.13%	13.09%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
QUESS	55 Neutral	₹31.17B	50.39	―	4.70%	-16.43%	-75.38%
SABTNL	51 Neutral	₹41.83B	-435.01	―	―	―	―

TeamLease Services Limited Corporate Events

TeamLease Shifts Registered Office Within Bengaluru City Limits

TeamLease Services Limited has shifted its registered office within Bengaluru, moving from its earlier Koramangala Industrial Layout address to new premises at INFINIX SQUARE in HAL Industrial Estate, Vibhutipura, effective January 8, 2026. The move, approved by the board via circular resolution, remains within the same city limits and Registrar of Companies jurisdiction, indicating an administrative relocation that is not expected to alter the company’s regulatory framework or listing status but may support operational consolidation or infrastructure needs as the HR services provider continues to expand its activities.

TeamLease Names Vamsikrishna Ithamraju as Chief Digital and Information Officer

TeamLease Services has appointed Vamsikrishna Ithamraju as Chief Digital and Information Officer (CDIO), effective January 7, 2026, to lead digital transformation projects and head technology initiatives for the company’s employment cluster. Bringing over two decades of technology leadership experience across financial services, fintech, capital markets and consulting, including his recent role as CTO at Axis Mutual Fund, Ithamraju is expected to strengthen TeamLease’s push toward cloud-native, AI-led and scalable digital platforms, supporting its operational efficiency, customer experience, and competitive positioning in the technology-driven HR and staffing industry.

TeamLease Announces Leadership Transition with New MD & CEO

TeamLease Services Limited has announced a significant leadership transition as part of its long-term succession planning. Suparna Mitra will take over as Managing Director and CEO, succeeding Ashok Reddy, who will transition to Executive Vice Chairman. This change aims to drive higher margins, faster growth, and institutionalization, leveraging Suparna’s strategic thinking and technology orientation to further TeamLease’s mission of enhancing employment opportunities in India.

TeamLease Announces Trading Window Closure Amid Restructuring Plans

TeamLease Services Limited has announced the closure of its trading window in compliance with SEBI regulations on insider trading. This closure is set from December 2 to December 8, 2025, due to the consideration of price-sensitive restructuring items at an upcoming board meeting, impacting designated persons and their immediate relatives.

TeamLease Releases Q2 FY26 Earnings Call Recording

TeamLease Services Limited has announced that the audio recording of its Q2 FY26 earnings call is now available on its website. This release is in compliance with the SEBI LODR Regulations, 2015, ensuring transparency and accessibility for stakeholders to review the company’s financial performance and strategic discussions.